MVST

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. For the 6-month period, revenue decreased by 28.8%, primarily driven by a 24.3% reduction in sales volumes, while the quarterly revenue decline was primarily driven by a $2.7 million tariff refund issued to a customer. Gross margin compression to 29.5% resulted from higher raw material costs and lower production utilization, which hindered fixed cost absorption. U.S. performance was impacted by a major customer pulling product forward into 2025 to mitigate uncertainty surrounding tariff outcomes. European sales grew to represent 61% of quarterly revenue, providing a strategic hedge against a 23% decline in APAC sales caused by shifting regulatory dynamics. The APAC region is experiencing a notable demand shift toward lower-cost products in India, challenging the company's premium positioning. Operational expenses increased by 16.1% year-over-year, largely due to a $2.6 million rise in legal and professional fees and expanded labor costs for new product development. The Huzhou Phase 3.2 expansion is expected to reach start of production in 2026, adding up to 2 gigawatt-hours of annual production capacity. Management is prioritizing the transition from R&D to production for the KAF electric powertrain to secure high-margin customer commitments. Domestic pipeline assembly in Clarksville, Tennessee is on schedule for initial output by year-end 2026. Full-scale battery plant construction in the U.S. remains contingent on the company securing additional financing or strategic partnerships. Strategic focus for the second half of 2026 centers on accelerating the path to profitability through margin discipline in heavy industry and transit markets. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Successfully scaled a 17-layer monolithic bipolar cell stack delivering 72 volts, specifically designed to eliminate heavy interconnects in robotics. Laboratory testing of an all-solid-state silicon-sulfur cell achieved over 1,000 milliampere-hours per gram, utilizing internal strain neutralization to maintain physical contact. A $3.1 million decrease in allowance for credit loss was realized due to improved credit management and collection efforts. The company ended the quarter with $143.1 million in cash and restricted cash, following a $26.2 million decrease during the period.

This article first appeared on GuruFocus. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. European sales increased 35% in Q2 2026, with the region now accounting for 61% of quarterly revenue, up from 43% in the prior year. Gross profit remained positive at $25.8 million with a gross margin of 29.5%, despite headwinds from higher raw material costs and lower utilization. The Huzhou Phase 3.2 expansion is on track, with equipment commissioning completed and SOP expected in 2026, adding up to 2 GWh of annual capacity. Significant R&D progress in solid-state battery technology, including a 17-layer bipolar cell delivering 72 volts with 88.5% capacity retention after 200 cycles and no safety issues in hotbox tests up to 200C. The Clarksville, Tennessee pack line assembly remains on schedule for initial output by year-end, supporting U.S. market expansion. Revenue decreased 4.5% year-over-year in Q2 2026, partly due to a $2.7 million tariff refund issued to a customer. Gross margin declined to 29.5% from 34.7% in Q2 2025, driven by higher raw material prices and lower production utilization. Adjusted net loss was $5.3 million in Q2 2026, compared to an adjusted net profit of $16.3 million in the prior year period. APAC sales declined 23% in Q2 and 45% year-to-date, impacted by shifting regulatory dynamics and demand shift to lower-cost products in India. Operating cash flow turned negative at -$33.3 million for the first half of 2026, versus +$44.3 million generated in the same period of 2025. Warning! GuruFocus has detected 5 Warning Signs with MVST. Is MVST fairly valued? Test your thesis with our free DCF calculator. Q: What were the key drivers behind the decline in revenue and gross margin for the second quarter of 2026?A: CFO Rodney Worthen explained that Q2 2026 revenue decreased by $4.1 million, or 4.5%, year-over-year to $87.3 million. This was primarily due to a $2.7 million tariff refund issued to a customer, which was recorded as a revenue reduction. Gross margin fell to 29.5% from 34.7% in Q2 2025, driven by higher raw material prices and lower production utilization, which reduced fixed cost absorption. Q: Can you provide more details on the regional sales performance, particularly in the U.S., Europe, and APAC?A: CFO Rodney Worthen noted that U.S. sales decreased year-over-year due to the tariff refund and a major customer pulling orders forward into 2025 ahead of tariff uncertainty. European sales increased 35% in the quarter, accounting for 61% of quarterly revenue, up from 43% last year. APAC sales declined 23% in the quarter and 45% year-to-date, impacted by shifting regulatory and geopolitical dynamics and a demand shift toward lower-cost products in India. Q: What is the status of the Huzhou Phase 3.2 expansion and its expected impact?A: CEO Yang Wu stated that installation and commissioning of production equipment for the Huzhou Phase 3.2 expansion is complete, with production capacity ramping up. The company expects SOP (Start of Production) in 2026, and the phase is expected to add up to 2 gigawatt-hours of annual production capacity, designed to be modular across their large battery cell platform. Q: What are the latest developments in the solid-state battery program?A: CEO Yang Wu highlighted a major milestone: the successful scaling of their series-connected bipolar cell architecture to a 17-layer monolithic stack delivering approximately 72 volts with zero liquid electrolyte. The prototype retained 88.5% of its capacity after 200 cycles. This architecture is primarily focused on robotics, aiming to eliminate heavy interconnects and electronics and improve safety for human-robot environments. Q: How did the company's cash flow and balance sheet perform in the first half of 2026?A: CFO Rodney Worthen reported that net cash used in operating activities was $33.3 million for the six months, a decrease of $77.6 million compared to the $44.3 million generated in the same period of 2025. This was primarily due to a $60.6 million reduction in net income and a $17 million net change in operating assets and liabilities. The company ended the quarter with $143.1 million in cash, cash equivalents, and restricted cash. Q: What is the company's strategic focus for the second half of 2026?A: CEO Yang Wu outlined strategic priorities including accelerating the path to profitability, scaling with margin discipline, and expanding in high-barrier heavy industry and transit markets. Operationally, the Huzhou Phase 3.2 remains the central catalyst, with the Clarksville, Tennessee pack line assembly on schedule for initial output by year-end. The build-out of the U.S. battery plant remains contingent on securing additional financing or strategic partnerships. Q: Can you elaborate on the safety testing results for the solid-state prototype?A: CEO Yang Wu detailed that in controlled hotbox testing up to 200 degrees Celsius, the prototype cell exhibited exceptional stability with no ignition or smoke observed. Even after a high-temperature internal short event, post-test disassembly showed the internal electrode structure remained largely intact, demonstrating the significant safety potential of eliminating liquid electrolyte. Q: What is the progress on the ultra-high-capacity silicon-sulfur cell technology?A: CEO Yang Wu mentioned that early laboratory prototypes of an all-solid-state silicon-sulfur cell achieved an initial specific capacity of over 1,000 milliampere-hours per gram, retaining over 90% capacity after 15 cycles. The design uses a five-layer bipolar architecture with simultaneous cathode expansion and anode contraction to self-compensate for volume changes, targeting applications like commercial and defense drones. Q: What were the main drivers of the increase in operating expenses for the quarter?A: CFO Rodney Worthen noted that operating expenses increased to $27.5 million, up 16.1% year-over-year. General and administrative expenses rose by $2.7 million due to a $2.6 million increase in legal and other professional service fees. R&D expenses increased by $1.1 million due to higher labor costs from expanded investment in new product development, and selling and marketing expenses rose by $1.3 million due to service fees for customer retention initiatives. Q: How did the adjusted EBITDA and net loss compare to the prior year?A: CFO Rodney Worthen reported a GAAP net loss of $12 million for Q2 2026. After adjusting for noncash expenses like stock-based compensation and fair value changes, the 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 significantly from $25.9 million in the same period last year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Microvast Holdings, Inc.? Here are five stocks we like better. Second-quarter performance weakened: Revenue fell 4.5% year over year to $87.3 million, while gross margin declined to 29.5% from 34.7%. Higher raw-material costs, lower factory utilization and a $2.7 million tariff refund pressured results. Losses and cash consumption increased: Microvast posted a $12 million GAAP net loss, adjusted EBITDA fell to $3.6 million from $25.9 million, and operating expenses rose 16.1%. First-half operating cash use reached $33.3 million, with $143.1 million in cash and restricted cash at quarter-end. Expansion and technology projects remain key priorities: The Huzhou Phase 3.2 expansion is expected to begin production in 2026 and add up to 2 GWh of annual capacity, while Clarksville pack-line output remains targeted for year-end. Microvast also reported progress on solid-state battery prototypes, though full-scale Tennessee plant construction depends on additional financing or strategic partnerships. 3 Penny Stocks Analysts Believe Are Headed Higher Microvast (NASDAQ:MVST) reported second-quarter revenue of $87.3 million, down 4.5% from the same period in 2025, as a tariff refund to a customer and lower U.S. sales weighed on results. The battery manufacturer also cited higher raw-material costs and lower production utilization as pressures on profitability. Chief Financial Officer Rodney Worthen said the quarterly revenue decline of $4.1 million was primarily driven by a $2.7 million tariff refund issued to a customer, which was recorded as a reduction in current-period revenue. → MarketBeat Week in Review – 08/03 - 08/07 MarketBeat Week in Review – 8/19 - 8/23 Gross profit totaled $25.8 million, producing a gross margin of 29.5%, compared with 34.7% in the prior-year quarter. Worthen said margin declined mainly because of higher raw-material prices and lower production utilization, which reduced fixed-cost absorption. The effects were slightly offset by recognition of tariff refunds. Microvast recorded a GAAP net loss of $12 million in the second quarter. Its adjusted net loss was $5.3 million, compared with adjusted net profit of $16.3 million a year earlier. Non-GAAP adjusted EBITDA was $3.6 million, down from $25.9 million in the second quarter of 2025. → Quantum Earnings Week: Winners and Losers Are Finally Emerging Microvast vs. FREYR: Which Battery Stock Holds the Power? Operating expenses increased 16.1% year over year to $27.5 million. General and administrative expense rose by $2.7 million, or 24.2%, largely due to a $2.6 million increase in legal and other professional-service fees. Research and development expense increased $1.1 million, or 14.8%, as the company expanded investment in new product development and incurred higher labor costs. Selling and marketing expense rose $1.3 million, or 38.5%, mainly due to higher service fees tied to customer-retention initiatives, partly offset by lower personnel costs. