Key Highlights

  • Revenue was USD 45.8 million, down 62.8%.
  • Gross profit was USD 2.4 million; gross Margin was 5.2%.
  • Net loss was USD 76.8 million, compared with USD 1.5 million.
  • Non-cash Impairment charges were USD 35.7 million.

Microvast Holdings, Inc. (NASDAQ:MVST) reported third quarter 2026 revenues of USD 45.8 million, a decrease of USD 77.5 million, or 62.8%, compared with USD 123.3 million in the third quarter of 2025. Reported EPS was negative USD 0.20 and Revenue was USD 45.80 million, compared with estimates of EPS of USD 0.00 and revenue of USD 80.25 million.

The company stated that it experienced a significant reduction in Demand for its products in the quarter, with sales declining across markets.

Volume, Margin and Costs

The decrease was primarily driven by a 62.2% reduction in sales volume, from approximately 501.7 MWh to approximately 189.6 MWh. Cost of revenues decreased by USD 38.1 million, or 52.7%, primarily due to the decrease in sales volumes. Gross Profit was USD 2.4 million, compared with USD 46.4 million, and Gross Profit Margin was 5.2%, compared with 37.6%.

General and administrative expenses increased USD 2.6 million, or 14.7%, primarily due to a USD 5.1 million provision for a litigation settlement in connection with the Schelling Action, which the company agreed to settle in principle. Research and Development expenses increased USD 605 thousand, or 7.8%, and selling and Marketing expenses decreased USD 1.4 million, or 23.9%.

Impairments and Net Loss

Non-cash impairment charges of long-lived Assets were USD 35.7 million, primarily driven by USD 15.0 million, USD 4.4 million and USD 16.3 million of impairment losses for operations in China, Germany and the U.S., respectively. Foreign exchange loss was USD 3.8 million, compared with USD 1.9 million. Income tax expense was USD 5.4 million, compared with USD 739 thousand, mainly due to a full valuation allowance against USD 5.4 million of deferred income tax assets. The net loss was USD 76.8 million, compared with USD 1.5 million, and net loss per basic and diluted share was USD 0.20.

Nine Month Results

For the nine months ended September 30, 2026, revenues were USD 193.7 million, compared with USD 331.1 million, a decrease of USD 137.4 million, or 41.5%. Sales Volume fell 37.4% from approximately 1,448.9 MWh to approximately 906.8 MWh. Gross profit was USD 47.3 million, compared with USD 121.2 million, and gross margin was 24.4%, compared with 36.6%. Cost of revenues included a one time USD 4.4 million recognition of Tariff refunds. The net loss was USD 40.6 million, compared with USD 45.8 million. Before tariff refund reductions, USD 5.7 million of revenue was realized in the United States for the nine months. General and administrative expenses increased USD 4.1 million, or 9.6%, and research and development expenses increased USD 2.3 million, or 9.7%, primarily from a USD 2.0 million increase in labor costs. Subsidy income decreased from USD 44 thousand to USD 9 thousand in the quarter.

Going Concern and Balance Sheet

As of September 30, 2026, the company had stockholders' Equity of USD 472.8 million, an accumulated Deficit of USD 1,162.8 million, cash and cash equivalents of USD 84.8 million and restricted cash of USD 39.6 million. The filing states that the company's financial condition and operating results raised substantial doubt about its ability to continue as a going concern, and that management concluded the substantial doubt is not alleviated. China imposed a 2% consumption tax on lithium battery products sold in China effective September 1, 2026.