LONDON, Aug. 11, 2026 /PRNewswire/ -- ECARX Holdings Inc. (Nasdaq: ECX) ("ECARX" or the "Company"), a leading global automotive intelligence company, today announced unaudited financial results for the quarter ended June 30, 2026.
Ziyu Shen, ECARX CEO, commented, "Despite a challenging automotive backdrop, ECARX delivered a strong second quarter in both financial and strategic terms. Q2 saw year-on-year revenue growth of 45%, operating and R&D costs down, a near doubling of gross margin, a reduction in net loss, and our fourth consecutive quarter of positive adjusted EBITDA. Our decision in Q2 last year to shift to higher value products saw shipments of our next-generation Antora$(R)$ and Pikes(R) products rise 52% and over 2,000% year-on-year, respectively. This strategic shift, and the successful balancing of increased memory costs with our customers, allowed us to significantly increase revenue despite broadly flat shipments reflecting the challenging backdrop. Our lean operating framework allowed us to translate this revenue growth into sustained profitability at the adjusted EBITDA level: overall operating costs were down despite higher revenue, and we were able to implement R&D cost savings due to operational efficiencies and the deployment of AI technologies.
Strategically, we continue to capture high value opportunities across the global auto industry. We announced the agreement to acquire the Flyme software business which will allow us to fully control the software layer in our products. We also announced a strategic partnership with TPK Holdings to develop the ORCA LiDAR platform, which will add further capability to our product offering. Our progress on the industrialization of our program with Volkswagen continues well, and last month we were honored with Volkswagen Brazil's Partnership Connectivity Award, which celebrated our leading digital cockpit and vehicle technologies.
We are entering a period of growth for ECARX as we continue to develop our full-stack auto-technology capabilities to position the Company for sustained value creation in the near- and long-term, and define the next generation of intelligent vehicles."
Second Quarter 2026 Financial Results:
-- Total revenue was US$225.2 million, up 45% year-over-year ("YoY").
-- Sales of goods revenue was US$196.4 million, up 50% YoY. The
increase was attributable to three primary factors: growing demand
outside China, a shift in product mix toward a higher proportion
of automotive computing platform products, which carry a greater
unit price relative to SoC core module products, as well as a
pricing adjustment implemented to offset the impact of elevated
memory costs.
-- Software license revenue was US$0.7 million, down 42% YoY,
primarily due to a decrease of sales volume for the software
license compared to the second quarter last year.
-- Service revenue was US$28.1 million, up 21% YoY. The change was
primarily attributable to a substantial increase in design and
development contract deliveries, driven by a heightened volume of
new model launches in the second quarter of 2026, most notably
within the China market.
-- Total cost of revenue was US$180.7 million, up 30% YoY, driven primarily
by rising memory costs associated with the sales of goods.
-- Gross profit was US$44.5 million, up 165% YoY, resulting in the gross
margin of 19.8%. The increase in gross profit was primarily due to the
price adjustment for the sales of goods, as well as higher service
revenue margin supported by a more favorable cost structure. As a result,
gross margin increased from 10.8% to 19.8% YoY.
-- Research and development expenses were US$29.1 million, down 14% YoY,
primarily driven by the continued resource prioritization that enhanced
operational efficiencies and synergies from R&D integration and the
internal deployment of AI across our business to reduce structural costs.
-- Selling, general and administrative expenses and others, net were US$21.6
million, down 8% YoY, primarily driven by the continued improvement in
global operating efficiencies and lower share-based compensation expenses
incurred during the quarter.
-- Net loss was US$12.0 million, compared with US$45.4 million during the
same period last year. The considerable improvement was primarily
attributable to a marked expansion in gross margin, in conjunction with a
reduction in total operating expenses including share-based compensation.
-- Adjusted EBITDA (non-GAAP) gain was US$0.5 million, compared with
adjusted EBITDA (non-GAAP) loss of US$29.8 million in the same period
last year. See "Non-GAAP Financial Measure."
