ECARX reveals positive EBITDA on cost cuts despite sales drop

ECARX Holdings (NASDAQ:ECX) reported a 22% decline in first-quarter revenue as vehicle launch timelines shifted, though sweeping operational cost reductions allowed the automotive intelligence developer to narrow its losses and post positive adjusted EBITDA.

The mobility technology company generated total revenue of $131.5 million for the three months ended March 31, 2026, down from the same period last year.

Despite the top-line contraction, gross margin improved to 21.4%, supported by a more favorable product mix.

Net loss narrowed significantly to $11 million, while adjusted EBITDA turned positive at $4 million, reversing an adjusted EBITDA loss in the first quarter of fiscal 2025.

The shift toward profitability was driven by aggressive internal cost-containment measures.

Research and development expenses plunged 32% year-over-year, and selling, general, and administrative (SG&A) overhead dropped 24%, reflecting leaner engineering and corporate structures.

ECARX closed the first quarter with cash and cash equivalents totaling $70.1 million.

Operationally, the company shipped more than 360,000 technology units during the quarter.

ECARX also expanded its global automotive pipeline, highlighting new technical collaborations and integration partnerships with autonomous shuttle firm May Mobility and Germany’s Volkswagen Group.

Looking ahead, management reiterated its full-year fiscal 2026 revenue guidance of $1 billion to $1.1 billion.