ECARX Announces Second Quarter 2026 Unaudited Financial Results
Rhea-AI Summary
ECARX (Nasdaq: ECX) reported unaudited Q2 2026 revenue of US$225.2 million, up 45% YoY, driven mainly by a 50% increase in sales of goods to US$196.4 million and 21% growth in service revenue to US$28.1 million. Software license revenue declined 42% to US$0.7 million.
Gross profit rose 165% YoY to US$44.5 million, with gross margin improving from 10.8% to 19.8% as price adjustments offset higher memory costs and service margins improved. R&D expenses fell 14% to US$29.1 million, and SG&A and others decreased 8% to US$21.6 million.
Net loss narrowed to US$12.0 million from US$45.4 million, while adjusted EBITDA turned to a US$0.5 million gain, marking a fourth consecutive positive quarter. Total cash was US$165.5 million, including US$117.8 million reserved for the planned US$266 million Flyme software acquisition.
ECARX reiterated its full-year 2026 revenue guidance of US$1.0–US$1.1 billion, but indicated that future gross margin and operating profitability are expected to be negatively affected by global memory cost dynamics and the timing of strategic investments. The company shipped over 550,000 units in Q2, with high-end Antora® and Pikes® platforms increasing to 42% of shipments versus 20% a year earlier.
Positive
- Total revenue US$225.2m, up 45% YoY in Q2 2026
- Gross profit US$44.5m, up 165% YoY; margin 19.8% vs 10.8%
- Net loss reduced to US$12.0m from US$45.4m YoY
- Adjusted EBITDA turned to US$0.5m gain from US$29.8m loss
- High-end platforms 42% of shipments vs 20% a year earlier
- Full-year 2026 revenue guidance reiterated at US$1.0–US$1.1bn
Negative
- Software license revenue down 42% YoY to US$0.7m in Q2
- Net loss still US$12.0m in Q2 2026 despite improvement
- Shareholders’ deficit US$265.9m as of June 30, 2026
- Short-term borrowings increased to US$444.8m from US$310.7m
- Future margins expected to be negatively impacted by memory costs
News Explained
Flyme is under a definitive agreement, while note capacity rose to US$130 million and an investor subscribed for an additional US$15 million.
ECARX reported unaudited second-quarter results and entered a definitive agreement to acquire Flyme for approximately
Separately, ECARX increased 2025 convertible-note issuance capacity from
Because the release provides no share count or conversion terms for the notes, it does not establish dilution; under the supplied definition, dilution requires additional shares that reduce an existing holder's percentage ownership.
At
The balance-sheet comparison pairs higher cash with higher borrowings and liabilities, while the release also identifies a substantial acquisition cash commitment and does not establish a change in existing ownership.
The Flyme purchase-consideration line and a subsequent update on the definitive agreement are the specific items that would clarify how the reserved cash is ultimately used.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
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 , up$225.2 million 45% year-over-year ("YoY").- Sales of goods revenue was
US , up$196.4 million 50% YoY. The increase was attributable to three primary factors: growing demand outsideChina , 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 , down$0.7 million 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 , up$28.1 million 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 theChina market.
- Sales of goods revenue was
- Total cost of revenue was
US , up$180.7 million 30% YoY, driven primarily by rising memory costs associated with the sales of goods. - Gross profit was
US , up$44.5 million 165% YoY, resulting in the gross margin of19.8% . 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 from10.8% to19.8% YoY. - Research and development expenses were
US , down$29.1 million 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 , down$21.6 million 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 , compared with$12.0 million US 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.$45.4 million - Adjusted EBITDA (non-GAAP) gain was
US , compared with adjusted EBITDA (non-GAAP) loss of$0.5 million US in the same period last year. See "Non-GAAP Financial Measure."$29.8 million - Total cash as of June 30, 2026 was
US including$165.5 million US reserved for purchase consideration payable for the Flyme acquisition.$117.8 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:
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 , 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® software stack$266 million - 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 to$100 million US , with an existing institutional investor subscribing for an additional$130 million US 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$15 million
Technological Advancements and Product Launches
- Shipped over 550,000 units during the quarter, with high-end Antora® and Pikes® solutions accounting for
42% of shipments, compared to20% in the same quarter last year - Initiated mass production for 9 new vehicle models across 4 brands deploying Pikes® and Antora® solutions combined with the Cloudpeak® 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 December 31, 2025 | As of 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 June 30 | Three Months Ended 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 | — | (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 | ||||||
- 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 | |||||
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 | ||
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SOURCE ECARX Holdings Inc.