-- Total cash as of June 30, 2026 was US$165.5 million including US$117.8
million reserved for purchase consideration payable for the Flyme
acquisition.
-- Looking ahead, our visibility into the remainder of the year gives us the
confidence around our strategic trajectory:
-- Based on our current backlog and accelerating commercial pipeline,
we are reiterating our full-year 2026 guidance of US$1.0-US$1.1
billion in total revenue.
-- Our margin profile will naturally be influenced by the ongoing
dynamics and uncertainty around global memory costs, as well as
the cadence of our strategic investments. We do expect that in the
coming quarters, gross margin and operating profitability will be
negatively impacted by memory cost dynamics.
Recent Business Development Highlights and Updates:
Expanding Global Footprint and Automaker Partnerships
-- Around 12 million vehicles on the road globally with ECARX technologies
as of June 30, 2026
-- Honored with the Partnership Connectivity Award at Volkswagen do Brasil's
flagship annual supplier summit, The One 2026, in Rio de Janeiro,
recognizing ECARX across six evaluation pillars spanning innovation,
portfolio competitiveness, program support, delivery speed,
cross-functional alignment and product quality
-- Continued industrialization process for the Volkswagen Group program,
remaining firmly on track ahead of the anticipated 2027 launch for the
Latin American market
Deepening Innovation-Driven R&D Ecosystem
-- Entered into a definitive agreement to acquire the full Flyme software
business portfolio for approximately US$266 million, comprising Flyme
Auto, an in-vehicle cockpit operating system already deployed by ECARX in
more than two million vehicles, and the cross-device Flyme operating
system, securing end-to-end operating system capabilities above the
Cloudpeak(R) software stack
-- Signed a binding memorandum of business cooperation with TPK Holding Co.,
Ltd. to co-develop the ORCA LiDAR platform for global markets, with ECARX
leading system integration, sensor fusion and global commercialization
and mass production targeted for 2028 at TPK's manufacturing facility in
Thailand
Strengthening the Balance Sheet
-- Increased the issuance capacity of the 2025 Convertible Notes from US$100
million to US$130 million, with an existing institutional investor
subscribing for an additional US$15 million note, and the transfer of an
existing 2025 Note to a new investor to support ongoing platform
iteration, R&D upgrades, and commercial scaling of the full-stack
automotive intelligence solutions
Technological Advancements and Product Launches
-- Shipped over 550,000 units during the quarter, with high-end Antora(R)
and Pikes(R) solutions accounting for 42% of shipments, compared to 20%
in the same quarter last year
-- Initiated mass production for 9 new vehicle models across 4 brands
deploying Pikes(R) and Antora(R) solutions combined with the Cloudpeak(R)
cross-domain software stack and Flyme Auto
-- Secured 33 vehicle design wins during Q2 2026, further strengthening the
Company's commercial pipeline and long-term revenue momentum
# # #
Conference Call and Webcast Details
ECARX will host a webcast of its earnings conference call today, Tuesday, August 11, 2026, at 8:00 a.m. EST. To access the webcast, visit the News and Events section of the ECARX Investor Relations website, or visit the following link -- https://edge.media-server.com/mmc/p/46rah66v.
To join the earnings call by telephone, participants must preregister at https://register-conf.media-server.com/register/BIe8abcb76ec1e4761a1002346ff30cd05 to receive dial-in information.
A replay of the webcast and presentation materials will be available on the Company's Investor Relations website under the results and reports section following the event.
About ECARX
ECARX (Nasdaq: ECX), headquartered in London, is a leading global automotive intelligence company. ECARX provides the intelligent brain that powers the next generation of software-defined and AI defined vehicles. The company delivers end-to-end, full-stack solutions spanning advanced system-on-chip hardware, high-performance central computing platforms, intelligent cockpit technology, Advanced Driver Assistance Systems, cloud connectivity and physical AI, alongside bespoke vehicle software and intelligent operating systems.
