ECARX NASDAQ: ECX executives said the company maintained profitability momentum in the first quarter of 2026 despite seasonality, delayed vehicle launches and higher memory component costs, while reiterating its full-year revenue outlook of $1 billion to $1.1 billion.
Founder and Chief Executive Officer Ziyu Shen said the quarter was marked by “continued disciplined execution” and progress on the company’s global strategy. He said ECARX is focused on building high-performance computing platforms for software-defined vehicles and pursuing higher-value software and “physical AI” opportunities across the automotive industry.
Chief Financial Officer Dylan Jeng, who joined the company in March, said sales of goods revenue was $114 million, down 6% year over year. He attributed the decline to a challenging market environment, policy changes, delayed vehicle launches and the company’s decision last year to phase out lower-margin legacy platform business. Jeng said that decision weighed on the top line but improved revenue quality.
The company reported gross profit of $28 million and a gross margin of 21.4%. Operating loss narrowed to $13 million from $25 million in the prior-year period. Adjusted EBITDA was positive for the third consecutive quarter at $4 million, compared with a loss of $15 million a year earlier.
Company Cites Product Mix Shift, Cost Discipline
Chief Operating Officer Peter Cirino said ECARX shipped more than 360,000 units during the quarter. Although total shipments were lower than a year earlier, he said the decline reflected a strategic shift away from lower-margin legacy platforms and toward higher-end products.
Cirino said shipments of the company’s Pikes and Antora solutions increased approximately 73% year over year. ECARX technologies have now been shipped in more than 11 million vehicles, up nearly 30% from the same period last year, and power 28 brands across 18 global OEMs, he said.
Jeng said research and development expenses were $24 million, while selling, general and administrative expenses were $18 million. He said the company is prioritizing resources, integrating R&D functions and deploying AI internally to improve efficiency while continuing to invest in key technology programs.
Executives also highlighted memory cost inflation as a continuing pressure point. Jeng said DDR costs have increased by more than 300% since September 2025. He said price adjustments and product mix optimization helped offset some of the impact in the first quarter, but cautioned that gross margin and operating profitability could be negatively affected by memory cost dynamics in coming quarters.
Full-Year Revenue Guidance Reaffirmed
ECARX reiterated its full-year 2026 revenue guidance of $1 billion to $1.1 billion. In response to an analyst question, Jeng said the company does not generally provide specific average selling price guidance. He said first-quarter volumes represented a seasonal low point and that ECARX expects a significant pickup beginning in the second quarter, supported by vehicle launches and shipments.
Jeng said the company’s visibility is supported by its backlog and commercial pipeline. He said ECARX expects to benefit during the rest of 2026 from new vehicle model launches, operational efficiency gains and strengthening demand for automotive technology as market conditions improve.
Global Expansion Remains a Priority
Shen said ECARX remains focused on its goal of generating 50% of total revenue from international markets by 2030. He said the company is deploying nearly $200 million in capital raised late last year and early this year to support its global expansion, including an R&D hub in Germany, operational infrastructure in South America and an office in Singapore.
The company also made governance and management changes during the quarter. Shen said Lone Fønss Schrøder was appointed chairperson, separating the chair and CEO roles. He said the move was intended to strengthen governance and align with global best practices. Jeng joined as CFO, and Mark Hankinson joined as head of investor relations and corporate development.
Cirino said ECARX’s partnership with Volkswagen Group in Latin America is progressing and has moved into the industrialization phase, with an anticipated launch in 2027. The program uses the company’s Antora 1000 platform with Cloudpeak software and Google Automotive Services, as well as the Antora 500 for entry-level segments.
During the first quarter, ECARX began mass production for four new models across three brands, all using its next-generation Pikes and Antora Series solutions, Cirino said. He also said the company secured a new contract from a leading Chinese automaker outside the Geely ecosystem, with production expected to begin in 2026.
May Mobility Deal Marks Robotaxi Entry
Shen announced a strategic framework agreement with May Mobility, a U.S.-based autonomous vehicle company. Under the agreement, ECARX is expected to develop and deliver thousands of autonomous-enabled vehicles for May Mobility’s next-generation autonomy system.
Executives said ECARX will provide customized central computing platforms, a full-stack autonomous driving system kit and a complete sensor suite. Shen described the agreement as ECARX’s first entry into the robotaxi market.
In the question-and-answer portion of the call, Cirino said the partnership validates ECARX’s expertise in full-stack intelligent driving solutions. He said May Mobility brings Level 4 autonomous software capabilities, while ECARX contributes expertise in central architecture and software-defined vehicles. Cirino did not provide specific operating regions for the robotaxi deployments, but said more details would be discussed at May Mobility’s analyst day.
Technology Roadmap Includes Flyme Auto and Zenith
Shen said ECARX is exploring a plan to acquire a minority stake and certain intellectual property rights from DreamSmart Technology, an affiliate and developer of the Flyme Auto operating system. He said Flyme Auto could serve as an application and interaction layer above ECARX’s Cloudpeak middleware, helping enable interoperability between vehicles, smartphones and smart devices such as smart glasses.
Cirino also highlighted the company’s Zenith computing platform, introduced at CES earlier this year. Powered by the upcoming Snapdragon Elite Automotive Platform, Zenith is designed as an integrated single-box system for digital cockpit and advanced driver-assistance workloads, including immersive 5K cockpit experiences and Level 2++ ADAS on a single system-on-chip. Cirino said Zenith remains on track for mass production in 2027.
Shen also discussed ECARX’s relationship with SiEngine, noting that ECARX recognized a $40 million gain during the quarter from divesting a small portion of its SiEngine shareholding to a third-party investor. He said ECARX remains SiEngine’s largest shareholder and continues to maintain deep technological integration with the company.
About ECARX NASDAQ: ECX
ECARX is a global automotive technology company focused on developing and delivering smart cockpit solutions for original equipment manufacturers (OEMs). The company designs and manufactures a range of in-vehicle computing platforms, central processing units, digital instrument clusters and multimedia infotainment systems. ECARX's core offerings integrate software, hardware and cloud connectivity to create seamless user experiences for drivers and passengers.
The company's product portfolio spans telematics control units, over-the-air update frameworks and next-generation human-machine interfaces (HMI).
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