ECARX Announces First Quarter 2026 Unaudited Financial Results
Rhea-AI Summary
ECARX (Nasdaq: ECX) reported Q1 2026 revenue of US$131.5 million, down 22% YoY, with gross margin improving to 21.4%. Net loss narrowed to US$11.0 million, and adjusted EBITDA turned positive at US$4.0 million.
R&D and SG&A expenses fell 32% and 24% YoY, respectively, and cash totaled US$70.1 million. ECARX reiterated 2026 revenue guidance of US$1.0–US$1.1 billion but expects memory costs to pressure margins. The company highlighted new partnerships, including May Mobility and Volkswagen Group, over 360,000 units shipped, and governance changes with a new Chairperson and CFO.
Positive
- Adjusted EBITDA swung to a US$4.0 million gain from a US$14.5 million loss YoY
- Gross margin improved to 21.4%, up from 19.8% a year earlier
- Research and development expenses decreased 32% YoY to US$23.5 million
- Selling, general and administrative expenses dropped 24% YoY to US$17.7 million
- 2026 total revenue guidance reiterated at US$1.0–US$1.1 billion
- Recognized US$14 million gain from partial divestment of SiEngine shares
Negative
- Total revenue declined 22% YoY to US$131.5 million
- Software license revenue fell 94% YoY to US$1.6 million
- Service revenue decreased 25% YoY to US$16.1 million
- Company still reported a net loss of US$11.0 million for Q1 2026
- Management expects future gross margin and operating profitability to be negatively impacted by memory cost dynamics
News Market Reaction – ECX
In the May 19 session, ECX declined 6.80%, reflecting a notable negative market reaction. Argus tracked a peak move of +2.9% during that session. Argus tracked a trough of -17.6% from its starting point during tracking. Our momentum scanner triggered 10 alerts that day, indicating notable trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 02 | Full-year 2025 earnings | Positive | -2.8% | Reported 10% revenue growth, 19% margin, narrowed net loss, yet shares fell. |
| Feb 12 | Q4 2025 earnings | Positive | -8.3% | Q4 revenue growth with positive net income and adjusted EBITDA but stock declined. |
| Nov 03 | Q3 2025 earnings | Positive | -0.8% | Double‑digit revenue growth and positive net profit met with slight price drop. |
| Aug 26 | Q2 2025 earnings | Negative | -10.1% | Revenue declined 10% YoY and net loss widened, followed by a sharp selloff. |
| Apr 30 | Q1 2025 earnings | Positive | +8.3% | 30% revenue growth and reduced losses coincided with a strong positive reaction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have often seen weak or negative next‑day moves, even on improving profitability and growth, with more divergences than alignments between fundamentals and price.
Over the past year, ECARX’s earnings reports have highlighted growing revenue, expanding gross margins, and a transition from heavy losses toward adjusted EBITDA profitability. Yet, several of these fundamentally positive updates, including Q3 and full‑year 2025 and Q4 2025, were followed by negative or muted price reactions. Earlier in 2025, Q2 earnings with revenue contraction and larger losses coincided with a double‑digit decline. This new Q1 2026 report continues the margin‑expansion and loss‑narrowing trend but now against a backdrop of revenue decline and a low share price versus the 52‑week range.
