Microvast (MVST) investor relations material

Executive summary

• Achieved record Q3 2025 revenue of $123.3 million, up 21.6% year-over-year, with gross margin rising to 37.6% from 33.2% in Q3 2024.

• Adjusted net profit for Q3 2025 was $11.9 million, with adjusted EBITDA of $21.9 million; operating profit for the nine months was $48.1 million, a turnaround from a $114.7 million loss last year.

• Revenue growth driven by strong demand, innovation, and expansion in key markets, supported by a robust order backlog of $237.7 million.

• Strategic partnership with Škoda Group for European rail applications and continued progress in all-solid-state battery technology.

• Focused on operational efficiency, capacity expansion, and new product launches, including the Huzhou phase 3.2 line and ME6 ESS container.

Financial highlights

• Q3 2025 gross profit was $46.4 million, up 38% year-over-year; gross margin improved by 4.4 percentage points to 37.6%.

• Nine-month revenue reached $331.1 million, a 24.3% increase; gross profit for the period was $121.2 million, up 55.3%.

• Q3 2025 operating expenses were $33.5 million; non-GAAP adjusted operating expenses were $32.8 million.

• Net cash from operating activities for the nine months was $59.5 million; cash and equivalents at quarter's end totaled $142.6 million.

• Q3 2025 net loss was $1.5 million, mainly due to a $12.6 million loss from changes in fair value of the convertible loan.

Outlook and guidance

• Maintains 2025 revenue growth target of 18% to 25% year-over-year, with revenue guidance of $450 million to $475 million.

• Full-year gross margin target updated to 32%–35%.

• Huzhou phase 3.2 expansion expected to complete by year-end, with production starting in Q1 2026.

• Management expects continued positive operating cash flow, supported by a strong order backlog and stable gross margins.

• Key objectives include expanding market reach, attracting new customers, and further U.S. manufacturing expansion contingent on financing.