ECARX Q2 2025 Earnings Report

ECARX EPS Results

• Actual EPS: -$0.13
• Consensus EPS: $0.00
• Beat/Miss: Missed by -$0.13
• One Year Ago EPS: N/A

ECARX Revenue Results

• Actual Revenue: $155.30 million
• Expected Revenue: $223.92 million
• Beat/Miss: Missed by -$68.62 million
• YoY Revenue Growth: N/A

ECARX Announcement Details

• Quarter: Q2 2025
• Date: 8/26/2025
• Time: Before Market Opens
• Conference Call Date: Tuesday, August 26, 2025
• Conference Call Time: 8:00AM ET

ECARX (NASDAQ:ECX) Holdings Inc. develops a full stack automotive computing platform to shape the interaction between people and cars by rapidly advancing the technology by smart mobility worldwide. It offers system on chips, central computing platforms, operating systems, and software. Its core products include infotainment head units, digital cockpits, vehicle chip-set solutions, core operating system, and integrated software stack. The company has entered into a strategic partnership agreement with Black Sesame Technologies. The company is based in Shanghai, the People's Republic of China.

ECARX Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: In Q2, EcarX shipped 532,000 units, bringing the cumulative vehicles on the road with its technology to over 9.3 million, underscoring its operational scalability.
• Positive Sentiment: Operating expenses fell 20% to $57.2 million, and management reiterated its trajectory to achieve EBITDA breakeven in each remaining quarter and for full-year 2025.
• Negative Sentiment: Q2 revenue totaled $156 million with a gross profit of $70 million (11% margin), down 58% year-over-year due to strategic pricing initiatives and reduced software license income.
• Positive Sentiment: EcarX has secured over $1 billion of lifetime revenue in overseas contracts, including a Volkswagen Brazil innovation award, and currently partners with 18 OEMs across 28 brands globally.
• Neutral Sentiment: The company plans to open its new global headquarters in Singapore in H2 2025 to centralize IP management, R&D collaboration and supply-chain optimization.

Presentation

[Operator]

Good day, and thank you for joining us. Welcome to E CarX's Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After management gives their prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded.

[Operator]

I would now like to turn the call over to your host for today's call, Renee Du, Head of Investor Relations at EcorX. Please proceed, Renee.

[Rene Du, Head - IR at ECARX Holdings]

Thank you, operator. Good morning, and welcome to EcarX Second Quarter twenty twenty five Earnings Conference Call. With me today from EcarX are our Chairman and Chief Executive Officer, Liu Shen Chief Operating Officer, Peter Serino and Chief Financial Officer, Phil Zhou. Following their prepared remarks, they will all be available to answer your questions. Before we start, I would like to refer you to our forward looking statements at the bottom of our earnings press release, which also applies to this call.

[Rene Du, Head - IR at ECARX Holdings]

Further information on specific risk factors that could cause actual results to differ materially can be found in our filings with the SEC. In addition, this call will include a discussion of certain non GAAP financial measures. A reconciliation of the non GAAP financial measures to the GAAP financial measures can also be found at the bottom of our earnings release. With that, I'd like to hand the call over to Ziyu. Please go ahead.

[Ziyu Shen, CEO, Chairman & Director at ECARX Holdings]

Thank you, Renee. Hello, everyone, and thank you for joining us today. During the quarter, we continued to build up the strong momentum achieved throughout 2024 and early twenty twenty five. Despite seasonal headwinds, we made solid progress securing key new projects, expanding partnerships and strengthening the foundation for future growth. All results this quarter reflect the distinct execution of our lean operating strategy and reinforced our path towards growth and EBITDA breakeven in each of the remaining quarters and full year 2025.

[Ziyu Shen, CEO, Chairman & Director at ECARX Holdings]

In quarter two, we shipped 532,000 units bringing the total number of vehicles on the road with eCarX technology to over 9,300,000 at the June 2025. These achievements testify to the sustained operational excellence and reliability that have become hallmarks of our execution even during these challenging time. As is typical for our industry, Q4 too was impacted by seasonality and the timing of certain contracts with revenue reaching US156 dollars on the back of strategic investments and pricing initiatives to drive future growth. The distinct execution of our lean operating strategy helped lower operating expenses by 20% to US57.2 million dollars with several significant new projects expected to launch in the second half. We remain on track to reach EBITDA breakeven and generate close to 20% revenue growth.