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War For the first six months of 2026, revenue fell by $60 million, or 28.8%, from the prior-year period. The company attributed the decline primarily to a 24.3% reduction in sales volumes, which fell to about 717 megawatt-hours from roughly 947 megawatt-hours a year earlier, as well as the $2.7 million tariff refund. First-half gross margin was 30.4%, compared with 36% in the first half of 2025. Operating expenses increased 3.3% to $54.6 million. Microvast reported GAAP net income of $36.2 million for the six-month period, while adjusted net loss was $19.9 million, compared with adjusted net profit of $35.6 million a year earlier. Non-GAAP adjusted EBITDA was negative $1.9 million, versus positive $54.4 million in the prior-year period. By region, European sales rose 35% in the second quarter and accounted for 61% of revenue, up from 43% a year earlier. Year-to-date European sales were down 3%, which Worthen said reflected customer platform rollout delays in the previous quarter. U.S. sales declined year over year, affected by the tariff refund and by the company’s largest customer bringing product into 2025 amid uncertainty surrounding tariff outcomes. Asia-Pacific sales declined 23% during the quarter and were down 45% year to date. The company cited shifting regulatory and geopolitical dynamics and a shift in Indian demand toward lower-cost products. Net cash used in operating activities was $33.3 million during the first half, compared with $44.3 million generated in the same period of 2025. Worthen attributed the change to a $60.6 million reduction in net income after non-cash items and a $17 million change in operating assets and liabilities. Cash used in investing activities was $3.3 million, including the purchase of the company’s U.S. office building and capital expenditures for the Huzhou Phase 3.2 manufacturing expansion. Financing activities generated $8.2 million during the first half, driven primarily by higher bank-borrowing proceeds and lower deferred payments for property, plant and equipment, partly offset by increased debt repayments. After foreign-exchange adjustments, cash declined by $26.2 million during the six months. Microvast ended the quarter with $143.1 million in cash equivalents and restricted cash. Founder, Chairman and Chief Executive Officer Yang Wu said installation and commissioning of equipment for the Huzhou Phase 3.2 expansion had been completed. The company expects production capacity to ramp and anticipates start of production in 2026. The expansion is expected to add up to 2 gigawatt-hours of annual capacity across its large battery-cell platform. Wu also outlined developments in the company’s solid-state battery program. He said Microvast had scaled its development-stage series-connected bipolar cell architecture to a 17-layer monolithic stack producing about 72 volts without liquid electrolyte. In extended laboratory testing, the prototype retained about 88.5% of capacity after 200 cycles at 0.33C, according to the company. The company said the architecture is primarily focused on robotics applications and could reduce the need for heavy interconnects and electronics used to drive high-torque robotic motors. Microvast also said a prototype cell showed no ignition or smoke in controlled hot-box testing up to 200 degrees Celsius. In addition, Wu said an early laboratory all-solid-state silicon-sulfur prototype achieved initial specific capacity exceeding 1,000 milliamp-hours per gram and retained more than 90% of capacity after 15 cycles. Looking ahead, Wu said Huzhou Phase 3.2 remains a central 2026 operational priority, with serial production expected later in the year. Pack-line assembly in Clarksville, Tennessee, remains scheduled for initial output by year-end, though full-scale battery plant construction there remains contingent on additional financing or strategic partnerships. Microvast Holdings, Inc, traded on NASDAQ under the symbol MVST, is a global provider of advanced lithium-ion battery solutions for transportation and stationary energy storage applications. The company designs, develops and manufactures a range of battery cells, modules and packs tailored to electric buses, commercial vehicles, passenger cars and grid storage systems. Its technology emphasizes fast charging, long cycle life and high energy density to meet stringent performance requirements in demanding operating environments. Founded in 2006, Microvast has established a vertically integrated platform that spans research and development, pilot production and full-scale manufacturing. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Microvast Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

HOUSTON, Aug. 10, 2026 (GLOBE NEWSWIRE) -- Microvast Holdings, Inc. (NASDAQ:MVST) (“Microvast” or the “Company”), a global leader in advanced battery technologies, announced today its unaudited consolidated financial results for the second quarter ended June 30, 2026 (“Q2 2026”). “In the second quarter, Microvast progressed through a pivotal phase of our global capacity expansion. Delivering $87.3 million in revenue and maintaining a 29.5% gross margin highlights our ability to navigate raw material fluctuations and production utilization cycles. While it impacted our net revenue, returning $2.7 million in IEEPA(1) tariff refunds to our U.S. customers reinforces the strength of our long-term commercial partnerships. With Huzhou Phase 3.2 expected to be on track to deliver up to 2 GWh of next-generation modular capacity and Clarksville pack line localization anticipated to commence operations by year end, we are working to position our business to meet capacity demand across high-barrier commercial and transit markets,” said Yang Wu, Microvast’s Founder, Chairman, and Chief Executive Officer. Q2 2026 Results Revenues of $87.3 million, compared to $91.3 million in Q2 2025, decreasing by $4.1 million, or 4.5%. This decrease was primarily driven by $2.7 million in IEEPA(1) tariff refunds issued to a U.S. customer, recorded as a reduction to revenue in the current period. Gross margin decreased to 29.5% from 34.7% in Q2 2025. Non-GAAP adjusted gross margin* decreased to 29.6% from 34.8% in Q2 2025, primarily due to higher raw material prices, and lower production utilization, which reduced fixed cost absorption, slightly offset by recognition of the IEEPA(1) tariff refunds received. Operating expenses increased to $27.5 million, compared to $23.7 million in Q2 2025. Non-GAAP adjusted operating expenses* were $26.7 million, compared to $22.9 million in Q2 2025. Net loss of $12.0 million, compared to net loss of $106.1 million in Q2 2025, primarily due to a reduction in negative impacts from changes in fair value of warrant liability and convertible loan. Non-GAAP adjusted net loss* was $5.3 million, compared to non-GAAP adjusted net profit* of $16.3 million in Q2 2025. Net loss per share of $0.03, compared to net loss per share of $0.33 in Q2 2025. Non-GAAP adjusted net loss per share* was $0.01, compared to non-GAAP adjusted net profit per share* of $0.05 in Q2 2025. Non-GAAP adjusted EBITDA* of $3.6 million in Q2 2026, compared to non-GAAP adjusted EBITDA* of $25.9 million in Q2 2025. Capital expenditures of $11.3 million, compared to $7.4 million in Q2 2025. Cash, cash equivalents and restricted cash of $143.1 million as of June 30, 2026, compared to $169.2 million as of December 31, 2025, and $138.8 million as of June 30, 2025. Six Months Ended June 30, 2026 Results (“YTD 2026”) Revenues of $147.9 million compared to $207.8 million in the six months ended June 30, 2025 (“YTD 2025”), a decrease of 28.8%. This decrease was primarily a result of evolving regulatory and geopolitical dynamics, including in the Indian and Korean markets, demand shift towards lower-cost products in India, OEM platform ramp-up delays, and a $2.7 million IEEPA(1) tariff refund issued to a customer recorded as a reduction to our revenue in the current period. Gross margin decreased to 30.4% from 36.0% in YTD 2025. Non-GAAP adjusted gross margin* decreased to 30.4% from 36.0% in YTD 2025, primarily due to higher raw material prices, lower production utilization, which reduced fixed cost absorption, slightly offset by recognition of the IEEPA(1) tariff refunds received. Operating expenses increased to $54.6 million, compared to $52.9 million in YTD 2025. Non-GAAP adjusted operating expenses* were $52.8 million, compared to $51.4 million in YTD 2025. Net profit of $36.2 million, compared to net loss of $44.3 million in YTD 2025, primarily due to a reduction in negative impacts from changes in fair value of warrant liability and convertible loan. Non-GAAP adjusted net loss* was $19.9 million, compared to non-GAAP adjusted net profit of $35.6 million in YTD 2025. Net profit per share of $0.11, compared to net loss per share of $0.14 in YTD 2025. Non-GAAP adjusted net loss per share* was $0.06, compared to non-GAAP adjusted net profit per share* of $0.11 in YTD 2025. Non-GAAP adjusted EBITDA* of negative $1.9 million in YTD 2026, compared to non-GAAP adjusted EBITDA* of $54.4 million in YTD 2025. Capital expenditures of $15.5 million, compared to $14.0 million in YTD 2025. *The Company presents its financial results in accordance with generally accepted accounting principles in the United States of America (“GAAP”). However, management believes that using additional non-GAAP measures will enhance the evaluation of the profitability of the Company and its ongoing operations. Please see the tables on pages 12-15 below for reconciliations of GAAP to non-GAAP financial measures. The Consolidated Balance Sheets, Consolidated Statements of Operations, and Consolidated Statements of Cash Flows are derived from the consolidated financial statements presented in our Quarterly Report on Form 10-Q as of and for the three- and six-month periods ended June 30, 2026. (1)In February 2026, the United States Supreme Court ruled that certain tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were not authorized by statute. Following the ruling, the U.S. Court of International Trade ordered U.S. Customs and Border Protection to suspend collection of such tariffs and to establish a process to refund amounts previously collected. As a result of this ruling, the Company is eligible to receive refunds of tariffs previously paid on qualifying imports. In May 2026, the Company received $4.3 million in tariff refunds, excluding interest. Of this amount, $2.7 million was issued in tariff refunds to a customer. The IEEPA tariff refunds received were recognized as a reduction to the cost of revenue, while the refund issued to our customer was recognized as a reduction of revenue for the three and six months ended June 30, 2026. 