ECARX (NASDAQ:ECX) Posts Earnings Results, Misses Estimates By $0.14 EPS

Key Points

• ECARX reported a quarterly loss of $0.13 per share, missing the $0.01 consensus estimate by $0.14; revenue of $240.8 million also fell short of analysts’ $315.2 million forecast.
• Revenue increased 10% year over year to about $241 million, but rising memory costs drove gross margin down to 7% from 22% and adjusted EBITDA to a $37.7 million loss. The company reaffirmed its 2026 revenue guidance of $1.0 billion–$1.1 billion.
• ECARX sees longer-term growth potential in its Flyme software acquisition and international expansion, including a Volkswagen program targeted for launch in 2027; however, roughly 75% of current revenue comes from Geely and its ecosystem.

ECARX (NASDAQ:ECX - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported ($0.13) earnings per share for the quarter, missing the consensus estimate of $0.01 by ($0.14), FiscalAI reports. The business had revenue of $240.80 million during the quarter, compared to analysts' expectations of $315.22 million.

Here are the key takeaways from ECARX's conference call:

• Q3 revenue rose 10% year over year to $241 million, while shipments increased 8% year over year despite a sharply weaker China market. ECARX reaffirmed its 2026 revenue guidance of $1.0 billion–$1.1 billion, citing scheduled launches and its order backlog.
• Rising memory costs sharply pressured profitability: gross margin fell to 7% from 22% a year earlier, and adjusted EBITDA was a loss of $37.7 million versus a $0.9 million loss. Management said it cannot reliably forecast Q4 margin trends because memory costs and the ability to pass them through remain uncertain.
• The Flyme software acquisition gives ECARX control of the cockpit application layer and, management says, opportunities for software licensing and other recurring revenue less tied to hardware volumes; Flyme Auto is deployed in more than 3.5 million vehicles. The company also signed an MOU with Arm to collaborate on next-generation physical AI platforms, though these are longer-term opportunities.
• International expansion is progressing, with the Volkswagen program on track for a 2027 launch and a European luxury automaker partnership for a cockpit AI lab nearing completion. However, management said about 75% of current revenue comes from Geely and its ecosystem; its goal is for half of revenue to come from outside China by 2030.

ECARX Stock Down 10.0%

Shares of NASDAQ:ECX traded down $0.09 on Wednesday, reaching $0.80. The company had a trading volume of 490,636 shares, compared to its average volume of 2,184,246. The stock has a market capitalization of $285.53 million, a P/E ratio of -16.02 and a beta of 1.07. The stock has a 50-day moving average price of $0.97 and a 200 day moving average price of $1.20. ECARX has a twelve month low of $0.78 and a twelve month high of $2.65.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reiterated a "sell (e+)" rating on shares of ECARX in a research note on Thursday, October 15th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Reduce".

About ECARX

ECARX Holdings Inc is a global automotive technology company that develops hardware and software for connected, intelligent vehicles. Its products are designed to support digital cockpits, infotainment, vehicle connectivity, advanced driver-assistance systems and centralized vehicle computing.

The company provides integrated solutions that can include automotive chips, computing platforms, operating systems, application software and cloud-based services. Its technologies are used by automakers to deliver features such as in-vehicle entertainment, navigation, voice interaction, smartphone integration, over-the-air updates and other intelligent-vehicle functions.

Founded in 2017, ECARX serves automotive manufacturers in China and international markets.

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