Microvast Holdings, Inc. is a Texas-based company founded in 2006 that specializes in advanced battery technologies for electric vehicles and energy storage solutions. It holds over 810 patents and has a strong focus on innovation and sustainability within the energy transition sector.

In the first quarter of 2025, Microvast reported a significant increase in performance, with revenue reaching $116.5 million, up 43.2% from $81.4 million in the same quarter of the previous year. This increase reflects a robust demand for its products, particularly in the EMEA market, which experienced a year-over-year growth rate of 108%. Gross profit for the quarter was $43 million, a marked increase from $17.2 million in the prior year. Consequently, gross margin improved to 36.9%, up from 21.2% a year ago.

Operating expenses decreased to $25.5 million, down from $40.9 million in the previous year. The reduction in operating expenses was primarily driven by lower general and administrative costs, which decreased to $10.5 million compared to $23.8 million in Q1 2024, largely due to a reduction in share-based compensation. Research and development expenses were also down to $8.2 million from $11.5 million, while selling and marketing expenses increased slightly to $6.8 million from $5.6 million.

Net profit for Q1 2025 was $61.8 million, a substantial improvement compared to a net loss of $24.8 million in the same period last year. After adjustments, the adjusted net profit was $19.3 million, compared to an adjusted net loss of $13 million in Q1 2024. Adjusted EBITDA for the quarter reached $28.5 million, contrasting with a negative adjusted EBITDA of $3.7 million in the prior year.

Microvast maintained a strong financial position at the end of the quarter, with cash, cash equivalents, and restricted cash totaling $123 million, an increase from $109.6 million at the end of 2024. Importantly, the company’s customer base and operational capacity continue to grow, with an anticipated expansion of production capacity at its Huzhou facility expected to yield additional annual capacity of up to 2 gigawatt-hours by the fourth quarter of 2025.

For the remainder of 2025, Microvast expects revenue growth of between 18% and 25%, targeting a revenue range of $450 million to $475 million. The company aims to sustain a gross margin of approximately 30%. The positive trajectory is supported by improved operational efficiency and an ongoing focus on capturing new market segments, particularly in the EMEA region where it anticipates maintaining strong growth.