Microvast (MVST) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 revenue of $91.3 million, up 9.2% year-over-year, with gross margin rising to 34.7% from 32.5%.

• Six-month revenue reached $207.8 million, a 25.9% increase year-over-year, with gross margin improving to 36.0% from 26.9%.

• Reported GAAP net loss of $106.1 million for Q2, primarily due to a $121.5 million loss from changes in fair value of a convertible loan, but delivered positive adjusted EBITDA of $25.9 million and adjusted net profit of $16.3 million.

• Order backlog stood at $320 million, reflecting strong market demand and execution, with most orders expected to be fulfilled in 2025 and 2026.

• Continuous innovation in battery technology, including launch of ME6 LFP-based system and advancements in silicon-based and all-solid-state batteries.

Financial highlights

• Q2 gross profit reached $31.7 million, a 17% increase year-over-year; six-month gross profit was $74.7 million, up 68%.

• Adjusted EBITDA for Q2 was $25.9 million, with year-to-date adjusted EBITDA at $54.4 million.

• Adjusted net profit for Q2 was $16.3 million, a turnaround from an adjusted net loss of $87.9 million last year; six-month adjusted net profit was $35.6 million.

• Operating expenses dropped 87% year-over-year to $16.5 million in Q2, mainly due to reduced share-based compensation and prior year impairments; first half operating expenses decreased 74.9% to $42.0 million.

• Cash, cash equivalents, and restricted cash totaled $138.8 million at quarter's end, with net cash from operating activities of $44.3 million for the first half.

Outlook and guidance

• Full-year 2025 revenue guidance maintained at $450–$475 million, representing 18–25% growth.

• Gross margin target updated to 32% for the year, focusing on higher margin products and regional efficiencies.

• Anticipates continued strong growth in EMEA and APAC, with new capacity from Huzhou Phase 3.2 expansion coming online by year-end.

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

• Additional financing is needed to complete the Clarksville, Tennessee facility and support further U.S. expansion.