Microvast Holdings 2025 Q3 Earnings Strong Revenue Growth Despite 111.2% Net Loss Deterioration

Microvast Holdings (MVST) reported mixed Q3 2025 results, with revenue exceeding estimates but EPS falling short. The company reaffirmed its annual revenue guidance and raised gross margin targets, signaling confidence in its growth trajectory despite a significant net loss.

Revenue

Microvast Holdings’ total revenue surged by 21.6% year-over-year to $123.29 million in Q3 2025, surpassing the $120.02 million consensus estimate. This marks a new quarterly record for the company, driven by robust demand in the European and U.S. markets.

Earnings/Net Income

The company maintained a stable non-GAAP EPS of $0.04, though it missed the $0.05 estimate by $0.01. GAAP net income turned negative, with a $1.49 million loss reported—representing an 111.2% deterioration from the $13.25 million profit in Q3 2024. Despite the loss, adjusted EBITDA reached $21.9 million, underscoring operational efficiency. The stable EPS is a positive, but the net loss highlights ongoing profitability challenges.

Post-Earnings Price Action Review

The stock price of Microvast Holdings declined 3.76% during the latest trading day, with a steeper 10.04% drop over the preceding full trading week. However, it gained 3.46% month-to-date. The mixed performance reflects investor caution amid the earnings miss and concerns over the net loss, despite strong revenue growth and improved gross margins.

CEO Commentary

CEO Yang Wu emphasized the company’s “record Q3 revenue of $123.3 million” and a 37.6% gross margin, up 4.4 percentage points YoY. Strategic priorities include innovation, production capacity expansion (e.g., Huzhou Phase 3.2), and partnerships like SKODA, which validate Microvast’s technology for high-safety applications. Wu reiterated confidence in sustaining profitability through R&D-driven innovation and market diversification.

Guidance

Microvast reaffirmed its 2025 revenue guidance of $450–$475 million and raised the full-year gross margin target to 32–35%. The CEO outlined plans to complete Huzhou Phase 3.2 by year-end, expand EMEA operations, and leverage strategic partnerships to drive growth.

Additional News

Institutional investors significantly increased Microvast Holdings’ shareholdings in Q2 2025, with BlackRock adding 8.8 million shares (+164%) and Morgan Stanley acquiring 6.6 million shares (+805%). The company also appointed Carl T “Pat” Schultz as CFO, bringing over two decades of financial leadership experience. Additionally, Microvast announced a partnership with SKODA Group for high-safety rail applications, further diversifying its market reach.