As automakers transition to software-first and AI-first vehicle architectures, ECARX empowers automakers to streamline integration, reduce systemic complexity and optimize long-term cost efficiency. ECARX's proven technology is deployed in around 12 million vehicles worldwide, and is currently partnered with 18 global automakers and 28 vehicle brands to shape the future of automotive intelligence.
Founded in 2017 and listed on Nasdaq in 2022, ECARX operates from 15 major international locations across Europe, the Americas and Asia, with a global team of over 1,400 employees.
Forward-Looking Statements
This release contains statements that are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's beliefs and expectations as well as on assumptions made by and data currently available to management, appear in a number of places throughout this document and include statements regarding, amongst other things, results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate. The use of words "expects", "intends", "anticipates", "estimates", "predicts", "believes", "should", "potential", "may", "preliminary", "forecast", "objective", "plan", or "target", and other similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including, but not limited to statements regarding our intentions, beliefs or current expectations concerning, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies, future market conditions or economic performance and developments in the capital and credit markets and expected future financial performance, and the markets in which we operate.
For a discussion of these and other risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statement, see ECARX's filings with the U.S. Securities and Exchange Commission. ECARX undertakes no obligation to update or revise forward-looking statements to reflect subsequent events or circumstances, except as required by applicable law.
Non-GAAP Financial Measure
The Company uses adjusted EBITDA (non-GAAP) in evaluating its operating results and for financial and operational decision-making purposes. Adjusted EBITDA is defined as net loss excluding interest income, interest expense, income tax expense, depreciation of property and equipment, amortization of intangible assets, and share-based compensation expenses.
The Company presents this non-GAAP financial measure because it is used by the management to evaluate the Company's operating performance and formulate business plans. The Company believes that the non-GAAP measure helps identify underlying trends in its business that could otherwise be distorted by the effects of certain expenses that are included in net loss. The Company also believes that the use of the non-GAAP measure facilitates investors' assessment of its operating performance.
Adjusted EBITDA (non-GAAP) should not be considered in isolation or construed as alternatives to net loss or any other measures of performance or as indicators of the Company's operating performance. Investors are encouraged to compare the Company's historical adjusted EBITDA (non-GAAP) to the most directly comparable GAAP measure, net loss. Adjusted EBITDA (non-GAAP) presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data. The Company encourages investors and others to review the financial information in its entirety and not rely on a single financial measure.
For more information on the non-GAAP financial measure, please see the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this press release.
ECARX Holdings Inc.
Unaudited Condensed Consolidated Balance Sheets
As of As of
December 31, 2025 June 30, 2026
------------------ --------------
Millions, except otherwise noted US$ US$
ASSETS
Current assets
Cash 87.1 156.2
Restricted cash 6.1 9.3
Short-term investments 31.2 46.7
Accounts receivable -- third parties,
net 14.8 38.4
Accounts receivable -- related parties,
net 185.5 209.7
Notes receivable 6.0 2.9
