Microvast Reports Third Quarter 2026 Financial Results
Microvast Holdings, Inc. (MVST) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Microvast Reports Third Quarter 2026 Financial Results Houston, Texas, USA — Microvast Holdings, Inc. (NASDAQ:MVST) (“Microvast” or the “Company”), today announced its unaudited consolidated financial results for the quarter ended September 30, 2026 (“Q3 2026”). “The
How this was made
The 30-second read
Why it matters
The sharp revenue decline and sizable net loss are likely to trigger a sell‑off, especially given the company's already thin margins.
Market read
Microvast's earnings miss underscores challenges in the commercial‑vehicle battery market and may pressure related stocks.
What to watch
Cash balance of $124M provides runway; upcoming Huzhou Phase 3.2 equipment could improve capacity later in 2027.
Microvast Q3 2026 revenue fell 62.8% to $45.8 million, gross margin fell to 5.2%, and the company says current liquidity is insufficient to meet obligations over the next twelve months
Quarterly revenue fell 62.8% year over year, gross margin fell to 5.2% from 37.6%, and GAAP net loss was $(76,800) thousand against $(1,489) thousand a year earlier. The company reports a going concern doubt that has not been alleviated, $177.0 million of total debt, $84.8 million of cash and cash equivalents, and an expectation that available cash will be insufficient to meet obligations over the next twelve months.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenues, Q3 2026GAAP | $45.8M | – | decreasing by $77.5 million, or 62.8% |
| Sales volume, Q3 2026other | approximately 189.6 MWh | – | 62.2% reduction |
| Cost of revenues, Q3 2026GAAP | −$34.09M | – | – |
| Write-down for obsolete inventories, Q3 2026GAAP | −$9.35M | – | – |
| Gross profit, Q3 2026GAAP | $2.37M | – | – |
| Gross margin, Q3 2026GAAP | 5.2% | – | – |
| Adjusted gross profit, Q3 2026non-GAAP | $2.40M | – | – |
| Adjusted gross margin, Q3 2026non-GAAP | 5.2% | – | – |
| General and administrative expenses, Q3 2026GAAP | −$20.37M | – | – |
| Research and development expenses, Q3 2026GAAP | −$8.36M | – | – |
| Selling and marketing expenses, Q3 2026GAAP | −$4.57M | – | – |
| Impairment loss of long-lived assets, Q3 2026GAAP | $35.7M | – | – |
| Total operating expenses, Q3 2026GAAP | $69M | – | – |
| Adjusted operating expenses, Q3 2026non-GAAP | −$68.31M | – | – |
| (Loss) profit from operations, Q3 2026GAAP | −$66.67M | – | – |
| Interest income, Q3 2026GAAP | $364K | – | – |
| Interest expense, Q3 2026GAAP | −$1.36M | – | – |
| Foreign exchange loss, Q3 2026GAAP | −$3.77M | – | – |
| Income tax expense, Q3 2026GAAP | −$5.43M | – | – |
| Net loss, Q3 2026GAAP | −$76.8M | – | – |
| Net loss per share (basic and diluted), Q3 2026GAAP | $(0.20) | – | – |
| Adjusted net loss, Q3 2026non-GAAP | −$76.04M | – | – |
| Adjusted net loss per share, Q3 2026non-GAAP | $(0.20) | – | – |
| EBITDA, Q3 2026non-GAAP | −$61.56M | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | −$60.80M | – | – |
| Capital expenditures, Q3 2026other | $2.3M | – | – |
| Cash, cash equivalents and restricted cash at September 30, 2026other | $124.4M | – | – |
| Revenues, nine months 2026 (YTD 2026)GAAP | $193.7M | – | decrease of 41.5% |
| Gross profit, nine months 2026 (YTD 2026)GAAP | $47.30M | – | – |
| Gross margin, nine months 2026 (YTD 2026)GAAP | 24.4% | – | – |
| Cost of revenues, nine months 2026 (YTD 2026)GAAP | −$135.3M | – | – |
| Write-down for obsolete inventories, nine months 2026 (YTD 2026)GAAP | −$11.07M | – | – |
| Adjusted gross profit, nine months 2026 (YTD 2026)non-GAAP | $47.40M | – | – |
| Adjusted gross margin, nine months 2026 (YTD 2026)non-GAAP | 24.5% | – | – |
| General and administrative expenses, nine months 2026 (YTD 2026)GAAP | −$47.20M | – | – |
| Research and development expenses, nine months 2026 (YTD 2026)GAAP | −$26.03M | – | – |
