ECARX Reports 10% Q2 Revenue Decline, Faces DOJ Probe

ECARX Holdings Inc. reported a 10% year-over-year decline in second-quarter 2025 revenue to $155.6 million, down from $173.3 million the previous year, alongside a net loss that increased to $43 million. Despite these challenges, including negative operating and net margins, the company reduced operating expenses by 20% and maintained optimism about future growth, projecting nearly 20% revenue growth and EBITDA breakeven in upcoming quarters. ECARX is expanding its global footprint through new partnerships with leading automakers and has secured over $1 billion in international contracts, while also shifting its reporting currency to USD to boost financial transparency. The company saw a 112% increase in shipments of its Antora® series solutions, driven by strong demand from the Geely portfolio. Analysts hold a cautiously optimistic view, rating the stock a Buy with a $3.60 price target, though financial challenges such as high leverage and negative equity remain concerns. ECARX continues to focus on automotive intelligence and networking technologies as it navigates market and operational headwinds.