Microvast (MVST) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of $116.5 million, up 43% year-over-year, with EMEA contributing over half of total revenue and net profit of $61.8 million versus a $24.8 million loss in Q1 2024.

• Gross margin expanded to 36.9%, a 15.7 percentage point increase year-over-year, reflecting improved operational efficiency and lower raw material costs.

• Adjusted EBITDA reached $28.5 million, a turnaround from negative $3.7 million in Q1 2024.

• Order backlog stood at $351 million, indicating strong market demand and future revenue visibility.

• Continued innovation in battery technology, including advancements in all-solid-state batteries, silicon-based cells, and proprietary 3D printing capabilities.

Financial highlights

• Revenue grew 43% year-over-year to $116.5 million in Q1 2025, with EMEA revenue more than doubling and US revenue up 229%.

• Gross profit increased to $43 million, with gross margin rising to 36.9%.

• Net profit of $61.8 million (GAAP), with adjusted net profit of $19.3 million (non-GAAP), compared to net loss of $24.8 million in Q1 2024.

• Operating expenses decreased to $25.5 million (GAAP), mainly due to lower share-based compensation and cost controls.

• Positive operating cash flow of $7.2 million and total cash, cash equivalents, and restricted cash at $123 million at quarter end.

Outlook and guidance

• Full-year 2025 revenue guidance of $450–$475 million, representing 18–25% year-over-year growth, and targeting a 30% gross margin.

• EMEA expected to maintain strong momentum; Americas targeting 50% growth; APAC expansion to add up to 2 GWh annual capacity.

• Huzhou Phase 3.2 production equipment installation underway, with first qualified products expected in Q4 2025.

• Focused on achieving positive cash flow, sustaining gross margins, and expanding market reach.

• Plans to secure additional financing to complete U.S. facility and expand LFP cell production.