ECARX Holdings Inc. Q2 FY2025 earnings call

• Continued momentum despite seasonality, shipped 532,000 units with over 9.3 million vehicles on the road with ECARX technology by end-June 2025.
• Secured over USD 1 billion of lifetime revenue for overseas contracts. Shipments of Antora series solutions surged 112% year-over-year to 135,000 units.
• Strong partnerships with Geely, including Geely's Galaxy brand surpassing 1 million sales, and Volkswagen, with ECARX accepting Volkswagen Brazil's Technical Development and Innovation Award.
• Began monetizing automotive R&D in nonautomotive sectors, with a robotic lawn mower selecting ECARX's LiDAR technology.
• New global headquarters in Singapore set to open in H2 2025 to accelerate global IP management, R&D collaboration, and supply chain optimization.

Total revenue for the quarter was USD 156 million. Sales of goods revenue was USD 131 million, a 1% year-over-year increase. The Antora, Venado and Skyland platforms contributed 56% to total sales of goods revenue, more than doubling from 28% in the prior year period. Software license revenue decreased 85% year-over-year to USD 1.2 million. Service revenue was USD 23 million, down 34% year-over-year. Gross profit was USD 70 million, a decline of 58% year-over-year with a gross margin of 11%. Operating expenses were reduced by 20% year-over-year to USD 57 million.

• On track to reach EBITDA breakeven and generate close to 20% revenue growth.
• Second half expected to see significant new projects launch.
• Full year revenue growth close to 20% driven by volume growth and improved product mix.
• Adjusted EBITDA breakeven expected in each of the remaining quarters and full year 2025.

Q: About nonautomotive business layout and development of nonautomotive applications, progress in overseas expansion since VW design win, and update on in-house chip development.

A: Peter W. Cirino mentioned nonautomotive business has potential with LiDAR tech applicable to robotics, global expansion has over $1B lifetime revenue on secured programs, and Antora platform and Qualcomm 8295 product in market.

Q: Volume guidance for second half, pricing pressure, and ADCU business update.

A: Phil Zhou stated second half volume expected 1.4-1.5 million vehicles, full year near 2.5-2.6 million with 30% YOY growth; pricing strategy includes cost optimization, solution selling, and global expansion; Peter W. Cirino mentioned ADCU business and work with Qualcomm's Flex SoCs like 8775.

Q: Growth driver for second half and next year, and customer cooperation and overseas customer expansion.

A: Phil Zhou talked about diversified customer base with Geely and global OEMs, Peter W. Cirino noted robust global activity with multiple carmakers and potential for new announcements later in the year