ECARX Holdings Inc (ECX) saw its stock surge 5.20% in pre-market trading on Monday, following the release of its impressive third-quarter 2025 financial results. The company, which specializes in automotive intelligence and connected technologies, has reported its first quarterly profit, marking a significant turnaround in its financial performance.
According to the unaudited financial results, ECARX posted a net profit of $0.9 million for Q3 2025, a substantial improvement from the $47.2 million net loss recorded in the same period last year. The company's Adjusted EBITDA also showed remarkable progress, reaching $8.3 million compared to a loss of $31.9 million year-over-year. This financial turnaround has evidently caught the attention of investors, driving the stock's pre-market rally.
The positive results can be attributed to ECARX's strategic initiatives in cost management and operational efficiency. The company reported a 46% decrease in research and development expenses to $25.9 million, while selling, general and administrative expenses fell by 37% to $18.4 million. Moreover, ECARX's continued global expansion and enhanced supply chain efficiency have contributed to increased shipment volumes and improved gross margins. With a total cash position of $50.4 million as of September 30, 2025, ECARX appears well-positioned for future growth, which may further fuel investor optimism in the automotive technology sector.
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