ECARX Announces Fourth Quarter 2025 Unaudited Financial Results
We remain firmly on track to sustain this momentum, fueled by two distinct engines that are unlocking opportunities from both new and existing partnerships. Our computing platforms are increasingly being recognized for their ability to drive strong sales for best-selling models, allowing us to deepen penetration across our partner vehicle lineups. At the same time, our globalization strategy is amplifying our value proposition as a core technology partner worldwide. This is best showcased by our deepening partnership with Volkswagen Group to supply digital cockpit solutions for multiple models in
Looking ahead to 2026, we are fully prepared for the next phase of our growth trajectory. At this time, I would like to announce the departure of our Chief Financial Officer,
As we continue to execute our growth strategy, the close to
Fourth Quarter 2025 Financial Results:
-
Total revenue was
US$304.7 million , up 13% year-over-year ("YoY").- Sales of goods revenue was
US$269.5 million , up 27% YoY. The growth in sales of goods revenue was mainly due to aUS$104.5 million increase attributable to the higher volume of automotive computing platform sold, partially offset by aUS$8.0 million decrease due to lower volume of SoC core modules and aUS$38.7 million decrease due to lower average selling price mainly in relation to automotive computing platforms. - Software license revenue was
US$2.0 million , down 84% YoY, primarily due to declined per-vehicle software license revenue. - Service revenue was
US$33.2 million , down 27% YoY, mainly impacted by reduced design and development service revenue.
- Sales of goods revenue was
-
Total cost of revenue was
US$241.0 million , up 13% YoY, due to higher sales volumes of automotive computing platform products, partially offset by a lower SoC core modules volume and reduced software and service costs. -
Gross profit was
US$63.7 million , up 11% YoY, which resulted in a gross margin of 21%, flat YoY. -
Research and development expenses were
US$29.1 million , down 39% YoY, reflecting continued strategic resource prioritization and R&D integration. -
Selling, general and administrative expenses and others, net were
US$27.5 million , up 22% YoY, mainly resulting from a higher share-based compensation expense in the current quarter. -
Net profit was
US$2.8 million , compared with a loss ofUS$6.0 million during the same period last year, primarily attributable to a higher operating income and other income, despite a decrease in equity investment gains. -
Adjusted EBITDA (non-GAAP) was
US$21.6 million , compared with adjusted EBITDA (non-GAAP) ofUS$9.5 million in the same period last year. See "Non-GAAP Financial Measure." -
Total cash as of
December 31, 2025 wasUS$93.2 million .
Full Year 2025 Financial Results:
-
Total revenue was
US$847.9 million , up 10% compared toUS$771.5 million in 2024.- Sales of goods revenue was
US$703.1 million , up 15% compared toUS$611.2 million in 2024, the increase in sales revenue was primarily due to aUS$236.1 million increase in the sales volume of automotive computing platform products, primarily driven by an increase in the sales volume of Antora®, Venado™, and Pikes® series, partially offset by aUS$145.6 million decrease from changes in the per unit price. Additionally, there was aUS$6.3 million increase attributable to changes in SoC core modules unit price as a result of product mix change and aUS$5.4 million decline from decreased sales volume of SoC core modules. Automotive merchandise and other products' sales increased byUS$0.4 million . - Software license revenue was
US$29.7 million , down 30% compared toUS$42.5 million in 2024, primarily driven by a decrease in intellectual property license revenue. Intellectual property license revenue wasUS$2.2 million in 2025 and contributedUS$17.2 million to total revenue in 2024. - Service revenue was
US$115.1 million , down 2% compared toUS$117.8 million in 2024, principally as a result of a decrease in the total value of design and development contracts for automotive computing platforms completed during the year.
