Shares of ECARX Holdings Inc. (NASDAQ:ECX) are rebounding after initially dropping following the company's first quarter 2025 earnings report earlier this week.
What To Know: The company posted a net loss of 8 cents per share for the quarter, which was an improvement from the 12 cents loss in the same period last year. Revenue came in at $168.5 million, exceeding analyst expectations of $154.18 million and marking a 31% year-over-year increase.
The company's performance was driven by growth in software and service revenue, which offset some of the pressure from pricing strategy changes that affected hardware margins. Gross profit rose to $33.5 million, with a margin of 20%, slightly down from 22% last year. Total units shipped in the quarter reached 684,000, pushing the number of vehicles on the road with ECARX technology to over 8.7 million. The firm continues to expand its relationship with Geely, securing eight new projects tied to the automaker's latest E/E architecture.
Despite the operational progress, ECARX remains unprofitable. Its net loss narrowed to $27 million, down from $304 million a year ago. Adjusted EBITDA loss also improved significantly to $14.4 million, compared to a $31 million loss previously. Research and development, as well as administrative expenses, both declined year-over-year.
Product innovation continued, with the Antora 1000 SPB computing platform completing road testing and the rollout of ECARXperience, an AI-powered in-car interface system. ECARX also raised $45 million in a public offering to support global expansion, including new facilities in Singapore.
ECX Price Action: Ecarx shares were up 5.22% at $1.41 at the time of writing, according to Benzinga Pro.
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