ECARX (NASDAQ:ECX) outlined what executives described as a turning point in its profitability trajectory, reporting a second consecutive quarter of positive operating income and EBITDA as revenue reached a quarterly record in the fourth quarter of 2025. Management attributed the performance to higher shipments of its core computing platforms, ongoing cost discipline under a “lean operating strategy,” and expanding international partnerships, particularly with Volkswagen Group in Latin America.
Q4 and full-year financial performance
Chairman and CEO Ziyu Shen said the fourth quarter marked the start of the company’s “next phase of sustainable, profitable growth.” ECARX reported fourth-quarter net income of $2.8 million, operating income of $7 million, and adjusted EBITDA of $22 million. Revenue rose 13% year-over-year to a “historical high” of $305 million, while gross profit increased 11% to $64 million, producing a gross margin of 21%.
In the quarter, sales of goods revenue reached $270 million, up 27% year-over-year. Zhou pointed to increased shipments of the Antora, Makalu, and Pikes series, which he said rose 62% year-over-year in Q4 and represented 74% of total sales of goods revenue. Services revenue was $33 million and software license revenue was $2 million; Zhou said both reflected project timing rather than demand issues.
On expenses, Zhou said operating expenses decreased 19% year-over-year to $57 million in the fourth quarter. For the full year, operating expenses fell 24% to $216 million. He emphasized the company achieved these efficiencies while continuing to invest in expansion and research and development.
Shipments, installed base, and customer footprint
COO Peter Cirino said ECARX shipped approximately 910,000 units in the fourth quarter as the company “intentionally” increased volumes to meet demand. Cirino said the cumulative number of vehicles equipped with ECARX technologies reached approximately 11 million units as of year-end 2025, up 36% from the prior year.
Cirino added that the company serves 18 OEMs across 28 brands worldwide. Management repeatedly characterized execution on complex global programs as an increasing competitive advantage as ECARX expands beyond its historical footprint.
Global expansion and Volkswagen partnership
Executives highlighted progress on international expansion as a central theme of the call. Shen said ECARX is diversifying both its geographic revenue base and solution portfolio to build “a truly global business,” while Cirino said overseas business development is “growing substantially.”
Management emphasized its partnership with Volkswagen Group in Latin America as a key milestone. Shen said the agreement leverages the Antora platform to address multiple market segments, using the higher-performance Antora 1000 for online variants integrating the Cloudpeak software stack and Google Automotive Services, and the Antora 500 for entry-level segments. Cirino later noted that in the fourth quarter ECARX extended its partnership with Volkswagen Group and “announced another win” to bring the Antora platform to additional vehicle lines in Volkswagen Latin America, including collaboration with Google.
Cirino said sample development and delivery for Volkswagen continue to meet targets and “exceed expectations,” and he pointed to a growing European pipeline. He added that ECARX is targeting 50% of total revenue from overseas markets by 2030.
Technology roadmap, certifications, and compliance efforts
On product execution, Cirino said the Pikes computing platform and Cloudpeak cross-domain software stack powered a next-generation AI cockpit for the Geely Galaxy M9, and that the solution was replicated in the Lynk & Co 07 and 08 EM-P. He also said the Geely EX5 launched in the U.K. during the quarter with the Antora 1000 and Cloudpeak solutions integrated, which he described as the start of large-scale deliveries in core European markets.
Cirino said the Antora platform has obtained “key safety and privacy certifications” for European market entry. He added that ECARX solutions are compatible with Flyme Auto and Google Automotive Services.
At CES, Cirino said ECARX showcased solutions spanning scalable user interfaces, “agentic” and agent-to-agent AI, high-end computing, intelligent cockpits, and combined cockpit and assisted driving/parking concepts. He highlighted a working demo of Cloudpeak running on two different computing platforms powered by SiEngine and Qualcomm chips, describing the approach as giving automakers hardware flexibility while preserving a consistent software experience.
Cirino also discussed operational steps tied to global compliance, including rapidly operationalizing a Singapore headquarters intended to serve as a hub for global IP, R&D, and treasury activities. He said the company is working to obtain relevant regulatory certifications in the U.S. to engage with U.S. automakers.
2026 outlook, margin expectations, and financing updates
In a Q&A exchange, management addressed macro and cost concerns impacting the automotive market. The company acknowledged seasonal softness typically seen in the first quarter and discussed industry pressures such as inflation in electronic components, particularly memory.
Zhou introduced a “formal guidance framework” starting this quarter. For full-year 2026, ECARX guided for total revenue of $1.0 billion to $1.1 billion, representing 20% to 30% year-over-year growth, and said it is “committed to maintaining positive operating income throughout 2026.” For gross margin, management said it expects a 2026 range of roughly 15% to 18%, citing cost inflation pressures while pointing to ongoing cost management and pricing tactics aimed at mitigating headwinds.
On capital and liquidity, Zhou said ECARX signed a convertible bond financing agreement of up to $150 million with ATW Partners and raised $45.6 million from strategic partner Geely. Shen also referenced nearly $200 million raised in recent months from partners, including GE and ATW Partners, which he said would support an R&D and engineering hub in Germany and infrastructure across key growth markets in South America and Southeast Asia.
Zhou closed by noting the quarter would be his last with the company, thanking the investment community and his team as he “conclude[s]” his time at ECARX.
About ECARX (NASDAQ:ECX)
ECARX is a global automotive technology company focused on developing and delivering smart cockpit solutions for original equipment manufacturers (OEMs). The company designs and manufactures a range of in-vehicle computing platforms, central processing units, digital instrument clusters and multimedia infotainment systems. ECARX’s core offerings integrate software, hardware and cloud connectivity to create seamless user experiences for drivers and passengers.
The company’s product portfolio spans telematics control units, over-the-air update frameworks and next-generation human-machine interfaces (HMI).