Key Terms
adjusted EBITDA financial
gross margin financial
service revenue financial
software license revenue financial
intellectual property financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Ziyu Shen, ECARX CEO, commented, "The first quarter of 2026 was defined by continued disciplined execution and continued global momentum, demonstrating the underlying resilience of our core business. Despite traditional seasonality and a complex macroeconomic environment marked by memory component inflation, our disciplined execution mitigated the modest impact on our topline into meaningful profitability improvements. We successfully expanded our gross margin to
We are rapidly accelerating our transformation into a truly global technology leader. To support our expanding commercial footprint and align with global best practices, we have recently actively strengthened our corporate governance and leadership team, separating the roles of Chairperson and CEO and welcoming Lone Fønss Schrøder to lead our Board of Directors, alongside Dylan D. Jeng as our new Chief Financial Officer. With our offices in
Commercially and technologically, our momentum continues to build as we capture higher-value opportunities across our technology stack. Deepening our strategic ecosystem of technology partners remains a core priority, a powerful endorsement of our proven full-stack hardware and software capabilities and long-term growth potential. Concurrently, our exploration of a strategic transaction with DreamSmart Technology highlights our ambition to own the critical software application layers of the intelligence-centric vehicle experience. Today we announced a landmark strategic partnership with May Mobility, a leading US autonomous vehicle technology company, to bring ECARX's intelligent driving capacity to May Mobility's future autonomous fleet for ride-hail development. We entered 2026 with a clear roadmap, and we are successfully executing against it. Leveraging our strong reputation and proven high-performance computing platforms that power software-defined vehicles, we are uniquely positioned to capitalize on the surging global demand for higher-value software and physical AI across the automotive industry."
First Quarter 2026 Financial Results:
- Total revenue was
US , down$131.5 million 22% year-over-year ("YoY").- Sales of goods revenue was
US , down$113.8 million 6% YoY. The decrease was mainly driven by the challenging market environment as well as our deliberate strategic decision in Q2 last year to actively phase out our lower-margin, legacy platform business, which created a high base effect when compared to Q1 2025. On the other hand, the decrease was partially offset by the price adjustment to pass through higher memory cost impact, which increased sales of goods revenue. - Software license revenue was
US , down$1.6 million 94% YoY, primarily due to a one-time software license revenue ofUS recorded in the first quarter last year.$25 million - Service revenue was
US , down$16.1 million 25% YoY. The change primarily reflected the timing of design and development contract deliveries and booking schedules. As such, it generally tracks the vehicle launch cycle in Q1 2026, which is expected to accelerate in subsequent quarters.
- Sales of goods revenue was
- Total cost of revenue was
US , down$103.3 million 23% YoY, primarily driven by a decrease in the sales volume of automotive computing platform products, as well as in the software license revenue. - Gross profit was
US , down$28.2 million 15% YoY, resulting in the gross margin of21.4% . The decrease in gross profit was primarily due to the declined sales of goods volume and one-time software licensing revenue. On the other hand, gross margin percentage increased from19.8% to21.4% YoY due to the price adjustment as well as product mix optimization. - Research and development expenses were
US , down$23.5 million 32% 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 drive innovation while reducing structural costs. - Selling, general and administrative expenses and others, net were
US , down$17.7 million 24% 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 , compared with$11.0 million US during the same period last year. The improvement was primarily attributable to the reduction in total operating expenses as well as the gain from sale of a portion of an equity method investment during the quarter, partially offset by the decline in gross profit, and an increase in interest expense compared to the same period last year.$27.2 million - Adjusted EBITDA (non-GAAP) gain was
US , compared with adjusted EBITDA (non-GAAP) loss of$4.0 million US in the same period last year. See "Non-GAAP Financial Measure."$14.5 million - Total cash as of March 31, 2026 was
US .$70.1 million - 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 in total revenue.$1.0 -US$1.1 billion - 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.
