Ecarx Holdings Inc. (ECX)
NASDAQ:ECX
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ECARX Holdings
(NASDAQ:ECX)
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Rating:52Neutral
Price Target:
$2.00
▲(8.11% Upside)
Action:Reiterated
Date:11/15/25
ECARX Holdings' overall score is primarily influenced by its financial performance challenges, including negative equity and high leverage. The positive earnings call, highlighting profitability and growth, provides a counterbalance, but valuation concerns and neutral technical indicators limit the score.
Positive Factors
Achieved EBITDA breakeven and first net profit
Reaching EBITDA breakeven and a first net profit demonstrates the business model can scale to profitability. This validates product-market fit, supports sustained reinvestment in R&D and expansion, and materially lowers existential funding pressure versus a perpetual loss-making profile.
Negative Factors
Persistent negative shareholders' equity and high leverage
Material negative equity and heavy leverage are structural solvency risks: they limit financial flexibility, raise refinancing and covenant risk, increase cost of capital, and constrain strategic optionality if OEM demand softens or cash needs spike during multi-year platform investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Achieved EBITDA breakeven and first net profit
Reaching EBITDA breakeven and a first net profit demonstrates the business model can scale to profitability. This validates product-market fit, supports sustained reinvestment in R&D and expansion, and materially lowers existential funding pressure versus a perpetual loss-making profile.
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.
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The Fly
The FlyECARX Holdings (ECX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$388.85M
Dividend YieldN/A
Average Volume (3M)1.06M
Price to Earnings (P/E)56.4
Beta (1Y)1.93
Revenue Growth9.40%
EPS Growth49.47%
CountryUS
Employees1,800
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-1.44
Shares Outstanding310,785,220
10 Day Avg. Volume1,301,920
30 Day Avg. Volume1,057,888
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)-2.06
Price to Sales (P/S)0.69
P/FCF Ratio0.00
Enterprise Value/Market Cap6.93
Enterprise Value/Revenue0.67
Enterprise Value/Gross Profit4.07
Enterprise Value/Ebitda-26.19
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.2
Revenue Forecast (FY)$7.71B
ECARX Holdings Business Overview & Revenue Model
Company Description
ECARX 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...
How the Company Makes Money
ECARX 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, wh...
ECARX Holdings Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q1-2026)
| 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
35
Negative
Balance Sheet
25
Negative
Cash Flow
30
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 847.67M | 5.56B | 4.70B | 3.56B | 2.78B |
| Gross Profit | 161.26M | 158.11M | 179.54M | 144.06M | 128.18M |
| EBITDA | -33.49M | ― | ― | ― | ― |
| Net Income | -65.98M | ― | ― | ― | ― |
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 | 0.00 | -544.93M | -1.31B | -618.62M | -951.19M |
| Operating Cash Flow | 0.00 | -430.28M | -1.24B | -461.34M | -872.33M |
| Investing Cash Flow | 0.00 | -59.91M | 592.08M | -313.04M | -1.39B |
| Financing Cash Flow | 0.00 | 261.64M | 296.83M | 657.77M | 2.19B |
ECARX Holdings Technical Analysis
Negative
1.85
Price Trends
1.11
Negative
1.44
Negative
1.68
Negative
Market Momentum
-0.02
Positive
41.54
Neutral
22.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECX, the sentiment is Negative. The current price of 1.85 is above the 20-day moving average (MA) of 1.12, above the 50-day MA of 1.11, and above the 200-day MA of 1.68, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $142.71M | 1.74 | 11.39% | ― | 17.64% | 42.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.29B | -5.91 | 691.75% | ― | 103.11% | 7.34% | |
52 Neutral | $388.85M | 56.42 | 20.86% | ― | 9.40% | 49.47% | |
51 Neutral | $157.89M | -1.30 | -101.64% | ― | 29.57% | 13.83% | |
51 Neutral | $87.54M | -2.45 | -56.22% | ― | 9.76% | 68.22% | |
49 Neutral | $417.29M | -6.62 | -32.48% | ― | 179.82% | 26.84% |
* Consumer Cyclical Sector Average
ECX
ECARX Holdings
1.03
-0.47
-31.33%
CAAS
China Automotive Systems
4.71
0.66
16.30%
AEVA
Aeva Technologies
19.45
3.87
24.84%
INVZ
Innoviz Technologies
0.72
-0.28
-27.80%
LIDR
AEye Inc
1.86
1.15
161.97%
SES
SES AI Corporation Class A
1.04
0.19
22.35%
ECARX Holdings Corporate Events
ECARX Secures US$45.6 Million Strategic Investment from Geely Holding to Drive Global Expansion
Jan 12, 2026
On January 8, 2026, ECARX Holdings Inc. entered into a subscription agreement under which Geely Investment Holding Ltd. will make a strategic US$45.6 million private placement into the company by purchasing 27,297,002 newly issued Class A ordinary...
ECARX to Invest US$23 Million in Lotus Technology to Expand Global Intelligent Vehicle Partnership
Dec 29, 2025
On December 29, 2025, ECARX Holdings announced that it had signed a subscription agreement on December 23, 2025 to make a US$23 million strategic investment in Lotus Technology Inc. via a private placement of 16,788,321 newly issued Lotus Tech ord...
ECARX Holdings Enters Convertible Loan Agreement with DreamSmart
Dec 4, 2025
On December 4, 2025, ECARX Holdings Inc. announced a Convertible Loan Agreement with DREAMSMART TECHNOLOGY PTE. LTD. and its subsidiary, Hubei DreamSmart Group Co., Ltd. Under this agreement, ECARX (Hubei), a subsidiary of ECARX Holdings, will pro...
ECARX Holdings Secures $60 Million Through Convertible Notes in November 2025
Nov 28, 2025
On November 3, 2025, ECARX Holdings Inc. entered into a convertible note purchase agreement to issue and sell up to $100 million in convertible notes. The initial investor agreed to purchase $35 million, with an additional $25 million purchased by...
ECARX Expands Digital Cockpit Partnership with Volkswagen in Latin America
Nov 13, 2025
On November 13, 2025, ECARX Holdings Inc. announced an expanded partnership with Volkswagen Group to supply advanced digital cockpit solutions for various vehicle models in Latin America. This new award, following an initial agreement in March 202...
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.