ECX News & Events

Ecarx announced it has entered into a definitive agreement to acquire the entire Flyme software business portfolio, comprising Flyme Auto, an in-vehicle cockpit operating system, and a cross-device Flyme operating system. Flyme Auto OS is already deployed by Ecarx in over 2M production vehicles across multiple OEM partners. This definitive agreement represents an expansion of the preliminary acquisition plan announced in April. Following completion of due diligence, Ecarx decided that a full acquisition best serves its long-term product and strategic objectives. This will be implemented by acquiring 100% of the equity interest in a new entity carved out from DreamSmart Group, Hubei Qiguang Technology, from its three selling shareholders, for an aggregate total transaction consideration of $266M. The acquisition will be structured as a clean carve-out from DreamSmart, the acquired Entity is expected to obtain ownership of the entire Flyme business portfolio, comprising Flyme Auto and Flyme OS. Within six months after the closing date of the deal, the acquired entity will house all mission-critical Flyme intellectual property, R&D teams, engineering resources, OEM customer contracts and supporting operational infrastructure, free of legacy liabilities. The selling parties comprise Wuhan Xingji Meizu, Zhuhai Meizu Technology and Hubei Xingji Meizu. The target software platform has achieved profitability in 2026 on management accounts, underpinned by rising revenue from software licensing, custom development and intelligent cockpit system deliveries. Upon completion, Ecarx will operate Flyme as an independent software division. Existing operators of Flyme OS will continue to receive updates for the foreseeable future, with user data remaining in each individual operator's ownership. Ecarx and the Flyme team will jointly advance integrated vehicle-to-mobile intelligent experiences while scaling cockpit software licensing to global automotive partners.

Ecarx and TPK Holding have signed a binding memorandum of business cooperation on the joint development of LiDAR technologies for global markets, marking Ecarx's formal entry into the LiDAR sector. Under the agreement, the parties will co-develop the ORCA LiDAR platform, a proprietary sensor system engineered to meet stringent global regulatory and functional safety standards. Mass production is scheduled to kick off in 2028, with manufacturing to be conducted at TPK's advanced production facility in Thailand.

Reports Q1 revenue $131.5M vs. $167.7M last year. 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 21.4% and nearly halved our operating loss from the same period last year. Perhaps most notably, we achieved our third consecutive quarter of positive adjusted EBITDA at $4 million. This resilient performance is the direct result of the strategic framework we established late last year where our focus remains firmly on accelerating our globalization strategy, investing in our R&D roadmap, and optimizing our lean operating strategy to sustain profitability. R&D costs were down 32% YoY, driven by continued resource prioritization and the internal deployment of AI across our business to drive innovation while reducing structural costs."

Ecarx announced a strategic framework agreement with May Mobility to bring Ecarx's intelligent driving capacity to May Mobility's future autonomous fleet for scaling ride-hail deployment. The partnership has identified a third-party vehicle platform for initial targeted deployment starting next year, with commercialization scale-up in 2028. Under the agreement, Ecarx is expected to develop and deliver up to thousands of autonomy-enabled vehicles, including customized central computing platforms and a full stack sensor suite, for May Mobility's next-generation autonomy system. Ecarx and May Mobility are jointly aiming to reduce the all-in cost of May Mobility's autonomous vehicles, targeting at least 50% cost reduction by 2028. The total value of the project is estimated to be approximately $750M over its entire duration. The actual scope and details of this collaboration, and the actual project value, remain subject to further negotiations and execution of definitive agreements. The successful deployment of these autonomous platforms is also subject to regulatory determination.