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ECARX Holdings (ECX)
NASDAQ:ECX
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ECARX Holdings
(NASDAQ:ECX)
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Rating:46Neutral
Price Target:
$1.50
▼(-27.88% Downside)
ECARX Holdings faces significant financial challenges, with negative equity and high leverage being major concerns. While the earnings call provided some positive outlooks, the technical indicators and valuation metrics suggest a cautious approach. The company's strategic initiatives and potential for EBITDA breakeven are positive, but financial instability remains a critical risk.
ECARX Holdings (ECX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$777.36M
Dividend YieldN/A
Average Volume (3M)2.34M
Price to Earnings (P/E)―
Beta (1Y)1.38
Revenue Growth12.52%
EPS Growth22.68%
CountryUS
Employees1,800
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-0.13
Shares Outstanding324,769,100
10 Day Avg. Volume1,708,914
30 Day Avg. Volume2,344,474
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue0.17
Enterprise Value/Gross Profit0.83
Enterprise Value/Ebitda-1.02
Forecast
1Y Price Target
$1.50Price Target Upside-27.88% Downside
Rating ConsensusHold
Number of Analyst Covering1
ECARX Holdings Business Overview & Revenue Model
Company DescriptionECARX Holdings, Inc. engages in the design, development, and delivery of vehicle technology. Its products include infotainment head units, digital cockpits, vehicle chip-set, operating system and software stack. The company was founded in 2017 and is based in Shanghai, China with an additional office in Europe.
How the Company Makes MoneyECARX generates revenue through multiple streams, including the sale of its hardware and software solutions to automotive manufacturers and suppliers. The company's primary revenue model is based on licensing its technology for use in vehicles, which includes infotainment systems and advanced driver-assistance systems (ADAS). Additionally, ECARX earns revenue through partnerships with automotive OEMs (original equipment manufacturers), where it provides integrated solutions tailored to specific vehicle models. The company also explores revenue opportunities in data analytics and subscription services related to its connected vehicle offerings, further enhancing its earnings potential.
ECARX Holdings Earnings Call Summary
Earnings Call Date:Aug 26, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call for ECARX in Q2 2025 showed solid growth in vehicle shipments, expansion in global partnerships, and significant recognition in the industry. However, the company faced challenges with seasonal revenue impact, a decline in gross profit, and reduced software license and service revenues. Despite these challenges, ECARX is confident in achieving adjusted EBITDA breakeven in the remaining quarters of 2025.Q2-2025 Updates
Positive Updates
Growth in Vehicle Shipments
ECARX shipped 532,000 units in Q2 2025, with the cumulative total of vehicles equipped with ECARX technology reaching over 9.3 million. This marks a 20% year-over-year growth in vehicle volume.
Expansion of Global Partnerships
ECARX secured several major new project wins, including a USD 1 billion lifetime revenue contract, and expanded its footprint by serving 18 OEMs across 28 brands globally.
Surge in Antora Series Solutions
Shipments of Antora series solutions surged by 112% year-over-year to 135,000 units, supporting the growth momentum.
Geely Partnership Success
ECARX's solutions enabled Geely's Galaxy brand to surpass 1 million units in sales, making it the fastest NEV brand to achieve this milestone.
Increased Revenue from In-House Platforms
Antora, Venado, and Skyland platforms contributed 56% to total sales of goods revenue, more than doubling from 28% in the prior year period.
Recognition and Awards
ECARX received Volkswagen Brazil's Technical Development and Innovation Award and was included in the 2025 China Automotive Supply Chain Top 100 ranking.
Global Expansion Initiatives
The opening of a new global headquarters in Singapore is set for the second half of 2025, enhancing global IP management, R&D collaboration, and supply chain optimization.
Negative Updates
Seasonal Revenue Impact
Q2 2025 revenue reached USD 156 million, reflecting seasonal softness and macroeconomic uncertainty.
Decline in Gross Profit
Gross profit for the quarter was USD 70 million, a 58% year-over-year decline, with a gross margin of 11%, impacted by strategic pricing initiatives and a lower software license service revenue mix.
Decrease in Software License Revenue
Software license revenue decreased 85% year-over-year to USD 1.2 million, due to a decline in per vehicle software license revenue and lower intellectual property licenses revenue.
Service Revenue Decline
Service revenue was USD 23 million, down 34% year-over-year, mainly due to lower revenue from nonrecurring engineering services contracts for automotive computing platforms.
Adjusted EBITDA Loss
Adjusted EBITDA loss was USD 30 million, slightly worse than the loss of USD 29 million in the same period last year, due to decreased gross profit.
