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Dec 31, 2024

Microvast Q4 2024 Earnings Report

Microvast reported record Q4 2024 revenue, with improved gross margins and reduced adjusted net loss.

Key Takeaways

In Q4 2024, Microvast achieved record quarterly revenue of $113.4 million, marking an 8.4% year-over-year increase. The company significantly improved its gross margin to 36.6% and reduced its non-GAAP adjusted net loss to $0.6 million. While GAAP net loss stood at $82.3 million, operational efficiency gains and restructuring helped generate positive cash from operations.

Quarterly revenue reached a record $113.4 million, up 8.4% YoY.

GAAP gross margin improved to 36.6% from 22.0% in Q4 2023.

Non-GAAP adjusted net loss narrowed significantly to $0.6 million.

Company generated $2.8 million in operating cash flow due to efficiency gains.

Total Revenue
$113M
Previous year: $105M
+8.4%
EPS
-$0.01
Previous year: -$0.04
-75.0%
Backlog
$401M
Gross Profit
$41.5M
Previous year: $23M
+80.3%
Cash and Equivalents
$73M
Previous year: $44.5M
+63.9%
Free Cash Flow
$2.81M
Previous year: -$60.7M
-104.6%
Total Assets
$952M
Previous year: $1.1B
-13.2%

Microvast

Microvast

Forward Guidance

Microvast expects revenue growth between 18% and 25% in 2025, targeting a range of $450M to $475M, supported by expanded production capacity and continued market momentum.

Positive Outlook

  • Targeting 18% to 25% YoY revenue growth in 2025
  • Guidance range of $450M to $475M for full-year revenue
  • Anticipated production ramp of Huzhou Phase 3.2 in Q4 2025
  • Gross margin target of 30% driven by regional efficiencies
  • Increased presence in commercial vehicle OEM segments

Challenges Ahead

  • Continued GAAP net losses despite revenue growth
  • Ongoing reliance on non-GAAP adjustments to reach profitability
  • High impairment losses and share-based compensation
  • Convertible loan impact on financial structure and valuation
  • Potential macroeconomic and geopolitical uncertainties