ECARX Holdings Inc (NASDAQ:ECX) Achieves First Quarterly Net Profit in Q3 2025

ECARX Holdings Inc (NASDAQ:ECX) has reported its financial results for the third quarter of 2025, delivering a significant operational milestone by achieving its first quarterly net profit. The company’s results highlight a notable divergence between its reported figures and analyst expectations, a dynamic that appears to be influencing early market sentiment.

Earnings and Revenue Versus Estimates

The company's performance against key analyst estimates presents a mixed but pivotal picture. ECARX reported a break-even quarter on a non-GAAP earnings per share (EPS) basis, a substantial improvement over the anticipated loss.

• EPS Performance: Reported Non-GAAP EPS of $0.00 for Q3 2025, compared to an analyst estimate of -$0.22.
• Revenue Performance: Total revenue was $219.9 million, falling short of the analyst sales estimate of $1.91 billion for the quarter.

The achievement of profitability, even on a modest scale, appears to be the dominant narrative for investors, overshadowing the revenue miss when compared to expectations. This suggests the market is placing a higher value on the company's path to profitability than on the top-line figure for this quarter.

Market Reaction

The immediate market reaction to the earnings release has been decisively positive. In pre-market trading, the stock has advanced approximately 5.2%. This positive momentum extends over recent weeks, with the stock gaining about 9.6% over the past month. This pre-market surge indicates that investors are rewarding the company for its achievement of net profitability and positive adjusted EBITDA, viewing these milestones as critical indicators of a sustainable financial turnaround.

Quarterly Financial and Operational Highlights

The third-quarter results mark a definitive inflection point for ECARX, transitioning from significant losses to profitability. The company reported a net profit of $0.9 million, a dramatic reversal from a net loss of $47.2 million in the same period last year. This was supported by an Adjusted EBITDA of $8.3 million, compared to an Adjusted EBITDA loss of $31.9 million in Q3 2024.

Key operational and financial metrics from the quarter include:

• Profitability Milestone: Achieved first-ever quarterly net profit and positive Adjusted EBITDA.
• Revenue Growth: Total revenue of $219.9 million, representing an 11% increase year-over-year and a 41% increase sequentially from the previous quarter.
• Margin Expansion: Gross profit grew 39% year-over-year to $47.6 million, with the gross margin expanding to 22% from 17% a year ago.
• Cost Discipline: Significant reductions in operating expenses, with R&D expenses down 46% and SG&A expenses down 37% year-over-year.
• Shipment Volume: Total shipments reached approximately 667,000 units, a 51% increase year-over-year.

Business Development and Outlook

The press release underscored robust business development, including the expansion of its global partnerships. The company secured a second project with a leading European automaker, adding an estimated $400 million in lifetime revenue to its pipeline. Technologically, the mass production of its Pikes® computing platform and the growing adoption of its Cloudpeak® software stack were highlighted as key growth drivers.

While the earnings release expressed confidence in carrying the current momentum into the next quarter and finishing the year strong, it did not provide a specific quantitative financial outlook for the coming periods. Consequently, investors will likely look to future announcements for guidance on how the company's performance aligns with full-year analyst estimates, which currently project sales of approximately $6.99 billion for 2025.

For a detailed breakdown of historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The information presented is based on publicly available data and should not be relied upon as the sole basis for an investment decision.