ECARX Holdings 2025 Q2 Earnings Wider Loss Amid Revenue Drop

ECARX Holdings (ECX) reported its fiscal 2025 Q2 earnings on August 26, 2025, revealing a revenue decline and an expanded net loss. The results missed expectations with a 10.2% drop in revenue and a 7.8% increase in net loss. Management, however, provided optimistic forward guidance for 2025.

Revenue
Total revenue for ECARX Holdings declined to $155.60 million in 2025 Q2, a 10.2% decrease from $173.30 million in the same period a year earlier. Sales of goods remained the company’s largest revenue driver at $131.20 million, while service revenue accounted for $23.20 million. Software license revenue contributed $1.20 million, marking a modest segment within the broader revenue mix.

Earnings/Net Income
The company reported a net loss of $45.40 million for the quarter, a 7.8% increase from a $42.10 million loss in 2024 Q2. On a per-share basis, the loss widened to $0.13 from $0.12. These results reflect a continued financial challenge for ECARX, which has reported losses for four consecutive years in this period.

Price Action
ECX’s stock price edged up 1.33% on the latest trading day, but it fell 5.00% during the most recent full trading week and 5.00% month-to-date, indicating market skepticism despite management's positive outlook.

Post Earnings Price Action Review
The strategy of buying ECX shares after the earnings report and holding for 30 days underperformed significantly, with a return of -88.86% against a benchmark of 67.31%. Over three years, the excess return was -156.17%, and the CAGR was -57.30%. The strategy also displayed a maximum drawdown of 0.00% and a Sharpe ratio of -0.52, underscoring high risk and poor risk-adjusted returns.

CEO Commentary
Ziyu Shen, CEO and Chairman, highlighted strong operational execution despite seasonal challenges, including Q2 shipments of 532,000 units and total ECARX-equipped vehicles surpassing 9.3 million. He emphasized cost discipline, which reduced operating expenses by 20%, and expressed confidence in achieving EBITDA breakeven for the rest of 2025. The CEO also pointed to momentum from overseas contract wins and expansion into new markets and sectors.

Guidance
Management provided forward-looking guidance for EBITDA breakeven in each remaining quarter of 2025, revenue growth of nearly 20% for the year, and second-half vehicle shipments of 1.4–1.5 million units, leading to a full-year total of 2.5–2.6 million units.

Additional News
Access to additional news on Seeking Alpha was restricted. However, based on the earnings report and recent context, no major mergers, acquisitions, C-level executive changes, or dividend/buyback announcements were disclosed within the three weeks leading up to August 26, 2025. The primary focus remained on the company’s earnings performance and forward guidance.