- Sales of goods revenue was
-
Total cost of revenue was
US$686.6 million , up 12% compared toUS$611.4 million in 2024, primarily driven by an increase in sales volume of automotive computing platform products and higher design and development contract cost, partially offset by decreased cost of SoC core modules. -
Gross profit was
US$161.3 million , up 1% compared toUS$160.1 million in 2024, representing a gross margin of 19% (compared to 21% in 2024). -
Research and development expenses were
US$123.3 million , down 30% compared toUS$174.9 million in 2024, primarily attributable to strategic resource prioritization and improved R&D efficiencies. -
Selling, general and administrative expenses and others, net were
US$92.7 million , down 14% compared toUS$108.1 million in 2024, primarily driven by our disciplined operations and lower share-based compensation expenses incurred in 2025. -
Net loss incurred by us in 2025 was
US$68.9 million , down 50% compared toUS$137.8 million in 2024, primarily driven by lower total operating expenses and lower loss from change in fair value of equity securities, increased government grant, partially offset by reduced gains from equity method investments and an increase in interest expense. -
Adjusted EBITDA (non-GAAP) loss was
US$14.4 million in 2025, representing an 83% improvement from adjusted EBITDA (non-GAAP) loss ofUS$82.5 million in 2024. See "Non-GAAP Financial Measure."
Recent Business Development Highlights and Updates:
-
Expanding Global Footprint and Partnership
- Approximately 11 million vehicles on the road with ECARX technologies as of
December 31, 2025 - Deepened partnership with Volkswagen Group, securing a second agreement to supply digital cockpit solutions for multiple models in
Latin America - Continued to drive globalization strategy and developed broader global strategic partnerships in order to structurally transform our business into even more of a truly global technology leader, and we are working to significantly pivot our business toward international markets in the coming years
- Concurrently, we are working to obtain relevant regulatory determination in the US to engage with US automakers and further expand our addressable market
- Approximately 11 million vehicles on the road with ECARX technologies as of
-
Technological Advancements and Product Launches
- Continued mass production of the Pikes® computing platform and integrated it with the Cloudpeak® cross-domain software stack and Flyme Auto 2 on
Lynk & Co 10 EM-P – the first model with this advanced solution – before replicating it inLynk & Co 07 and 08 EM-P models and setting new industry benchmarks for AI-powered intelligent cockpits - Powered the global launch of
Geely's flagship Galaxy M9, also integrated with the Pikes® computing platform, Cloudpeak® cross-domain software stack, and Flyme Auto 2 - Growing adoption of the Cloudpeak® software stack is further advancing the Company's leadership in AI-powered cockpit solutions with AI agents, generative UIs, and an AI operating systems offering drivers an intuitive and adaptive in-vehicle experience
- Continued mass production of the Pikes® computing platform and integrated it with the Cloudpeak® cross-domain software stack and Flyme Auto 2 on
# # #
Conference Call and Webcast Details
ECARX will host a webcast of its earnings conference call today,
To join the earnings call by telephone, participants must preregister at https://register-conf.media-server.com/register/BI77be73bf981b49c7bed9cd333bdda80e 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) is a global automotive technology provider with capabilities to deliver turnkey solutions for next-generation smart vehicles, from the system on a chip (SoC), to central computing platforms, and software. As automakers develop new electric vehicle architectures from the ground up, ECARX is developing full-stack solutions to enhance the user experience, while reducing complexity and cost.
Founded in 2017 and listed on the Nasdaq in 2022, ECARX now has over 1,400 employees based in 13 major locations in
Forward-Looking Statements
This release contains statements that are forward-looking statements within the meaning of the
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.
