UK's ECARX Q2 revenue rises 45%, net loss narrows

Ecarx Holdings

11/08/2026 12:10

Overview
UK automotive intelligence firm's Q2 revenue rose 45% yr/yr on higher-value product sales
Gross margin nearly doubled to 19.8% as price adjustments offset higher memory costs
Net loss narrowed and adjusted EBITDA turned positive as operating costs fell

Outlook
ECARX reiterates full-year 2026 revenue guidance of $1.0-$1.1 bln
Company expects gross margin and operating profitability to be negatively impacted by memory cost dynamics in coming quarters
Company says margin profile will be influenced by global memory costs and cadence of strategic investments

Result Drivers
PRODUCT MIX SHIFT - Co said shift to higher-value automotive computing platform products drove revenue growth
PRICE ADJUSTMENTS - Co said price increases offset elevated memory costs, supporting gross margin expansion
SERVICE REVENUE GROWTH - Co said higher service revenue was driven by increased design and development contract deliveries, especially from new model launches in China

Company press release: ID:nPn5XWbsta

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$225.20 mln
 
Q2 Net Loss
 
$12 mln
 
Q2 Adjusted EBITDA
 
$500,000
 
Q2 Gross Margin
 
19.80%
 
Q2 Gross Profit
 
$44.50 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the integrated hardware & software peer group is "buy"
Wall Street's median 12-month price target for Ecarx Holdings Inc. is $3.00, about 185.7% above its August 10 closing price of $1.05
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)