Gasgoo Munich- On Feb. 12, ECARX Holdings Inc., the global mobility technology company listed on Nasdaq under the ticker ECX, has released its unaudited financial results for the fourth quarter ended December 31, 2025.
Chairman and CEO Ziyu Shen described the quarter as a pivotal moment for the company, marking the start of a new phase of sustainable, profitable growth in its ambition to become a global leader in automotive intelligent AI technologies. Revenue reached a record $304.7 million in the fourth quarter, up 13% year on year, while ECARX delivered both net income and adjusted EBITDA profitability for the second consecutive quarter.
Image source: ECARX
He added, for the full year, revenue climbed to $847.9 million, achieving double-digit growth despite macroeconomic headwinds and tighter semiconductor supply. Management attributed the resilience to disciplined cost control and operational streamlining, alongside rising global demand for its diversified portfolio of intelligent automotive solutions.
Highlights of fourth-quarter 2025 financial performance:
Financial performance for the fourth quarter of 2025 reflected steady top-line expansion and improved operating leverage.
Total revenue rose 13% year on year to $304.7 million. Within that figure, product sales increased 27% over a year earlier to $269.5 million, driven primarily by a $104.5 million contribution from higher shipments of automotive computing platforms. This gain was partly offset by an $8 million decline linked to lower sales of system-on-chip (SoC) core modules, as well as a $38.7 million impact from reduced average selling prices.
In the quarter, cost of revenue totaled $241.0 million, up 13% from a year earlier, largely reflecting higher volumes of automotive computing platform products. The increase was partially mitigated by lower SoC module shipments and reduced software-related costs.
Gross profit rose 11% to $63.7 million, with gross margin holding steady at 21%, unchanged from the same period last year.
Research and development expenses fell sharply by 39% year on year to $29.1 million, underscoring the impact of strategic resource prioritization and the integration of R&D efforts across the organization.
Net income came in at $2.8 million, compared with a net loss of $6 million a year earlier, supported by stronger operating income and other income streams, which more than offset a decline in returns from equity investments.
Adjusted EBITDA, a non-GAAP measure, reached $21.6 million, up from $9.5 million in the prior-year quarter, highlighting further improvement in underlying profitability.
As of December 31, 2025, the company reported total cash of $93.2 million, providing liquidity to support ongoing global expansion and product development initiatives.
Highlights of full-year financial performance in 2025
For the full year 2025, ECARX's total revenue reached $847.9 million, representing a 10% increase from $771.5 million in 2024, reflecting sustained demand for the company’s intelligent automotive technology portfolio.
Annual sales revenue climbed 15% year on year to $703.1 million, up from $611.2 million in 2024. The primary engine of growth was higher shipments of automotive computing platforms, which generated an additional $236.1 million in revenue. Stronger volumes of the Antora®, Venado™ and Pikes® series were key contributors. However, this was partially offset by a $145.6 million decline linked to changes in average selling prices. Adjustments in the pricing structure of system-on-chip (SoC) modules added $6.3 million, while lower SoC module volumes reduced revenue by $5.4 million. Sales of automotive-related and other products provided a modest incremental lift.
Cost of revenue rose 12% year over year to $686.6 million last year, largely reflecting increased volumes of automotive computing platforms and higher contract costs associated with design and development services. This increase was partially mitigated by lower costs related to SoC core modules.
Full-year gross profit edged up 1% from a year earlier to $161.3 million. Gross margin came in at 19%, compared with 21% a year earlier, as product mix and pricing dynamics weighed on profitability.
Research and development expenses fell sharply by 30% to $123.3 million, reflecting a more disciplined allocation of resources and improved R&D efficiency as projects were consolidated and prioritized.
Selling, general and administrative expenses, together with other net expenses, declined 14% over the previous year to $92.7 million. The reduction was driven by tighter operational management and lower share-based compensation charges during the year.
In 2025, the company's net loss narrowed by half to $68.9 million, compared with $137.8 million in 2024. The improvement stemmed from reduced operating expenses, smaller fair-value losses on equity investments and higher government subsidies. These gains were partially offset by lower income from equity investments and higher interest expenses.
On a non-GAAP basis, adjusted EBITDA loss shrank dramatically to $14.4 million from $82.5 million in 2024, marking an 83% improvement and signaling stronger underlying operating performance.
Global footprint expands as partnerships deepen
By the end of 2025, ECARX’s technologies had been deployed in approximately 11 million vehicles worldwide, highlighting the company's growing international presence and its integration into a broad range of global automotive programs.
The company also expanded its collaboration with Volkswagen Group, signing a second-phase agreement to supply intelligent cockpit solutions for multiple models in the automaker’s Latin American portfolio. The move underscores ECARX’s ambition to extend its smart vehicle platform capabilities beyond China and deepen ties with established global OEMs.
