Microvast Q2 2025 slides: Revenue growth continues amid technology investments

Introduction & Market Context

Microvast Holdings Inc (NASDAQ:MVST) released its second-quarter 2025 presentation on August 11, revealing continued revenue growth despite posting a significant GAAP net loss. The battery technology company saw its stock rise 5.19% to close at $2.89 during regular trading, with an additional 4.5% gain to $3.02 in after-hours trading, suggesting investor optimism despite the mixed results.

The company, which has been in operation for 18 years and is headquartered in Stafford, Texas, continues to focus on innovation in the electrification sector with over 810 patents granted or pending. Microvast’s Q2 performance represents a notable shift from its strong Q1 2025 results, which saw 43% year-over-year revenue growth and a GAAP net profit of $61.8 million.

Quarterly Performance Highlights

Microvast reported record second-quarter revenue of $91.3 million, representing a 9.2% increase year-over-year, though this marks a significant deceleration from the 43% growth seen in Q1. The company achieved a gross margin of 34.7%, an improvement of 2.2 percentage points compared to the same period last year, and maintained a substantial backlog of $320 million.

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

The company’s gross margin has shown consistent improvement from 7.5% in Q2 2022 to 34.7% in Q2 2025, demonstrating Microvast’s ability to enhance profitability alongside revenue growth. However, the company reported a GAAP net loss of $106.1 million for the quarter, a stark contrast to the $61.8 million profit reported in Q1 2025.

Detailed Financial Analysis

Microvast’s Q2 2025 financial performance reveals significant regional variations. The APAC region contributed $47.7 million in revenue (up 34% year-over-year), while EMEA generated $38.9 million (down 17% year-over-year), and the USA market showed strong growth at $4.8 million (up 276% year-over-year).

The regional revenue breakdown is illustrated in this chart:

Despite the GAAP net loss, Microvast reported adjusted EBITDA of $25.9 million for the quarter. The company’s cash position improved to $138.8 million at the end of Q2, up from $123 million reported at the end of Q1 2025.

The detailed income statement provides further insight into the company’s financial performance:

The cash flow statement reveals that Microvast generated $44.3 million in net cash from operating activities for the six months ended June 30, 2025, while investing activities consumed $5.1 million and financing activities used $6.8 million:

Strategic Initiatives & Technology Development

Microvast continues to execute its three-pillar business strategy focused on innovation, commercialization, and expansion. The company emphasized its commitment to becoming cash flow positive while maintaining strong gross margins and driving sales growth.

The strategy is visualized in this overview:

A key component of Microvast’s expansion plans is the Phase 3.2 capacity addition at its Huzhou facility. This expansion, which is currently underway with installation expected by year-end, will add 2GWh of annual capacity and enable production of advanced cells.

The progress of the facility expansion is shown here:

Microvast also highlighted advancements in its All-Solid-State Battery (ASSB) technology, reporting stable cycling with high efficiency in a 5-layer cell and achieving 48V from a monolithic stack in a 12-layer cell. These developments position the company to potentially capitalize on emerging market opportunities with simplified system designs and reduced costs.

Forward-Looking Statements

Looking ahead, Microvast provided a 2025 outlook with targeted revenue growth of 18-25%, translating to revenue guidance of $450-475 million. The company has updated its gross margin target to 30-32%, slightly lower than the 34.7% achieved in Q2.

The outlook details are presented in this forward guidance slide:

Regionally, Microvast expects to complete its Phase 3.2 expansion in APAC, achieve over 20% year-over-year growth in EMEA, and approximately 50% year-over-year growth in the Americas. The company maintains its focus on profitability, targeting positive quarterly EBITDA and operating profits.

To provide transparency on its financial reporting, Microvast included detailed reconciliations of GAAP to non-GAAP measures:

While Microvast continues to show revenue growth and margin improvement, the significant GAAP net loss in Q2 2025 represents a challenge that investors will need to monitor in coming quarters. The company’s continued investments in capacity expansion and advanced battery technology demonstrate a long-term strategic focus, but the path to consistent profitability remains a key concern.

Full presentation:

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