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ECARX Holdings
(NASDAQ:ECX)
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Rating:50Neutral
Price Target:
$1.00
▼(-45.95% Downside)
Action:Reiterated
Date:06/26/26
The score is held back primarily by weak financial performance (losses, negative cash flow, and negative equity), which outweighs near-term operational improvements highlighted on the earnings call (margin expansion, positive adjusted EBITDA, and cost reductions). Technicals are neutral with no clear uptrend, and valuation metrics are unattractive due to negative earnings and no dividend support.
Positive Factors
Proprietary Software & IP Acquisition
Acquiring Flyme brings a proven in-vehicle OS, IP, R&D teams and OEM contracts under ECARX control, enabling higher-margin software licensing, faster feature rollouts and tighter product integration. Owning the stack supports recurring revenues and strengthens differentiation with global OEM partners.
Negative Factors
Weak Balance Sheet & High Leverage
Persistent negative equity and elevated debt levels constrain financial flexibility for R&D, capex and M&A. A weakened balance sheet increases refinancing and covenant risk, making long-term investments and global expansion dependent on external financing or dilutive transactions unless operating cash flow turns decisively positive.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary Software & IP Acquisition
Acquiring Flyme brings a proven in-vehicle OS, IP, R&D teams and OEM contracts under ECARX control, enabling higher-margin software licensing, faster feature rollouts and tighter product integration. Owning the stack supports recurring revenues and strengthens differentiation with global OEM partners.
Read all positive factors
ECARX Holdings Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Reveals how much money each segment retains after direct costs, highlighting which products or services generate scalable profits—software platforms and recurring services typically show higher margins than one-time hardware sales. A growing share of high-margin software revenue at ECARX would point to more durable earnings and less sensitivity to component-cost swings.
Reveals how much money each segment retains after direct costs, highlighting which products or services generate scalable profits—software platforms and recurring services typically show higher margins than one-time hardware sales. A growing share of high-margin software revenue at ECARX would point to more durable earnings and less sensitivity to component-cost swings.
Data provided by:
The Fly
The FlyECARX Holdings (ECX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$445.93M
Dividend YieldN/A
Average Volume (3M)1.52M
Price to Earnings (P/E)―
Beta (1Y)1.90
Revenue Growth-0.39%
EPS Growth57.71%
CountryUS
Employees1,800
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-0.68
Shares Outstanding310,785,220
10 Day Avg. Volume1,673,904
30 Day Avg. Volume1,520,995
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)-2.06
Price to Sales (P/S)0.69
P/FCF Ratio-5.47
Enterprise Value/Market Cap1.87
Enterprise Value/Revenue0.99
Enterprise Value/Gross Profit5.18
Enterprise Value/Ebitda-146.50
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.17
Revenue Forecast (FY)$7.61B
ECARX Holdings Business Overview & Revenue Model
Company Description
ECARX Holdings, Inc., established in 2017, specializes in the conceptualization, engineering, and provision of cutting-edge automotive technology solutions. The company's primary offerings encompass a range of advanced products, including integrat...
How the Company Makes Money
ECARX primarily makes money by selling automotive electronics and software used in vehicle “smart cockpit” and connectivity systems, generally through business-to-business supply arrangements with automakers and their manufacturing ecosystems.
Ke...
ECARX Holdings Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented meaningful operational and profitability improvements—expanded gross margin to 21.4%, positive adjusted EBITDA for a third straight quarter, strong cost reductions, rising high-end product shipments (+73% YoY) and major strategic wins (May Mobility, Volkswagen program, global R&D investment). Offsetting these positives are a modest ~6% revenue decline, seasonal softness, sharp memory cost inflation (DDR +300%), lower software/service revenues due to timing and one-time prior-year items, and some inconsistent reported figures. On balance the company emphasized disciplined execution, margin resilience and a clear strategic roadmap while acknowledging near-term headwinds.Positive Updates
Improved Profitability and Margin Expansion
Gross profit of $28 million and gross margin expanded to 21.4%. Operating loss narrowed to $13 million (vs $25 million in Q1 2025). Adjusted EBITDA was positive $4 million for the third consecutive quarter (vs negative $15 million in Q1 2025).
Negative Updates
Quarterly Revenue Decline
Sales of goods revenue was reported as down ~6% year-over-year. The transcript contains inconsistent figures for Q1 sales (management cited $140 million in one place and $114 million in another), but the YoY decline was stated at ~6%.
Read all updates
Q1-2026 Updates
Positive
Negative
Improved Profitability and Margin Expansion
Gross profit of $28 million and gross margin expanded to 21.4%. Operating loss narrowed to $13 million (vs $25 million in Q1 2025). Adjusted EBITDA was positive $4 million for the third consecutive quarter (vs negative $15 million in Q1 2025).