- Based on our current backlog and accelerating commercial pipeline, we are reiterating our full-year 2026 guidance of
Recent Business Development Highlights and Updates
Strengthening Corporate Governance and Leadership Team
- Appointed Lone Fønss Schrøder as Chairperson of the board of directors, separating the roles of Chairperson and CEO to strengthen governance and align with global best practices, alongside new Chief Financial Officer Dylan D. Jeng, who will drive financial discipline from the newly operationalized
Singapore office
Expanding Global Footprint and Automaker Partnerships
- Over 11 million vehicles on the road globally with ECARX technologies as of March 31, 2026
- Today announced that we will partner with May Mobility, a leading US autonomous vehicle technology company, to bring ECARX's intelligent driving capacity to May Mobility's future autonomous fleet for scaling ride-hail development, expanding ECARX's addressable market into the autonomous ride-hailing market
- Advanced the Volkswagen Group partnership into the industrialization phase remaining firmly on track ahead of the anticipated 2027 launch for the Latin American market
- Secured a new contract win with a leading Chinese automaker outside the Geely ecosystem with mass-production expected to start in later 2026
- Actively deploying the nearly
$200 million South America andSingapore and build a dedicated R&D hub inGermany
Deepening Innovation-Driven R&D Ecosystem
- Announced a preliminary plan to potentially acquire a minority stake and select intellectual property from DreamSmart Technology to directly integrate the critical FlyMe Auto application layer
- Recognized a
$14 million
Technological Advancements and Product Launches
- Shipped over 360,000 units during the quarter, with shipments of high-end Pikes® and Antora® solutions increasing by approximately
73% year-over-year - Initiated mass production for four new vehicle models across three brands deploying Pikes® and Antora® solutions combined with the Cloudpeak® cross-domain software stack and Flyme Auto
- Debuted the Zenith computing platform at CES powered by the Snapdragon Elite Automotive Platform from Qualcomm Technologies, delivering a highly integrated cabin-to-ADAS system targeted for mass production in 2027
# # #
Conference Call and Webcast Details
ECARX will host a webcast of its earnings conference call today, Tuesday, May 19, 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/st42j89f.
To join the earnings call by telephone, participants must preregister at https://register-conf.media-server.com/register/BI3f07448d8f004da7a74454e66175399f 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
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 across over 11 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 13 major international locations across
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
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 | ||
Millions, except otherwise noted | US$ | US$ | |
ASSETS | |||
Current assets | |||
Cash | 87.1 | 61.0 | |
Restricted cash | 6.1 | 9.1 | |
Short-term investments | 31.2 | 48.3 | |
Accounts receivable – third parties, net | 14.8 | 20.8 | |
Accounts receivable – related parties, net | 185.5 | 140.7 | |
Notes receivable | 6.0 | 5.5 | |
Inventories | 62.3 | 101.0 | |
Amounts due from related parties | 53.7 | 70.4 | |
Prepayments and other current assets | 36.5 | 71.0 | |
Total current assets | 483.2 | 527.8 | |
Non-current assets | |||
Long-term investments | 61.5 | 61.9 | |
Property and equipment, net | 26.7 | 28.3 | |
Intangible assets, net | 40.4 | 38.1 | |
Operating lease right-of-use assets | 16.8 | 15.5 | |
Goodwill | 3.7 | 3.7 | |
Other non-current assets – third parties | 30.2 | 38.4 | |
Other non-current assets – related parties | — | 7.2 | |
Total non-current assets | 179.3 | 193.1 | |
Total assets | 662.5 | 720.9 | |
LIABILITIES | |||
Current liabilities | |||
Short-term borrowings | 310.7 | 344.7 | |
Accounts payable - third parties | 192.8 | 216.7 | |
Accounts payable - related parties | 104.5 | 30.4 | |
Notes payable | 19.3 | 20.7 | |