2026 Outlook & Forward-Looking Information We continue to target a stable gross margin profile through sustained operational discipline and premium product positioning. This approach seeks to balance external pressures including inflationary raw material pricing, duties and tariffs, and elevated logistics and freight expenses against the planned absorption of ramp-up expenses tied to our Phase 3.2 expansion. Huzhou Phase 3.2 production capacity ramp up remains our primary operational milestone in 2026. The expansion is anticipated to bring online up to 2 GWh of modular capacity to support next-generation cell demand. Localized pack assembly at our Clarksville facility remains on schedule, with initial operations anticipated by year-end. This footprint advances our domestic strategy to supply North American commercial vehicle and transit partners with locally integrated battery systems. We continue to seek new commercial momentum across EMEA, North America, and APAC. Our long-term focus remains centered on heavy industrial and transit markets, where our vertical integration and newly launched KAF electric powertrain position us to deliver a durable competitive advantage, subject to final product validation, vehicle-level integration with OEM partners, customer qualification, and availability of domestic manufacturing capacity and capital. Webcast Information Company management will host a conference call and webcast on August 10, 2026, at 4:00 p.m. Central Time, to discuss the Company's financial results. The live webcast and accompanying slide presentation will be accessible from the Events & Presentations section of Microvast’s investor relations website (https://ir.microvast.com/events-presentations/events). A replay will be available following the conclusion of the event. About Microvast Microvast strives to be a global leader in advanced battery technologies, with a portfolio of more than 890 patents. Founded in Texas in 2006 and headquartered in Houston, the company has spent two decades engineering cutting-edge battery systems that are intended to power a cleaner future. Microvast stands as a trusted global partner with the mission to provide the high-performance solutions required for today’s electrification needs. For more information, please visit www.microvast.com or follow us on LinkedIn (@microvast). Contact: Investor [email protected] Cautionary Statement Regarding Forward-Looking Statements This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future and management's current expectations, involve certain risks and uncertainties and are not guarantees. These forward-looking statements include, but are not limited to, statements about our future results of operations and financial position, our operational performance, our anticipated growth and business strategy, anticipated development, commercialization, and market adoption of Microvast's KAF™ ("Kids Are Future") integrated electric powertrain solution, our future capital expenditures and debt service obligations, the projected costs, prospects and plans and objectives of management for future operations, including regarding expected growth and demand for our products and introduction of new products, the adoption of such offerings by customers, our expectations relating to backlog, pipeline and contracted backlog, current expectations relating to legal proceedings and potential impacts from any proposed or recently enacted legislation. In some cases, you may also identify forward-looking statements by words such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “objective,” “plan,” “project,” “predict,” “outlook” “should,” “will,” “would,” or the negative of these terms, or other comparable terminology intended to identify statements about the future. Such forward-looking statements are based upon the current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements. We do not assume any obligation to update any forward-looking statements. Many factors could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements, including, among others: (1) substantial doubt about our ability to continue as a going concern, which has not been alleviated, and the risk that our plans intended to alleviate that substantial doubt will not be effectively implemented within one year after the date the financial statements are issued or, when implemented, will not mitigate the conditions and events that raise substantial doubt; (2) the effect of the substantial doubt about our ability to continue as a going concern on our relationships with customers, suppliers and channel partners, our ability to attract and retain qualified personnel and our ability to raise capital; (3) risk that we may not be able to accurately project and manage our growth and effectively execute our growth strategies or achieve profitability; (4) risk that we may be unable to meet our future capital requirements and we may require additional capital to support our business growth, and this capital might not be available on acceptable terms, or at all; (5) potential difficulties in maintaining manufacturing capacity and establishing expected mass manufacturing capacity in the future; (6) risks relating to issues or delays, disruptions and quality control problems in our manufacturing operations; (7) risks relating to being unable to control our manufacturing costs; (8) risks that we may be unable to meet our projected construction timelines, costs and production ramps, or we may experience difficulties in generating and maintaining demand for products manufactured there and related services; (9) restrictions in our existing and any future credit facilities, our ability to comply with financial covenants and the risk of cross-default, the risk that waivers or amendments may not be obtained from our lenders and the risk that our indebtedness may be accelerated or classified as current; (10) risks of operations in China; (11) the effects of mechanics liens filed by contractors that we do not have sufficient funds to pay; (12) the effects of existing and future litigation; (13) changes in general economic conditions, including increases in interest rates and associated Federal Reserve policies, a potential economic recession, and the impact of inflation on our business; (14) changes in the highly competitive market in which we compete, including with respect to our competitive landscape, technology evolution or regulatory changes; (15) changes in availability and price of raw materials; (16) risks that our suppliers may fail to deliver components according to schedules, prices, quality and volumes that are acceptable to us, or we may be unable to manage these components effectively; (17) labor relations, including the ability to attract, hire and retain key employees and contract personnel; (18) heightened awareness of environmental issues and concern about global warming and climate change; (19) risk that we are unable to secure or protect our intellectual property; (20) risk that our customers or third-party suppliers are unable to meet their obligations fully or in a timely manner; (21) risks related to possible future reductions in pricing or order volume or loss of one or more of our significant customers; (22) risks relating to our status as a relatively low-volume purchaser as well as from supplier concentration and limited supplier capacity; (23) risk that our customers will adjust, cancel or suspend their orders for our products; (24) risks relating to our ability to attract new customers and retain existing customers; (25) risks related to our lengthy sales cycle for our products; (26) risk of product liability or regulatory lawsuits or proceedings relating to our products or services; (27) our ability to maintain and enhance our reputation and brand recognition; (28) risks relating to facing strong competition for our products and services from a growing list of established and new competitors; (29) the effectiveness of our information technology and operational technology systems and practices to detect and defend against evolving cyberattacks; (30) changing laws regarding cybersecurity and data privacy, and any cybersecurity threat or event; (31) the effects and associated cost of compliance with existing and future laws and governmental regulations; (32) risks relating to whether renewable energy technologies are suitable for widespread adoption or if sufficient demand for our offerings does not develop or takes longer to develop than we anticipate; (33) economic, financial and other impacts such as a pandemic, including global supply chain disruptions; (34) the impacts of geopolitical events, such as the ongoing conflicts in the Middle East, including hostilities with Iran, the war between Russia and Ukraine, and other current or future conflicts; (35) risks associated with maintaining and expanding our international operations, including unfavorable and uncertain regulatory, political, economic, tax, and labor conditions; (36) risk that tariffs imposed on products of the PRC into the United States may lead to increased costs and impact our business; (37) the risk that the unavailability, reduction, or elimination of, or uncertainty regarding government and economic incentives or subsidies available to us, end-users or OEMs could have a material adverse effect on our business, financial condition, operating results and prospects; and (38) our ability to maintain compliance with Nasdaq listing requirements. Microvast’s annual, quarterly and other filings with the U.S. Securities and Exchange Commission (the “SEC”) identify, address and discuss these and other factors in the sections entitled “Risk Factors.” The foregoing list of factors is not exhaustive and new factors may emerge from time to time that could also affect actual performance and results. For more information, please see the risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2025 in Part I, Item 1A and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 in Part II, Item 1A. Actual results, performance or achievements may differ materially, and potentially adversely, from any forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as forward-looking statements are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond our control. All information set forth herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date hereof except as may be required under applicable securities laws. Forecasts and estimates regarding our industry and end markets are based on sources we believe to be reliable, however, there can be no assurance these forecasts and estimates will prove accurate in whole or in part. All references to the “Company,” “we,” “us,” or “our” refer to Microvast Holdings, Inc. and its consolidated subsidiaries other than certain historical information which refers to the business of Microvast prior to the consummation of the Business Combination. Non-GAAP Financial Measures To provide investors with additional information regarding our financial results, Microvast has disclosed in this earnings release non-GAAP financial measures, including non-GAAP adjusted gross profit, non-GAAP EBITDA, non-GAAP adjusted EBITDA, non-GAAP adjusted operating expenses, non-GAAP adjusted net profit/(loss), non-GAAP adjusted net profit/(loss) per share, and non-GAAP adjusted gross margin which are non-GAAP financial measures as defined under the rules of the SEC. These are intended as supplemental measures of our financial performance that are not required by, or presented in accordance with GAAP. Reconciliations to the most comparable GAAP measures, gross profit, gross margin, operating expenses, net profit/(loss), and net profit/(loss) per share, are contained in tabular form in the unaudited financial statements below. Non-GAAP adjusted gross profit is GAAP gross profit as adjusted for non-cash share-based compensation expense included in cost of revenues. Non-GAAP adjusted net profit/(loss) is GAAP net profit/(loss) as adjusted for non-cash share-based compensation expense and change in valuation of warrant liability and convertible loan. Non-GAAP adjusted net profit/(loss) per common share is GAAP net profit/(loss) per common share as adjusted for non-cash share-based compensation expense and change in valuation of warrant liability and convertible loan per common share. Non-GAAP EBITDA is defined as net profit/(loss) excluding depreciation and amortization, interest expense, interest income, and income tax expense or benefit. Non-GAAP adjusted EBITDA is defined as net profit/(loss) excluding depreciation and amortization, non-cash settled share-based compensation expense, interest expense, interest income, changes in fair value of our warrant liability and convertible loan and income tax expense or benefit. Non-GAAP adjusted operating expenses is defined as operating expenses excluding non-cash share-based compensation expense. Non-GAAP adjusted gross margin is defined as GAAP gross margin as adjusted for non-cash share-based compensation expense included in cost of revenues. We use non-GAAP adjusted gross profit, non-GAAP EBITDA, non-GAAP adjusted EBITDA, non-GAAP adjusted operating expenses, non-GAAP adjusted net profit/(loss), non-GAAP adjusted net profit/(loss) per share and non-GAAP adjusted gross margin for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We consider them to be important measures because they help illustrate underlying trends in our business and our historical operating performance on a more consistent basis. We believe that these non-GAAP financial measures, when taken together with their most directly comparable GAAP measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors. Non-GAAP financial measures have limitations as an analytical tool, and you should not consider them in isolation, or as a substitute for, financial information prepared in accordance with GAAP. For example, our calculation of non-GAAP adjusted EBITDA may differ from similarly titled non-GAAP measures, if any, reported by our peer companies, or our peer companies may use other measures to calculate their financial performance, and therefore our use of non-GAAP adjusted EBITDA may not be directly comparable to similarly titled measures of other companies. The principal limitation of non-GAAP adjusted EBITDA is that it excludes significant expenses and income that are required by GAAP to be recorded in our financial statements. In addition, it is subject to inherent limitations as it reflects the exercise of judgments by management about which expense and income are excluded or included in determining this non-GAAP financial measure. