ECARX Announces Third Quarter 2026 Unaudited Financial Results

Memory costs outpaced pricing offsets, while acquisition spending accompanied a decline in total cash.

Rhea-AI Summary

ECARX (Nasdaq: ECX) reported third-quarter 2026 revenue of US$240.8 million, while its net loss widened from a year earlier. Revenue rose 10% year over year, but gross profit fell 65% to US$16.9 million and gross margin dropped to 7.0% from 21.9%. Higher memory costs exceeded pricing offsets. Net loss reached US$48.6 million versus US$8.4 million, and basic and diluted loss per share increased to US$0.13 from US$0.03.

ECARX completed its Flyme software business acquisition on September 30, paying US$191.5 million during the quarter. Total cash fell to US$53.7 million from US$165.5 million at June 30. The company reiterated 2026 revenue guidance of US$1.0–US$1.1 billion but expects memory costs to pressure profitability over the next few quarters. It secured 23 vehicle design wins and signed a non-binding memorandum with Arm to co-develop automotive AI computing platforms.

15 points · 1 major

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Rhea-AI Sentiment measures something else, the tone of the wording.

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1 major · 18 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointFlyme software acquisition completed September 30, 2026, adding an independent software division.
• Moderate pointThird-quarter revenue rose 10% year over year to US$240.8 million.
• Moderate pointGoods revenue increased 23% year over year to US$222.7 million, supported by pricing adjustments and higher volumes.
• Moderate pointBank financing provided US$67.8 million toward the Flyme acquisition during the quarter. 19% of market cap
• Moderate pointAdditional bank financing provided US$30.5 million alongside operating cash outflow and working-capital needs. 8.7% of market cap
• Moderate pointVehicle design wins totaled 23 during the quarter, adding to the commercial pipeline.
• Moderate pointMass production began for 21 vehicle models across 5 brands; 6 models target markets outside China.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Arm memorandum establishes plans to co-develop automotive AI computing platforms.
• Moderate pointNine-month operating loss narrowed to US$67.9 million from US$77.9 million a year earlier.

6 minor points

• Minor pointResearch and development expenses fell 12% year over year to US$27.5 million.
• Minor pointAdministrative and other expenses excluding impairment declined 18%, or US$4.2 million, year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.ECARX reiterated full-year 2026 revenue guidance of US$1.0–US$1.1 billion.
• Minor point. Forward-looking: it has not happened yet and may not happen.Volkswagen program industrialization remains on track ahead of the expected 2027 launch.
• Minor pointNine-month revenue increased to US$597.5 million from US$543.3 million a year earlier.
• Minor pointNine-month net loss narrowed to US$84.1 million from US$86.6 million a year earlier.

Negative

• Major pointFlyme acquisition required a US$191.5 million cash payment during the quarter. 55% of market cap
• Moderate pointThird-quarter net loss widened to US$48.6 million from US$8.4 million a year earlier.
• Moderate pointGross profit fell 65% to US$16.9 million; margin declined to 7.0% from 21.9% year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Memory costs are expected to pressure margins and operating profitability over the next few quarters, including fourth-quarter 2026.
• Moderate pointTotal cash declined to US$53.7 million at September 30 from US$165.5 million at June 30, 2026.
• Moderate pointAcquisition financing added US$67.8 million in bank debt; other bank financing added US$30.5 million during the quarter. 19% of market cap
• Moderate pointCurrent liabilities reached US$1,132.6 million against US$720.9 million in current assets at September 30, 2026.
• Moderate pointShareholders' deficit widened to US$566.9 million from US$273.6 million at December 31, 2025.
• Moderate pointArm collaboration remains a non-binding memorandum of understanding.
• Moderate pointEuropean luxury automaker partnership for a cockpit AI laboratory remains in finalization.