Read all positive updates
Company Guidance
The company reiterated full‑year 2026 revenue guidance of $1.0–$1.1 billion, citing a Q1 sales-of-goods base of $114 million (down ~6% YoY) and a seasonally low quarter with an expected pickup from Q2; Q1 shipments exceeded 360,000 units while cumulative vehicles shipped surpassed 11 million (up ~30% YoY) and shipments of high‑end Antora/pikes rose ~73% YoY. Profitability trends include Q1 gross profit of $28 million and a 21.4% gross margin, operating loss narrowed to $13 million (vs. $25M LY), adjusted EBITDA positive at $4 million (third consecutive quarter, vs. –$15M LY), and cost reductions with operating expenses down 29% to $41M (R&D –32% to $24M; SG&A –24% to $18M). Management warned margins and operating profitability remain sensitive to memory cost volatility (DDR costs up >300% since Sept 2025) and did not provide ASP or explicit volume guidance.ECARX Holdings Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
18
Very Negative
Cash Flow
16
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 847.86M | 5.63B | 4.70B | 3.56B | 2.78B |
| Gross Profit | 161.26M | 1.15B | 1.27B | 936.51M | 817.06M |
| EBITDA | -19.53M | -91.00M | -115.00M | -205.38M | -152.67M |
| Net Income | -66.04M | -127.71M | -132.68M | -226.71M | -184.18M |
Balance Sheet | |||||
| Total Assets | 662.32M | 3.77B | 4.27B | 4.73B | 622.32M |
| Cash, Cash Equivalents and Short-Term Investments | 118.27M | 454.56M | 699.02M | 860.47M | 137.74M |
| Total Debt | 435.98M | 1.99B | 1.81B | 1.41B | 166.19M |
| Total Liabilities | 945.65M | 5.52B | 5.10B | 4.77B | 1.26B |
| Stockholders Equity | -282.52M | -1.76B | -921.41M | -196.40M | -643.70M |
Cash Flow | |||||
| Free Cash Flow | -106.56M | -544.93M | -1.31B | -618.62M | -951.19M |
| Operating Cash Flow | -94.39M | -430.28M | -1.24B | -461.34M | -872.33M |
| Investing Cash Flow | -70.48M | -59.91M | 592.08M | -313.04M | -1.39B |
| Financing Cash Flow | 203.86M | 261.64M | 296.83M | 657.77M | 2.19B |
ECARX Holdings Technical Analysis
Positive
1.85
Price Trends
1.15
Positive
1.23
Positive
1.61
Negative
Market Momentum
0.02
Negative
55.09
Neutral
86.18
Negative
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 1.85 is above the 20-day moving average (MA) of 1.21, above the 50-day MA of 1.15, and above the 200-day MA of 1.61, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.09 is Neutral, neither overbought nor oversold. The STOCH value of 86.18 is Negative, 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.
Industry data, projections, and estimates are inherently uncertain and subject to change. Q4, 2023
2.
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
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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $134.86M | 3.15 | 11.39% | ― | 17.64% | 42.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $1.62B | -9.71 | 691.75% | ― | 103.11% | 7.34% | |
50 Neutral | $445.93M | -8.32 | 4.95% | ― | -0.39% | 57.71% | |
49 Neutral | $326.78M | -3.97 | -32.48% | ― | 179.82% | 26.84% | |
48 Neutral | $148.60M | -1.79 | -101.64% | ― | 29.57% | 13.83% | |
45 Neutral | $65.30M | -1.25 | -56.22% | ― | 9.76% | 68.22% |
* Consumer Cyclical Sector Average
ECX
ECARX Holdings
1.25
-0.86
-40.76%
CAAS
China Automotive Systems
4.47
0.33
7.97%
AEVA
Aeva Technologies
23.98
-9.64
-28.67%
INVZ
Innoviz Technologies
0.69
-0.68
-49.49%
LIDR
AEye Inc
1.41
0.40
39.60%
SES
SES AI Corporation Class A
0.88
0.04
5.24%
ECARX Holdings Corporate Events
ECARX to Acquire Full Flyme Software Business in RMB1.8 Billion Deal
Jun 22, 2026
On June 22, 2026, ECARX Holdings said it has signed a definitive agreement to acquire the full Flyme software business, including the Flyme Auto in-vehicle cockpit OS and the cross-device Flyme operating system, from DreamSmart-related sellers for...
ECARX Enters LiDAR Market With TPK Deal to Co-Develop ORCA Platform for 2028 Production
Jun 1, 2026
ECARX Holdings Inc., a global automotive intelligence provider focused on full-stack hardware and software for software-defined and AI-driven vehicles, has built a significant installed base across more than 11 million vehicles and collaborates wi...
ECARX Narrows Loss and Lifts Margins in Q1 2026 as Global Expansion Accelerates
May 19, 2026
ECARX reported unaudited results for the quarter ended March 31, 2026, highlighting a strategic shift toward higher-margin products and tighter cost control amid a challenging macro backdrop. Total revenue fell 22% year-on-year to US$131.5 million...
ECARX Strikes US$750 Million Framework Deal with May Mobility to Scale Autonomous Ride-Hail Fleet
May 19, 2026
On May 19, 2026, ECARX Holdings Inc. announced a strategic framework agreement with U.S.-based autonomous vehicle specialist May Mobility Inc. to develop and scale an autonomous ride-hail fleet, with initial deployments targeted from next year and...
ECARX Names Lone Fønss Schrøder Board Chair to Bolster Global Expansion
Apr 16, 2026
ECARX Holdings Inc., a global mobility and automotive tech provider listed on Nasdaq, develops full-stack hardware and software platforms for smart, software-defined vehicles, including central computing, cockpit and ADAS solutions. The company op...
ECARX Unveils Preliminary Plan to Acquire Stake and IP Assets from Affiliate DreamSmart
Apr 8, 2026
ECARX Holdings Inc., a Nasdaq-listed global mobility tech provider, develops full-stack solutions for software-defined vehicles, ranging from SoC modules and computing platforms to software and user experiences. With 13 global hubs and integration...
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.