UK's ECARX Q1 revenue falls 22% as legacy business phased out

Ecarx Holdings.

19/05/2026 12:09

Overview

UK automotive intelligence firm's Q1 revenue fell 22% yr/yr as legacy business phased out

Gross margin rose to 21.4% from 19.8% on price adjustments and product mix optimization

Q1 adjusted EBITDA turned positive, aided by lower operating expenses and divestment gains

Outlook

ECARX reiterates full-year 2026 revenue guidance of US$1.0-US$1.1 bln

Company expects gross margin and operating profitability to be negatively impacted by memory cost dynamics

ECARX says commercial pipeline visibility supports confidence in strategic trajectory for remainder of yr

Result Drivers

LEGACY BUSINESS PHASE-OUT - Revenue declined as ECARX continued to phase out lower-margin, legacy platform business, creating a high base effect versus Q1 2025

ONE-TIME SOFTWARE LICENSE IMPACT - Software license revenue fell sharply due to a one-time software license revenue of $25 mln item in Q1 2025, not repeated this year

COST CONTROLS AND AI DEPLOYMENT - Operating expenses, especially R&D, fell due to resource prioritization and internal AI deployment, aiding profitability

Company press release: ID:nPn7cTC0Ma

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$131.50 mln
Q1 Net Income
-$11 mln
Q1 Adjusted EBITDA
$4 mln
Q1 Gross Margin
21.40%
Q1 Gross Profit
$28.20 mln


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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.)