ECARX (NASDAQ:ECX) Releases Earnings Results, Misses Estimates By $0.14 EPS

ECARX (NASDAQ:ECX) announced its earnings results on Wednesday. The company reported ($0.13) EPS for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.14), FiscalAI reports. The firm had revenue of $240.80 million during the quarter, compared to analysts’ expectations of $315.22 million.

Here are the key takeaways from ECARX’s conference call:

• Q3 revenue rose 10% year over year to $241 million, while shipments increased 8% year over year despite a sharply weaker China market. ECARX reaffirmed its 2026 revenue guidance of $1.0 billion–$1.1 billion, citing scheduled launches and its order backlog.
• Rising memory costs sharply pressured profitability: gross margin fell to 7% from 22% a year earlier, and adjusted EBITDA was a loss of $37.7 million versus a $0.9 million loss. Management said it cannot reliably forecast Q4 margin trends because memory costs and the ability to pass them through remain uncertain.
• The Flyme software acquisition gives ECARX control of the cockpit application layer and, management says, opportunities for software licensing and other recurring revenue less tied to hardware volumes; Flyme Auto is deployed in more than 3.5 million vehicles. The company also signed an MOU with Arm to collaborate on next-generation physical AI platforms, though these are longer-term opportunities.
• International expansion is progressing, with the Volkswagen program on track for a 2027 launch and a European luxury automaker partnership for a cockpit AI lab nearing completion. However, management said about 75% of current revenue comes from Geely and its ecosystem; its goal is for half of revenue to come from outside China by 2030.

ECARX Trading Up 13.7%

ECX stock opened at $0.80 on Friday. ECARX has a 12 month low of $0.67 and a 12 month high of $2.65. The company has a 50-day moving average price of $0.96 and a 200 day moving average price of $1.19. The stock has a market cap of $285.07 million, a PE ratio of -4.44 and a beta of 1.07.

Analysts Set New Price Targets

Separately, Weiss Ratings restated a “sell (e+)” rating on shares of ECARX in a report on Thursday, October 15th. One analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Reduce”.

ECARX Company Profile

ECARX Holdings Inc is a global automotive technology company that develops hardware and software for connected, intelligent vehicles. Its products are designed to support digital cockpits, infotainment, vehicle connectivity, advanced driver-assistance systems and centralized vehicle computing.

The company provides integrated solutions that can include automotive chips, computing platforms, operating systems, application software and cloud-based services. Its technologies are used by automakers to deliver features such as in-vehicle entertainment, navigation, voice interaction, smartphone integration, over-the-air updates and other intelligent-vehicle functions.

Founded in 2017, ECARX serves automotive manufacturers in China and international markets.