ECARX Holdings, Inc. Q4 FY2025 earnings call

• The fourth quarter was a critical inflection point with positive results, reflecting the execution of the lean operating strategy despite challenges in patent policy and the global semiconductor supply chain.
• Two growth engines: computing platforms driving strong sales growth (Antora series shipments reached 1,000,000 units) and globalization strategy with deepened partnerships like Volkswagen Group in Latin America.
• Strategic priorities for 2026: continue globalization strategy, invest in R&D of next-generation computing platforms and intelligent driving solutions, and strengthen the lean operating strategy to sustain profitability.
• Raised nearly $200,000,000 from partners to support R&D and infrastructure build-out in key markets.

In the fourth quarter, ECARX Holdings, Inc. achieved a historical high revenue of $305,000,000, up 13% year over year. Full-year 2025 revenue reached $848,000,000, a 10% increase from 2024. Sales of goods revenue was $270,000,000, a 27% year over year increase. Shipments of Antora, MONADO, and Pikes series increased by 62% year over year during the quarter, contributing 74% of total sales of goods revenue. Services revenue was $33,000,000 and software license revenue was $2,000,000. Gross profit was $64,000,000, up 11% year over year, with a gross margin of 21%. Operating income was $7,000,000 and adjusted EBITDA was $22,000,000. Shipments of the Antora series reached the 1,000,000 unit milestone in 2025.

• Full-year 2026 revenue is expected to be in the range of $1,000,000,000 to $1,100,000,000, representing a 20% to 30% year over year increase.
• Committed to maintaining positive operating income throughout 2026.
• Q1 2026 may be softer due to seasonal factors in the automotive industry, but confident in achieving full-year revenue and profitability targets.

• Macroeconomic headwinds impacting auto demand, with some reports showing potential 20% decrease in auto wholesale in Q1 2026.
• Global semiconductor supply chain challenges and patent policy issues.
• Industry-wide cost inflation, particularly in memory costs, posing margin pressure.

Q: Can you give more color on analytics guidance, ASP and margin outlook for the year, and impact of auto demand and component costs?

A: Phil Zhou mentioned full-year 2026 revenue guidance of $1,000,000,000 to $1,100,000,000, and margin outlook for 2026 is a range of about 15% to 18% with focus on cost management and collaboration with customers on cost inflation.

Q: Can you provide an update on latest progress with foreign OEMs?

A: Peter W. Cirino stated ECARX has a broad pipeline of opportunities in Europe from engagement with European partners, including significant wins with Volkswagen Group in Latin America and plans for additional wins contributing to revenue profile in the future.