Shares of Microvast Holdings, Inc. (NASDAQ: MVST) tumbled 5.62% on Monday following the release of the company's third quarter 2025 financial results. The electric vehicle battery maker reported mixed results, with strong revenue growth offset by a surprise loss and earnings miss.
Microvast announced record Q3 revenue of $123.3 million, marking a 21.6% increase year-over-year and beating analyst estimates. The company also reported an improved gross margin of 37.6%, up from 33.2% in the same quarter last year. However, investors appeared to focus on the bottom-line disappointment, as Microvast swung to a net loss of $1.5 million, compared to a net profit of $13.2 million in Q3 2024.
The company's adjusted earnings per share came in at $0.04, falling short of the $0.05 consensus estimate. This earnings miss, combined with the unexpected net loss, seems to be the primary driver behind the stock's sharp decline. Despite maintaining its full-year 2025 revenue growth target of 18% to 25%, the market's reaction suggests that investors were hoping for stronger earnings performance to justify the company's growth trajectory.
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