Microvast Reports Third Quarter 2026 Financial Results

(NASDAQ:MVST) Microvast Holdings, Inc. reported unaudited consolidated financial results for the quarter ended September 30, 2026 (Q3 2026). Revenues for Q3 2026 were $45.8 million, down from $123.3 million in Q3 2025, a decrease of $77.5 million or 62.8%, primarily due to a 62.2% reduction in sales volume from approximately 501.7 MWh to 189.6 MWh. Gross margin declined to 5.2% from 37.6% in Q3 2025, impacted by a $9.3 million write-down for obsolete inventories related to specialized ESS components and other inventories, which reduced gross margin by 20.4 percentage points. Operating expenses increased to $69.0 million from $31.6 million in Q3 2025, driven by non-cash impairment charges of long-lived assets totaling $35.7 million, including $15.0 million for China, $4.4 million for Germany, and $16.3 million for the U.S. Net loss for Q3 2026 was $76.8 million, compared to a net loss of $1.5 million in Q3 2025. Non-GAAP adjusted net loss was $76.0 million, versus non-GAAP adjusted net profit of $11.9 million in Q3 2025. Net loss per share was $0.20, compared to $0.00 in Q3 2025. Non-GAAP adjusted net loss per share was $0.20, compared to non-GAAP adjusted net profit per share of $0.04 in Q3 2025. Non-GAAP adjusted EBITDA was negative $60.8 million, compared to $21.9 million in Q3 2025. Capital expenditures for Q3 2026 were $2.3 million, down from $17.4 million in Q3 2025. Cash, cash equivalents, and restricted cash totaled $124.4 million as of September 30, 2026, compared to $169.2 million as of December 31, 2025, and $142.6 million as of September 30, 2025. For the nine months ended September 30, 2026 (YTD 2026), revenues were $193.7 million, down from $331.1 million in YTD 2025, a decrease of 41.5%, primarily due to a 37.4% reduction in sales volume and a $2.7 million IEEPA tariff refund issued to a customer. Gross margin for YTD 2026 was 24.4%, down from 36.6% in YTD 2025, impacted by an $11.1 million write-down for obsolete inventories, which reduced gross margin by 5.7 percentage points. Operating expenses for YTD 2026 were $123.6 million, up from $84.4 million in YTD 2025, primarily due to $35.8 million in non-cash impairment charges. Net loss for YTD 2026 was $40.6 million, compared to a net loss of $45.8 million in YTD 2025, with the decrease mainly due to a $58.0 million non-cash gain from the change in fair value of the warrant liability and convertible loan, partially offset by impairment charges, lower gross profit, a $15.4 million foreign exchange loss, and $5.4 million of income tax expense. Non-GAAP adjusted net loss was $96.0 million, compared to non-GAAP adjusted net profit of $47.5 million in YTD 2025. Net loss per share was $0.11, compared to $0.14 in YTD 2025. Non-GAAP adjusted net loss per share was $0.27, compared to non-GAAP adjusted net profit per share of $0.15 in YTD 2025. Non-GAAP adjusted EBITDA was negative $62.7 million, compared to $76.3 million in YTD 2025. Capital expenditures for YTD 2026 were $17.9 million, compared to $31.4 million in YTD 2025. During the nine months ended September 30, 2026, the company received $4.4 million in tariff refunds, of which $2.7 million was issued to a customer. As of September 30, 2026, cash, cash equivalents, and restricted cash totaled $124.4 million, with $84.8 million in cash and cash equivalents, including $30.4 million held by Chinese subsidiaries and $14.4 million by European subsidiaries. Net cash used in operating activities was $65.4 million for the nine months ended September 30, 2026, compared to $59.5 million generated in the same period in 2025. Total debt was $177.0 million as of September 30, 2026, consisting of $135.3 million in bank borrowings and $41.7 million in convertible bonds issued by Microvast Power Systems Co., Ltd. to Huzhou Saiyuan. Current bank borrowings, notes payable, and current bonds payable totaled approximately $196.0 million, and the company had a working capital deficit of $3.1 million. Near-term debt obligations include $41.7 million of convertible bonds due on or before January 31, 2027, $84.0 million of short-term bank loans maturing over the next twelve months, and several long-term working capital loans with principal amounts of $373 thousand, $149 thousand, $13.8 million, and $149 thousand due on December 19, 2026, March 18, 2027, June 19, 2027, and September 18, 2027, respectively. As of September 30, 2026, there were outstanding borrowings of $22.4 million under a loan facilities agreement entered into on September 27, 2022, which were repaid after quarter-end. During the nine months ended September 30, 2026, the company secured $95.8 million of bank borrowings, of which $59.8 million was refinanced debt, and since September 30, 2026, an additional $8.9 million of short-term bank borrowings was refinanced. As of October 31, 2026, total usable cash across all entities was approximately $71.3 million. The company expects available cash to be insufficient to meet obligations over the next twelve months without additional financing, refinancing, or further cost reductions. Revenues are materially concentrated with a small number of customers, and there is significant uncertainty regarding future orders from major customers, including one significant European customer recently acquired by a third party. Installation and commissioning of the Phase 3.2 production equipment at the Huzhou, China facility have been completed, and the pack assembly line at the Clarksville facility is substantially completed. Resumption of full-scale construction at the Clarksville facility is contingent upon securing additional financing or strategic partnerships. Management has concluded that substantial doubt about the company's ability to continue as a going concern has not been alleviated.

Microvast Reports First Quarter 2026 Financial Results

Microvast Holdings, Inc. (NASDAQ:MVST) reported unaudited consolidated financial results for Q1 2026, with revenue of $60.6 million, down 48.0% from $116.5 million in Q1 2025. Gross margin decreased to 31.6% from 36.9% in the prior year, while net profit was $48.2 million compared to $61.8 million in Q1 2025. The company highlighted ongoing expansion efforts, including the Huzhou Phase 3.2 project and the launch of 290Ah cell-based battery packs. Cash, cash equivalents and restricted cash stood at $174.0 million as of March 31, 2026. Management anticipates a recovery in delivery schedules and a steady revenue ramp through the remainder of 2026.