ECARX Technology (ECX.US) reports four consecutive quarters of profit, with Q2 revenue up 45% year-on-year

According to Jinse Finance, on August 11, 2026, ECARX (ECX.US) released its Q2 2026 financial report. Quarterly revenue increased by 45% year-on-year, gross margin improved by 9 percentage points year-on-year to 19.8%, and gross profit grew 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.

In detail, total revenue reached $225.2 million, up 45% year-on-year. Of this, product sales revenue was $196.4 million, a 50% increase year-on-year, mainly due to overseas market expansion, a higher proportion of value-added computing platform products, and optimized cost pricing; service revenue was $28.1 million, up 21% year-on-year, mainly attributable to concentrated delivery of new model development orders; software licensing revenue saw a slight year-on-year decline, with the overall revenue structure continuously optimized towards higher-value businesses.

This quarter, gross margin improved from 10.8% in the same period last year to 19.8%, with gross profit up 165% year-on-year. Additionally, relying on AI empowerment and refined resource integration, the company's operational efficiency continued to improve, with R&D and SG&A expenses decreasing by 14% year-on-year, and the results of structural cost reduction consistently realized.

During the period, the company's operational resilience remained evident, with net loss narrowing significantly year-on-year, and adjusted EBITDA reaching $500,000, achieving overall profitability for four consecutive quarters. As of June 30, 2026, the company's total cash reserves stood at $165.5 million, providing strong financial backing for technology iteration, product upgrades, and global expansion.

Overall product shipments for the quarter exceeded 550,000 units, with the proportion of Antora® and ECARX Park® high-end solutions increasing from 20% in the same period last year to 42%; among these, Antora® shipments grew by 52% year-on-year, and ECARX Park® solutions rose more than 20 times year-on-year, continuously boosting high-value product penetration. During the period, a total of 9 new mass-produced models equipped with the company's intelligent full-stack solutions were launched under 4 major brands, along with 33 new designated projects, steadily advancing global business development. As of June 30, 2026, ECARX solutions have cumulatively served approximately 12 million vehicles worldwide.

In addition, the company's global business rollout progressed smoothly this quarter, with its core technology deployment consistently advancing. The industrialization project with Volkswagen Group in Latin America made steady progress, targeting mass production in 2027, and the company won Volkswagen Brazil's “Connected Ecosystem Partner Award”, further enhancing recognition by leading international automakers. On the technology front, the company reached an agreement to acquire Flyme’s software business; jointly developed the ORCA LiDAR platform with TPK, expected to begin overseas mass production in 2028, further improving the layout of its intelligent full-stack technology. Meanwhile, the company raised its 2025 convertible bond issuance limit from $100 million to $130 million, securing capital for long-term business development.

Looking ahead for the full year, ECARX maintains its 2026 revenue guidance of $1 billion to $1.1 billion unchanged. The company anticipates that fluctuations in global storage costs and phased strategic investments may have a temporary impact on short-term gross margins. Over the long term, it will continue to rely on product upgrades, lean operations, and global expansion to consolidate the foundation for high-quality growth.

Shen Ziyu, CEO of ECARX, stated: “In the second quarter, the company delivered solid results in both financial and strategic execution. Facing a complex industry environment, we continued to implement a high-value product strategy and achieved 45% year-on-year revenue growth, with gross margin nearly doubling, and overall profitability sustained for the fourth consecutive quarter. Shipments of products such as Antora® and ECARX Park® grew rapidly, further validating the effectiveness of the company's product structure upgrade strategy. In addition, we are actively applying AI technology to R&D and operational processes, significantly improving overall efficiency and further solidifying profit quality.”