ECARX Q3 Loss Widens to $48.6M as Memory Costs Hit Margin
LONDON – November 04, 2026 -- ECARX Holdings (Nasdaq: ECX) posted a third-quarter net loss of US$48.6 million, up from US$8.4 million a year earlier, as higher memory costs cut gross margin to 7.0% from 21.9% despite a 10% rise in revenue to US$240.8 million.
Memory costs outpace pricing and gross profit falls 65%
Gross profit dropped 65% year-over-year to US$16.9 million. Total cost of revenue rose 30% to US$223.9 million, driven mainly by memory costs tied to goods sales. ECARX said cost escalation exceeded what its pricing could offset, so a larger share was absorbed internally to support volume growth and partnership commitments.
Sales of goods revenue climbed 23% to US$222.7 million on pricing adjustments and higher volume. Service revenue fell 53% to US$17.7 million as partner model launches, which peaked in the second quarter of 2026, slowed sharply in the third. Software license revenue fell 56% to US$0.4 million.