Stock Track | ECARX Plummets 5.80% Despite Q3 Profit as Revenue Misses Estimates and New Convertible Notes Raise Concerns

Stock Track11-03

Shares of ECARX Holdings Inc (Nasdaq: ECX) plummeted 5.80% in pre-market trading on Monday following the release of its third-quarter 2025 financial results. Despite reporting its first-ever quarterly profit, investors seemed concerned about revenue growth and a new convertible note issuance.

ECARX reported breakeven earnings per share for Q3, a significant improvement from a loss of $0.14 per share in the same period last year and beating the analyst estimate of a $0.03 loss. However, the company's revenue of $219.9 million, while up 11% year-over-year, fell short of the analyst consensus estimate of $270.214 million by 18.62%.

Adding to investor concerns, ECARX announced it had entered into an agreement to issue up to $150 million in convertible notes. While the company stated this would provide more liquidity to fuel international expansion and drive product innovation, the potential dilution to existing shareholders may have contributed to the stock's decline. The sharp drop in share price reflects investor unease about the company's growth trajectory and capital structure, despite its achievement of profitability.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment