The 22% revenue decline vs a one-time software comp and the balance sheet deficit (total liabilities $980.8M vs assets $720.9M) highlight ongoing cash burn. Positive adjusted EBITDA is encouraging but the gain from investment sale masks core losses. Watch subsequent quarters for sustained topline recovery and management of $344.7M short-term borrowings against only $70.1M cash.
Price Chart
Executive Summary
ECARX reported Q1 2026 revenue of $131.5M, down 22% YoY, driven by a one-time software license revenue compare and lower legacy platform sales. Net loss improved to -$11.0M from -$27.2M, and adjusted EBITDA turned positive at $4.0M vs -$14.5M. The company reiterated FY2026 guidance of $1.0-$1.1B revenue, but cited memory cost headwinds for margins.
Key Facts
- Total revenue $131.5M, down 22% YoY (from $167.7M)
- Software license revenue collapsed 94% to $1.6M (from $25.6M) on a one-time prior-year item
- Net loss improved to $11.0M from $27.2M, but included a $14M gain on sale of an equity method investment
- Adjusted EBITDA turned positive at $4.0M vs -$14.5M in Q1 2025
- Cash & restricted cash $70.1M; total current liabilities $818.7M still exceed total current assets $527.8M
- Reiterated FY2026 revenue guidance $1.0B-$1.1B but expects negative margin impact from memory cost dynamics
- Company announced partnership with May Mobility for autonomous ride-hail fleet
- Share count diluted 364.1M vs 332.6M YoY, up ~9.5%
Financial Impact
Revenue decline of $36.2M (-22%) YoY; net loss narrowed $16.2M; adjusted EBITDA swing of +$18.5M; $14M investment gain non-recurring
Risk Factors
- Memory component cost inflation expected to pressure gross margins and operating profitability in coming quarters
- Going concern risk: total current liabilities ($818.7M) exceed total current assets ($527.8M), negative shareholders' deficit of $259.9M
- High dependence on related-party revenue and Geely ecosystem; single software license revenue line collapsed 94%
- Convertible notes payable increased to $135.4M total from $99.1M at year-end, increasing interest expense to $9.7M from $4.7M
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001628280-26-036129 |
| Document: a4920-4519x0724_v329xecxxf.htm | 0001628280-26-036129 |
| Document: 0001628280-26-036129-index-headers.html | 0001628280-26-036129 |
| Document: 0001628280-26-036129-index.html | 0001628280-26-036129 |
| Document: 0001628280-26-036129.txt | 0001628280-26-036129 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 1, 2026 21w ago | 6-K | $0.0601 $0.0479 | ▼ −20.30% | ▼ −21.53% | — |
May 19, 2026 23w ago | 6-K | $0.0601 $0.0433 | ▲ +27.95% | ▲ +34.24% | — |
May 19, 2026 23w ago | 6-K | $0.0601 $0.0433 | ▼ −27.95% | ▼ −34.24% | — |
Apr 8, 2026 28w ago | 6-K | $0.0601 $0.0601 | · 0.00% | ▼ −10.46% | — |
Mar 30, 2026 30w ago | 20-F | $0.0601 $0.0400 | ▼ −33.44% | ▼ −49.94% | — |
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