Amounts due to related parties | 54.6 | 89.3 | |
Contract liabilities, current - third parties | 0.1 | 0.2 | |
Contract liabilities, current - related parties | 7.3 | 5.3 | |
Operating lease liabilities - current | 5.0 | 4.9 | |
Convertible notes payable-current | 38.8 | 34.3 | |
Accrued expenses and other current liabilities | 88.9 | 70.8 | |
Income tax payable | 1.0 | 1.4 | |
Total current liabilities | 823.0 | 818.7 | |
Non-current liabilities | |||
Long-term borrowings | 5.6 | 5.6 | |
Convertible notes payable, non-current | 60.3 | 101.1 | |
Operating lease liabilities, non-current | 15.7 | 15.2 | |
Warrant liabilities, non-current | 1.1 | 1.2 | |
Provisions | 17.8 | 16.5 | |
Other non-current liabilities - third parties | 20.7 | 20.9 | |
Deferred tax liabilities | 1.7 | 1.6 | |
Total non-current liabilities | 122.9 | 162.1 | |
Total liabilities | 945.9 | 980.8 | |
SHAREHOLDERS' DEFICIT | |||
Ordinary shares | — | — | |
Additional paid-in capital | 958.1 | 1,007.2 | |
Treasury shares, at cost | (30.0) | (39.9) | |
Accumulated deficit | (1,190.5) | (1,201.1) | |
Accumulated other comprehensive loss | (20.2) | (24.9) | |
Total deficit attributable to ordinary shareholders | (282.6) | (258.7) | |
Noncontrolling interests | (0.8) | (1.2) | |
Total shareholders' deficit | (283.4) | (259.9) | |
Liabilities and shareholders' deficit | 662.5 | 720.9 | |
ECARX Holdings Inc. | |||
Unaudited Condensed Consolidated Statements of Comprehensive Loss | |||
Three Months Ended March 31 | |||
2025 | 2026 | ||
Millions, except share data and per share data, or otherwise noted | US$ | US$ | |
Revenue | |||
Sales of goods revenue | 120.7 | 113.8 | |
Software license revenue | 25.6 | 1.6 | |
Service revenue | 21.4 | 16.1 | |
Total revenue | 167.7 | 131.5 | |
Cost of goods sold | (109.3) | (97.5) | |
Cost of software licenses | (14.3) | (0.7) | |
Cost of services | (10.9) | (5.1) | |
Total cost of revenue | (134.5) | (103.3) | |
Gross profit | 33.2 | 28.2 | |
Research and development expenses | (34.5) | (23.5) | |
Selling, general and administrative expenses and others, net | (23.4) | (17.7) | |
Total operating expenses | (57.9) | (41.2) | |
Loss from operation | (24.7) | (13.0) | |
Interest income | 0.7 | 1.2 | |
Interest expense | (4.7) | (9.7) | |
Share of results of equity method investments | 0.1 | 14.2 | |
Foreign currency exchange (losses)/gains | (0.4) | 0.9 | |
Others, net | 2.1 | (3.5) | |
Loss before income taxes | (26.9) | (9.9) | |
Income tax expense | (0.3) | (1.1) | |
Net loss | (27.2) | (11.0) | |
Net loss attributable to noncontrolling interests | 1.2 | 0.4 | |
Net loss attributable to ECARX Holdings Inc. ordinary shareholders | (26.0) | (10.6) | |
Net loss | (27.2) | (11.0) | |
Other comprehensive loss: | |||
Fair value change of available-for-sale debt investment, net of nil income | — | (0.7) | |
Foreign currency translation adjustments, net of nil income taxes | (1.3) | (4.0) | |
Comprehensive loss | (28.5) | (15.7) | |
Comprehensive loss attributable to noncontrolling interests | 1.1 | 0.4 | |
Comprehensive loss attributable to ECARX Holdings Inc. | (27.4) | (15.3) | |
Loss per ordinary share | |||
– Basic loss per share, ordinary shares | (0.08) | (0.03) | |
– Diluted loss per share, ordinary shares | (0.08) | (0.03) | |
Weighted average number of ordinary shares used in computing loss | |||
– Weighted average number of ordinary shares - Basic | 332,595,882 | 364,129,447 | |
– Weighted average number of ordinary shares - Diluted | 332,595,882 | 364,129,447 | |
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.
Three Months Ended | |||
2025 | 2026 | ||
Millions, except otherwise noted | US$ | US$ | |
Net Loss | (27.2) | (11.0) | |
Interest income | (0.7) | (1.2) | |
Interest expense | 4.7 | 9.7 | |
Income tax expense | 0.3 | 1.1 | |
Depreciation of property and equipment | 1.8 | 1.8 | |
Amortization of intangible assets | 3.8 | 2.6 | |
EBITDA | (17.3) | 3.0 | |
Share-based compensation expenses | 2.8 | 1.0 | |
Adjusted EBITDA | (14.5) | 4.0 | |
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SOURCE ECARX Holdings Inc.