MVST's Comeback: Record Revenues Drive Adjusted EBITDA in Q3

Microvast Holdings MVST registered record revenues of $123.3 million in the third quarter of 2025, up 21.6% year over year, resulting in year-to-date revenues of $331 million, increasing 24.3% year over year. This impressive growth is primarily fueled by a sustained demand for advanced battery solutions, mainly in the commercial vehicle sector. Management’s optimism in the company’s products is reinforced by the fact that it has maintained a full-year revenue guidance of $450-$475 million.

Alongside this achievement, MVST reported positive adjusted EBITDA, strengthening its profitability. The company achieved $21.9 million in adjusted EBITDA in the third quarter of 2025 and $76.3 million for the nine months ending Sept. 30, 2025, a significant turnaround from the negative $53.5 million recorded in the nine months ending Sept. 30, 2024. This upturn was primarily due to a whopping 61.3% cut in operating expenses as of the nine months ending Sept. 30, 2025, resulting in this massive turnaround.

Adjusted EBITDA is a vital metric that excludes non-cash and non-operational expenses, gauging operational strength. MVST’s positive figures highlight that it has been successful at attaining self-sustenance in its core business, generating meaningful cash flow from operations.

Despite this upside, Microvast witnessed a net loss of $1.5 million in the third quarter of 2025 against a net profit of $13.2 million reported in the year-ago quarter. Although the loss is minimal, it reminds investors that MVST’s ability to remain profitable is an ongoing event.

We expect this shortcoming to disappear in the near future as the company’s operational cash flow appears strong, resulting in the absorption of technical costs, which may clear the path to sustained profitability. Hence, we can conclude by saying that Microvast’s financial rebound is in motion, driven by a combination of top-line growth and efficiency gains.

MVST’s Price Performance, Valuation & Estimates

Microvast has skyrocketed 141.2% in the past year, significantly outperforming Byrna Technologies BYRN, Xperi XPER and the industry as a whole. The industry has rallied 8.9%, while Byrna Technologies and Xperi have declined 5.5% and 38.5%, respectively.

1-Year Share Price Performance

From a valuation standpoint, MVST trades at a 12-month forward price-to-earnings ratio of 17.21, below the industry’s 25.18. It appears cheaper than Byrna Technologies’ 45.75, while expensive when compared with Xperi’s 6.

P/E - F12M

Microvast and Byrna Technologies have a Value Score of D, while Xperi has a Value Score of B.

The Zacks Consensus Estimate for MVST’s earnings for 2025 and 2026 has decreased 10.5% and 31%, respectively, over the past 60 days.

Microvast carries a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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