Microvast Holdings posted fiscal Q1 2026 revenue of $60.6 million, a 48% year-over-year decline that fell short of the expected $132.8 million, and its non-GAAP EPS of -$0.04 missed expectations by 180%. Management attributed the revenue drop to regulatory shifts in India and Korea, a demand shift toward cheaper products, and OEM production delays, while gross margins slipped from 36.9% to 31.6% due to lower factory utilization. Cash reserves grew to $174 million and operating expenses were trimmed. The company is ramping up its Huzhou Phase 3.2 expansion to add 2 GWh of capacity and launch new 290Ah battery packs, and is building US assembly capabilities in Clarksville to strengthen its position in heavy industrial and transit markets. Despite the sharp decline, analysts' 12-month average price target suggests more than 386% upside from current levels.
Microvast Holdings IncRevenue fell 48% due to regulatory changes in India/Korea, shift to lower-priced products, and OEM production delays.