ECARX Holdings Inc. (NASDAQ:ECX) shares gained 3.62% in pre-market trading on Tuesday after the automotive intelligence technology company reported strong second-quarter revenue growth, improved margins and a substantially narrower net loss.
For the quarter ended June 30, ECARX recorded a loss of $0.03 per share, while revenue climbed 45% year on year to $225.2 million from $155.6 million.
Net loss narrowed to $12.0 million from $45.4 million in the same period last year, reflecting a significant improvement in the company’s financial performance.
Higher-value products drive ECARX revenue growth
Sales of goods were the main contributor to the quarterly expansion, rising 50% to $196.4 million. Service revenue increased 21% to $28.1 million, while software licence revenue declined 42% to $0.7 million.
ECARX shipped more than 550,000 units during the quarter, with its higher-end Antora and Pikes solutions representing 42% of total shipments. That compares with 20% in the second quarter of 2025.
The changing product mix follows the company’s decision to focus on higher-value products. Shipments of next-generation Antora products increased 52% year on year, while Pikes shipments rose by more than 2,000%.
“Despite a challenging automotive backdrop, ECARX delivered a strong second quarter in both financial and strategic terms,” said CEO Ziyu Shen. “Our decision in the second quarter last year to shift to higher value products saw shipments of our next-generation Antora and Pikes products rise 52% and over 2,000% YoY, respectively.”
Margins improve as operating expenses decline
ECARX also delivered a notable improvement in profitability metrics.
Gross margin increased to 19.8% from 10.8% a year earlier, while adjusted EBITDA reached $0.5 million compared with a $29.8 million loss in the prior-year quarter.
The result marked the company’s fourth consecutive quarter of positive adjusted EBITDA.
Operating expenses moved lower as well. Research and development spending declined 14% to $29.1 million, while selling, general and administrative expenses fell 8% to $21.6 million.
The combination of higher revenue, an improving product mix and lower operating expenses helped ECARX sharply reduce its quarterly net loss.
ECARX maintains 2026 revenue guidance but flags cost pressure
ECARX reiterated its full-year 2026 revenue forecast of between $1.0 billion and $1.1 billion, keeping its top-line expectations unchanged following the second-quarter performance.
However, management cautioned that memory cost dynamics are expected to weigh on gross margin and operating profitability over the coming quarters.
For investors, that warning creates a counterweight to the substantial year-on-year improvements reported in the second quarter. ECARX is generating faster revenue growth, improving its product mix and maintaining positive adjusted EBITDA, but rising memory costs could test whether the recent margin expansion can be sustained.
The next key measure will be whether continued adoption of Antora and Pikes can support growth and profitability as those cost pressures emerge.
Ecarx Holdings stock price