Inventories 62.3 126.2
Amounts due from related parties 53.7 45.8
Prepayments and other current assets 36.5 61.9
------------------ --------------
Total current assets 483.2 697.1
================== ==============
Non-current assets
Long-term investments 61.5 61.6
Property and equipment, net 26.7 32.4
Intangible assets, net 40.4 43.6
Operating lease right-of-use assets 16.8 13.7
Goodwill 3.7 3.8
Other non-current assets -- third
parties 30.2 43.4
Other non-current assets -- related
parties -- 90.4
------------------ --------------
Total non-current assets 179.3 288.9
------------------ --------------
Total assets 662.5 986.0
================== ==============
LIABILITIES
Current liabilities
Short-term borrowings 310.7 444.8
Accounts payable - third parties 192.8 251.4
Accounts payable - related parties 104.5 45.9
Notes payable 19.3 21.0
Amounts due to related parties 54.6 91.5
Contract liabilities, current - third
parties 0.1 0.1
Contract liabilities, current - related
parties 7.3 3.8
Operating lease liabilities - current 5.0 5.0
Convertible notes payable-current 38.8 24.7
Accrued expenses and other current
liabilities 88.9 79.3
Income tax payable 1.0 1.0
------------------ --------------
Total current liabilities 823.0 968.5
------------------ --------------
Non-current liabilities
Long-term borrowings 5.6 111.8
Convertible notes payable, non-current 60.3 101.6
Operating lease liabilities, non-current 15.7 12.8
Warrant liabilities, non-current 1.1 1.0
Provisions 17.8 18.5
Other non-current liabilities - third
parties 20.7 21.2
Deferred tax liabilities 1.7 1.7
------------------ --------------
Total non-current liabilities 122.9 268.6
------------------ --------------
Total liabilities 945.9 1,237.1
================== ==============
Mezzanine equity
Redeemable non-controlling interests -- 14.8
------------------ --------------
Total mezzanine equity -- 14.8
------------------ --------------
SHAREHOLDERS' DEFICIT
Ordinary shares -- --
Additional paid-in capital 958.1 1,019.5
Treasury shares, at cost (30.0) (39.9)
Accumulated deficit (1,190.5) (1,213.3)
Accumulated other comprehensive loss (20.2) (31.1)
------------------ --------------
Total deficit attributable to ordinary
shareholders (282.6) (264.8)
------------------ --------------
Noncontrolling interests (0.8) (1.1)
------------------ --------------
Total shareholders' deficit (283.4) (265.9)
------------------ --------------
Liabilities and shareholders' deficit 662.5 986.0
================== ==============
ECARX Holdings Inc.
Unaudited Condensed Consolidated Statements of Comprehensive Loss
Six Months Ended Three Months Ended
June 30 June 30
------------------------
2025 2026 2025 2026
----------- ----------- ----------- -----------
Millions, except share
data and per share
data, or otherwise
noted US$ US$ US$ US$
Revenue
Sales of goods revenue 251.9 310.2 131.2 196.4
Software license
revenue 26.8 2.3 1.2 0.7
Service revenue 44.6 44.2 23.2 28.1
----------- ----------- ----------- -----------
Total revenue 323.3 356.7 155.6 225.2
----------- ----------- ----------- -----------
Cost of goods sold (226.9) (264.5) (117.6) (167.0)
Cost of software
licenses (16.5) (1.4) (2.2) (0.7)
Cost of services (29.9) (18.1) (19.0) (13.0)
----------- ----------- ----------- -----------
Total cost of revenue (273.3) (284.0) (138.8) (180.7)
----------- ----------- ----------- -----------
Gross profit 50.0 72.7 16.8 44.5
----------- ----------- ----------- -----------
Research and
development expenses (68.3) (52.6) (33.8) (29.1)
Selling, general and
administrative
expenses and others,
net (46.8) (39.3) (23.4) (21.6)
----------- ----------- ----------- -----------
Total operating
expenses (115.1) (91.9) (57.2) (50.7)
----------- ----------- ----------- -----------
Loss from operation (65.1) (19.2) (40.4) (6.2)
----------- ----------- ----------- -----------
Interest income 1.6 2.5 0.9 1.3
