ECARX Holdings Inc. (ECX) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary shows strong financial performance with revenue and profit growth, positive operating income, and decreased operating expenses. The company is expanding globally and investing in R&D, with promising partnerships. Despite macroeconomic and supply chain challenges, the management's optimistic guidance and strategic initiatives, including a major European OEM win, suggest a positive outlook. The Q&A section reinforces confidence in management's plans. Overall, the sentiment is positive, indicating a potential stock price increase of 2% to 8% over the next two weeks.
Key Financial Performance
Net Income $2.8 million, marking the second consecutive quarter of positive results.
Adjusted EBITDA $22 million, a significant increase from $10 million in Q4 last year.
Operating Income $7 million, a 155% improvement year-over-year.
Revenue $305 million, up 13% year-over-year, driven by strong customer demand for core computing platforms.
Gross Profit $64 million, up 11% year-over-year, with a gross margin of 21%, reflecting lean operating strategy and cost management.
Sales of Goods Revenue $270 million, a remarkable 27% year-over-year increase, driven by a 62% increase in shipments of Antora, Makalu, and Pikes series.
Operating Expenses $57 million for the quarter, a 19% decrease year-over-year, and $216 million for the full year, a 24% decrease year-over-year, achieved while driving global expansion and R&D milestones.
Full Year Revenue $848 million, a 10% increase over 2024, achieving double-digit annual revenue growth target.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Antora series shipments: Reached a 1-million-unit milestone in 2025, showcasing market leadership and vertical integration capabilities.
Geely Galaxy M9: Powered by Pies computing platform and Cloudpeak software stack, showcasing next-gen AI cockpit experience.
Geely EX5: Launched in the U.K. with AI-enhanced Antora 1000 and Cloudpeak solutions, marking large-scale deliveries in Europe.
Lynk & Co 07 and 08 EMP: Adopted solutions from Geely Galaxy M9, expanding global visibility and adoption.
Global expansion: Deepened partnership with Volkswagen Group in Latin America and Europe, with a target to generate 50% of revenue from overseas markets by 2030.
European market entry: Antora platform obtained key safety and privacy certifications, enabling deployments across Europe.
Singapore headquarters: Operationalizing as a central hub for global IP, R&D, and treasury activities.
Revenue growth: Achieved $305 million in Q4 2025, up 13% YoY, and $848 million for the full year, up 10% YoY.
Profitability: Second consecutive quarter of positive operating income ($7 million) and adjusted EBITDA ($22 million).
Lean operating strategy: Reduced operating expenses by 19% YoY in Q4 and 24% for the full year.
R&D investment: Focus on next-gen computing platforms and intelligent driving solutions like Skyland Pro.
Convertible bond financing: Raised $150 million from ATW Partners and $45.6 million from Geely to support global expansion and R&D.
Global compliance: Working on U.S. regulatory certifications to expand addressable market.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Global semiconductor supply chain challenges: Tightened policies in the global semiconductor supply chain have posed challenges to the company's operations, impacting gross margin recovery and operational efficiency.
Macroeconomic headwinds: Persistent macroeconomic challenges, including global supply shortages for hardware and components, particularly in storage, have created cost pressures and impacted profitability.
Regulatory compliance hurdles: The company is working to obtain relevant regulatory certifications in the U.S. to expand its addressable market, which could delay market entry and revenue generation.
Seasonal fluctuations in automotive consumption: The first quarter of 2026 is expected to experience seasonal softness in automotive consumption, which could impact short-term revenue and profitability.
Cost pressures in global expansion: Global expansion efforts, including building R&D and engineering hubs in Germany and infrastructure in South America and Southeast Asia, require significant capital investment, which could strain financial resources.
Supply chain resilience: Despite efforts to secure the supply chain through partnerships and facilities, global supply chain disruptions remain a potential risk to timely delivery and operational efficiency.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Revenue Growth: For the full year 2026, ECARX expects total revenue in the range of $1 billion to $1.1 billion, representing a year-over-year increase of 20% to 30%.
Profitability: The company is committed to maintaining positive operating income throughout 2026, supported by its lean operating strategy.
Seasonal Fluctuations: The first quarter of 2026 is expected to experience typical seasonal softness in automotive consumption, but the full-year order pipeline remains robust.