8 minor points

• Minor pointService revenue declined 53% year over year to US$17.7 million as vehicle project launches slowed.
• Minor pointSoftware license revenue fell 56% year over year to US$0.4 million on lower license sales volumes.
• Minor pointCost of revenue increased 30% year over year to US$223.9 million, primarily reflecting higher memory costs.
• Minor pointAdministrative and other expenses rose 11% to US$25.6 million, including a US$6.7 million DreamSmart bond impairment.
• Minor pointThird-quarter operating loss widened to US$36.2 million from US$6.3 million a year earlier.
• Minor pointThird-quarter interest expense increased to US$8.0 million from US$3.5 million a year earlier.
• Minor pointBasic and diluted quarterly loss per share widened to US$0.13 from US$0.03 a year earlier.
• Minor pointNine-month gross profit declined to US$90.5 million from US$113.8 million a year earlier.

News Explained

The release adds a historical subsidy-accounting correction that adjusts comparative-period liabilities and equity.

During the quarter, ECARX acquired a 100% equity interest in Qiguang, an entity under common control, and restated comparative financial information by combining the entities’ assets, liabilities, revenue, expenses and equity using the pooling-of-interests method.

Separately, ECARX corrected errors in its government-subsidy accounting for 2021 and 2022 by adjusting other current liabilities and equity as of the start of the earliest comparative period. Management said the errors were not material to previously issued statements but would have been material to current-period statements if left uncorrected.

Argus Nov 4 session 33 alerts

-21.00% close to close 1.6x rel. volume Open Argus

Details

Market move: ECX -21.00% in the Nov 4 session. 3Q26 earnings report

-34.1% Trough in 11 hr 51 min

$392.95M Mkt Cap at Peak Alert

On Nov 4, the day this news came out, ECX closed 21.00% below the previous close. Argus tracked a trough of -34.1% from its starting point during tracking. Our momentum scanner recorded 33 alerts for this stock that day. That session’s volume was 1.6x the stock’s average daily volume.

Data tracked by StockTitan Argus for the Nov 4 session.

Key Figures

Total revenue: US$240.8 million, up 10% YoY Gross profit: US$16.9 million, down 65% YoY Gross margin: 7.0%, down from 21.9% YoY +5 more

Total revenue

US$240.8 million, up 10% YoY

Third quarter 2026

Gross profit

US$16.9 million, down 65% YoY

Third quarter 2026

Gross margin

7.0%, down from 21.9% YoY

Third quarter 2026

Net loss

US$48.6 million, compared with US$8.4 million

Third quarter 2026 versus the same period last year

Adjusted EBITDA loss

US$37.7 million, compared with US$0.9 million

Third quarter 2026; non-GAAP

Total cash

US$53.7 million, compared with US$165.5 million

September 30, 2026 versus June 30, 2026

Flyme acquisition payment

US$191.5 million

Paid during the quarter; US$67.8 million of bank financing was drawn

Full-year revenue guidance

US$1.0–US$1.1 billion

2026 guidance reiterated

Previous Earnings Reports

2 past events · Latest: Aug 11

Same Type 2 events

1. Aug 11

   Q2 earnings

   24h Move

   -0.9%

   Q2 gross profit rose 165% YoY and adjusted EBITDA turned to a US$0.5 million gain.

2. Nov 03

   Q3 earnings

   24h Move

   -0.8%

   Q3 gross profit reached $47.6 million at 22% margin, with adjusted EBITDA profit.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

pooling-of interests method, convertible bonds, non-gaap, impairment

4 terms

pooling-of interests method financial

"using the pooling-of interests method"

An accounting method for business combinations that treats two merging companies as if they had always been a single reporting entity by combining their historical book values and shareholders’ equity rather than recording the transaction at the fair value of acquired assets and liabilities. Under pooling-of-interests the acquirer does not recognize goodwill or step up asset basis; prior-period financial statements are restated by adding together each company’s historical results so past earnings appear as if generated by one company. Most modern accounting standards have largely replaced pooling with the acquisition (purchase) method, so pooling is rarely permitted for new business combinations.