[Ziyu Shen, CEO, Chairman & Director at ECARX Holdings]

The breadth of our global partnerships with automakers continue to anchor our position as a core technology provider. By quarter two, I'm excited to share our current contract win already secured over US1 billion dollars of lifetime revenue for overseas revenue. Besides our strong position in China market, we are very confident our strong position in global market as well. Shipments of Antora series solution surged 112 percentage year over year to 135,000 units during the quarter, providing ample fuel to sustain growth momentum growing forward. Our broad portfolio of solutions, especially the flagship Antora platform integrated with Flyme Auto are driving the success of several GD best selling models, including Galaxy brand, which has a positive 1,000,000 accumulated sales milestone this year.

[Ziyu Shen, CEO, Chairman & Director at ECARX Holdings]

This is the fastest NEV brand has ever achieved this. Following our first project award from Volkswagen Group in March 25, I had a pleasure of accepting Volkswagen Brazil's technical development and innovation award on behalf of ECORE X and they are the one partnership celebration in Brazil earlier this month. This award reflects Volkswagen's confidence in our technological innovation capabilities and the growing impact our innovative solutions are having on the global automotive industry. Notably, we also began monetizing our automotive R and D investments across new high growth sectors with a leading developer of robotics loan motors, selecting our LiDAR technology during the quarter. With mass production planned for 2600, this partnership will broaden our horizon beyond the automotive sector, validate the application of our cutting edge technologies and help pave the way for future opportunities in the vast robotics market.

[Ziyu Shen, CEO, Chairman & Director at ECARX Holdings]

As part of our global expansion strategy, our new global headquarters in Singapore is set to open in the 2025 where it will accelerate our global IP management, R and D collaboration and supply chain optimizations, enabling us to better serve our maker across global markets. In summary, despite the impact of seasonality, our results this quarter underscore the strength and momentum we are building through operational discipline and expanding pipeline of projects, growing global prices, diversify applications, and investment in technology and infrastructure. We are well positioned to drive industry's transaction to software defined intelligent vehicles and also to hit our breakeven target. I will now pass the call over to Peter, who will go through the operating results of the quarter in more details.

[Peter Cirino, COO at ECARX Holdings]

Thank you, Ziyu, and good day to everyone. As Ziyu outlined, we carefully navigated typical industry seasonality and ongoing market uncertainties during the quarter and made solid progress executing our strategic priorities. We secured several major new project wins, broadened our partnerships, developed strong and innovative products and expanded our footprint. In the second quarter, we shipped 532,000 units, bringing in the cumulative total of vehicles equipped with our technologies to over 9,300,000 as of June 30. This growing installed base is a direct reflection of the trust we have built with automakers globally and the reliability and scalability of our solutions.

[Peter Cirino, COO at ECARX Holdings]

We currently serve 18 OEMs across 28 brands globally. This is a testament to our ability to meet the diverse technology and integration requirements of leading automakers across the globe. Our partnership with Geely remains foundational. And this quarter, the momentum continued. We secured 14 new project wins from Geely alone, each slated to integrate our Antora family of solutions, further embedding our technology into Geely's best selling lineup.

[Peter Cirino, COO at ECARX Holdings]

Notably, our solutions enabled Geely's Galaxy brand to surpass 1,000,000 unit in sales, the fastest NEV brand has achieved this milestone to date. Geely Xinghua, powered by our Venato platform and Flyme Auto Lite also led Geely's sales in the first half of the year, highlighting both the competitive edge and the value our stack provides automakers. As we deepen our core relationships, we're also diversifying and extending our technological reach. Building on the VANADO platform success in the Jilichingguan, we formalized the partnership to provide our VANADO platform to a top five Chinese automaker for their next generation global model. Shipments are expected to begin in 2026.

