ECARX (ECX) Q1 2026 earnings summary

Executive summary

• Achieved third consecutive quarter of positive adjusted EBITDA at $4 million, with gross margin expanding to 21.4% despite a 22% year-over-year revenue decline to $131.5 million.

• Disciplined execution on global strategy, focusing on automotive intelligence, software-defined vehicles, and expansion into autonomous mobility through a major partnership with May Mobility.

• Expanded global footprint with new R&D hub in Germany, operational infrastructure in South America and Singapore, and advanced Volkswagen Group partnership for 2027 Latin America launch.

• Strengthened governance by separating Chairperson and CEO roles, and appointed new Chairperson and CFO with extensive industry experience.

• Maintained robust cost discipline, reducing R&D and SG&A expenses, and recognized a $14 million gain from partial divestment of SiEngine.

Financial highlights

• Q1 2026 revenue was $131.5 million, down 22% year-over-year, with sales of goods revenue at $113.8 million and software license revenue at $1.6 million.

• Gross profit reached $28.2 million, with gross margin expanding to 21.4%.

• Operating loss narrowed to $11 million, nearly halving from $27.2 million in Q1 2025.

• Adjusted EBITDA turned positive at $4 million, compared to a $14.5 million loss in the same quarter last year.

• Total cash as of March 31, 2026: $70.1 million.

Outlook and guidance

• Reiterated full-year 2026 revenue guidance of $1.0–$1.1 billion, representing 20–30% year-over-year growth.

• Expects significant volume and revenue pickup from Q2 onward, with Q1 as the seasonal low.

• Gross margin and operating profitability expected to be negatively impacted by global memory cost dynamics in coming quarters.

• Overseas revenue mix targeted to reach ≥30% in 2026 and 50% by 2030.