convertible bonds financial

"a US$6.7 million impairment recorded in the third quarter of 2026 against the convertible bonds"

A convertible bond is a loan a company issues that pays regular interest and can be exchanged for a fixed number of the company’s shares under specified terms. It matters to investors because it combines the steady income and lower downside risk of a bond with the upside potential of owning stock—like holding a ticket that can be cashed for equity if the share price rises—affecting returns, risk, and shareholder dilution.

non-gaap financial

"Adjusted EBITDA (non-GAAP) loss was US$37.7 million"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

impairment financial

"a US$6.7 million impairment recorded in the third quarter of 2026"

Impairment occurs when the value of an asset, such as property, equipment, or investments, drops below its recorded worth on the books. This situation signals that the asset may be less valuable than originally thought, similar to discovering that an item you own is worth less than what you paid for it. For investors, recognizing impairment is important because it can affect the overall financial health and future prospects of a business.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LONDON, Nov. 4, 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 September 30, 2026.

Ziyu Shen, ECARX CEO, commented, "The third quarter was defined by disciplined execution across our product pipeline and financial results. Our continued shift toward higher-end Antora® and Pikes® solutions, together with the careful management of our supply chain and higher memory costs, are directly supporting revenue growth.

Strategically, we continue to move up the value chain by owning more of our technology stack. At the end of the quarter, we completed the acquisition of the Flyme software business, giving us ownership of the application layer that drivers use every day and opening up new recurring software revenue opportunities. We have entered into a non-binding MOU with Arm to co-develop next-generation AI compute systems that can be applied in automotive and beyond. And, we are also finalizing a partnership with a leading European luxury automaker on a Joint Cockpit AI Innovation Lab built on Flyme OS to further drive growth up the value chain.

Our technology is proven in more than 12 million vehicles, and the same stack can now bring AI from the cloud to the edge across a much wider range of intelligent devices. By expanding our product portfolio, growing our partner ecosystem and accelerating global market penetration, we are building ECARX into a technology partner for a substantially larger market."

Third Quarter 2026 Financial Results:

During the quarter, ECARX acquired 100% equity interest in Hubei Qiguang Technology Co., Ltd. ("Qiguang"), an entity under common control. Comparative financial information is restated by combining assets, liabilities, revenues, expenses and equity of ECARX and Qiguang using the pooling-of interests method. All intercompany transactions and balances between the combining entities have been eliminated.

During this quarter, the Company identified errors in its previously issued consolidated financial statements relating to the accounting for certain government subsidies recognized in 2021 and 2022. Management evaluated the errors and concluded that they were not material to the previously issued financial statements, but would be material to the current-period financial statements if left uncorrected. Accordingly, to correct these errors and enhance the comparability of the financial information presented, the Company has made correcting adjustments to other current liabilities and equity as of the beginning of the earliest comparative period presented.