[Peter Cirino, COO at ECARX Holdings]

We are also building a customized intelligent cockpit operating system based on Flyme Auto for a leading premium global automotive brand. This represents a major milestone in our expansion into the premium global intelligent cockpit sector and reflects the growing influence and expanding market share of Flamie Auto. Our technical leadership is now being validated beyond the automotive sector as well, with a leading global developer of robotic lawnmowers, integrating our proprietary solid state three d LiDAR into their products. With mass production targeted for 2026, this win demonstrates how our deep automotive R and D investments have also positioned us to capitalize on the vast potential of the robotics and AI markets, supporting our strategy of long term multi industry applications. Our technology was pivotal in several Geely model launches during the quarter, directly supporting and deepening partnership and further elevating our brands market presence and technology leadership.

[Peter Cirino, COO at ECARX Holdings]

In April, the fourth generation 2025 Beau L was launched across China, built on Geely's GEEA three point zero architecture and equipped with our Antora 1,000 computing platform, Cloud Peak cross domain software stack and Flyme Auto. The Beau L delivers a modern SUV experience with advanced AI integration. In May, the flagship Geely Galaxy M9 made its debut in Milan, where it immediately had an outsized impact with its groundbreaking combination of cutting edge NEV technology, AI features and luxury. Built on the GEA EVO native architecture, this is the first vehicle program to integrate our Pikes computing platform based on Qualcomm '8 thousand two ninety five with Flyme Auto. In June, the Geely Galaxy A7 debuted with the Antora 1,000 platform and the custom Flyme OS offering an intuitive user interface with features such as multi zone voice recognition and seamless voice command capabilities.

[Peter Cirino, COO at ECARX Holdings]

Launched earlier this year, the Galaxy eight and Xinyao eight PHEV sedans also continue to drive strong demand. Both have our Skyland Pro ADAS solution integrated into Geely's G Pilot H1 Unified Intelligent Driving System, which provides highway and elevated road NOA functionalities. Additionally, we powered the launch of the Geely Galaxy EX5 across 26 countries, where it became one of the top selling vehicles in Australia after just three months and the top selling vehicle in Malaysia. Monthly overseas sales continue to exceed 12,000 units, reflecting the value our stack drives for automakers and the differentiated experience it offers to customers. Our business development activity during the Shanghai Auto Show in Q2 included the meaningful engagements with Dongfeng Nissan, the GAC R and D center and Renault, further expanding our pipeline.

[Peter Cirino, COO at ECARX Holdings]

In the EU market, we now have 14 active projects we're working on with eight different global automakers and we have four wins to date. ZU had the pleasure of accepting Volkswagen Brazil's Technical Development and Innovation Award on behalf of the ECARAC at their The One Partnership celebration in Rio De Janeiro, Brazil earlier this month. This award further underscores the momentum our international business is picking up with project wins from large and global respective brands such as Volkswagen, reflecting the growing confidence in our innovative and mature solutions and the growing impact they are having on the sector. Our global technological thought leadership was also highlighted with the release of a Google Automotive Services integration white paper showcasing the best practices and proprietary tools we use to cut gas certification time by over 50%. This solution can be applied to gas on our Qualcomm based and to our computing platforms, validated by recent launches such as the PULSAR four.

[Peter Cirino, COO at ECARX Holdings]

Our commitment to cutting time to market for our partners continues to strengthen. We showcased technological achievements in generative AI and multimodal interaction at the twenty twenty five World Artificial Intelligence Conference in Shanghai last month. Our AI driven intelligent cockpit and driving solutions were on display at the event, reinforcing our innovation leadership. Supported by our robust hardware software integration development capabilities, the Hongqi Tiangong-five also recently received a major update to our eCarX Auto GPT in vehicle AI solution. Auto GPT now integrates DeepSeek and offers a wide array of daily high frequency services, setting a new benchmark for user experience.

[Peter Cirino, COO at ECARX Holdings]

Our extensive implementation of AI goes beyond our solutions and is also significantly improving our engineering efficiency, driving a 20% reduction in OpEx and directly contributing to our breakeven target in each of the remaining quarters and full year 2025. Following the integration of intelligent cockpit driving and parking capabilities into the Antora 1,000 SPB platform and the completion of the road testing on the Galaxy E5 last quarter, we recently completed system software development for our five in-one Antora solution. This is a very exciting iteration on Antora and has already secured its first commercial project win. This solution will enable automakers to accelerate the deployment of next generation vehicles with enhanced safety and improved user experience. As a result of these efforts, we continue to expand our IP portfolio with seven twenty four registered patents and eight twenty five pending applications globally as of June 30, underscoring the depth and sustainability of our innovation.

