ECARX Holdings, Inc. (ECX.US) has reported profits for four consecutive quarters, with Q2 revenue increasing by 45% year-on-year.

On August 11, 2026, ECARX Holdings, Inc. (ECX.US) announced its Q2 2026 financial report. Quarterly revenue grew by 45% year-on-year, gross margin improved by 9 percentage points to 19.8%, and gross profit increased by 165% year-on-year. In the second quarter, the company achieved overall profitability for the fourth consecutive quarter, fully validating its operational stability and sustainability. Specifically, total revenue reached $225.2 million, a year-on-year increase of 45%. Of this, product sales revenue was $196.4 million, up 50% year-on-year, mainly driven by the expansion of overseas markets, an increase in the proportion of high-value computing platform products, and optimized cost pricing; service revenue was $28.1 million, up 21% year-on-year, primarily due to concentrated deliveries of new model development orders; software licensing revenue saw a year-on-year decline, and the overall revenue structure continued to optimize towards high-value business. This quarter, the gross margin increased from 10.8% in the same period last year to 19.8%, with gross profit soaring 165% year-on-year. At the same time, leveraging AI empowerment and refined resource integration, the company's operational efficiency continuously improved, with R&D and selling, general and administrative expenses down 14% year-on-year, and the effects of structural cost reductions were continuously released. During the period, the companys operational resilience was consistently highlighted, with net losses significantly narrowing year-on-year, and adjusted EBITDA reaching $500,000, achieving overall profitability for four consecutive quarters. As of June 30, 2026, the company had total cash reserves of $165.5 million, providing financial support for technological iteration, product upgrades, and global expansion. This quarter, total product shipments exceeded 550,000 units, with shipments of the Antora and ECARXPeike high-end solutions increasing their share from 20% in the same period last year to 42%; among them, Antora shipments grew by 52% year-on-year, while ECARXPeike solutions saw over a 20-fold increase, with the penetration rate of high-value products continuously rising. During the period, four major brands with nine new models equipped with the company's full-stack intelligent solutions went into mass production, and 33 new model projects were newly designated, with global business expansion steadily advancing. As of June 30, 2026, ECARX Holdings, Inc.'s solutions had cumulatively served approximately 12 million vehicles worldwide. In addition, the company's globalization efforts progressed smoothly this quarter, with core technology layouts continuing to improve. The company made steady progress in its industrialization project with the Volkswagen Group in Latin America, racing toward the 2027 mass production milestone, and won the Connected Ecosystem Partner Award from Volkswagen Brazil, further enhancing recognition among international mainstream automotive manufacturers. On the technology front, the company reached an agreement for the acquisition of Flyme's software business; partnered with TPK to jointly develop the ORCA lidar platform, which is expected to achieve overseas mass production by 2028, continuously perfecting its full-stack intelligent technology landscape. Additionally, the company raised the issuance limit for its 2025 convertible bonds from $100 million to $130 million, providing capital support for long-term business development. Looking ahead for the year, ECARX Holdings, Inc. maintains its revenue guidance for 2026 at $1 billion to $1.1 billion. The company anticipates that fluctuations in global storage costs and phased strategic investments may have a temporary impact on short-term gross margins, but in the long term, it will continue to rely on product upgrades, lean operations, and global layout to solidify a foundation for high-quality growth. CEO Shen Ziyu stated, In the second quarter, the company delivered solid results at both the financial and strategic execution levels. In response to a complex industry environment, we achieved a 45% year-on-year revenue increase and nearly doubled gross margin through the continuous advancement of our high-value product strategy, and achieved overall profitability for the fourth consecutive quarter. The rapid growth in shipments of products such as Antora and ECARXPeike further validated the effectiveness of our product structure upgrade direction. Additionally, we actively applied AI technology in R&D and operation processes, effectively enhancing overall efficiency and further solidifying the quality of our profitability.