ECARX (ECX, Financial) Holdings has introduced its latest innovation, the EXP01 processor, at the RISC-V Summit Europe 2025 in Paris. This processor is built on the RISC-V architecture, and its debut marks a significant milestone for the company. ECARX shared its future plans, which include the development of a new generation MCU and strengthening technical partnerships within the RISC-V community. This effort aligns with their strategy to drive the adoption of RISC-V technology in intelligent mobility solutions.
The company emphasizes the importance of the EXP01 processor in providing robust, open-architecture computing platforms for the automotive sector. By leveraging its global partnerships, ECARX aims to enhance the performance and safety of its technology. The open nature of RISC-V enables faster innovation and cost efficiency, which supports ECARX's mission to offer automakers customizable and economical solutions. Through its MCU roadmap and strengthened collaborations, ECARX is poised to become a leader in the intelligence-driven mobility revolution powered by RISC-V.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for ECARX Holdings Inc (ECX, Financial) is $3.76 with a high estimate of $5.01 and a low estimate of $2.66. The average target implies an upside of 152.46% from the current price of $1.49. More detailed estimate data can be found on the ECARX Holdings Inc (ECX) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, ECARX Holdings Inc's (ECX, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
ECX Key Business Developments
Release Date: April 30, 2025
- Total Revenue: RMB1.2 billion, up 30% year-over-year.
- Sales of Goods Revenue: RMB879 million, up 16% year-over-year.
- Software License Revenue: RMB187 million, up 148% year-over-year.
- Service Revenue: RMB157 million, up 49% year-over-year.
- Gross Profit: RMB243 million, up 19% year-over-year.
- Gross Margin: 19.8%.
- Operating Loss: Reduced by 30% year-over-year to $24.6 million.
- Adjusted EBITDA Loss: RMB105 million, improved from a loss of RMB224 million last year.
- Loss Per Share: RMB0.57, compared to RMB0.85 last year.
- Cash and Restricted Cash: RMB933 million at the end of the quarter.
- Shipments: 684,000 units, with total vehicles on the road reaching over 8.7 million.
- China Market Growth: 12.9% year-over-year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ECARX Holdings Inc (ECX, Financial) reported a 30% year-over-year increase in total revenue, reaching $168.5 million.
- The company achieved a significant milestone with the integration of cockpit, driving, and parking capabilities into the Antora 1000 SPB, enhancing their product offerings.
- Shipments surged to 684,000 units, marking a 35.8% year-over-year increase, driven by the success of Geely's Galaxy brand.
- ECARX Holdings Inc (ECX) secured eight new project wins under Geely's new foundation E/E architecture, reinforcing their strategic partnerships.
- The company hosted a successful Investor Day in Hong Kong, highlighting their first quarter of EBITDA breakeven and positive outlook for global expansion.
Negative Points
- Global vehicle sales fell 5.6% year-over-year, indicating market headwinds and supply chain challenges.
- Despite revenue growth, ECARX Holdings Inc (ECX) reported an operating loss of $24.6 million, although it narrowed by 30% year-over-year.
- Gross margins remained firm at around 20%, but the company faces further competition in the market.
- The company is impacted by US tariffs, which pose challenges to their supply chain and manufacturing strategy.
- There is pressure on pricing and costs, particularly in the China market, which could affect profitability.