• Total revenue was US$240.8 million, up 10% year-over-year ("YoY").
  • Sales of goods revenue was US$222.7 million, up 23% YoY. The increase was mainly attributable to the pricing adjustment implemented to offset the impact of elevated memory costs, as well as the sales volume increase compared to the third quarter last year.
  • Software license revenue was US$0.4 million, down 56% YoY, primarily due to a decrease of sales volume for software licenses compared to the third quarter last year.
  • Service revenue was US$17.7 million, down 53% YoY. The decline is attributable to the seasonal nature of vehicle model launches by our partners. While new model launches peaked in the second quarter of 2026, the pace of project launches subsequently experienced a notable deceleration in the third quarter.
• Total cost of revenue was US$223.9 million, up 30% YoY, driven primarily by rising memory costs associated with the sales of goods.
• Gross profit was US$16.9 million, down 65% YoY, resulting in a gross margin of 7.0%. Cost escalation in the third quarter exceeded what our current pricing was able to offset. Consequently, passing on further cost increases proved more challenging, with a larger portion being absorbed internally to support volume growth and maintain partnership commitments, and therefore memory costs remain a drag on profitability. In addition, the decrease in service revenue also led to a decline in service margin. As a result, gross margin decreased from 21.9% to 7.0% YoY.
• Research and development expenses were US$27.5 million, down 12% 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$25.6 million, up 11% YoY, reflecting a US$6.7 million impairment recorded in the third quarter of 2026 against the convertible bonds previously issued by DreamSmart. Excluding this amount, the remaining expenses declined by US$4.2 million, or down 18% 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$48.6 million, compared with US$8.4 million during the same period last year. The change was mainly driven by the decrease of gross margin, as well as an increase in fair value losses of an equity security and finance expenses.
• Adjusted EBITDA (non-GAAP) loss was US$37.7 million, compared with adjusted EBITDA (non-GAAP) loss of US$0.9 million in the same period last year. See "Non-GAAP Financial Measure."
• Total cash as of September 30, 2026 was US$53.7 million, compared with $165.5 million at June 30, 2026. During the quarter, we paid $191.5 million for the acquisition of Flyme software business, funded by a combination of cash reserves and $67.8 million of bank financing drawn in the quarter. The remaining change primarily reflects changes in operating cash outflow and working capital to support new program launches, funded through $30.5 million in bank financing.
• 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.
  • We expect global memory costs to continue to weigh on our gross margin and operating profitability over the next few quarters, including the fourth quarter of 2026. However, we have been proactive in managing this environment, as demonstrated in the prior quarters and again now. We continue to work with customers and suppliers to mitigate the impact through pricing adjustments, operational efficiencies, and product mix optimization. We continue to view these pressures as manageable and remain focused on protecting the long-term profitability profile of the business.

Recent Business Development Highlights and Updates:

Expanding Global Footprint and Automaker Partnerships

• More than 12 million vehicles on the road globally with ECARX technologies as of September 30, 2026, spanning across 18 OEMs, 28 brands, and 159 markets, with multiple additional partnership discussions advancing.
• Flyme Auto recorded more than 1.2 million vehicle deployments from January to September 2026, bringing total cumulative deployments of Flyme Auto by ECARX to over 3.5 million vehicles.
• Finalizing partnership with a leading European luxury automaker to establish a Joint Cockpit AI Innovation Lab based on Flyme OS, developing next-generation intelligent cockpit systems customized for the automaker's vehicles in China.
• Continued industrialization of the Volkswagen Group program, remaining firmly on track with engineering, supply chain and support infrastructure build-out across Latin America ahead of the expected 2027 launch.

Deepening Innovation-Driven R&D Ecosystem

• Completed the acquisition of the Flyme software business on September 30, 2026, expanding capabilities beyond hardware into higher-value software ecosystem services, with Flyme operating as an independent software division.
• Tencent Cloud's WorkBuddy AI-powered smart work assistant will be integrated with Flyme AIOS, expanding AI capabilities across the Flyme ecosystem.
• Signed a non-binding memorandum of understanding with Arm to co-develop AI compute platforms for automotive applications. The partnership builds upon the years-long relationship with Arm China, with whom ECARX co-incubated SiEngine.

Technological Advancements and Product Launches

• Shipped approximately 721,000 units during the quarter, with high-end Antora® solutions accounting for 30% of shipments, compared to 25% in the same period last year.
• Initiated mass production for 21 new vehicle models across 5 brands, 6 of which are designated for markets outside of China, such as Korea.
• Secured 23 vehicle design wins during the quarter, 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, Wednesday, November 4, 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/e4i8peb6/lan/en

To join the earnings call by telephone, participants must preregister at https://register-conf.media-server.com/register/BI9ffd14a76c2a4f01aa0a3d8d55eed7b0 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. Forward-looking statements, including 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, are not guarantees of future performance and are subject to a number of risks and uncertainties that could cause actual results to differ materially.

