Ecarx Holdings Inc. ((ECX)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Ecarx Holdings Inc. painted a mixed picture for the company in Q2 2025. While the company celebrated solid growth in vehicle shipments and expanded global partnerships, it also faced challenges such as a decline in gross profit and reduced software license revenues. Despite these hurdles, ECARX expressed confidence in achieving adjusted EBITDA breakeven in the remaining quarters of 2025.
Growth in Vehicle Shipments
ECARX reported a significant increase in vehicle shipments, reaching 532,000 units in Q2 2025. This marks a 20% year-over-year growth, bringing the cumulative total of vehicles equipped with ECARX technology to over 9.3 million. This growth underscores the company’s strong market presence and demand for its technology.
Expansion of Global Partnerships
The company secured several major new project wins, including a USD 1 billion lifetime revenue contract. ECARX expanded its global footprint by serving 18 OEMs across 28 brands, highlighting its strategic partnerships and global reach.
Surge in Antora Series Solutions
Shipments of ECARX’s Antora series solutions surged by 112% year-over-year to 135,000 units. This impressive growth supports the company’s momentum and showcases the increasing demand for their innovative solutions.
Geely Partnership Success
ECARX’s collaboration with Geely’s Galaxy brand has been fruitful, with the brand surpassing 1 million units in sales. This achievement marks Galaxy as the fastest NEV brand to reach this milestone, demonstrating the effectiveness of ECARX’s solutions.
Increased Revenue from In-House Platforms
The company’s in-house platforms, including Antora, Venado, and Skyland, contributed 56% to total sales of goods revenue, more than doubling from the previous year. This increase highlights the success of ECARX’s proprietary technologies in driving revenue growth.
Recognition and Awards
ECARX received significant industry recognition, including Volkswagen Brazil’s Technical Development and Innovation Award. The company was also included in the 2025 China Automotive Supply Chain Top 100 ranking, underscoring its leadership in the automotive sector.
Global Expansion Initiatives
ECARX is set to enhance its global presence with the opening of a new headquarters in Singapore in the second half of 2025. This move aims to improve global IP management, R&D collaboration, and supply chain optimization.
Seasonal Revenue Impact
The company’s Q2 2025 revenue reached USD 156 million, reflecting seasonal softness and macroeconomic uncertainty. This impact was anticipated and aligns with broader market trends.
Decline in Gross Profit
Gross profit for the quarter was USD 70 million, a 58% year-over-year decline. The gross margin stood at 11%, affected by strategic pricing initiatives and a lower software license service revenue mix.
Decrease in Software License Revenue
Software license revenue saw an 85% year-over-year decrease to USD 1.2 million. This decline was attributed to reduced per vehicle software license revenue and lower intellectual property licenses revenue.
Service Revenue Decline
Service revenue fell to USD 23 million, down 34% year-over-year, primarily due to lower revenue from nonrecurring engineering services contracts for automotive computing platforms.
Adjusted EBITDA Loss
The adjusted EBITDA loss was USD 30 million, slightly worse than the USD 29 million loss in the same period last year. This was primarily due to decreased gross profit.
Forward-Looking Guidance
ECARX remains optimistic about its future, providing guidance that indicates a positive trajectory towards achieving EBITDA breakeven in the remaining quarters and the full year 2025. The company expects close to 20% revenue growth for the year, driven by disciplined execution, strong partnerships, and a diversified portfolio of solutions. The strategic expansion, including the new headquarters in Singapore, is expected to bolster their global operations.
In conclusion, Ecarx Holdings Inc.’s Q2 2025 earnings call highlighted a blend of achievements and challenges. While the company celebrated growth in shipments and partnerships, it also faced declines in profit and revenue in certain areas. Nevertheless, ECARX’s forward-looking guidance and strategic initiatives paint a promising picture for the remainder of the year, with expectations of revenue growth and operational improvements.