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Unaudited Condensed Consolidated Balance Sheets |
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As of
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As of
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Millions, except otherwise noted |
US$ |
|
US$ |
|
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash |
44.3 |
|
87.1 |
|
Restricted cash |
5.9 |
|
6.1 |
|
Short-term investments |
17.9 |
|
31.2 |
|
Accounts receivable – third parties, net |
30.1 |
|
14.8 |
|
Accounts receivable – related parties, net |
187.3 |
|
185.5 |
|
Notes receivable |
2.3 |
|
6.0 |
|
Inventories |
31.9 |
|
62.3 |
|
Amounts due from related parties |
5.0 |
|
53.7 |
|
Prepayments and other current assets |
61.4 |
|
36.5 |
|
Total current assets |
386.1 |
|
483.2 |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
Long-term investments |
2.2 |
|
61.5 |
|
Property and equipment, net |
21.9 |
|
26.7 |
|
Intangible assets, net |
42.2 |
|
40.4 |
|
Operating lease right-of-use assets |
18.2 |
|
16.8 |
|
|
3.5 |
|
3.7 |
|
Other non-current assets – third parties |
3.9 |
|
30.2 |
|
Other non-current assets – related parties |
36.4 |
|
— |
|
Total non-current assets |
128.3 |
|
179.3 |
|
Total assets |
514.4 |
|
662.5 |
|
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LIABILITIES |
|
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Current liabilities |
|
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Short-term borrowings |
185.2 |
|
310.7 |
|
Accounts payable - third parties |
220.3 |
|
192.8 |
|
Accounts payable - related parties |
70.0 |
|
104.5 |
|
Notes payable |
19.3 |
|
19.3 |
|
Amounts due to related parties |
24.1 |
|
54.6 |
|
Contract liabilities, current - third parties |
0.9 |
|
0.1 |
|
Contract liabilities, current - related parties |
20.5 |
|
7.3 |
|
Operating lease liabilities - current |
5.6 |
|
5.0 |
|
Convertible notes payable-current |
64.5 |
|
38.8 |
|
Accrued expenses and other current liabilities |
85.5 |
|
88.9 |
|
Income tax payable |
2.8 |
|
1.0 |
|
Total current liabilities |
698.7 |
|
823.0 |
|
|
|
|
|
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Non-current liabilities |
|
|
|
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Long-term borrowings |
— |
|
5.6 |
|
Contract liabilities, non-current - related parties |
5.1 |
|
— |
|
Convertible notes payable, non-current |
— |
|
60.3 |
|
Operating lease liabilities, non-current |
16.7 |
|
15.7 |
|
Warrant liabilities, non-current |
1.2 |
|
1.1 |
|
Provisions |
15.0 |
|
17.8 |
|
Other non-current liabilities - third parties |
13.3 |
|
20.7 |
|
Deferred tax liabilities |
2.1 |
|
1.7 |
|
Total non-current liabilities |
53.4 |
|
122.9 |
|
Total liabilities |
752.1 |
|
945.9 |
|
|
|
|
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SHAREHOLDERS' DEFICIT |
|
|
|
|
Ordinary shares |
— |
|
— |
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Additional paid-in capital |
895.0 |
|
958.1 |
|
|
(1.0) |
|
(30.0) |
|
Accumulated deficit |
(1,124.5) |
|
(1,190.5) |
|
Accumulated other comprehensive loss |
(9.2) |
|
(20.2) |
|
Total deficit attributable to ordinary shareholders |
(239.7) |
|
(282.6) |
|
Noncontrolling interests |
2.0 |
|
(0.8) |
|
Total shareholders' deficit |
(237.7) |
|
(283.4) |
|
Liabilities and shareholders' deficit |
514.4 |
|
662.5 |
|
Unaudited Condensed Consolidated Statements of Comprehensive (Loss)/Income |
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Twelve Months Ended
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Three Months Ended
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|
2024 |
|
2025 |
2024 |
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2025 |
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Millions, except share data and per share data, or otherwise noted |
US$ |
|
US$ |