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. In addition, such financial information is unaudited and does not conform to SEC Regulation S-X and as a result, such information may be presented differently in our future filings with the SEC. For example, with respect to the warrant liability resulting from the July 23, 2021 business combination with Tuscan Holdings Corp., we now exclude changes in fair value from net profit/(loss) in our non-GAAP adjusted EBITDA and non-GAAP adjusted net profit/(loss) calculation, which had not been done in prior periods. *The tax effect of the adjustments was nil.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Microvast Holdings (MVST) drew attention after reporting first quarter 2026 results, with sales of US$60.61 million and net income of US$48.21 million, both lower than the figures reported a year earlier. See our latest analysis for Microvast Holdings. The earnings update landed alongside a sharp reset in sentiment, with the share price down 38.46% over the past 30 days and the 1 year total shareholder return down 68.17%. This points to fading momentum and a higher perceived risk profile. If Microvast’s recent swings have you rethinking concentration in a single stock, this could be a good moment to scan the market for other opportunities using our 35 power grid technology and infrastructure stocks With the share price sharply lower, yet analyst targets sitting higher than the current US$1.20 level, the key question is whether Microvast is now undervalued or whether the market is already pricing in its future growth. The most followed narrative on Microvast pegs fair value at $6.00, well above the last close of $1.20, and builds that view on aggressive long term growth assumptions. Read the complete narrative. Want to see what kind of revenue curve and margin shift would need to sit behind a jump from losses to healthy profitability, and a valuation multiple usually tied to larger industrial leaders, all compressed into a few years of forecasts? Result: Fair Value of $6.00 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this upbeat story can break quickly if Microvast’s China-heavy manufacturing footprint faces geopolitical shocks, or if going concern uncertainty forces dilution to shore up funding. Find out about the key risks to this Microvast Holdings narrative. The narrative fair value of $6.00 suggests Microvast could be 80% undervalued, yet the market is sending a different signal. The stock trades on a P/S of 1.1x, which is more expensive than the peer average at 0.5x but below the US Machinery industry at 2x. The fair ratio sits higher at 3.1x. That spread hints at both upside potential and valuation risk. Which side of that gap do you think carries more weight? See what the numbers say about this price — find out in our valuation breakdown. Reading this, you can see Microvast’s story is far from one sided. Act quickly, review the underlying data, and weigh up its 2 key rewards and 1 important warning sign. If Microvast sits on your watchlist, do not stop here. Broaden your options and give yourself more choices before committing fresh capital. Spot potential value opportunities early by checking companies flagged in our screener containing 21 high quality undiscovered gems. Prioritise resilience by reviewing companies highlighted in the 66 resilient stocks with low risk scores. Target quality at a reasonable price by scanning for opportunities in the 54 high quality undervalued stocks. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MVST. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Microvast Holdings, Inc.? Here are five stocks we like better. Revenue fell sharply in Q1 2026 to $60.6 million, down 48% year over year, as lower sales volumes and delayed customer procurement hit deliveries across the U.S., Europe, and Asia-Pacific. Despite the revenue drop, Microvast said its long-term growth plan remains intact, with the Huzhou Phase 3.2 expansion on track for 2026 and expected to add up to 2 GWh of annual production capacity. The company is also pushing a new LFP battery pack and school bus powertrain strategy, aiming to lower electric school bus costs and target total cost of ownership parity with diesel buses without relying heavily on subsidies. 3 Penny Stocks Analysts Believe Are Headed Higher Microvast (NASDAQ:MVST) reported a sharp year-over-year revenue decline in the first quarter of 2026, while management said the drop reflected temporary timing and market challenges rather than a change in the company’s long-term growth strategy. The battery technology company posted first-quarter revenue of $60.6 million, down $55.9 million, or 48%, from the same period in 2025. Chief Financial Officer Rodney Worthen said the decrease was primarily driven by lower sales volume, with deliveries falling to approximately 274 megawatt-hours from about 536 megawatt-hours in the prior-year quarter. → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum MarketBeat Week in Review – 8/19 - 8/23 Gross profit was $19.2 million, and gross margin was 31.6%, compared with 36.9% in the first quarter of 2025. Worthen said the margin decline was mainly tied to lower production utilization, reduced fixed-cost absorption, and higher raw material and energy costs stemming from supply chain disruptions. “Even with these reduced sales volumes in the quarter, our margin position held strong, demonstrating the value of our technology,” Worthen said. → MercadoLibre Boldly Invests in Growth: Discount Deepens Microvast vs. FREYR: Which Battery Stock Holds the Power? Management pointed to several factors behind the quarterly revenue decline, including customer procurement timing, tariff uncertainty, delayed OEM platform rollouts and shifting regional demand. Worthen said U.S. sales declined from the prior year because Microvast’s largest customer pulled product into 2025 amid uncertainty around tariff outcomes. In Europe, revenue declined year over year due to delayed OEM platform rollouts and production ramp-ups, though the region represented 71% of quarterly revenue, up from 52% a year earlier. → 3 Ways to Target the Resources Powering AI and Data Centers In the Asia-Pacific region, revenue fell 66% year over year. Worthen attributed the decline primarily to regulatory and geopolitical dynamics affecting the Korean and Indian markets, as well as a shift in India toward lower-cost products. The company also cited broader conditions affecting the battery sector, including moderating global electric vehicle demand growth, the expiration of government incentive programs, evolving tariff structures, and geopolitical instability. Microvast reported GAAP net profit of $48.2 million for the quarter. However, after adjusting for non-cash items including $1 million of stock-based compensation and $63.8 million in fair value changes related to warrant liabilities and a convertible loan, the company recorded an adjusted net loss of $14.6 million. That compared with adjusted net profit of $19.3 million in the prior-year period. Adjusted EBITDA was negative $5.5 million for the quarter, compared with positive adjusted EBITDA of $28.5 million in the same period last year. Operating expenses declined 7.1% year over year to $27.1 million. General and administrative expenses decreased by $1.2 million, helped by lower credit loss allowances and reduced employee costs, partially offset by higher professional service fees. Research and development expenses rose by $0.6 million, which Worthen said was primarily due to expansion of the company’s domestic R&D presence in the U.S. Selling and marketing expenses declined by $1.5 million, mainly due to lower service fees. Microvast ended the quarter with $174 million in cash, cash equivalents and restricted cash. Net cash used in operating activities was $22.8 million, compared with $7.2 million generated by operating activities in the same period of 2025. Net cash used in investing activities was $2.8 million, while financing activities generated $29.3 million, primarily due to higher proceeds from bank borrowings. Founder, Chairman and Chief Executive Officer Yang Wu said Microvast remains focused on bringing additional capacity online through its Huzhou Phase 3.2 expansion, which he described as a critical component of the company’s growth strategy. Wu said trial production for the company’s 55 amp-hour cell has been completed on the electrode section, while assembly and formation equipment is undergoing material-based commissioning. The company expects start of production in 2026, with Phase 3.2 expected to add up to 2 gigawatt-hours of annual production capacity. During the question-and-answer portion of the call, Wu said Microvast has approximately 4 gigawatt-hours of production capacity across its primary Huzhou lines, Phase 3.1, and Phase 3.2, with legacy lines contributing as needed for lower-volume products and service needs. He said the company is increasingly shifting Huzhou allocation toward next-generation cell production. Wu said the remaining milestones for Huzhou Phase 3.2 include final calibration of the assembly line and completion of internal quality validation for high-volume output. He said the company remains on track to move from trial production to full serial production in 2026. Microvast also announced its next-generation 290 amp-hour lithium iron phosphate, or LFP, battery pack, which Wu said is designed for commercial and heavy-duty industrial applications. The company expects to integrate the packs into its CAF electric powertrain solution. Wu described CAF as a potential total solution for electrifying the U.S. school bus market, which he said includes nearly half a million conventional school buses. The proposed system would include high-voltage LFP packs, traction drivetrain components, and Microvast’s proprietary nitrogen generation and storage system. Wu said the nitrogen purging system is intended to substantially reduce the risk of thermal propagation. Microvast plans to partner with mature, high-volume suppliers for specific drivetrain components. Wu said the company aims to lower the cost barrier for electric school bus platforms in the U.S. and reduce reliance on subsidies. According to Wu, current electric school buses can cost more than $350,000, forcing school districts to rely on grant programs. He said Microvast is targeting total cost of ownership parity with diesel buses in under 10 years, excluding government subsidies and potential reductions in maintenance-related overhead. The company plans to present the new battery pack at the School Transportation News EXPO in July 2026. Wu said Microvast’s 2026 strategy remains centered on accelerating the path to profitability, scaling with margin discipline, and capturing high-value markets in heavy industry and transit. He said the company is working to optimize its R&D-to-production cycle and tighten execution across its global footprint. Microvast is also ramping a pack assembly line in Clarksville, Tennessee, to expand domestic capabilities and support anticipated customer demand. Wu said resumption of full-scale battery plant construction at the site remains dependent on securing additional financing and strategic partnerships. Worthen said the company expects a steadier cadence as next-generation cell production timelines align with customer demand in the second half of the year. He said management views the first-quarter revenue decline as reflecting “a unique set of timing challenges” and expects a normalized delivery schedule and continued ramp-up through 2026. Microvast Holdings, Inc, traded on NASDAQ under the symbol MVST, is a global provider of advanced lithium-ion battery solutions for transportation and stationary energy storage applications. The company designs, develops and manufactures a range of battery cells, modules and packs tailored to electric buses, commercial vehicles, passenger cars and grid storage systems. Its technology emphasizes fast charging, long cycle life and high energy density to meet stringent performance requirements in demanding operating environments. Founded in 2006, Microvast has established a vertically integrated platform that spans research and development, pilot production and full-scale manufacturing. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Microvast Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