Company Guidance
During ECARX's Second Quarter 2025 Earnings Conference Call, the company provided guidance indicating a positive trajectory towards achieving EBITDA breakeven in each of the remaining quarters and the full year 2025. ECARX reported shipping 532,000 units in Q2, increasing the total number of vehicles equipped with their technology to over 9.3 million. Revenue for the quarter reached USD 156 million, with operating expenses reduced by 20% to USD 57.2 million. The company highlighted a 112% year-over-year increase in shipments of their Antora series solutions to 135,000 units. ECARX also secured over USD 1 billion in lifetime revenue from overseas contracts. The company's strategic expansion includes a new global headquarters in Singapore set to open in the second half of 2025. Despite a challenging market environment, ECARX remains confident in achieving close to 20% revenue growth for the year, driven by their disciplined execution, strong partnerships, and a diversified portfolio of solutions.ECARX Holdings Financial Statement Overview
Summary
ECARX Holdings shows growth in revenue but faces substantial profitability and cash flow challenges. The negative equity and high leverage raise concerns about the company's financial stability. Continued focus on improving operational efficiency and cash flow management is crucial to enhance its financial health.Income Statement
ECARX Holdings has exhibited a steady revenue growth over the years, increasing from $2.24 billion in 2020 to $5.56 billion in 2024. However, the company has been consistently unprofitable with negative net incomes throughout the period, culminating in a net loss of $932.3 million in 2024. The gross profit margin has shown some stability, but the EBIT and EBITDA margins are concerningly negative, indicating ongoing operational challenges.35
Negative
Balance Sheet
The balance sheet presents a worrying picture with consistent negative stockholders' equity, which worsened to -$1.76 billion in 2024. The high debt-to-equity ratio reflects significant leverage, increasing financial risk. Total liabilities exceed total assets, highlighting a negative equity ratio, which is a critical concern for financial stability.25
Negative
Cash Flow
ECARX Holdings has struggled with cash flow management, as seen by negative free cash flow figures in recent years, reflecting inadequate cash generation to cover capital expenditures. The operating cash flow has also been negative, indicating that the company is not generating sufficient cash from its core operations to cover its expenses.30
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.56B | 4.67B | 3.56B | 2.78B | 2.24B |
| Gross Profit | 1.15B | 1.27B | 990.50M | 817.19M | 551.39M |
| EBITDA | -796.40M | -814.87M | -1.42B | -973.15M | -321.69M |
| Net Income | -932.30M | -940.19M | -1.54B | -1.18B | -439.66M |
Balance Sheet | |||||
| Total Assets | 3.77B | 4.27B | 4.25B | 3.97B | 2.58B |
| Cash, Cash Equivalents and Short-Term Investments | 454.50M | 699.02M | 737.40M | 877.96M | 729.94M |
| Total Debt | 2.13B | 1.81B | 1.56B | 1.06B | 1.10B |
| Total Liabilities | 5.52B | 5.10B | 4.43B | 8.04B | 4.41B |
| Stockholders Equity | -1.76B | -921.41M | -177.20M | -4.10B | -1.84B |
Cash Flow | |||||
| Free Cash Flow | -544.93M | -1.31B | -533.54M | -951.19M | -437.16M |
| Operating Cash Flow | -430.28M | -1.24B | -405.76M | -872.33M | -368.05M |
| Investing Cash Flow | -8.21M | 592.08M | -283.53M | -1.39B | -91.11M |
| Financing Cash Flow | 35.84M | 296.83M | 537.77M | 2.19B | 1.14B |
ECARX Holdings Technical Analysis
Positive
2.08
Price Trends
1.68
Positive
1.73
Positive
1.79
Positive
Market Momentum
0.13
Negative
63.34
Neutral
75.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECX, the sentiment is Positive. The current price of 2.08 is above the 20-day moving average (MA) of 1.86, above the 50-day MA of 1.68, and above the 200-day MA of 1.79, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 63.34 is Neutral, neither overbought nor oversold. The STOCH value of 75.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ECX.
ECARX Holdings Risk Analysis
ECARX Holdings disclosed 77 risk factors in its most recent earnings report. ECARX Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
If we do not appropriately maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act of 2002, we may be unable to accurately report our financial results and the market price of our securities may be adversely affected. Q4, 2023
2.
Industry data, projections, and estimates are inherently uncertain and subject to change. Q4, 2023
3.
We are involved from time to time in legal proceedings and commercial or contractual disputes, which could have an adverse impact on our profitability and consolidated financial position. Q4, 2023
ECARX Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | 147.84M | 5.04 | 8.00% | ― | 17.08% | -18.03% | |
55 Neutral | 341.32M | -4.06 | -80.08% | ― | 17.32% | 37.70% | |
55 Neutral | 94.27M | -0.82 | -339.23% | ― | -23.62% | 71.09% | |
54 Neutral | 680.24M | -6.08 | ― | ― | ― | -63.15% | |
46 Neutral | $777.36M | ― | 102.04% | ― | 12.52% | 22.68% | |
44 Neutral | 853.36M | -2.76 | -153.25% | ― | 111.39% | -74.39% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
ECX
ECARX Holdings
2.08
0.17
8.90%
CAAS
China Automotive Systems
4.90
0.30
6.52%
AEVA
Aeva Technologies
15.15
11.86
360.49%
INVZ
Innoviz Technologies
1.70
0.87
104.82%
LIDR
AEye Inc
2.36
1.22
107.02%
SES
SES AI Corporation Class A
1.86
1.22
190.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.