Microvast Q1 2025 slides: Record revenue growth drives profitability milestone

Microvast Holdings Inc. (NASDAQ:MVST) delivered a standout performance in the first quarter of 2025, with record revenue and a significant turnaround to profitability, according to the company’s Q1 presentation released on May 12. The battery technology firm reported 43.2% year-over-year revenue growth and substantial margin expansion, driving its first meaningful quarterly profit.

Quarterly Performance Highlights

Microvast achieved record Q1 revenue of $116.5 million, representing a 43.2% increase compared to the same period in 2024. This growth continues the company’s impressive trajectory, having tripled its Q1 revenue since 2022. Gross margin expanded significantly to 36.9%, a 15.7 percentage point improvement year-over-year.

As shown in the following chart of quarterly revenue and margin growth:

The company reported a GAAP net profit of $61.8 million, compared to a $24.8 million loss in Q1 2024. After adjusting for non-cash items, including a $43.2 million change in fair value of warrant liability and convertible loan, Microvast achieved an adjusted net profit of $19.3 million. Adjusted EBITDA reached $28.5 million, compared to negative $3.7 million in the prior year period.

Following the earnings announcement, Microvast’s stock rose 9.09% to $2.54 in after-hours trading, reflecting investor optimism about the company’s performance and outlook.

Detailed Financial Analysis

The company’s income statement reveals substantial improvements across key metrics, with operating expenses decreasing despite the revenue growth, primarily due to reductions in non-cash settled share-based compensation and operational efficiencies.

The detailed P&L statement shows the comprehensive financial turnaround:

Regionally, Microvast’s growth was primarily driven by its EMEA operations, which saw revenue more than double year-over-year to $60.1 million. The U.S. market, while still a smaller portion of overall revenue, grew by an impressive 229% to $6.4 million. APAC revenue remained relatively stable at $50.1 million.

The regional revenue breakdown illustrates the company’s shifting geographic focus:

Microvast’s cash position improved during the quarter, with total cash and equivalents reaching $123 million at the end of Q1, an increase of $13.4 million from the beginning of the period. The company generated positive operating cash flow of $7.2 million, demonstrating improved operational efficiency.

The cash flow statement highlights the company’s strengthening financial position:

Strategic Initiatives & Technology Innovation

Microvast’s growth strategy centers around three key pillars: innovate, capture, and expand. The company is leveraging its technological expertise to drive market share gains across multiple segments.

In the commercial vehicle sector, Microvast continues to expand its customer base with high-performance battery solutions for electric buses and mining trucks. The company highlighted several key customer deployments, including:

On the innovation front, Microvast is making progress with its all-solid-state battery (ASSB) technology, developing proprietary 3D printing capabilities for flexible, customized ASSB cell fabrication. Early testing shows promising results with 99.89% Coulombic efficiency in 5-layer tests.

The company is also expanding production capacity with its Phase 3.2 project at the Huzhou facility, which is expected to provide an additional 2GWh of annual capacity when initial production begins in Q4 2025.

Forward-Looking Statements

Looking ahead, Microvast provided revenue guidance of $450-475 million for 2025, representing 18-25% year-over-year growth. The company is targeting a 30% gross margin for the full year, slightly below the exceptional Q1 performance but still representing significant improvement over historical levels.

The 2025 outlook details specific regional expectations and profitability targets:

By region, Microvast expects EMEA to continue its strong performance with over 20% year-over-year growth in 2025, while the Americas region is projected to grow by approximately 50%. The company’s APAC operations will focus on the Phase 3.2 production ramp-up and advancing the R&D product pipeline.

"We strive to achieve this through continued innovation, developing and capturing new markets, and expanding our capacity and global footprint," the company stated in its presentation, emphasizing its commitment to maintaining revenue growth and margin profile as catalysts to improved liquidity and profitability.

With its strong Q1 performance, expanding customer base, and technological advancements, Microvast appears well-positioned to capitalize on the growing demand for high-performance battery solutions in commercial vehicle and energy storage applications.

Full presentation:

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