STAFFORD, Texas, May 11, 2026 (GLOBE NEWSWIRE) -- Microvast Holdings, Inc. (NASDAQ:MVST) (“Microvast” or the “Company”), a global leader in advanced battery technologies, announced today its unaudited consolidated financial results for the first quarter ended March 31, 2026 (“Q1 2026”). "Our first quarter results reflect a period of strategic agility as we navigate evolving geopolitical dynamics and a shifting global landscape. While revenue of $60.6 million was impacted by delivery timing and regional headwinds in APAC, our resilient gross margin of 31.6% underscores the value of our technology and our ability to maintain strong positioning. We are entering a pivotal phase for Microvast with the launch of our 290Ah cell-based battery packs that we expect to integrate into the KAF electric powertrain solution and the ongoing ramp-up of our Huzhou Phase 3.2 expansion. By focusing on high-barrier segments and optimizing our production cycles, we remain committed to protecting our margins and accelerating our path to consistent profitability to drive long-term value for our stockholders," said Yang Wu, Microvast’s Founder, Chairman, and Chief Executive Officer. Q1 2026 Results Revenue of $60.6 million, compared to $116.5 million in Q1 2025, a decrease of 48.0%. This decrease was primarily a result of evolving regulatory and geopolitical dynamics, including in the Indian and Korean markets, demand shift towards lower-cost products in India, and OEM platform ramp-up delays. Gross margin decreased to 31.6% from 36.9% in Q1 2025. Non-GAAP adjusted gross margin decreased to 31.7% from 37.0% in Q1 2025, primarily due to lower production utilization which reduced fixed cost absorption. Operating expenses decreased to $27.1 million, compared to $29.2 million in Q1 2025. Non-GAAP adjusted operating expenses were $26.1 million, compared to $28.5 million in Q1 2025. Net profit of $48.2 million, compared to net profit of $61.8 million in Q1 2025. Non-GAAP adjusted net loss was $14.6 million, compared to non-GAAP adjusted net profit of $19.3 million in Q1 2025. Net profit per share of $0.15, compared to net profit per share of $0.19 in Q1 2025. Non-GAAP adjusted net loss per share was $0.04, compared to non-GAAP adjusted net profit per share of $0.06 in Q1 2025. Non-GAAP adjusted EBITDA of negative $5.5 million in Q1 2026, compared to non-GAAP adjusted EBITDA of $28.5 million in Q1 2025. Capital expenditures of $4.2 million, compared to $6.6 million in Q1 2025. Cash, cash equivalents and restricted cash of $174.0 million as of March 31, 2026, compared to $169.2 million as of December 31, 2025, and $123.0 million as of March 31, 2025. Please refer to the tables at the end of this press release for reconciliations of gross profit to non-GAAP adjusted gross profit, operating expenses to non-GAAP adjusted operating expenses, net profit to non-GAAP adjusted net profit/(loss), net profit per share to non-GAAP adjusted net profit/(loss) per share, net profit to non-GAAP adjusted EBITDA and gross margin to non-GAAP adjusted gross margin. 2026 Outlook & Forward-Looking Information While we continue to navigate evolving tariff structures and shifting geopolitical dynamics, we anticipate a recovery in delivery schedules and a steady revenue ramp through the remainder of 2026 as our production timelines align with accelerating customer demand and next generation production. We are targeting and committed to maintaining a resilient gross margin profile by balancing sustained operational efficiencies and premium product positioning against the planned absorption of costs related to our Phase 3.2 expansion and ongoing volatility in global raw material prices. Our primary operational catalyst remains the achievement of serial production at the Huzhou Phase 3.2 expansion in 2026. This expansion is expected to bring online up to 2 GWh of modular capacity, specifically designed to meet the requirements of our next-generation cell technologies. We remain on track to establish localized pack assembly operations at our Clarksville facility and anticipate first assemblies by year-end. This localization is a key component of our domestic strategy to provide North American commercial vehicle and transit customers with locally integrated battery solutions. We continue to seek new customer pipelines that span across EMEA, North America, and APAC. Our focus remains on the heavy industrial and transit markets, where we believe our vertical integration and the newly launched KAF electric powertrain will be able to provide a clear and defensible competitive advantage. Webcast Information Company management will host a conference call and webcast on May 11, 2026, at 4:00 p.m. Central Time, to discuss the Company's financial results. The live webcast and accompanying slide presentation will be accessible from the Events & Presentations section of Microvast’s investor relations website (https://ir.microvast.com/events-presentations/events). A replay will be available following the conclusion of the event. About Microvast Microvast is a global leader in providing battery technologies for electric vehicles and energy storage solutions. With a legacy of nearly 20 years, Microvast has consistently delivered cutting-edge battery systems that empower a cleaner and more sustainable future. The Company's innovative approach and dedication to excellence have positioned it as a trusted partner for customers around the world. Founded in 2006 in Stafford, Texas, Microvast holds more than 890 patents that enable solutions for today’s electrification needs. For more information, please visit www.microvast.com or follow us on LinkedIn (@microvast). Contact: Investor Relations [email protected] Cautionary Statement Regarding Forward-Looking Statements This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future and management's current expectations, involve certain risks and uncertainties and are not guarantees. These forward-looking statements include, but are not limited to, statements about our future results of operations and financial position, our operational performance, our anticipated growth and business strategy, anticipated development, commercialization, and market adoption of Microvast's KAF™ ("Kids Are Future") integrated electric powertrain solution, our future capital expenditures and debt service obligations, the projected costs, prospects and plans and objectives of management for future operations, including regarding expected growth and demand for our products and introduction of new products, the adoption of such offerings by customers, our expectations relating to backlog, pipeline and contracted backlog, current expectations relating to legal proceedings and impacts and benefits from the Inflation Reduction Act of 2022 as well as any other proposed or recently enacted legislation. In some cases, you may also identify forward-looking statements by words such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “objective,” “plan,” “project,” “predict,” “outlook” “should,” “will,” “would,” or the negative of these terms, or other comparable terminology intended to identify statements about the future. Such forward-looking statements are based upon the current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements. We do not assume any obligation to update any forward-looking statements. Many factors could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements, including, among others: (1) our ability to remain a going concern; (2) risk that we may not be able to accurately project and manage our growth and effectively execute our growth strategies or achieve profitability; (3) risk that we may be unable to meet our future capital requirements and we may require additional capital to support our business growth, and this capital might not be available on acceptable terms, or at all; (4) potential difficulties in maintaining manufacturing capacity and establishing expected mass manufacturing capacity in the future; (5) risks relating to issues or delays, disruptions and quality control problems in our manufacturing operations; (6) risks relating to being unable to control our manufacturing costs; (7) risks that we may be unable to meet our projected construction timelines, costs and production ramps, or we may experience difficulties in generating and maintaining demand for products manufactured there and related services; (8) restrictions in our existing and any future credit facilities; (9) risks of operations in China; (10) the effects of mechanics liens filed by contractors that we do not have sufficient funds to pay; (11) the effects of existing and future litigation; (12) changes in general economic conditions, including increases in interest rates and associated Federal Reserve policies, a potential economic recession, and the impact of inflation on our business; (13) changes in the highly competitive market in which we compete, including with respect to our competitive landscape, technology evolution or regulatory changes; (14) changes in availability and price of raw materials; (15) risks that our suppliers may fail to deliver components according to schedules, prices, quality and volumes that are acceptable to us, or we may be unable to manage these components effectively; (16) labor relations, including the ability to attract, hire and retain key employees and contract personnel; (17) heightened awareness of environmental issues and concern about global warming and climate change; (18) risk that we are unable to secure or protect our intellectual property; (19) risk that our customers or third-party suppliers are unable to meet their obligations fully or in a timely manner; (20) risks related to possible future reductions in pricing or order volume or loss of one or more of our significant customers; (21) risks relating to our status as a relatively low-volume purchaser as well as from supplier concentration and limited supplier capacity; (22) risk that our customers will adjust, cancel or suspend their orders for our products; (23) risks relating to our ability to attract new customers and retain existing customers; (24) risks related to our lengthy sales cycle for our products; (25) risk of product liability or regulatory lawsuits or proceedings relating to our products or services; (26) our ability to maintain and enhance our reputation and brand recognition; (27) risks relating to facing strong competition for our products and services from a growing list of established and new competitors; (28) the effectiveness of our information technology and operational technology systems and practices to detect and defend against evolving cyberattacks; (29) changing laws regarding cybersecurity and data privacy, and any cybersecurity threat or event; (30) the effects and associated cost of compliance with existing and future laws and governmental regulations, such as the Inflation Reduction Act; (31) risks relating to whether renewable energy technologies are suitable for widespread adoption or if sufficient demand for our offerings does not develop or takes longer to develop than we anticipate; (32) economic, financial and other impacts such as a pandemic, including