Interest expense (10.2) (18.0) (5.5) (8.3)
Share of results of
equity method
investments 0.1 14.2 -- --
Others, net 3.1 (1.5) 1.4 1.1
----------- ----------- ----------- -----------
Loss before income
taxes (70.5) (22.0) (43.6) (12.1)
----------- ----------- ----------- -----------
Income tax expense (2.1) (1.0) (1.8) 0.1
----------- ----------- ----------- -----------
Net loss (72.6) (23.0) (45.4) (12.0)
----------- ----------- ----------- -----------
Net loss attributable
to nonredeemable
noncontrolling
interests 3.6 0.3 2.4 (0.1)
Net loss attributable
to redeemable
noncontrolling
interests -- 1.7 -- 1.7
----------- ----------- ----------- -----------
Net loss attributable
to ECARX Holdings
Inc. (69.0) (21.0) (43.0) (10.4)
----------- ----------- ----------- -----------
Accretion of
redeemable
noncontrolling
interests -- (1.8) -- (1.8)
----------- ----------- ----------- -----------
Net loss attributable
to ECARX Holdings
Inc. ordinary
shareholders (69.0) (22.8) (43.0) (12.2)
----------- ----------- ----------- -----------
Net loss (72.6) (23.0) (45.4) (12.0)
Other comprehensive
loss:
Fair value change of
available-for-sale
debt investment, net
of nil income taxes -- (2.8) -- (2.1)
Foreign currency
translation
adjustments, net of
nil income taxes (5.2) (8.1) (3.9) (4.1)
----------- ----------- ----------- -----------
Comprehensive loss (77.8) (33.9) (49.3) (18.2)
----------- ----------- ----------- -----------
Comprehensive loss
attributable to
nonredeemable
noncontrolling
interests 3.6 0.3 2.4 (0.1)
Comprehensive loss
attributable to
redeemable
noncontrolling
interests -- 1.7 -- 1.7
Accretion of
redeemable
noncontrolling
interests -- (1.8) -- (1.8)
----------- ----------- ----------- -----------
Comprehensive loss
attributable to ECARX
Holdings Inc. (74.2) (33.7) (46.9) (18.4)
=========== =========== =========== ===========
Loss per ordinary
share
- Basic loss per
share, ordinary
shares (0.20) (0.06) (0.13) (0.03)
- Diluted loss per
share, ordinary
shares (0.20) (0.06) (0.13) (0.03)
Weighted average
number of ordinary
shares used in
computing loss per
ordinary share
- Weighted average
number of ordinary
shares - Basic 337,210,153 368,244,708 341,773,717 372,314,747
- Weighted average
number of ordinary
shares - Diluted 337,210,153 368,244,708 341,773,717 372,314,747
Unaudited Reconciliation of GAAP and Non-GAAP Results
We use adjusted EBITDA in evaluating our operating results and for financial and operational decision-making purposes. Adjusted EBITDA is defined as net loss excluding interest income, interest expense, income tax expense, depreciation of property and equipment, amortization of intangible assets, and share-based compensation expenses.
Adjusted EBITDA should not be considered in isolation or construed as alternatives to net loss or any other measures of performance or as indicators of our operating performance. Investors are encouraged to compare our historical adjusted EBITDA to the most directly comparable GAAP measure, net loss. Adjusted EBITDA presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.
Six Months Ended Three Months Ended
June 30 June 30
2025 2026 2025 2026
-------- -------- --------- ---------
Millions, except otherwise noted US$ US$ US$ US$
Net Loss (72.6) (23.0) (45.4) (12.0)
Interest income (1.6) (2.5) (0.9) (1.3)
Interest expense 10.2 18.0 5.5 8.3
Income tax expense 2.1 1.0 1.8 (0.1)
Depreciation of property and
equipment 3.5 3.8 1.7 2.0
Amortization of intangible
assets 7.6 5.7 3.8 3.1
-------- -------- --------- ---------
EBITDA (50.8) 3.0 (33.5) --
-------- -------- --------- ---------
Share-based compensation
expenses 6.5 1.5 3.7 0.5
-------- -------- --------- ---------
Adjusted EBITDA (44.3) 4.5 (29.8) 0.5
======== ======== ========= =========
View original content:https://www.prnewswire.com/news-releases/ecarx-announces-second-quarter-2026-unaudited-financial-results-302848028.html
SOURCE ECARX Holdings Inc.
Comments