| Selling and marketing expenses, nine months 2026 (YTD 2026)GAAP | −$14.65M | – | – |
| Impairment loss of long-lived assets, nine months 2026 (YTD 2026)GAAP | −$35.77M | – | – |
| Total operating expenses, nine months 2026 (YTD 2026)GAAP | $123.6M | – | – |
| Adjusted operating expenses, nine months 2026 (YTD 2026)non-GAAP | −$121.1M | – | – |
| (Loss) profit from operations, nine months 2026 (YTD 2026)GAAP | −$76.32M | – | – |
| Changes in fair value of warrant liability and convertible loan, nine months 2026 (YTD 2026)GAAP | $58.00M | – | – |
| Foreign exchange (loss) gain, nine months 2026 (YTD 2026)GAAP | −$15.38M | – | – |
| Income tax expense, nine months 2026 (YTD 2026)GAAP | −$5.43M | – | – |
| Net loss, nine months 2026 (YTD 2026)GAAP | −$40.58M | – | – |
| Net loss per share (basic and diluted), nine months 2026 (YTD 2026)GAAP | $(0.11) | – | – |
| Adjusted net loss, nine months 2026 (YTD 2026)non-GAAP | −$95.96M | – | – |
| Adjusted net loss per share, nine months 2026 (YTD 2026)non-GAAP | $(0.27) | – | – |
| EBITDA, nine months 2026 (YTD 2026)non-GAAP | −$7.34M | – | – |
| Adjusted EBITDA, nine months 2026 (YTD 2026)non-GAAP | −$62.73M | – | – |
| Net cash (used in) generated from operating activities, nine months 2026 (YTD 2026)GAAP | −$65.44M | – | – |
| Capital expenditures, nine months 2026 (YTD 2026)other | $17.9M | – | – |
2026 Outlook (qualitative; no numeric targets given) outlook
- NoteThe company is implementing operating cost reduction initiatives across all areas of the business.
- NoteThe company is reducing or deferring certain discretionary capital expenditures.
- NoteThe company is implementing targeted reductions in workforce in certain of its operations.
- NoteThe company states its cost-reduction program has not been fully implemented and the cash costs associated with these actions have strained and may continue to strain near-term liquidity.
- NoteThe company continues to explore potential opportunities in the commercial vehicle market.
- NoteInstallation and commissioning of the Phase 3.2 production equipment at Huzhou, China have been completed; production ramp-up depends on customer demand, production yields, product qualification, operating efficiency and working capital availability. Unless production volumes increase sufficiently, the Phase 3.2 line will operate below its designed capacity.
- NoteThe pack assembly line at Clarksville is substantially completed; resumption of full-scale construction remains contingent upon securing additional financing or strategic partnerships.
Capital returns
- The release reports no share repurchases and no dividends for the periods presented.
- Capital expenditures were $2.3 million in Q3 2026 versus $17.4 million in Q3 2025, and $17.9 million in YTD 2026 versus $31.4 million in YTD 2025.
- Purchases of property, plant and equipment were $(16,502) thousand in the nine months ended September 30, 2026 versus $(19,191) thousand in the same period of 2025.
- The company states it is reducing or deferring certain discretionary capital expenditures.
- The company reports net proceeds of $1,350 thousand from sale of common stock in the nine months ended September 30, 2026 and payment for equity issuance costs of $(329) thousand in the same period.
What drove it
- The company attributes the Q3 2026 revenue decline primarily to a 62.2% reduction in sales volume, reflecting weaker sales across Europe and APAC from softer end-market demand for heavy-duty trucks, port equipment and heavy mining equipment, and reduced orders from several long-standing customers.
- The company says demand was also adversely affected by evolving commercial vehicle regulatory and geopolitical dynamics, including the Indian and Korean markets, and by a demand shift towards lower cost products in India.
