Revenue has experienced a staggering contraction, plummeting 84.5% year-over-year by 2025Q4, while structural margin constraints persist with gross margins hovering near 20.9%.
| Sales/Revenue | 847.86M | 5.63B | 4.7B | 3.56B | 2.78B | 2.24B |
| Revenue Growth % | -84.94% | 19.82% | 31.94% | 28.17% | 24.01% | - |
| Cost of Goods Sold | 701.44M | 4.41B | 3.43B | 372.23M | 307.81M | 1.69B |
| COGS % of Revenue | 82.73% | 78.26% | 72.92% | 10.45% | 11.08% | 75.4% |
| Gross Profit | 146.42M | 1.15B | 1.27B | 936.51M | 817.06M | 551.39M |
| Gross Margin % | 17.27% | 20.5% | 27.08% | 26.29% | 29.4% | 24.6% |
| Gross Profit Growth % | -87.31% | -9.31% | 35.9% | 14.62% | 48.18% | - |
| Operating Expenses | 198.93M | 278.96M | 309.01M | 380.05M | 285.1M | 981.87M |
| OpEx % of Revenue | 23.46% | 4.95% | 6.58% | 10.67% | 10.26% | 43.81% |
| Selling, General & Admin | 90.2M | 106.46M | 131.4M | 189.9M | 95.37M | 275.65M |
| SG&A % of Revenue | 10.64% | 1.89% | 2.8% | 5.33% | 3.43% | 12.3% |
| Research & Development | 108.73M | 172.56M | 178.36M | 193.18M | 189.76M | 706.02M |
| R&D % of Revenue | 12.82% | 3.06% | 3.8% | 5.42% | 6.83% | 31.5% |
| Other Operating Expenses | 0 | -63.56K | -751.49K | -3.03M | -32.48K | 200K |
| Operating Income | -52.51M | -120.85M | -129.47M | -236M | -156.91M | -430.48M |
| Operating Margin % | -6.19% | -2.15% | -2.75% | -6.63% | -5.65% | -19.21% |
| Operating Income Growth % | 56.55% | 6.65% | 45.14% | -50.4% | 63.55% | - |
| EBITDA | -32.63M | -94.78M | -111.88M | -219.11M | -146.69M | -371.52M |
| EBITDA Margin % | -3.85% | -1.68% | -2.38% | -6.15% | -5.28% | -16.58% |
| EBITDA Growth % | 65.57% | 15.28% | 48.94% | -49.37% | 60.52% | - |
| D&A (Non-Cash Add-back) | 19.87M | 26.07M | 17.58M | 16.89M | 10.22M | 58.96M |
| EBIT | -52.51M | -117.07M | -132.58M | -222.27M | -162.9M | -380.65M |
| Net Interest Income | -20.06M | -111.58M | -48.81M | -30.72M | -117.93M | -30.65M |
| Interest Income | 3.71M | 22.18M | 30.5M | 13.82M | 13.65M | 28.48M |
| Interest Expense | 23.77M | 133.76M | 79.31M | 44.54M | 131.59M | 59.13M |
| Other Income/Expense | -15.19M | -14.54M | -14.3M | 50.14M | -26.63M | -9.29M |
| Pretax Income | -67.69M | -135.39M | -143.77M | -1.58B | -183.54M | -439.78M |
| Pretax Margin % | -7.98% | -2.4% | -3.06% | -44.3% | -6.6% | -19.62% |
| Income Tax | 1.24M | 203.01K | -513.92K | 4.21M | 1.08M | 228K |
| Effective Tax Rate % | -1.84% | -0.15% | 0.36% | -0.27% | -0.59% | -0.05% |
| Net Income | -66.04M | -127.71M | -132.68M | -226.71M | -184.18M | -439.66M |
| Net Margin % | -7.79% | -2.27% | -2.82% | -6.36% | -6.63% | -19.62% |
| Net Income Growth % | 48.29% | 3.74% | 41.48% | -23.1% | 58.11% | - |
| Net Income (Continuing) | -68.94M | -135.6M | -143.26M | -232.94M | -184.62M | -440M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -799.79K | 14.77M | 86.95M | 161.94M | 3.89M | 11.51M |
| EPS (Diluted) | -0.19 | -2.77 | -2.79 | -8.02 | 1.97 | -2.27 |
| EPS Growth % | 93.14% | 0.72% | 65.21% | -507.11% | 186.78% | - |
| EPS (Basic) | -0.19 | -2.77 | -2.79 | -8.02 | 1.97 | -2.27 |
| Diluted Shares Outstanding | 338.66M | 336.64M | 337.41M | 239.3M | 37.5M | 37.52M |
| Basic Shares Outstanding | 338.66M | 336.64M | 337.41M | 239.3M | 37.5M | 37.52M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Extreme Revenue Volatility
According to the provided financial data, ECARX experienced a staggering revenue decline, with quarterly figures plummeting from $1.9B in 2023Q4 to just $304.7M by 2025Q4, representing a massive contraction that suggests either a fundamental shift in revenue recognition or a collapse in core hardware contract volumes.
