ECARX (NASDAQ:ECX – Get Free Report) issued its earnings results on Wednesday. The company reported ($0.13) EPS for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.14), FiscalAI reports. The business had revenue of $240.80 million for the quarter, compared to the consensus estimate 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 11.1%
ECX stock traded down $0.10 during mid-day trading on Wednesday, hitting $0.79. 542,648 shares of the company were exchanged, compared to its average volume of 2,184,259. ECARX has a 12-month low of $0.78 and a 12-month high of $2.65. The firm has a market capitalization of $281.97 million, a P/E ratio of -15.86 and a beta of 1.07. The business has a fifty day simple moving average of $0.97 and a 200-day simple moving average of $1.20.
Wall Street Analysts Forecast Growth
Separately, Weiss Ratings reissued a “sell (e+)” rating on shares of ECARX in a research note on Thursday, October 15th. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Reduce”.
Read Our Latest Report on ECARX
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.
Read More
- Five stocks we like better than ECARX
- onsemi’s AI Sales Surge 175%: Is a Stock Recovery Next?
- Energy Transfer’s Earnings Miss May Be Hiding Its Strongest Advantage
- Washington Made a $2 Billion Quantum Bet, But Can Either ETF Match It?
- Bloom Energy: The Off-Grid Answer to AI’s Power Drain
Receive News & Ratings for ECARX Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ECARX and related companies with MarketBeat.com's FREE daily email newsletter.