- The company attributes the decrease in U.S. sales versus the prior year period primarily to its largest customer bringing product into 2025 as a result of uncertainty around tariff outcomes.
- The company attributes the Q3 2026 gross margin decline primarily to a $9.3 million write-down for obsolete inventories related to specialized ESS components and other inventories, which it says reduced gross margin by 20.4 percentage points.
- Excluding that charge, the company says gross margin reflected the significant reduction in sales volume, continued pricing pressure in the lithium battery industry, and lower absorption of fixed manufacturing and operating costs.
- The company attributes the Q3 2026 operating expense increase primarily to non-cash impairment charges of long-lived assets of $35.7 million, including $15.0 million for China, $4.4 million for Germany and $16.3 million for the U.S., triggered by a material decline in sales, gross margin and operating performance.
- The company attributes the YTD 2026 net loss decrease primarily to a $58.0 million non-cash gain from the change in fair value of the warrant liability and convertible loan, compared with a $91.0 million non-cash loss in YTD 2025, partially offset by the $35.8 million impairment, lower gross profit, a $15.4 million foreign exchange loss, and $5.4 million of income tax expense from a full valuation allowance against deferred tax assets.
- The company states that YTD 2026 revenue includes a $2.7 million IEEPA tariff refund issued to a customer, recorded as a reduction of revenue, and that IEEPA tariff refunds received of $4.4 million (excluding interest) were recognized as a reduction to cost of revenue.
- The company states its gross margin in YTD 2026 was slightly offset by the recognition of IEEPA tariff refunds received.
Concerns
- The company states the material decline in sales, gross margin and operating performance during the quarter has significantly constrained its liquidity.
- Management concluded that its plans to alleviate the substantial doubt about the company's ability to continue as a going concern cannot be deemed probable of being effectively implemented, and the substantial doubt has not been alleviated.
- The company expects available cash to be insufficient to meet its obligations as they come due over the next twelve months, absent additional financing, refinancing, extension, restructuring or further cost reductions.
- Failure to make any of the near-term debt payments would result in an event of default and acceleration of substantially all bank borrowings and bonds payable, and enforcement of security over MPS assets and the company's equity interest in MPS, according to the release.
- Revenue is materially concentrated with a small number of customers; one significant European customer was recently acquired by a third party, and the company has limited visibility into revenue for the next several quarters and into near-term cash collections.
- The company states that cash from China and Europe cannot currently be repatriated to fund U.S. operations.
- The company reports a net cash outflow from operating activities of $(65,441) thousand in the nine months ended September 30, 2026.
- The company discloses a working capital deficit of $3.1 million and current bank borrowings, notes payable and current bonds payable of approximately $196.0 million.
- The Phase 3.2 line at Huzhou will operate below its designed capacity unless production volumes increase sufficiently, according to the company.
- The release refers to potential risks of Nasdaq listing non-compliance and delisting, although the release does not state a current compliance status.
What to watch
- Outcome of negotiations with lenders on refinancing, extension or restructuring of the $41.7 million convertible bonds due January 31, 2027 and the $84.0 million of PRC short-term bank loans.
- Whether the company refinances or extends the MPS long-term working capital loan principal due December 19, 2026, March 18, 2027, June 19, 2027 and September 18, 2027.
- Cash balance and usable cash across entities, which the company reports as approximately $71.3 million as of October 31, 2026.
- Customer order levels in Europe and APAC, and the level of future orders from the company's largest customers, which the company describes as uncertain.
- Gross margin trajectory excluding inventory write-downs, given continued pricing pressure and lower fixed cost absorption at reduced volumes.
- Cost-reduction program execution, including workforce reductions and the cash costs the company says may strain near-term liquidity.
- Production ramp-up at the Huzhou Phase 3.2 line relative to its designed capacity.
- Status of the Clarksville pack assembly line, where full-scale construction resumption depends on additional financing or strategic partnerships.
- Impact of the newly effective consumption tax on lithium products and the forthcoming elimination of certain battery products export value-added tax rebates in China, which the forward-looking statements section references.
- Management's Q3 2026 conference call and webcast on November 9, 2026 at 4:00 p.m. Central Time.
