ECARX Holdings Inc. Q4 FY2025 earnings call

• The fourth quarter was a critical inflection point with net income, adjusted EBITDA, and operating income positive, and revenue at a historical high. - Momentum from computing platforms: Antora series shipments reached 1,000,000 units in 2025, deepening penetration. - Globalization strategy: Deepened partnership with Volkswagen Group in Latin America, Antora platform setting global standards. - R&D investments: Focus on next-generation computing platforms, intelligent driving solutions, and in-vehicle AI large models. - Lean operating strategy: Reduced operating expenses, maintaining profitability despite challenges.

In the fourth quarter, ECARX achieved net income of $2,800,000, adjusted EBITDA of $22,000,000, and operating income of $7,000,000. Revenue hit a historical high of $305,000,000, up 13% year over year. Gross profit was $64,000,000, up 11% year over year, with a gross margin of 21%. Sales of goods revenue reached $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 the total sales of goods revenue. Services revenue was $33,000,000, and software license revenue was $2,000,000.

• Full-year 2026 revenue 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. - Gross margin outlook for 2026 is in the range of 15% to 18%.

• Macroeconomic headwinds impacting auto demand. - Global semiconductor supply chain challenges. - Memory cost inflation affecting margins.

Q: Can you give more color on analytics guidance, ASP, and margin outlook for the year, especially with auto demand impacted by weakening government-supported policies?

A: Phil Zhou mentioned full-year 2026 revenue guidance of $1,000M to $1,100M, 20-30% yoy growth despite macro headwinds. Q1 is a low season due to policy impact, but full-year confidence remains. Margin outlook for 2026 is 15%-18% due to cost management efforts.

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

A: Peter W. Cirino said early 2025 announced first major global win with VW for Latin America, extended partnership in Q4, with broad opportunities in Europe emerging, expecting future wins to contribute to revenue profile.