global supply chain disruptions; (33) the impacts of geopolitical events, such as the ongoing conflicts in the Middle East, including hostilities with Iran, the war between Russia and Ukraine, and other current or future conflicts; (34) risks associated with maintaining and expanding our international operations, including unfavorable and uncertain regulatory, political, economic, tax, and labor conditions; and (35) risk that tariffs imposed on products of the PRC into the United States may lead to increased costs and impact our business. Microvast’s annual, quarterly and other filings with the U.S. Securities and Exchange Commission identify, address and discuss these and other factors in the sections entitled “Risk Factors.” The foregoing list of factors is not exhaustive and new factors may emerge from time to time that could also affect actual performance and results. For more information, please see the risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2025 in Part I, Item 1A. Actual results, performance or achievements may differ materially, and potentially adversely, from any forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as forward-looking statements are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond our control. All information set forth herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date hereof except as may be required under applicable securities laws. Forecasts and estimates regarding our industry and end markets are based on sources we believe to be reliable, however, there can be no assurance these forecasts and estimates will prove accurate in whole or in part. All references to the “Company,” “we,” “us” or “our” refer to Microvast Holdings, Inc. and its consolidated subsidiaries other than certain historical information which refers to the business of Microvast prior to the consummation of the Business Combination. Non-GAAP Financial Measures To provide investors with additional information regarding our financial results, Microvast has disclosed in this earnings release non-GAAP financial measures, including non-GAAP adjusted gross profit, non-GAAP EBITDA, non-GAAP adjusted EBITDA, non-GAAP adjusted operating expenses, non-GAAP adjusted net profit/(loss), non-GAAP adjusted net profit/(loss) per share, and non-GAAP adjusted gross margin which are non-GAAP financial measures as defined under the rules of the SEC. These are intended as supplemental measures of our financial performance that are not required by, or presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Reconciliations to the most comparable GAAP measures, gross profit, gross margin, operating expenses, net profit/(loss), and net profit/(loss) per share, are contained in tabular form in the unaudited financial statements below. Non-GAAP adjusted gross profit is GAAP gross profit as adjusted for non-cash share-based compensation expense included in cost of revenues. Non-GAAP adjusted net profit/(loss) is GAAP net profit/(loss) as adjusted for non-cash share-based compensation expense and change in valuation of warrant liability and convertible loan. Non-GAAP adjusted net profit/(loss) per common share is GAAP net profit/(loss) per common share as adjusted for non-cash share-based compensation expense and change in valuation of warrant liability and convertible loan per common share. Non-GAAP EBITDA is defined as net profit/(loss) excluding depreciation and amortization, interest expense, interest income, and income tax expense or benefit. Non-GAAP adjusted EBITDA is defined as net profit/(loss) excluding depreciation and amortization, non-cash settled share-based compensation expense, interest expense, interest income, changes in fair value of our warrant liability and convertible loan and income tax expense or benefit. Non-GAAP adjusted operating expenses is defined as operating expenses excluding non-cash share-based compensation expense. Non-GAAP adjusted gross margin is defined as GAAP gross margin as adjusted for non-cash share-based compensation expense included in cost of revenues. We use non-GAAP adjusted gross profit, non-GAAP EBITDA, non-GAAP adjusted EBITDA, non-GAAP adjusted operating expenses, non-GAAP adjusted net profit/(loss), non-GAAP net profit/(loss) per share and non-GAAP adjusted gross margin for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We consider them to be important measures because they help illustrate underlying trends in our business and our historical operating performance on a more consistent basis. We believe that these non-GAAP financial measures, when taken together with their most directly comparable GAAP measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors. Non-GAAP financial measures have limitations as an analytical tool, and you should not consider them in isolation, or as a substitute for, financial information prepared in accordance with GAAP. For example, our calculation of non-GAAP adjusted EBITDA may differ from similarly titled non-GAAP measures, if any, reported by our peer companies, or our peer companies may use other measures to calculate their financial performance, and therefore our use of non-GAAP adjusted EBITDA may not be directly comparable to similarly titled measures of other companies. The principal limitation of non-GAAP adjusted EBITDA is that it excludes significant expenses and income that are required by GAAP to be recorded in our financial statements. In addition, it is subject to inherent limitations as it reflects the exercise of judgments by management about which expense and income are excluded or included in determining this non-GAAP financial measure. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. In addition, such financial information is unaudited and does not conform to SEC Regulation S-X and as a result, such information may be presented differently in our future filings with the SEC. For example, with respect to the warrant liability resulting from the July 23, 2021 business combination with Tuscan Holdings Corp., we now exclude changes in fair value from net profit/(loss) in our non-GAAP adjusted EBITDA and non-GAAP adjusted net profit/(loss) calculation, which had not been done in prior periods. MICROVAST HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except per share data, unaudited) MICROVAST HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data, unaudited) MICROVAST HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands, unaudited) MICROVAST HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands, unaudited) MICROVAST HOLDINGS, INC. RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT (In thousands, except percentages, unaudited) MICROVAST HOLDINGS, INC. RECONCILIATION OF OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES (In thousands, unaudited) MICROVAST HOLDINGS, INC. RECONCILIATION OF NET (LOSS)/ PROFIT TO ADJUSTED NET PROFIT/ (LOSS) (In thousands, except per share data, unaudited) *The tax effect of the adjustments was nil. MICROVAST HOLDINGS, INC. RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA (In thousands, unaudited)

This article first appeared on GuruFocus. Release Date: May 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Microvast Holdings Inc (NASDAQ:MVST) launched next-generation 290-amp hour LFP-based battery packs, designed for a wide range of commercial and heavy-duty industry applications. The company reported a strong gross profit margin of 31.6%, demonstrating effective cost management despite lower volumes. Microvast Holdings Inc (NASDAQ:MVST) is progressing well with its Huzhou Phase 3.2 expansion, which is expected to add up to 2 gigawatt hours of annual production capacity. The company is targeting the electrification of the U.S. school bus market with its CUFF electric powertrain solution, aiming to reduce costs and reliance on subsidies. Microvast Holdings Inc (NASDAQ:MVST) is focusing on high-value market capture by deploying its newest innovations into high-barrier segments, such as heavy industries and transit. First quarter revenue decreased by 48% year-over-year, primarily due to a reduction in sales volume. The company faces external pressures on its gross margin, including inflationary trends in raw material pricing and elevated logistics and freight expenses. Microvast Holdings Inc (NASDAQ:MVST) reported an adjusted net loss of $14.6 million compared to an adjusted net profit of $19.3 million last year. The company experienced a decrease in revenue across key regions, including a 66% decline in APAC revenue due to shifting regulatory and geopolitical dynamics. Net cash used in operating activities was $22.8 million, a significant decrease compared to $7.2 million generated by operating activities in the same period of 2025. Warning! GuruFocus has detected 5 Warning Signs with MVST. Is MVST fairly valued? Test your thesis with our free DCF calculator. Q: There has been a lot of activity surrounding the company's expansion efforts. Could you provide additional color on your manufacturing capacity? A: Our current global operational capacity is centered on our existing facility in Huzhou, which supports our diverse cell chemistry portfolio and produces cells, modules, and packs. We have approximately 4 gigawatt hours of production capacity, with our testing lines contributing as needed for lower-volume products. We are increasingly pivoting our Huzhou allocation toward next-generation cell production. Q: With the Huzhou Phase 3.2 expansion identified as your primary operational catalyst, could you provide a status update on the transition from trial to serial production? A: Huzhou Phase 3.2 is our most significant operational milestone for the year. We have completed the initial installation and are in the process of SOP ramp-up. We remain on track to move from trial production to full-series production in 2026, which will significantly expand our capacity for next-generation cell technologies. Q: As you absorb the planned costs associated with the Huzhou Phase 3.2 ramp-up, how should we model gross margins? A: Protecting our gross margins is a top priority as we scale. The Huzhou Phase 3.2 ramp-up introduces some planned absorption costs, which we are offsetting through operational efficiencies established in 2025. We expect to maintain a strong margin profile even as we bring new capacity online. Q: How should we view the cadence for 2026? A: The Q1 revenue reflects unique timing challenges, including a pull forward of deliveries into late 2025 due to tariff uncertainty. We anticipate production timelines for our next-generation sales to align with customer demand in the second half of the year, leading to a normalized delivery schedule and steady ramp-up. Q: What are the final milestones required for full-scale deployment of Huzhou Phase 3.2, and are we on track for the 2026 ramp-up timeline? A: The final milestones for full-scale series production include the final calibration of the assembly line and the completion of internal quality validation for high-volume output. We are on track to move from trial production to full-series production in 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Monday, May 11, 2026 at 5 p.m. ET Founder, Chairman, and Chief Executive Officer — Yang Wu Chief Financial Officer — Rodney Worthen Operator: Thank you for standing by. This is the conference operator. Welcome to the Microvast Holdings, Inc. First Quarter 2026 Earnings Call. As a reminder, all participants are in a listen-only mode, and the conference is being recorded. I would now like to turn the conference over to Investor Relations. Please go ahead. Rodney Worthen: Thank you, operator, and thank you everyone for joining our update today. This is Rodney Worthen, chief financial officer of Microvast Holdings, Inc., and with me on today's call is Mr. Yang Wu, founder, chairman, and chief executive officer of Microvast Holdings, Inc. Mr. Wu will start off with a high-level overview of the first quarter results before providing some operational and business updates. I will then discuss our financials in more detail before handing it back to Mr. Wu to wrap up with our outlook, some closing remarks, and to answer a few questions. Ahead of