The precipitous drop in top-line performance indicates that the company's previous growth trajectory was likely tied to unsustainable project-based hardware cycles. Investors should monitor whether this contraction reflects a permanent loss of market share or a strategic pivot toward lower-volume, higher-margin software licensing models.
As reported in the income statement, ECARX maintains gross margins hovering near 20%, a level that appears insufficient to absorb the company's heavy R&D and administrative overhead, leaving the firm in a precarious position regarding its ability to achieve sustainable profitability in the competitive auto-tech landscape.
The inability to consistently expand gross margins suggests that the company lacks significant pricing power against its primary OEM customers. This margin profile implies that ECARX remains trapped in a low-margin hardware-centric model, struggling to transition toward the software-driven profitability that its valuation likely requires.
Based on the historical quarterly data, ECARX has struggled to demonstrate meaningful operating leverage, as operating income frequently tracks into negative territory despite fluctuations in gross profit, indicating that fixed costs remain disproportionately high relative to the company's current ability to generate scalable revenue streams.
The persistent operating losses suggest that the company's cost structure is not yet optimized for its current scale. Without a significant reduction in R&D intensity or a surge in high-margin software revenue, the firm may continue to face challenges in achieving positive operating cash flow.
Analysis of the reported figures reveals that net income is highly erratic, with significant swings between losses and marginal profits, often influenced by non-operating items and inconsistent stock-based compensation charges that complicate the assessment of the company's true underlying operational performance and long-term earnings potential.
The reliance on milestone-based revenue recognition and the impact of related-party transactions with Geely-affiliated entities warrant further investigation into the quality of reported earnings. Investors should be cautious, as these accounting nuances may mask the true extent of the company's cash burn and operational efficiency.
A critical review of the income statement suggests that the short-seller thesis would likely focus on the company's extreme revenue volatility and its inability to maintain positive operating margins, which together raise significant questions about the long-term viability of its current captive-supplier business model.
The heavy reliance on a single automotive ecosystem creates a concentration risk that could lead to further margin compression if Geely-affiliated brands face competitive pressure. The lack of a diversified customer base suggests that the company's growth ceiling is inherently limited by the performance of its parent group.
Quick answers to the most common questions about buying ECX stock.
For fiscal year 2025, ECARX Holdings, Inc. (ECX) reported total revenue of $847.9M. This represents a 62.2% decline compared to $2.24B in 2020.
ECARX Holdings, Inc. (ECX) reported a net loss of $66.0M for the fiscal year ending 2025.
ECARX Holdings, Inc. (ECX) reported an operating income of $-52.5M, resulting in an operating profit margin of -6.2%. This margin reflects the operational efficiency of the business before interest and taxes.
ECARX Holdings, Inc. (ECX) generated $146.4M in gross profit for the year, representing a gross profit margin of 17.3%. This demonstrates the company's core pricing power and production efficiency.