Why Did Microvast Holdings Plunge 10.23%? Earnings Miss, Losses Widen

On August 12, 2025, Microvast Holdings experienced a significant drop of 10.23% in pre-market trading, reflecting investor concerns and market sentiment.

Microvast Holdings reported its second-quarter earnings for 2025, revealing a mixed performance. The company's revenue increased by 9.2% year-over-year to $91.34 million, but this figure fell short of analyst expectations. Despite the revenue miss, the company's gross margin improved by 2.2 percentage points to 34.7%, indicating operational efficiency. However, the net losses widened, which contributed to the stock's decline.

Management maintained its 2025 revenue guidance of $450 million to $475 million but lifted its full-year gross margin target to 32% from 30%. This adjustment suggests confidence in the company's ability to improve profitability despite the current challenges. The earnings report highlighted a Non-GAAP EPS of $0.05, which beat estimates by $0.04, but the revenue miss overshadowed this positive development, leading to a plunge in the stock price.