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ECARX Holdings Inc (ECX) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

In This Article:

  • Total Revenue: RMB1.2 billion, up 30% year-over-year.

  • Sales of Goods Revenue: RMB879 million, up 16% year-over-year.

  • Software License Revenue: RMB187 million, up 148% year-over-year.

  • Service Revenue: RMB157 million, up 49% year-over-year.

  • Gross Profit: RMB243 million, up 19% year-over-year.

  • Gross Margin: 19.8%.

  • Operating Loss: Reduced by 30% year-over-year to $24.6 million.

  • Adjusted EBITDA Loss: RMB105 million, improved from a loss of RMB224 million last year.

  • Loss Per Share: RMB0.57, compared to RMB0.85 last year.

  • Cash and Restricted Cash: RMB933 million at the end of the quarter.

  • Shipments: 684,000 units, with total vehicles on the road reaching over 8.7 million.

  • China Market Growth: 12.9% year-over-year.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • ECARX Holdings Inc (NASDAQ:ECX) reported a 30% year-over-year increase in total revenue, reaching $168.5 million.

  • The company achieved a significant milestone with the integration of cockpit, driving, and parking capabilities into the Antora 1000 SPB, enhancing their product offerings.

  • Shipments surged to 684,000 units, marking a 35.8% year-over-year increase, driven by the success of Geely's Galaxy brand.

  • ECARX Holdings Inc (NASDAQ:ECX) secured eight new project wins under Geely's new foundation E/E architecture, reinforcing their strategic partnerships.

  • The company hosted a successful Investor Day in Hong Kong, highlighting their first quarter of EBITDA breakeven and positive outlook for global expansion.

Negative Points

  • Global vehicle sales fell 5.6% year-over-year, indicating market headwinds and supply chain challenges.

  • Despite revenue growth, ECARX Holdings Inc (NASDAQ:ECX) reported an operating loss of $24.6 million, although it narrowed by 30% year-over-year.

  • Gross margins remained firm at around 20%, but the company faces further competition in the market.

  • The company is impacted by US tariffs, which pose challenges to their supply chain and manufacturing strategy.

  • There is pressure on pricing and costs, particularly in the China market, which could affect profitability.

Q & A Highlights

Q: Could you provide an update on Skyland's recent orders and its profitability? A: Ziyu Shen, CEO: Skyland's orders were strong in Q1, driven by China's ADAS market. We are achieving fair market gross margins and continue to work closely with partners like NVIDIA to enhance our offerings.

Q: Are there any new business announcements for the SUV essentials computing platform? A: Ziyu Shen, CEO: We have announced a partnership with Volkswagen Group, and our platform is being developed for various brands. In China, Geely and GAC are already seeing good performance from our products.