this call, Microvast Holdings, Inc. issued its first quarter earnings press release, which can be found on the Investor Relations section of our website at 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 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, not as a substitute for or in isolation from, GAAP results. These non-GAAP measures have been reconciled to their most comparable GAAP metrics in the tables included at the end of our press release and the slide presentation. After the conclusion of this call, a webcast replay will be available on the Investor Relations section of the Microvast Holdings, Inc. website. Now I will turn the call over to Mr. Wu to kick things off. Yang Wu: Hello, everyone, and welcome. Thank you for joining us today. As always, I want to start by reminding you of our core mission. Founded in Texas in 2006, Microvast Holdings, Inc. has grown into a global leader in advanced battery technologies, with over 890 patents granted or pending and our electrified solutions successfully deployed worldwide. We are proud to contribute to the global energy transition, building a more sustainable future, one battery at a time. Innovation is core to our operations and always on display at Microvast Holdings, Inc., and I am excited to announce our next-generation 290 amp-hour LFP-based battery packs as a high-performance modular battery solution designed for a wide range of commercial and heavy-duty industry applications. We expect to integrate these new packs into the C.A.P.S. electric powertrain solution. Microvast Holdings, Inc. is on a mission to lower the barrier to entry for electric school bus platforms in the United States and reduce reliance on subsidies. We aim to deliver cleaner, quieter, affordable, and more comfortable transportation for the next generation, as we know that our kids today are the future. I will go into more detail about how we plan to transform the domestic school bus industry on the upcoming slides. Let us first take a brief look at the quarter overview. Please join me on Slide 4. Our first quarter revenue was $60.6 million, reflecting a unique set of challenges which created a year-over-year dip that we believe to be temporary. Our focus remains on bridging capacity from Phase 3.2 as production timelines align with customer demand, and we expect this capacity to contribute to continued revenue ramp through 2026. Our gross profit margin was 31.6%, and while total gross profit decreased due to lower volumes, margins remained resilient. This demonstrates effective cost management and our ability to maintain premium positioning despite fluctuations in our top-line revenue. We expect some continued pressure from the Phase 3.2 ramp-up costs and current raw material price increases, but aim to maintain a strong margin profile. Let us turn to Slide 5 for an operational update on our Huzhou Phase 3.2 expansion. I am pleased to report that our Huzhou 3.2 expansion continues to progress well. The trial production for our 55 amp-hour cell has been completed on the electrode section, and the assembly and formation equipment is currently undergoing material-based commissioning. The two images on the left display the electrode section in operation, while the two on the right show trial cells during assembly. We expect SOP in 2026, as this expansion is a critical component of our growth strategy. Phase 3.2 is expected to add 1 to 2 gigawatt-hours of annual production capacity and is anticipated to be modular across our LFP platform. Move to Slide 6. I am tremendously excited to finally announce our 290 amp-hour LFP battery pack and the C.A.P.S. electric powertrain. This product and end market has been one of my dreams since the very beginning of founding Microvast Holdings, Inc., and I cannot wait for it to hit the road. C.A.P.S. is not just a battery system. It is a potential total solution to electrify a market that includes nearly half a million conventional school buses in the U.S. We would not just be handing OEMs a cell and a pack. We would be handing them a plug-and-play electric powertrain that includes our high-voltage LFP packs, traction drivetrain, and, importantly, our proprietary nitrogen generation and storage system. This nitrogen purging system aims to substantially reduce the risk of thermal propagation, addressing the number one safety concern school boards and parents have today. For specific drivetrain components, we plan to partner with mature and high-volume suppliers to source and develop this integrated solution. From a business perspective, we expect our C.A.P.S. powertrain solution will be a market disruptor in a segment that has consistent, recession-proof demand. Currently, electric school buses can cost more than $350,000. School districts rely on lottery-based grants. By streamlining the powertrain integration as a total solution, we plan to leverage domestic LFP manufacturing in Clarksville and aim to eliminate this hurdle. Our power solution is targeting total cost of ownership parity with diesel buses over under 10 years, without accounting for any government subsidies or for potential reductions in overhead and personnel required to maintain diesel counterparts. Our new battery pack will be the centerpiece of our presentation at the School Transportation News Expo, or STN, in July 2026. The American school routes need to be electrified, and we believe Microvast Holdings, Inc. has a solution that is going to make it possible. Now as we move to Slide 7, it is important to understand the environment OEMs and school districts are operating in. On the left, you can see school district demand. School boards are facing intense pressure to reduce negative environmental impact and reduce costs by replacing an aging diesel fleet that is becoming increasingly expensive to maintain. However, despite this strong interest in providing cleaner, quieter, affordable, and more comfortable transportation for our next generation, the transition has been largely stalled by five key deployment barriers that have made large-scale electrification nearly impossible for the average district. The primary barrier is cost. As it stands today, electric school buses remain materially more expensive than diesel alternatives. This upfront price gap is the primary barrier to entry. The second and third barriers are the infrastructure and utility hurdles. Districts are not just buying a vehicle; they are suddenly tasked with becoming electrical engineers. Between site-specific wiring, charging infrastructure, and long lead times for utility upgrades, the complexity of getting ready for the bus often exceeds the complexity of the bus itself. The fourth barrier is funding uncertainty. The current market is trapped in a grant-cycle mentality. Funding often involves shifting eligibility, and complex reimbursement cycles create stop-and-go purchasing behavior that prevents long-term fleet planning. The final barrier is the reliability of the fleet. Operationally, districts are concerned about winter range, HVAC loads, and the long-term health of the battery. They need to know that the bus will show up at 6 a.m. regardless of the temperature. When these deployment hurdles are not addressed, we see the consequence on the right: delayed or higher-cost deployments. We see missed funding windows, fewer buses on the road, and a slower realization of benefits for the students and the community. As you can see by the tagline at the bottom of the slide, we believe that the winning solution must reduce the total deployment cost, simplify the charging infrastructure, and, above all, improve operational confidence. The Microvast Holdings, Inc. C.A.P.S. electric powertrain solution is being built specifically to address those hurdles. By working to develop an integrated powertrain that is safer, cheaper, and easier for OEMs to integrate and deploy, we are aiming to remove this friction and accelerate the mission. Now I will turn the call over to Rodney to discuss our financials. Rodney Worthen: Thank you, Mr. Wu. Please join me on Slide 9. Our revenue for the quarter was $60.6 million, a decrease of $55.9 million, or 48%, compared to the same period in 2025. The decrease was primarily driven by a reduction in sales volume from approximately 536 megawatt-hours in the prior-year period to approximately 274 megawatt-hours for the same period in 2026, which will be detailed shortly. Our gross profit for the first quarter was $19.2 million with a gross margin of 31.6%, compared to 36.9% in Q1 2025. The decrease was primarily due to lower production utilization, which reduced fixed-cost absorption, and raw materials and energy price increases resulting from supply chain disruptions. However, even with these reduced sales volumes in the quarter, our margin position held strong, demonstrating the value of our technology. The gross margin profile remains subject to external pressures including inflationary trends in raw material pricing and elevated logistics and freight expenses resulting from the ongoing global supply chain and geopolitical conflicts. The implementation of new tariff frameworks has also increased the cost of goods sold. While we continue to implement cost mitigation strategies, these macroeconomic factors, combined with the phase-out of regional subsidies for electric vehicle adoption, have contributed to a challenging environment for near-term profitability across the battery manufacturing sector. Operating expenses decreased to $27.1 million compared to $29.2 million in 2025, a 7.1% decrease year-over-year. General and administrative expenses for the three months decreased by $1.2 million, or 8.3%, compared to the prior-year period. This reduction in G&A expenses was primarily due to a $2.2 million decrease of allowance for credit loss due to improved credit management and a $1.0 million decrease of employee costs, which was partially offset by a $1.5 million increase in professional service fees. Research and development expenses for the three months increased by $0.6 million, or 6.8%, compared to the same period in 2025. The increase in R&D expenses was primarily due to the expansion of our domestic R&D presence in the United States. Selling and marketing expenses for the three months decreased by $1.5 million, or 21.4%, compared to the same period in 2025. This reduction in sales expense was primarily due to $1.3 million of decreased service fees. We reported a GAAP net profit of $48.2 million in the quarter. After adjusting for noncash expenses such as stock-based compensation of $1.0 million and fair value changes of our warrant liability and convertible loan of $63.8 million, we recorded an adjusted net loss of $14.6 million compared to an adjusted net profit of $19.3 million last year. Year to date, our adjusted EBITDA was negative $5.5 million compared to an adjusted EBITDA of $28.5 million in the prior-year period. Reconciliations of these non-GAAP metrics to the most comparable GAAP are included in the tables at the end of this presentation and our earnings press release. In addition, as discussed in our Q1 2026 10-Q, we have recently shifted our priorities and resources towards certain new and upcoming commercial vehicle opportunities, such as our 290 amp-hour LFP pack and integrated C.A.P.S. powertrain solution. While we remain poised to increase activity in the ESS in the future, please turn to Slide 10 where we will review our revenue by region. During the three months, the company observed a moderation in global electric vehicle demand growth primarily driven by the expiration of government incentive programs and shifting regulatory frameworks in key regions. Our revenue and delivery schedules were also impacted by broader macroeconomic headwinds, including geopolitical instability and evolving tariff structures, which contributed to market volatility and have influenced customer procurement cycles. Now to discuss each region briefly, the decrease in U.S. sales versus the prior-year period was due to our largest customer bringing product into 2025 as a result of uncertainty around tariff outcomes. Europe declined year over year primarily due to OEM-delayed rollout of platforms