ECARX Holdings WRT 2025 Q1 Earnings Narrowed Net Loss by 35.2%

ECARX Holdings WRT (ECXWW) reported its fiscal 2025 Q1 earnings on Apr 30th, 2025. The company exhibited a remarkable turnaround by narrowing its net loss by 35.2% year-over-year. Despite sustained losses for four consecutive years, ECARX Holdings managed a revenue surge driven by record shipments and new project wins. The company met its Q1 EPS guidance, signaling a steady improvement in its financial health. Additionally, ECARX announced a USD 20 million share repurchase program, reinforcing its confidence in future performance.

Revenue
ECARX Holdings reported a significant uptick in total revenue, reaching $1.22 billion in 2025 Q1, compared to $937.80 million in the same quarter last year. Sales of goods contributed substantially with $879.20 million, while software license revenue accounted for $186.60 million. Service revenue added $156.60 million, culminating in the overall revenue of $1.22 billion.

Earnings/Net Income
In 2025 Q1, ECARX Holdings reduced its losses to $0.57 per share from a loss of $0.85 per share in 2024 Q1, marking a 32.9% improvement. The company also narrowed its net loss to $-196.90 million, a decrease of 35.2% from the previous year's $-304 million. Despite ongoing financial challenges, these figures indicate a positive trajectory in earnings performance.

Post Earnings Price Action Review
The backtest results for ECARX Holdings reveal that metrics such as revenue, net income, and EPS do not consistently translate into positive short-to-medium-term gains. The stock's performance following earnings releases tends to underwhelm, with win rates for 3-day, 10-day, and 30-day periods falling below 50%. The maximum return noted was a modest 1.40% over a 30-day timespan, suggesting limited opportunities for investors in the stock's price movements post-earnings. These findings underscore the challenge investors face in anticipating favorable outcomes from the company's earnings announcements.

CEO Commentary
Ziyu Shen, CEO of ECARX Holdings, emphasized the company's strong business performance, highlighting a significant revenue growth of 18% year-over-year, driven by record shipments and new project wins, particularly with Volkswagen Group. However, he acknowledged challenges related to declining service and software license revenues, as well as pressures on gross margins. Shen expressed commitment to innovation, noting the successful launch of advanced technologies like AutoGPT and Cloudpeak, positioning ECARX favorably in the evolving smart mobility market. The tone of his remarks was optimistic, reflecting confidence in the company’s strategic priorities and growth trajectory.

Guidance
ECARX provided guidance for 2025, expecting to achieve full-year breakeven at the EBITDA level, driven by projected revenues of approximately CNY 12.22 billion. The company anticipates an EPS of -0.57 for Q1 2025, with a focus on maintaining growth momentum and enhancing market share through strategic partnerships and technological advancements. Additionally, ECARX announced a USD 20 million share repurchase program, underscoring its confidence in future performance amidst a robust automotive technology landscape.

Additional News
ECARX Holdings has made significant strides in expanding its strategic partnerships and product offerings in April 2025. The company announced a deepened collaboration with Qualcomm Technologies to enhance its product portfolio using the Snapdragon Cockpit Platforms. This partnership aims to accelerate the development and deployment of intelligent, software-defined vehicles. Additionally, ECARX partnered with HERE Technologies to launch a next-gen in-vehicle navigation system, further enhancing its technological capabilities. Lastly, the company unveiled ECARXperience, an innovation aimed at revolutionizing in-vehicle interaction with adaptive AI-powered driving experiences, showcasing ECARX's commitment to leading advancements in smart mobility solutions.