Microvast Holdings Reports 9.2% Revenue Growth and $106.1 Million Net Loss in Q2 2025

Microvast Holdings, Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 9.2% year-over-year, totaling $91.3 million compared to $83.7 million in the same period of 2024. The company achieved a gross profit of $31.7 million, representing a gross margin of 34.7%, up from 32.5% in the prior year. Despite the revenue growth, Microvast recorded a net loss of $106.1 million, slightly higher than the $101.6 million loss reported in the previous year. The loss was primarily attributed to significant changes in the fair value of the company's convertible loan and warrant liabilities, which accounted for a loss of $121.5 million in the quarter.

In terms of operational performance, Microvast's sales volume increased by 36.4%, reaching approximately 411.5 MWh for the quarter. The company’s order backlog stood at $320 million, with expectations to fulfill most of these orders in 2025 and 2026. The company has also made strides in reducing operating expenses, with general and administrative costs decreasing by 83% to $4 million, largely due to reduced share-based compensation and favorable foreign exchange impacts.

Strategically, Microvast has shifted its focus from producing nickel manganese cobalt (NMC) batteries to lithium iron phosphate (LFP) batteries, which are seen as more suitable for the U.S. energy storage market. The company introduced the Mega Energizer 6 (ME6), a 6 MWh energy storage system featuring its proprietary 565Ah LFP battery. This pivot is part of a broader strategy to enhance operational efficiencies and meet domestic content requirements for U.S. customers. Additionally, Microvast is working on expanding its production capacity in Huzhou, China, and is committed to completing its facility in Clarksville, Tennessee, which has faced delays due to funding constraints.

As of June 30, 2025, Microvast reported total assets of $1.0 billion, with cash and cash equivalents amounting to $99.7 million. The company’s total liabilities increased to $648.6 million, primarily due to short-term bank borrowings and a convertible loan. Management expressed optimism about the company's future, citing positive operating cash flow and a commitment to refinancing short-term debts. However, they acknowledged ongoing challenges related to liquidity and the need for additional capital to support growth initiatives. The company remains focused on driving innovation in battery technology and expanding its market presence in the U.S. and Europe.