and production ramp-ups. The region accounted for 71% of our quarterly revenue, up from 52% last year. APAC revenue declined 66% year over year, primarily due to shifting regulatory and geopolitical dynamics impacting the Korean and Indian markets, and the demand shift towards lower-cost products in India. Now turning to Slide 11, we will walk through our cash flow performance for Q1. Net cash used in our operating activities was $22.8 million, a decrease of $30.0 million compared to $7.2 million generated by operating activities in the same period of 2025. This decrease was primarily due to a $36.6 million reduction in net income after adjusting for noncash items, which was partially offset by a net $6.6 million improvement in net operating assets and liabilities. Net cash used in investing activities was $2.8 million compared to $2.3 million in the prior-year period. This cash outflow primarily consisted of capital expenditures related to the expansion of our Phase 3.2 manufacturing facility and the purchase of property and equipment associated with our existing manufacturing and R&D facilities. Net cash generated by financing activities was $29.3 million, an increase of $19.8 million compared to $9.5 million in the same period of 2025. The increase is primarily due to a $23.5 million increase in proceeds from bank borrowings and partially offset by a $7.7 million increase in repayment of bank borrowings. Overall, after accounting for a foreign exchange adjustment of $1.0 million, we had an increase in cash of $4.8 million. This resulted in total cash, cash equivalents, and restricted cash of $174.0 million at quarter’s end. Now I will hand the call back over to Mr. Wu to go over our outlook. Thank you. Yang Wu: Please turn to Slide 13. As we move through 2026, we are executing on the strategic outlook we established at the start of the year, which remains consistent. Our focus remains centered on three priority objectives: accelerating our path to profitability, scaling with margin integrity, and driving high-value market capture. The first pillar of our strategy is disciplined transition to a cash flow positive state. We are working towards this goal by optimizing our R&D-to-production cycle and tightening operational execution across our global footprint. By streamlining the bridge between innovation and manufacturing, we are reducing the time to market for our latest technologies. Secondly, we are scaling with margin integrity. As we expand our battery manufacturing capacity to meet growing market demand, our objective is to maintain a strong gross margin profile. We seek to achieve this through manufacturing excellence and by ensuring that our expansion does not come at the expense of operational efficiencies. Finally, we look to drive high-value market capture. We are deploying our newest innovation into high-barrier segments where our competitive advantages are most balanced, specifically in heavy industries and transit. We believe this will allow us to accelerate revenue growth while focusing on the most profitable opportunities. Operationally, the primary catalyst for the 2026 expansion continues to be our Huzhou Phase 3.2. We are currently in a ramp-up phase for SOP, with serial production expected to follow later this year. This facility is essential for providing the capacity required to meet the demand for our next-generation cell technologies. In the U.S., we are advancing with the ramp-up of our pack assembly operations in Clarksville, Tennessee. This targeted investment in our Clarksville facility is to establish a pack assembly line, expanding our domestic capabilities and supporting anticipated customer demand. Resumption of full-scale battery plant construction activities at this site remains contingent upon securing additional financing and strategic partnerships. In addition to the C.A.P.S. solution, our R&D team also continues to make progress on future products and platforms sought by customers. Those next-generation products are central to our ability to develop and maintain high-margin market opportunities and diversify our customer base into stable, high-value sectors. To summarize, Q1 has presented its challenges globally; it also reinforces our commitment to our core goals. We are navigating the current macro environment with a disciplined approach that aims to prioritize long-term value for shareholders. Thank you for your continued support. We look forward to sharing further updates on our operational milestones in the months ahead, and now we will go over a few investor questions we have received. We will now open the call for questions. Rodney Worthen: My first question here: There has been a lot of activity surrounding the company's expansion efforts. Could you provide additional color on your manufacturing capacity? Yang Wu: Our current global operational capacity remains centered on our existing facilities, which support our diverse cell chemistry portfolio and produce cells, modules, and packs. Between our primary Huzhou lines, which produce 48 amp-hour, 53.5 amp-hour, 55 amp-hour, and 120 amp-hour, Phase 3.1, which is in serial production, and Phase 3.2, which is ramping up, there is approximately 4 gigawatt-hours of production capacity, with our legacy lines contributing as needed for lower-volume products and service needs in different formats. Towards the end of 2025, we also made a targeted investment in our Clarksville facility to establish a pack assembly line. Additionally, we have pilot lines utilized for prototyping and testing, and our German facility produces VDA modules. Historically, our capacity has been weighted toward our high-power and multipurpose cell technologies to serve our core transit and industry customers. With the transition into 2026, we are increasingly pivoting our Huzhou allocation toward next-generation cell production. Rodney Worthen: With the Huzhou Phase 3.2 expansion identified as your primary operational catalyst, could you provide a status update on the transition from trial to serial production? What are the final milestones required for full-scale deployment, and are we on track for the 2026 ramp-up timeline? Yang Wu: Although Phase 3.2 is our most significant operational milestone for the year, we have successfully completed the initial installation and are currently in the process of SOP ramp-up. The milestones required for full-scale series production involve the final calibration of the assembly line and the completion of the internal quality validation for high-volume output. We remain on track to move from trial production to full serial production in 2026, which will significantly expand our capacity for next-generation cell technologies. Rodney Worthen: As you absorb the planned costs associated with the Huzhou Phase 3.2 ramp-up, how should we model gross margins? Are there efficiencies in 2025 that act as a primary hedge against expansion costs? Protecting our gross margins is a top priority. While the Huzhou Phase 3.2 ramp-up naturally introduces some planned absorption costs, we are offsetting these through operational efficiencies that we established in 2025. Our primary hedge is focusing on high-barrier-to-entry segments and maintaining a disciplined approach with our R&D-to-production cycles. Though there is some near-term global turbulence, we expect to maintain a strong margin profile even as we bring new capacity online. Rodney Worthen: How should we view the cadence for 2026? The Q1 revenue reflects a unique set of timing challenges. In the U.S., we saw the pull-forward of deliveries into late 2025 due to tariff uncertainty, which created a year-over-year dip that we believe to be temporary. Yang Wu: In APAC, specifically India, the market has pivoted toward lower-cost solutions. Our strategy is not to race to the bottom on price, but to stay disciplined in our premium positioning where our technology’s life-cycle value is highest. We are focused on capitalizing on electric mobility applications, including our 290 amp-hour packs and the C.A.P.S. powertrain. The new capacity from Huzhou Phase 3.2 will help offset these regional headwinds. As we anticipate production timelines for our next-generation cells to align with customer demand in the second half of the year, we expect to see a normalized delivery schedule and a steady ramp-up. Operator, I will hand it back over to you. Operator: This concludes the Microvast Holdings, Inc. First Quarter 2026 Earnings Call. You may now disconnect. Before you buy stock in Microvast, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Microvast wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Microvast (MVST) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue decline of 48% year-over-year was attributed to a unique pull-forward of U.S. demand into late 2025 driven by customer uncertainty regarding tariff outcomes. Management is pivoting the business model from selling individual components to providing the 'KAF' integrated electric powertrain to lower entry barriers for the U.S. school bus market. Gross margins remained resilient at 31.6% despite lower volumes, which management credits to effective cost management and a refusal to compete in 'race to the bottom' pricing in regions like India. The APAC region saw a 66% revenue decline as the Indian market shifted toward lower-cost products and regulatory dynamics evolved in Korea. Operational focus is shifting toward the Huzhou Phase 3.2 expansion, which is designed to add 2 gigawatt hours of annual production capacity for next-generation cell technologies. Strategic positioning is being narrowed toward high-barrier segments, specifically heavy industry and transit, where the company's life cycle value proposition is most pronounced. Management expects a continued revenue ramp through 2026 as production timelines for next-generation cells align with customer demand in the second half of the year. The KAF powertrain solution targets total cost of ownership parity with diesel buses in under 10 years without relying on government subsidies. Full-scale battery plant construction in Clarksville remains contingent upon securing additional financing and strategic partnerships. Huzhou Phase 3.2 is expected to move from trial production to full series production later in 2026, serving as the primary catalyst for capacity expansion. The company aims to transition to a cash-flow-positive state by optimizing the R&D-to-production cycle and tightening global operational execution. Supply chain disruptions and geopolitical conflicts are creating inflationary pressure on raw materials and logistics, threatening near-term margin stability. The company has deprioritized Energy Storage Systems (ESS) activities to reallocate resources toward the 290Ah LFP battery and KAF powertrain opportunities. New tariff frameworks have explicitly increased the cost of goods sold, impacting the overall margin profile. A $63.8 million non-cash gain was recorded due to fair value changes in warrant liabilities and convertible loans, significantly impacting GAAP net profit. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Global capacity is currently centered in Huzhou with approximately 4 gigawatt hours across various cell chemistries. Management is increasingly pivoting Huzhou's allocation away from legacy lines toward next-generation cell production to meet 2026 demand. Trial production for the 55Ah cell electrode section is complete, with assembly equipment currently undergoing material-based commissioning. Final milestones before full-scale deployment include calibration of assembly lines and internal quality validation for high-volume output. Management intends to hedge expansion costs through operational efficiencies established in 2025 and a focus on high-barrier market segments. While near-term global turbulence is expected, the company maintains a goal of a strong margin profile during the Phase 3.2 ramp-up. Q1 is viewed as a temporary dip caused by the U.S. tariff pull-forward and a pivot in the Indian market toward lower-cost solutions. A normalized delivery schedule is anticipated for the second half of 2026 as new capacity and the 290Ah packs come online.