US$ |
|
US$ |
|
Revenue |
|
|
|
|
|
|
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Sales of goods revenue |
611.2 |
|
703.1 |
211.7 |
|
269.5 |
|
Software license revenue |
42.5 |
|
29.7 |
12.6 |
|
2.0 |
|
Service revenue |
117.8 |
|
115.1 |
45.5 |
|
33.2 |
|
Total revenue |
771.5 |
|
847.9 |
269.8 |
|
304.7 |
|
Cost of goods sold |
(537.6) |
|
(610.3) |
(189.8) |
|
(230.1) |
|
Cost of software licenses |
(17.8) |
|
(17.2) |
(7.0) |
|
(0.4) |
|
Cost of services |
(56.0) |
|
(59.1) |
(15.6) |
|
(10.5) |
|
Total cost of revenue |
(611.4) |
|
(686.6) |
(212.4) |
|
(241.0) |
|
Gross profit |
160.1 |
|
161.3 |
57.4 |
|
63.7 |
|
|
|
|
|
|
|
|
|
Research and development expenses |
(174.9) |
|
(123.3) |
(47.8) |
|
(29.1) |
|
Selling, general and administrative expenses and others, net |
(108.1) |
|
(92.7) |
(22.5) |
|
(27.5) |
|
Total operating expenses |
(283.0) |
|
(216.0) |
(70.3) |
|
(56.6) |
|
(Loss)/Income from operations |
(122.9) |
|
(54.7) |
(12.9) |
|
7.1 |
|
|
|
|
|
|
|
|
|
Interest income |
3.1 |
|
3.7 |
0.8 |
|
0.6 |
|
Interest expense |
(18.6) |
|
(23.8) |
(8.4) |
|
(9.9) |
|
Share of results of equity method investments |
5.6 |
|
1.2 |
16.2 |
|
0.8 |
|
Foreign currency exchange (losses)/gain |
(1.1) |
|
(1.2) |
(0.6) |
|
0.1 |
|
Others, net |
(3.7) |
|
7.1 |
(1.0) |
|
3.3 |
|
(Loss)/Profit before income taxes |
(137.6) |
|
(67.7) |
(5.9) |
|
2.0 |
|
Income tax (expense)/benefit |
(0.2) |
|
(1.2) |
(0.1) |
|
0.8 |
|
Net (Loss)/Profit |
(137.8) |
|
(68.9) |
(6.0) |
|
2.8 |
|
Net loss/(profit) attributable to noncontrolling interests |
8.0 |
|
2.9 |
0.5 |
|
(0.2) |
|
Net (loss)/profit attributable to |
(129.8) |
|
(66.0) |
(5.5) |
|
2.6 |
|
Net (loss)/profit |
(137.8) |
|
(68.9) |
(6.0) |
|
2.8 |
|
Other comprehensive (loss)/income: |
|
|
|
|
|
|
|
Fair value change of Long term investment in Convertible loan, net |
— |
|
(0.1) |
— |
|
(0.1) |
|
Foreign currency translation adjustments, net of nil income taxes |
3.8 |
|
(10.8) |
10.7 |
|
(5.9) |
|
Comprehensive (loss)/income |
(134.0) |
|
(79.8) |
4.7 |
|
(3.2) |
|
Comprehensive loss/(income) attributable to noncontrolling interests |
8.2 |
|
2.8 |
0.6 |
|
(0.2) |
|
Comprehensive (loss)/income attributable to |
(125.8) |
|
(77.0) |
5.3 |
|
(3.4) |
|
|
|
|
|
|
|
|
|
(Loss)/Earnings per ordinary share |
|
|
|
|
|
|
|
– Basic (loss)/earnings per share, ordinary shares |
(0.39) |
|
(0.19) |
(0.02) |
|
0.01 |
|
– Diluted (loss)/earnings per share, ordinary shares |
(0.39) |
|
(0.19) |
(0.02) |
|
0.01 |
|
Weighted average number of ordinary shares used in computing |
|
|
|
|
|
|
|
– Weighted average number of ordinary shares - Basic |
336,641,846 |
|
338,659,826 |
333,819,732 |
|
341,002,836 |
|
– Weighted average number of ordinary shares - Diluted |
336,641,846 |
|
338,659,826 |
333,819,732 |
|
347,153,696 |
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.
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Unaudited Reconciliation of GAAP and Non-GAAP Results |
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|
Twelve Months Ended
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Three Months Ended
|
||||
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|
2024 |
|
2025 |
2024 |
|
2025 |
|
Millions |
US$ |
|
US$ |
US$ |
|
US$ |
|
Net (Loss)/Profit |
(137.8) |
|
(68.9) |
(6.0) |
|
2.8 |
|
Interest income |
(3.1) |
|
(3.7) |
(0.8) |
|
(0.6) |
|
Interest expense |
18.6 |
|
23.8 |
8.4 |
|
9.9 |
|
Income tax expense/(benefit) |
0.2 |
|
1.2 |
0.1 |
|
(0.8) |
|
Depreciation of property and equipment |
7.9 |
|
7.7 |
2.2 |
|
2.4 |
|
Amortization of intangible assets |
12.7 |
|
12.2 |
3.3 |
|
2.5 |
|
EBITDA |
(101.5) |
|
(27.7) |
7.2 |
|
16.2 |
|
Share-based compensation expenses |
19.0 |
|
13.3 |
2.3 |
|
5.4 |
|
Adjusted EBITDA |
(82.5) |
|
(14.4) |
9.5 |
|
21.6 |
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