[Peter Cirino, COO at ECARX Holdings]

Supply chain resilience is critical for global scaling. Our Fujian plant now operates at 80% utilization, hitting its 1,000,000 unit annual capacity ahead of schedule. We also deepened our partnership with Samsung to accelerate the commercialization of cutting edge technologies across automotive intelligence, terminal devices and smart hardware. Together, we will build a sustainable open technology ecosystem, which will also capitalize on opportunities in the rapidly growing robotics and AI application markets. We are also collaborating with Monolithic Power Systems on automotive intelligence, robotics and AI applications to establish a global supply chain and intelligent ecosystem spanning system integration, platform adoption and delivery.

[Peter Cirino, COO at ECARX Holdings]

These initiatives are being widely appreciated across the industry with our excellence in manufacturing, procurement and delivery recognized with inclusion in the twenty twenty five China automotive supply chain at top 100 ranking. Foundational to our global expansion is our robust compliant infrastructure. Our new global headquarters in Singapore is expected to become operational in the second half of the year. This will act as a critical hub for our global IP, R and D, supply chain, procurement and treasury activities and allow us to support automakers across global markets. We also received three ISO certifications for quality management, environmental stewardship and occupational health and safety last month, prerequisites for collaboration with leading automakers.

[Peter Cirino, COO at ECARX Holdings]

Together, these achievements enhance our competitive positioning and provide a robust foundation for us to extend our technology stack into AI, robotics and embodied intelligent applications globally. In summary, our results this quarter demonstrate the disciplined execution, global expansion and technological leadership at the heart of our growth strategy. Despite external headwinds, we are delivering on the key enablers innovation, operational scale, global compliance and ecosystem collaboration that position us to accelerate the industry's transformation to software defined intelligent mobility. With that, I will now turn the call over to Phil, who will review our financial results.

[Phil Zhou, CFO at ECARX Holdings]

Thank you, Peter, and hello, everyone. While Q2 brought expected seasonal softness and the macro economy uncertainty, our team's disciplined execution on strategic initiatives partially mitigated late headwinds. Total revenue for the quarter landed at US156 million dollars Sales of goods revenue was US131 million dollars a 1% year over year increase. The growth was primarily driven by a double digit increase in customer demand, which was partially offset by strategic price reductions to accelerate market penetration. Our in house development strategy is gaining significant traction.

[Phil Zhou, CFO at ECARX Holdings]

Our Antola, VANELO and the Skyland platforms now contribute a remarkable 56% to total sales of goods revenue more than doubling from 28% in the prior year period. Software license revenue decreased 85% year over year to US1.2 million dollars primarily from a decline in per vehicle software license revenue coupled with lower intellectual property licenses revenue. Intellectual property licenses contributed US3.9 million dollars revenue in the same period last year. Service revenue came in at US23 million dollars down 34% year over year, mainly due to lower revenue from non recurring engineering services contracts for automotive computing platforms compared to the same period last year, which was partially offset by growth in overseas connectivity service revenue. Gross profit for the quarter was US70 million dollars a decline of 58% year over year with a gross margin of 11%, a 12% decrease compared with the period year period.

[Phil Zhou, CFO at ECARX Holdings]

This was a chiefly attributable to strategic pricing initiatives to accelerate computing platform market penetration combined with the lower software license service around the mix and the higher cost for the completed and non recurring engineering projects in the current quarter. We achieved a significant progress in operating expense management, reducing costs by 20% year over year to US57 million dollars reflecting our strong execution on operational and R and D efficiency improvements. Adjusted EBITDA loss landed at US30 million dollars a slight decline compared to the loss of US29 million dollars in the same period last year. This was primarily attributable to decrease the gross profit partially offset by a lower level of operating expenses and equity investment losses alongside higher other income. Moving on to our balance sheet, as of the end of the quarter, we had US99 million dollars cash and restricted cash, which provides ample liquidity to fund the global expansion and the next generation technology development.