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 September 30, 2026
Millions, except otherwise noted	US$		US$
ASSETS
Current assets
Cash	87.1		42.2
Restricted cash	6.1		11.5
Short-term investments	31.2		47.2
Accounts receivable – third parties, net	14.8		55.8
Accounts receivable – related parties, net	190.0		221.9
Notes receivable	6.0		3.3
Inventories	62.3		244.5
Amounts due from related parties	53.7		24.2
Prepayments and other current assets	36.3		70.3
Total current assets	487.5		720.9
Non-current assets
Long-term investments	61.5		50.8
Property and equipment, net	28.2		41.8
Intangible assets, net	45.6		45.8
Operating lease right-of-use assets	16.8		15.4
Goodwill	16.5		17.2
Other non-current assets – third parties	30.2		46.1
Other non-current assets – related parties	—		9.5
Total non-current assets	198.8		226.6
Total assets	686.3		947.5
LIABILITIES
Current liabilities
Short-term borrowings	310.7		366.7
Accounts payable - third parties	194.2		390.5
Accounts payable - related parties	102.6		106.1
Notes payable	19.3		28.1
Amounts due to related parties	54.6		115.1
Contract liabilities, current - third parties	0.1		0.1
Contract liabilities, current - related parties	7.3		3.1
Operating lease liabilities - current	5.0		5.4
Convertible notes payable-current	38.8		16.7
Accrued expenses and other current liabilities	99.9		100.1
Income tax payable	1.0		0.7
Total current liabilities	833.5		1,132.6
Non-current liabilities
Long-term borrowings	5.6		181.8
Convertible notes payable, non-current	60.3		116.6
Operating lease liabilities, non-current	15.7		14.0
Warrant liabilities, non-current	1.1		0.5
Provisions	17.8		19.7
Other non-current liabilities - third parties	20.7		29.4
Deferred tax liabilities	5.2		4.8
Total non-current liabilities	126.4		366.8
Total liabilities	959.9		1,499.4
Mezzanine equity
Redeemable non-controlling interests	—		15.0
Total mezzanine equity	—		15.0
SHAREHOLDERS' DEFICIT
Ordinary shares	—		—
Additional paid-in capital	1,018.0		831.6
Treasury shares, at cost	(30.0)		(39.9)
Accumulated deficit	(1,237.1)		(1,321.4)
Accumulated other comprehensive loss	(21.1)		(33.6)
Total deficit attributable to ordinary shareholders	(270.2)		(563.3)
Noncontrolling interests	(3.4)		(3.6)
Total shareholders' deficit	(273.6)		(566.9)
Liabilities and shareholders' deficit	686.3		947.5

 

 

 

