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The call presented meaningful operational and profitability improvements—expanded gross margin to 21.4%, positive adjusted EBITDA for a third straight quarter, strong cost reductions, rising high-end product shipments (+73% YoY) and major strategic wins (May Mobility, Volkswagen program, global R&D investment). Offsetting these positives are a modest ~6% revenue decline, seasonal softness, sharp memory cost inflation (DDR +300%), lower software/service revenues due to timing and one-time prior-year items, and some inconsistent reported figures. On balance the company emphasized disciplined execution, margin resilience and a clear strategic roadmap while acknowledging near-term headwinds.
The company reiterated full‑year 2026 revenue guidance of $1.0–$1.1 billion, citing a Q1 sales-of-goods base of $114 million (down ~6% YoY) and a seasonally low quarter with an expected pickup from Q2; Q1 shipments exceeded 360,000 units while cumulative vehicles shipped surpassed 11 million (up ~30% YoY) and shipments of high‑end Antora/pikes rose ~73% YoY. Profitability trends include Q1 gross profit of $28 million and a 21.4% gross margin, operating loss narrowed to $13 million (vs. $25M LY), adjusted EBITDA positive at $4 million (third consecutive quarter, vs. –$15M LY), and cost reductions with operating expenses down 29% to $41M (R&D –32% to $24M; SG&A –24% to $18M). Management warned margins and operating profitability remain sensitive to memory cost volatility (DDR costs up >300% since Sept 2025) and did not provide ASP or explicit volume guidance.
Gross profit of $28 million and gross margin expanded to 21.4%. Operating loss narrowed to $13 million (vs $25 million in Q1 2025). Adjusted EBITDA was positive $4 million for the third consecutive quarter (vs negative $15 million in Q1 2025).
Operating expenses decreased 29% year-over-year to $41 million. R&D expense reduced 32% to $24 million and SG&A decreased 24% to $18 million, driven by prioritization, efficiency gains and lower share-based compensation.
Nearly $200 million of recently raised capital is being deployed to build an R&D hub in Germany and expand operations in South America and Singapore. Company appointed Lone Schroder as Chair and separated Chair/CEO roles; added a new CFO and Head of IR to strengthen global governance and execution.
Signed a strategic framework agreement with May Mobility to develop and deliver thousands of autonomous-enabled vehicles, marking ECARX's first entry into the robotaxi market and expanding addressable market opportunities.
Shipments of high-end pikes and Antora solutions increased ~73% year-over-year. Over 360,000 units shipped this quarter and cumulative vehicles shipped with ECARX technologies exceeded 11 million vehicles, up nearly 30% year-over-year. Solutions now power 28 brands across 18 OEMs.
Volkswagen Group program moved into industrialization phase ahead of an anticipated 2027 launch. Began mass production for 4 new models across 3 brands using next-generation pikes and Antora Series solutions.
Monetized a portion of SiEngine shareholding, realizing a material gain (management referenced $40M and elsewhere $14M partial monetization) which management highlighted as validation of their ability to incubate, integrate and monetize silicon/IP assets.
Management reiterated full-year 2026 revenue guidance of $1.0 billion to $1.1 billion, expressing confidence based on backlog and an accelerating commercial pipeline.
Good day, and thank you for standing by. Welcome to the ECARX Q1 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Mark Hankinson, Head of Investor Relations. Please go ahead.
Thank you, operator. Good morning, and welcome to ECARX's First Quarter 2026 Earnings Conference Call. With me today from ECARX are our Founder and Chief Executive Officer, Ziyu Shen; Chief Operating Officer, Peter Cirino; and Chief Financial Officer, Dylan Jeng. Following their prepared remarks, they will all be available to answer your questions. Before we start, I would like to refer you to our forward-looking statements at the bottom of our earnings press release, which also applies to this call. Further information on specific risk factors that could cause actual results to differ materially can be found in our filings with the SEC. In addition, this call will include discussions of certain non-GAAP financial measures. A reconciliation of the non-GAAP financial measures to the GAAP financial measures can also be found at the bottom of our earnings release.
With that, I'd like to hand over the call to our Founder and Chief Executive Officer, Ziyu Shen. Ziyu, please go ahead.
Thank you, Mark. Hello, everyone, and thank you for joining us today. The first quarter was defined by continued disciplined execution and continuing momentum in our global strategy. Our vision for ECARX remains clear, pushed boundaries of automotive intelligence globally and lead the industry'...