On August 11, 2026, ECARX Holdings Inc (ECX.US) released its Q2 financial results for 2026. Quarterly revenue surged 45% year-over-year, while gross margin improved by 9 percentage points to 19.8% compared to the same period last year, leading to a 165% jump in gross profit. For the second quarter, the company posted its fourth consecutive quarter of overall profitability, fully validating its operational stability and sustainability.
Breaking down the figures, total revenue reached $225.2 million, a 45% year-over-year increase. Product sales revenue rose 50% to $196.4 million, primarily driven by overseas market expansion, a higher mix of high-value computing platform products, and optimized cost pricing. Service revenue grew 21% to $28.1 million, largely due to the concentrated delivery of new vehicle development projects. Software licensing revenue declined year-over-year, as the overall revenue mix continued to shift toward higher-value operations. Gross margin for the quarter improved to 19.8% from 10.8% in the prior year, and gross profit increased by 165%.
Leveraging AI enhancements and refined resource integration, the company's operational efficiency continued to rise. Research and development, as well as selling and administrative expenses, fell by 14% year-over-year, reflecting ongoing structural cost-reduction benefits. The company's operational resilience remained evident, with net loss narrowing significantly year-over-year. Adjusted EBITDA reached $0.5 million, marking the fourth consecutive quarter of overall profitability. As of June 30, 2026, total cash reserves stood at $165.5 million, providing financial support for technology iteration, product upgrades, and global expansion.
During the quarter, total product shipments exceeded 550,000 units. The share of high-end solutions, Antora庐 and ECARX庐 Pike庐, rose to 42% of total shipments, compared to 20% in the same period last year. Shipments of Antora庐 grew 52% year-over-year, while ECARX庐 Pike庐 solutions surged more than 20 times. The penetration of high-value products continued to increase. During the period, nine new vehicle models from four brands equipped with the company's full-stack intelligent solutions entered mass production. Additionally, 33 new vehicle model projects were awarded, with global commercial expansion progressing steadily. As of June 30, 2026, ECARX solutions had been deployed in approximately 12 million vehicles worldwide.
Furthermore, the company's global operations progressed smoothly during the quarter, with core technology deployment continuing to improve. The industrialization project with the Volkswagen Group in Latin America advanced steadily, targeting a mass production milestone in 2027. The company also received the "Connected Ecosystem Partner Award" from Volkswagen Brazil, further enhancing its recognition among major international automakers. On the technology front, the company reached an agreement to acquire the Flyme software business. It partnered with TPK to jointly develop the ORCA LiDAR platform, expected to achieve overseas mass production by 2028, continuously expanding its full-stack intelligent technology footprint. Additionally, the company increased its 2025 convertible bond issuance limit from $100 million to $130 million to provide capital support for long-term business development.
Looking ahead, ECARX Holdings Inc maintained its full-year 2026 revenue guidance of between $1 billion and $1.1 billion. The company anticipates that global memory cost fluctuations and phased strategic investments may temporarily impact short-term gross margins. Over the long term, it will continue to rely on product upgrades, lean operations, and global expansion to solidify a foundation for high-quality growth.
Ziyu Shen, CEO of ECARX Holdings Inc, commented: "In the second quarter, the company delivered solid results on both financial and strategic execution fronts. Facing a complex industry environment, we achieved 45% year-over-year revenue growth, nearly doubled gross margins, and recorded our fourth consecutive quarter of overall profitability by persistently advancing our high-value product strategy. The rapid shipment growth of products like Antora庐 and ECARX庐 Pike庐 further validates the effectiveness of our product structure upgrade direction. Additionally, we have actively applied AI technology to R&D and operational processes, effectively improving overall efficiency and further solidifying earnings quality."