ECARX Holdings Inc.
Unaudited Condensed Consolidated Statements of Comprehensive Loss
	Nine Months Ended September 30			Three Months Ended September 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	433.6		532.9	181.7		222.7
Software license revenue	27.7		2.7	0.9		0.4
Service revenue	82.0		61.9	37.3		17.7
Total revenue	543.3		597.5	219.9		240.8
Cost of goods sold	(380.2)		(477.7)	(153.3)		(213.2)
Cost of software licenses	(1.1)		(1.1)	(0.3)		(0.3)
Cost of services	(48.2)		(28.2)	(18.1)		(10.4)
Total cost of revenue	(429.5)		(507.0)	(171.7)		(223.9)
Gross profit	113.8		90.5	48.2		16.9
Research and development expenses	(116.1)		(88.2)	(31.4)		(27.5)
Selling, general and administrative expenses and others, net	(75.6)		(70.2)	(23.1)		(25.6)
Total operating expenses	(191.7)		(158.4)	(54.5)		(53.1)
Loss from operation	(77.9)		(67.9)	(6.3)		(36.2)
Interest income	3.2		3.4	1.6		0.9
Interest expense	(13.6)		(26.0)	(3.5)		(8.0)
Share of results of equity method investments	0.4		13.7	0.3		(0.5)
Others, net	3.3		(6.7)	(0.6)		(5.2)
Loss before income taxes	(84.6)		(83.5)	(8.5)		(49.0)
Income tax expense	(2.0)		(0.6)	0.1		0.4
Net loss	(86.6)		(84.1)	(8.4)		(48.6)
Net loss (income) attributable to nonredeemable noncontrolling interests	3.1		0.1	(0.5)		(0.2)
Net loss attributable to redeemable noncontrolling interests	—		2.1	—		0.4
Net loss attributable to ECARX Holdings Inc.	(83.5)		(81.9)	(8.9)		(48.4)
Accretion of redeemable noncontrolling interests	—		(2.4)	—		(0.6)
Net loss attributable to ECARX Holdings Inc. ordinary shareholders	(83.5)		(84.3)	(8.9)		(49.0)
Net loss	(86.6)		(84.1)	(8.4)		(48.6)
Other comprehensive loss (income):
Fair value change of available-for-sale debt investment, net of nil income taxes	—		(1.9)	—		0.9
Foreign currency translation adjustments, net of nil income taxes	(4.9)		(10.7)	0.2		(2.5)
Comprehensive loss	(91.5)		(96.7)	(8.2)		(50.2)
Comprehensive loss (income) attributable to nonredeemable noncontrolling interests	3.0		0.2	(0.7)		(0.1)
Comprehensive loss attributable to redeemable noncontrolling interests	—		2.1	—		0.4
Accretion of redeemable noncontrolling interests	—		(2.4)	—		(0.6)
Comprehensive loss attributable to ECARX Holdings Inc.	(88.5)		(96.8)	(8.9)		(50.5)
Loss per ordinary share
- Basic loss  per share, ordinary shares	(0.25)		(0.22)	(0.03)		(0.13)
- Diluted loss per share, ordinary shares	(0.25)		(0.22)	(0.03)		(0.13)
Weighted average number of ordinary shares used in computing loss per ordinary share
- Weighted average number of ordinary shares - Basic	337,824,547		375,154,378	339,033,301		388,748,348
- Weighted average number of ordinary shares - Diluted	337,824,547		375,154,378	339,033,301		388,748,348

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.

	Nine Months Ended September 30			Three Months Ended September 30
	2025		2026	2025		2026
Millions, except otherwise noted	US$		US$	US$		US$
Net Loss	(86.6)		(84.1)	(8.4)		(48.6)
Interest income	(3.2)		(3.4)	(1.6)		(0.9)
Interest expense	13.6		26.0	3.5		8.0
Income tax expense	2.0		0.6	(0.1)		(0.4)
Depreciation of property and equipment	6.3		5.6	2.1		1.5
Amortization of intangible assets	6.6		7.2	2.2		2.0
EBITDA	(61.3)		(48.1)	(2.3)		(38.4)
Share-based compensation expenses	7.9		2.2	1.4		0.7
Adjusted EBITDA	(53.4)		(45.9)	(0.9)		(37.7)

 

 

View original content:https://www.prnewswire.com/news-releases/ecarx-announces-third-quarter-2026-unaudited-financial-results-302928981.html

SOURCE ECARX Holdings Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were ECARX's third-quarter 2026 earnings results?

ECARX reported US$240.8 million in revenue and a US$48.6 million net loss. Revenue increased 10% year over year, while net loss widened from US$8.4 million. Gross margin declined to 7.0% from 21.9%, as higher memory costs exceeded pricing offsets.

What is ECARX's full-year 2026 revenue guidance?

ECARX reiterated its US$1.0–US$1.1 billion full-year 2026 revenue guidance. The company expects global memory costs to continue weighing on gross margin and operating profitability over the next few quarters, including the fourth quarter of 2026.

Why did ECARX adjust its comparative financial information in its third-quarter 2026 results?

ECARX combined Qiguang's financial information with its own following the acquisition of 100% of Qiguang, an entity under common control, and corrected earlier government-subsidy accounting errors. Management assessed the 2021 and 2022 errors as immaterial to previously issued statements but material to the current period if uncorrected. Corrections affected opening other current liabilities and equity.