[Phil Zhou, CFO at ECARX Holdings]

We continue to strengthen working capital and the profitability alongside these strategic investments. In summary, our second quarter financial results faced a temporary market headwinds. They demonstrate the effectiveness of our product strategy, cost discipline and operational execution. With several significant vehicle programs scheduled for SOP in the second half, we expect to see full year revenue recover strongly and grow by close to 20% year over year, driven by volume growth and improved product mix. With our scale growing significant pipeline and the disciplined operating expense controls, we remained confident in achieving adjusted EBITDA breakeven in each of the remaining quarter and the full year 2025, a significantly improved full year financial performance.

[Phil Zhou, CFO at ECARX Holdings]

We have a full confidence in our ability to deliver on these targets through our focus execution and operational excellence. That concludes our remarks today. I would now like to hand the call back to the operator to begin the Q and A section.

[Operator]

Thank Thank you. We will now go to our first question. One moment please. And your first question today comes from the line of Dan Lin Ren from CICC. Please go ahead.

[Dan Lin Ren, Equity Research Analyst at China International Capital Corporation (CICC)]

Hello? Can you hear me?

[Peter Cirino, COO at ECARX Holdings]

Yes. Hello, Dan Lin. We can hear you well.

[Dan Lin Ren, Equity Research Analyst at China International Capital Corporation (CICC)]

Okay. Good evening, everyone. This is Dani Ren from CICC Auto team. Thanks for the presentation and congrats on your results and all improvements in the first half. Now I have like three follow-up questions for you.

[Dan Lin Ren, Equity Research Analyst at China International Capital Corporation (CICC)]

My first question is about your non automotive business layout, because we found that you secured a design win for robotic wall more in the lighter domain before, right? Do you how do you expect the development of non automotive applications in the future? And my second question is about your progress in overseas expansion, because since we secured VW design win, what advancements have been made in acquiring international clients or establishing overseas R and D or production facilities? And my last question is could you please update on the progress of your in house chip development? That's all my questions. Thank you.

[Peter Cirino, COO at ECARX Holdings]

Hey, Daniel, thank you for the question. This is Peter Serina.

[Peter Cirino, COO at ECARX Holdings]

Let me try to address some answers here. I'll take them one by one. With the non automotive business, we secured this win in the past quarter to bring our LiDAR forward on the robotics solution. So we're quite excited about that. Fundamentally at the technology level, I think that the capabilities that we're bringing into vehicles can be similar leverage in the industrial space, especially as automation increases there.

[Peter Cirino, COO at ECARX Holdings]

So whether it's SoC sensors and software, we think if they get applied to a wider range of smart devices that there is potential to further expand our business in that space. LiDAR was a technology that we've been developing for some time and it was in a point that it could be quickly developed for the application and we're very optimistic about the potential in the future in the robotics space. Your second question was about our growth on a global level. So as you know, E CarX has been building our capabilities throughout Europe and other markets, other international markets for many years now, starting with our efforts with Volvo car in Sweden as early as 2021. So earlier this year, we were super excited to be able to announce the Volkswagen program as our next milestone in that space.

[Peter Cirino, COO at ECARX Holdings]

As we mentioned in our prepared remarks, we have a broad set of pipeline and portfolio that we're pursuing that has more than $1,000,000,000 worth of lifetime revenue on programs we've already won. In total, we've got about 14 active programs with eight different carmakers and four wins to date, obviously VW being the one that we won. And then you can look at the announcements that we made this quarter as continued significant milestones in that space. Zigu mentioned the award that we won from the Volkswagen team in Brazil. We were quite honored to be recognized with that award.

[Peter Cirino, COO at ECARX Holdings]

I think that's a demonstration of the company's technology robustness and program delivery capability that soon after winning the GEI program were recognized on our innovation capabilities. And then the Google white paper that we announced continues to demonstrate our ability for high quality, extremely fast software development in the automotive space. So we've I think we continue to progress on the global business and we'll anticipate seeing additional activities as the year goes on. And we also mentioned the software program in China with a leading global luxury OEM that I think is another key milestone that we'll build on with that organization as well. And then relative to our internal capabilities on SoCs, we announced many times the continued growth of our Antora platform, which is built on that capability.

[Peter Cirino, COO at ECARX Holdings]

And we continue to find applications and opportunities to grow the Antora platform both in building additional market share as that product grows quite substantially across a number of different OEMs and then also growing the capabilities of that platform as we continue to develop software defined vehicle applications. In addition to that, we're continuing in this quarter or in this year, we'll be launching the Qualcomm A295 product into the market and we continue to have a broad set of products both on Qualcomm and other industry solutions as well as our own development solution with Cyanogen. So hope that answers your questions.