Balance sheet and cash flow
- Cash, cash equivalents and restricted cash were $124.4 million at September 30, 2026, compared with $169.2 million at December 31, 2025 and $142.6 million at September 30, 2025.
- Cash and cash equivalents were $84.8 million at September 30, 2026, of which $30.4 million was held by Chinese subsidiaries and $14.4 million by European subsidiaries.
- Restricted cash was $39,611 thousand at September 30, 2026 versus $64,275 thousand at December 31, 2025.
- The company states that due to foreign regulatory restrictions, adverse tax consequences and localized working capital needs, it is currently unable to repatriate cash from China and Europe to fund U.S. operations.
- Total debt was $177.0 million at September 30, 2026, consisting of $135.3 million of bank borrowings and $41.7 million of convertible bonds issued by Microvast Power Systems Co., Ltd. (MPS) to Huzhou Saiyuan.
- Current bank borrowings, notes payable and current bonds payable totaled approximately $196.0 million, and the company reported a working capital deficit of $3.1 million.
- Near-term debt obligations as of the release date: (i) $41.7 million of convertible bonds due on or before January 31, 2027, together with accrued interest; (ii) $84.0 million of short-term bank loans of PRC subsidiaries maturing over the next twelve months; (iii) $373 thousand, $149 thousand, $13.8 million and $149 thousand of principal under MPS long-term working capital loans, due December 19, 2026, March 18, 2027, June 19, 2027 and September 18, 2027, respectively.
- A $22.4 million loan facility agreement entered September 27, 2022, due December 10, 2026, was fully repaid and retired after September 30, 2026, according to the company.
- During the nine months ended September 30, 2026, the company secured $95.8 million of bank borrowings, of which $59.8 million represented refinanced debt; since September 30, 2026 it has refinanced an additional $8.9 million of short-term bank borrowings.
- As of October 31, 2026, total usable cash across all entities was approximately $71.3 million.
- Total assets were $892,919 thousand at September 30, 2026 versus $1,005,448 thousand at December 31, 2025. Total liabilities were $420,079 thousand versus $594,935 thousand. Total equity was $472,840 thousand versus $410,513 thousand.
- Inventories, net were $95,043 thousand versus $89,411 thousand at December 31, 2025. Accounts receivable, net were $103,064 thousand versus $155,763 thousand.
- Net cash flow from financing activities was $23,312 thousand in the nine months ended September 30, 2026 versus $(9,544) thousand in the same period of 2025.
- Net cash used in investing activities was $(5,637) thousand in the nine months ended September 30, 2026 versus $(15,455) thousand in the same period of 2025.
- Net change in cash, cash equivalents and restricted cash was $(44,794) thousand in the nine months ended September 30, 2026 versus $33,026 thousand in the same period of 2025.
- The company states that the warrant liability expired unexercised on July 23, 2026 and the convertible loan was converted and settled on May 28, 2026.
Analysis
Microvast reported Q3 2026 revenue of $45.8 million, down 62.8% from $123.3 million a year earlier, on a 62.2% reduction in sales volume to approximately 189.6 MWh from approximately 501.7 MWh. The company attributes the decline to softer heavy-duty truck, port and mining equipment demand in Europe and APAC, reduced orders from long-standing customers, and demand shifts in India and Korea. Gross margin fell to 5.2% from 37.6%. The company attributes most of the drop to a $9.3 million inventory write-down, which it says reduced gross margin by 20.4 percentage points. Gross profit was $2,367 thousand versus $46,412 thousand. Excluding the write-down, the company points to lower volume, pricing pressure and reduced fixed cost absorption.
Below the gross line, Q3 2026 operating expenses rose to $69.0 million from $31.6 million, driven by $35.7 million of non-cash impairment charges on long-lived assets. Operating loss was $(66,667) thousand against operating profit of $14,897 thousand in Q3 2025. GAAP net loss was $(76,800) thousand, or $(0.20) per share, against $(1,489) thousand, or $0.00 per share. Adjusted EBITDA was $(60,798) thousand against $21,910 thousand. Year to date, revenue was $193.7 million versus $331.1 million, gross margin was 24.4% versus 36.6%, and GAAP net loss improved to $(40,577) thousand from $(45,757) thousand. The company attributes that improvement mainly to a $58.0 million non-cash gain on warrant and convertible loan fair value changes, which it contrasts with a $91.0 million loss a year earlier.