Global Expansion: ECARX aims to generate 50% of its total revenue from overseas markets by 2030, with significant investments in R&D and infrastructure in Germany, South America, and Southeast Asia.
R&D Investments: The company will continue to invest in next-generation computing platforms and intelligent driving solutions, including Skyland Pro, to maintain leadership in AI and software services.
Capital Expenditures: Recent capital raised, including $200 million from partners like Geely and ATW Partners, will support global R&D and infrastructure expansion.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
The selected topic was not discussed during the call.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:What is the 2026 guidance for ASP and margin outlook, and how is the demand impacted by government policies?
A:For 2026, the company expects total revenue in the range of $1 billion to $1.1 billion, representing a year-over-year increase of 20% to 30%. Despite macroeconomic headwinds and shrinking end-user demand, the company has actions in place to mitigate challenges and is confident in delivering a solid year.
Q:What is the impact of rising memory costs on margins for 2026?
A:The company expects a gross margin range of about 15% to 18% for 2026. They plan to manage costs effectively, collaborate with customers on cost inflation, and implement a reasonable pricing strategy to mitigate challenges.
Q:What is the latest progress with foreign OEM order wins?
A:The company announced a major global win with a European OEM (BW) to support business in Latin America and extended its partnership with Volkswagen Group to expand the Antora platform across additional vehicle lines in Volkswagen Latin America. They are optimistic about emerging opportunities in Europe and expect additional wins in the future.
Q:Review of Unclear Management Responses
A:None of the questions were avoided or lacked clarity. All responses were detailed and addressed the questions directly.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI service
AI technology
America
Antora platform
Automotive Services
ECARX Full
EX
Full Conference
Google Automotive
RD efficiency
RD road
ability opportunity
ability program
adoption
advantage
agent
automaker market
certification
chip
engineering
entry
globalization
hardware
hub
income
market demand
month
need automaker
phase
priority
reflection
road map
sector
segment
shipment
side
software stack
solution partner
start
target
vehicle AI
visibility
ECX Transcript
ECARX Holdings Inc. (ECX) Q4 2025 Earnings Call Transcript
Positive2-12
The earnings call summary shows strong financial performance with revenue and profit growth, positive operating income, and decreased operating expenses. The company is expanding globally and investing in R&D, with promising partnerships. Despite macroeconomic and supply chain challenges, the management's optimistic guidance and strategic initiatives, including a major European OEM win, suggest a positive outlook. The Q&A section reinforces confidence in management's plans. Overall, the sentiment is positive, indicating a potential stock price increase of 2% to 8% over the next two weeks.
ECARX Holdings Inc. (ECX) Q3 2025 Earnings Call Transcript
Positive11-3
The earnings call highlights strong financial performance with significant EBITDA improvement and reduced operating expenses. The Q&A reveals positive sentiment with increased overseas project wins and robust growth expectations for Q4 and beyond. Despite some vague responses, the company’s strategic initiatives, such as partnerships and global expansion, coupled with optimistic guidance and strong product development, suggest a positive stock price reaction.
ECARX Holdings Inc. (ECX) Q2 2025 Earnings Call Transcript
Unknown8-26
The earnings call presents a mixed picture: strong revenue growth and global expansion efforts are positive, but declining gross profit, gross margin, and significant software license revenue drop are concerning. The Q&A highlights optimism in nonautomotive applications and global expansion but lacks clarity on in-house chip development and pricing strategies. Given the strategic partnerships and ongoing expansion, the market may react neutrally in the short term, balancing positive growth prospects with current financial challenges.
ECARX Holdings, Inc. (NASDAQ:ECX) Q1 2025 Earnings Call Transcript
Positive5-1
The earnings call shows strong financial performance with a 30% revenue increase and improved EBITDA loss. Positive developments include a new partnership with Volkswagen, a $20 million share repurchase, and robust demand for new products. Despite some regulatory and geopolitical challenges, the company's global strategy and cost optimization efforts are promising. The Q&A section further supports a positive outlook with management's confidence in sustaining growth and demand. The absence of market cap information suggests a moderate impact, leading to a positive stock price prediction of 2% to 8% over the next two weeks.
ECX Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
