Microvast Holdings, Inc. Common Stock 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Microvast reported second quarter 2026 revenue of $87.3 million, a 4.5% decrease compared to Q2 2025, primarily due to a $2.7 million tariff refund issued to a customer.
- Gross profit for Q2 2026 was $25.8 million with a gross margin of 29.5%, down from 34.7% in Q2 2025, mainly due to higher raw material prices and lower production utilization.
- Operating expenses increased 16.1% year over year to $27.5 million in Q2 2026, driven by higher legal fees, labor costs, and customer retention service fees.
- GAAP net loss for Q2 2026 was $12 million; adjusted net loss was $5.3 million compared to an adjusted net profit of $16.3 million in Q2 2025.
- Non-GAAP adjusted EBITDA was $3.6 million in Q2 2026, down from $25.9 million in Q2 2025.
- For the six months ended June 30, 2026, revenue decreased 28.8% to $149.3 million, with gross margin at 30.4% compared to 36% in 2025.
- Operating expenses for the six months increased 3.3% to $54.6 million year over year.
- GAAP net profit for the six months was $36.2 million, while non-GAAP adjusted net loss was $19.9 million compared to a non-GAAP adjusted net profit of $35.6 million in 2025.
- U.S. sales decreased year over year due to tariff refunds and customer shipment timing; European sales increased 35% in Q2 2026 and accounted for 61% of quarterly revenue; APAC sales declined 23% in Q2 and 45% year to date due to regulatory and geopolitical factors and demand shifts.
- Net cash used in operating activities was $33.3 million for the six months ended June 30, 2026, a decrease of $77.6 million compared to the prior year period.
- Cash and cash equivalents ended at $143.1 million at the end of Q2 2026.
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Transcript
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Thank you for standing by. This is the conference operator. Welcome to the Microvast Second Quarter 2026 earnings call. As a reminder, all participants are on a listen only mode and this conference is being recorded. I would like to turn the conference over to the Microvast Investor Relations.
Please go ahead. Thank you, operator, and thank you everyone for joining our update today.
This is Rodney Worthen, Chief Financial Officer of Microvast, and with me on today's call is Mr. Yang Wu, founder, chairman, and Chief Executive Officer of Microvast. I will start off with a review of the second quarter results before handing it to Mr. Wu to provide some operational and business updates. Ahead of this call, Microvast issued its second quarter earnings press release, which can be found on the investor relations section of our website, ir.microvast.com. We have also posted a slide presentation to accompany management's prepared remarks for today's call. As a reminder, please note that this call may include forward-looking statements. These statements are based on current expectations and assumptions and should not be relied upon as representative of our views for subsequent dates.
We undertake no obligation to revise or release the results of any revision to these forward-looking statements due to new information or future events. Actual results may differ materially from expectations due to a variety of risks and uncertainties. For more information on material risks and other important factors that could affect our financial results, please refer to our filings with the SEC. We may also discuss non-GAAP financial measures during this call. These measures should be considered in addition to, and not as a substitute for or in isolation from, GAAP results. These non-GAAP measures have been reconciled to their most directly comparable GAAP metrics in the tables included at the end of our earnings press release and the slide presentation. After the conclusion of this call, a webcast replay will be available on the investor relations section of Microvast website.
Please join me on slide 3, which details results for the second quarter over the past several years. Our revenue for the quarter was $87.3 million, a decrease of $4.1 million, or 4.5%, compared to the same period in 2025. The decrease was primarily driven by a $2.7 million tariff refund issued to a customer, which was recorded as a reduction to our revenue in the current period. Gross profit for the second quarter was $25.8 million, with a gross margin of 29.5%, compared to 34.7% in Q2 2025. The decrease in gross margin was primarily due to higher raw material prices and lower production utilization, which reduced fixed cost absorption, slightly offset by recognition of the tariff refunds. Turn to slide 4 to view our P&L for the quarter and year to date.
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