The balance sheet and liquidity disclosures carry the most weight in this release. Cash, cash equivalents and restricted cash were $124.4 million, of which $84.8 million was cash and cash equivalents, and $30.4 million and $14.4 million of cash and cash equivalents sat in Chinese and European subsidiaries that the company says it cannot currently repatriate to the U.S. Total debt was $177.0 million, and current bank borrowings, notes payable and current bonds payable were approximately $196.0 million against a working capital deficit of $3.1 million. Operating cash flow was $(65,441) thousand for the nine months, compared with $59,486 thousand a year earlier. Total equity rose to $472,840 thousand from $410,513 thousand, while total assets fell to $892,919 thousand from $1,005,448 thousand. The company reports that it repaid a $22.4 million facility after quarter end and has refinanced $8.9 million more of short-term bank debt since September 30, 2026, but it states usable cash of approximately $71.3 million as of October 31, 2026 is not expected to cover obligations over the next twelve months without additional financing.
The company did not publish numeric guidance. Its 2026 outlook is qualitative and centres on cost reductions, deferred discretionary capital expenditure, workforce reductions, and a Phase 3.2 line in Huzhou that will run below design capacity unless volumes rise. Clarksville construction resumption depends on new financing or partnerships. The release states that management concluded the substantial doubt about going concern has not been alleviated.
The figures that deserve the closest attention are the 62.2% volume decline, the 5.2% gross margin including the write-down, the $35.7 million impairment, the $(65,441) thousand operating cash outflow, and the debt maturities listed in the release. The release also says customer concentration limits near-term revenue visibility and that one significant European customer was recently acquired by a third party.
Management, verbatim
The material decline in sales, gross margin and operating performance during the quarter have significantly constrained our liquidity.
Yang Wu, Founder, Chairman and Chief Executive Officer
We recognize that the outcome of these efforts is uncertain and depends on factors outside our control, including lender decisions and customer demand.
Yang Wu, Founder, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Revenue by segment, region or product line with reported dollar amounts: the release refers to Europe, APAC and U.S. sales but does not print regional revenue figures.
- Second quarter 2026 (prior quarter) figures: the release does not print Q2 2026 results, so all prior_quarter and qoq_change fields are null.
- Percentage or dollar year-over-year change for several Q3 2026 lines (cost of revenues, net loss, adjusted net loss, operating expenses sub-lines, capital expenditures, cash) because the release prints neither a change nor the prior period figure in a form that allows it.
- Numeric company guidance for revenue, gross margin, operating expenses or tax rate: the 2026 Outlook contains qualitative statements only.
- Prior-period outlook: no previous release outlook was provided, so vs_prior_guidance is empty.
- Consensus estimates, analyst expectations and share price reaction: not in the documents.
- Prior-year figure for the impairment loss of long-lived assets is printed as a Q3 2025 statement value only; no percentage change is printed.
- Dividend and share repurchase data: the release does not report any, and no statement of such activity is printed.
- Total debt, working capital deficit and near-term debt obligations are given in text only, without a prior-period comparison.
- Nasdaq listing compliance status: referred to in risk factors but not stated as a current fact in the release.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Microvast Holdings (NASDAQ:MVST) filed an 8‑K reporting its Q3 2026 financials, marking the first public release of these numbers.
Ticker impact
Microvast disclosed Q3 2026 results with revenue down 63% YoY and a net loss of $76.8M, a material earnings surprise.
likely pressure as investors price in weaker sales and higher impairments
Revenue collapse, gross margin compression, and large impairment charges indicate deteriorating fundamentals.
Market effects
Highlights weakness in the heavy‑duty electric‑vehicle battery segment, potentially weighing peers in the lithium‑ion battery space.
European and APAC battery suppliers may face heightened scrutiny as demand softens.
Limited to niche battery market; broader market impact minimal.
Counterpoint
If the company can successfully restructure debt and ramp production, the stock may be oversold.
Key entities
- companyMicrovast Holdings, Inc.
Battery manufacturer reporting Q3 2026 results.
