Microvast (MVST) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $87.3 million, down 4.5% year-over-year, mainly due to a $2.7 million tariff refund to a U.S. customer and lower demand in key markets.

• Gross margin declined to 29.5% from 34.7% in Q2 2025, impacted by higher raw material costs and lower production utilization.

• Net loss for Q2 2026 was $12.0 million, a significant improvement from $106.1 million in Q2 2025, primarily due to reduced negative impacts from warrant liability and convertible loan revaluations.

• Adjusted EBITDA for Q2 2026 was $3.6 million, down from $25.9 million in Q2 2025.

• Ended the period with $143.1 million in cash, a decrease of $26.2 million from the prior period.

Financial highlights

• Q2 2026 gross profit was $25.8 million, with gross margin at 29.5%.

• Operating expenses rose 16.1% year-over-year to $27.5 million in Q2, driven by higher legal, professional, and R&D costs.

• Net cash used in operating activities was $33.3 million for the first half, a significant swing from $44.3 million generated in the prior year.

• Capital expenditures totaled $15.5 million year-to-date, mainly for U.S. office purchase and Huzhou expansion.

• Cash and equivalents at quarter-end: $143.1 million.

Outlook and guidance

• Strategic priorities for H2 2026 include accelerating profitability, scaling with margin discipline, and expanding in heavy industry and transit markets.

• Huzhou Phase 3.2 expansion is expected to add up to 2 GWh of annual production capacity, with SOP in 2026.

• Clarksville, TN pack line assembly is on track for initial output by year-end; full-scale plant construction depends on additional financing or partnerships.

• Management expects continued operating losses and negative cash flows, with ongoing reliance on external capital.

• Plans to commercialize next-generation products and expand into new high-margin market segments.