[Dan Lin Ren, Equity Research Analyst at China International Capital Corporation (CICC)]

Thank you, Peter. That's all my questions. Very clear. Thank you.

[Operator]

Thank you. We will now go to the next question. And your next question today comes from the line of Wei Hong from Deutsche Bank. Please go ahead.

[Wei Huang, Research Analyst at Deutsche Bank]

Hi. This is Wei from DB. Can you hear me?

[Peter Cirino, COO at ECARX Holdings]

Yes, Wei. We hear you very clearly.

[Wei Huang, Research Analyst at Deutsche Bank]

Thank you. Thanks for taking my question. So my first question is, in the first half, we saw roughly 1.2 new vehicles equipped with our solutions. Can you give us a volume guidance for the second half of the year?

[Phil Zhou, CFO at ECARX Holdings]

Hey, Wei, this is Phil speaking. Thank you for your question. So let me address your question. Yes, it has we keep making traction in volume and the market share growing. And in the second in the first half, we already achieved the 20% of your growth in terms of volume and the momentum will continue.

[Phil Zhou, CFO at ECARX Holdings]

So as Peter just mentioned in his session, we have so many progress for the SOP in the second half of the year in 2025. So I'd love to see the volume in second half. In the second half, we'll continue to grow. It's like 1,400,000 to 1,500,000 vehicles. That is pretty under our confidence level.

[Phil Zhou, CFO at ECARX Holdings]

And in terms of where we are able to deliver nearly 2.5 to 2,600,000 vehicles. That is also about 30% a year over year growth.

[Wei Huang, Research Analyst at Deutsche Bank]

Understood. That is very clear. My second question is regarding on pricing. You talked a bit about the pressure in pricing in the first half. So for some calculations in the second quarter, the content per car actually improved quarter over quarter.

[Wei Huang, Research Analyst at Deutsche Bank]

Can you just talk a bit about that? Is it that the impact from the government's anti dilution policy against all the competition in the auto space? Thank you.

[Phil Zhou, CFO at ECARX Holdings]

Yes, sure. Thank you. So yes, we appreciate the government's confirmation on the so called anti evolution moves. But we also have a bit of lack of the entire industry has realized the challenge caused by the evolution and we expect lease pattern will continue in the near term. So I mean, in the industry pricing cost and productivity actions will mitigate the impact and give us some room in terms of margin and recovery.

[Phil Zhou, CFO at ECARX Holdings]

So our pricing strategy is very clear. We always provide flexibility in terms of volume and the market share acquisition. We always would like to maintain a share, stabilize the business and the boost up the volume, which drive our revenue growth. And to support the profitability improving, we now are taking several actions. Number one, we will keep driving our cost optimization activity.

[Phil Zhou, CFO at ECARX Holdings]

So our relentless efforts in recent quarters, we already achieved cost reduction about a 20%. And then that is really helpful for us to mitigate the so called pricing erosion due to the fierce price the market competition. And the second thing is, we really need to manage a good portfolio of solution selling. So the software is really key, all right? And which is a very good enablement to our OEM customers, including a global OEM customers.

[Phil Zhou, CFO at ECARX Holdings]

So for example, you already have won a nomination of one famous OEMs regarding the Primary Auto Corporation. And I do believe that the loss of corporation can putting us in incremental software business and such kind of a recurring business will continue to improve our gross margin. Okay. So, yes, and the other thing is we are expanding our footprint into the global business aggressively and by building the operations over there and by continuously enhancing operating efficiency and the productivity improvement, we certainly can drive margin recovery and profitable growth from all those sectors.

[Wei Huang, Research Analyst at Deutsche Bank]

Thank you. That's very clear. And my last question is regarding the ADCU business. Can you maybe update us on your store based computing platform? And would you also maybe work with Qualcomm's flex SoCs like 8,775? Thank you.

[Peter Cirino, COO at ECARX Holdings]

Maybe I can take that question, Wei. Thank you. I think when we look across our eCAR X SoC platform for the ADCUs, we definitely have the 8,775 on our roadmap. So we're exploring a few different opportunities with that platform both in the China market and in the global market. I think we see that trend of Fusion certainly happening within the marketplace.

[Peter Cirino, COO at ECARX Holdings]

We're also, as we mentioned, actively on our Antora platform, in our Antora 1,000 SPP platform, also launching a somewhat of a Fusion platform in 2026 that will include parking and some Level two ADAS safety features on the vehicle. So we definitely see that fusion technology will come into the automotive space. And we believe with our capabilities that we will we've already prototyped and we'll shortly launch on our entire platform where we're in an extremely good position as the Qualcomm SoCs and other additional SoCs enter the marketplace.

[Wei Huang, Research Analyst at Deutsche Bank]

Thank you. Very clear. That's all from me.

[Operator]

Thank you. We will now take the next question. And your next question comes from the line of Yifei Lu from UOB. Please go ahead.

[Bella Lu, Analyst at UOB Kay Hian]

Hello, management. I'm Bella from UOB Cayenne. I'd like to ask about the growth driver for the second half and next year. For example, the progress of new products, new business and new orders intake. And my second question is about the customer cooperation and the expansion of overseas customers. Those are my questions.

[Phil Zhou, CFO at ECARX Holdings]

Okay. Thank you, Yifei. This is Phil speaking. So let me address your second question first and Peter probably you can also jump into your address, customer expansion, especially from the overseas expansion perspective. So let me emphasize that we keep optimizing our business portfolio proactively.

[Phil Zhou, CFO at ECARX Holdings]

And one of our strategies is to drive a diversified customer base. So we in the second quarter, we already achieved that the business mix the business portfolio in a relatively healthy way. For example, the Geely Auto business occupied nearly 40% to 50% of our total business and the Geely Ecosystem brands occupies nearly 30 to 40% and rest of our business came from non Geely business, which is about 15%, all right? And in terms of the customer structure, China versus overseas, now in the second quarter, our business already has been optimized to 60% and this just came from channel OEMs and the rest of 40% came from global OEMs. Of course, those global OEMs includes Volvo, Postar, Smart, Proton, Lowe's, GD ecosystem.

[Phil Zhou, CFO at ECARX Holdings]

And meanwhile, we are adding new names, new global OEMs into our portfolio for sure. Volkswagen, that is the the one we we won the nomination in a a in a Q1, twenty five and we foresee more revenue, more business from the international brands will be in our portfolio. Okay.

[Peter Cirino, COO at ECARX Holdings]

Yes, I would just Phil, that's a great summary. I would just add to that. Our global activity is very robust at this stage. We're seeing activities across, as I mentioned, eight different carmakers in the global marketplace and many RFQ and RFI processes that we see having the potential to close later this year and can even start to generate revenue in late twenty twenty six. So we're very excited about the potential we continue to build in the global marketplace.

[Peter Cirino, COO at ECARX Holdings]

And I think that we'll continue to see, I would say, more exciting announcements as the year goes on as we're able to share more of that with the investor community. So I think the customer diversification is continuing to be very much on track and broadening and even picking up momentum.

[Bella Lu, Analyst at UOB Kay Hian]

Thank you very much. It's very clear.

[Operator]

Thank you. There are currently no further questions. I will hand the call back to Phil for closing remarks.

[Phil Zhou, CFO at ECARX Holdings]

Okay. Thank you everyone for your attention to our earnings call. Look, we continue to build upon the strong momentum achieved in past several quarters and this momentum will continue for sure. And while our financial performance was impacted by typical seasonal trends, We continue to make a significant progress across our business, securing key wins, broadening our partnerships and strengthening our foundation for the future. So with the solid business foundation, disciplined execution as well as new business acquisitions, we will realize adjusted EBITDA breakeven in each quarter of the remaining year. And that concludes our earnings call today. Thank you.

[Operator]

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

Participants

Executives

• Rene Du, Head - IR
• Ziyu Shen, CEO, Chairman & Director
• Peter Cirino, COO
• Phil Zhou, CFO

Analysts

• Dan Lin Ren, Equity Research Analyst at China International Capital Corporation (CICC)
• Wei Huang, Research Analyst at Deutsche Bank
• Bella Lu, Analyst at UOB Kay Hian