Microvast Sequential Sales Recover After First-Quarter Drop
Second-quarter revenue was $87.3 million, with $2.7 million of IEEPA tariff refunds booked as a cut to sales.
Microvast Holdings (MVST), a global battery-technology company, reported second-quarter revenue of $87.3 million, reversing the 48.0% year-over-year decline it had recorded in the first quarter.
The sequential recovery from $60.6 million in the prior quarter did not restore last year’s run rate. Sales were down 4.5% from $91.3 million a year earlier. The year-over-year decrease was primarily driven by $2.7 million in IEEPA tariff refunds issued to a U.S. customer and recorded as a reduction to revenue.
Gross margin continued to compress. It fell to 29.5% from 34.7% a year earlier and from 31.6% in the first quarter. Non-GAAP adjusted gross margin was 29.6%. The decline was primarily due to higher raw material prices and lower production utilization, which reduced fixed-cost absorption, slightly offset by recognition of the IEEPA tariff refunds.
Operating expenses increased to $27.5 million from $23.7 million a year earlier. Non-GAAP adjusted operating expenses were $26.7 million.
GAAP net loss narrowed to $12.0 million from $106.1 million a year earlier, primarily due to a reduction in negative impacts from changes in the fair value of warrant liability and convertible loan. Non-GAAP adjusted results flipped to a $5.3 million loss from a $16.3 million profit. Net loss per share was $0.03. Non-GAAP adjusted EBITDA fell to $3.6 million from $25.9 million a year earlier.
In May 2026, the company received $4.3 million in tariff refunds, excluding interest. Of that amount, $2.7 million was issued to a customer. Refunds received were recognized as a reduction to cost of revenue; the customer refund was recognized as a reduction of revenue for the three and six months ended June 30, 2026.
Capital expenditures rose to $11.3 million from $7.4 million a year earlier. Cash, cash equivalents and restricted cash were $143.1 million as of June 30, 2026, compared with $169.2 million at December 31, 2025.
For the six months ended June 30, 2026, revenue was $147.9 million, down 28.8% from $207.8 million a year earlier. The first-half decline reflected evolving regulatory and geopolitical dynamics, including in the Indian and Korean markets, a demand shift toward lower-cost products in India, OEM platform ramp-up delays, and the $2.7 million IEEPA tariff refund recorded as a revenue reduction. Six-month gross margin decreased to 30.4% from 36.0% a year earlier. GAAP results swung to net profit of $36.2 million from a $44.3 million loss, primarily due to a reduction in negative impacts from changes in the fair value of warrant liability and convertible loan. Non-GAAP adjusted results were a $19.9 million loss versus a $35.6 million profit. Six-month non-GAAP adjusted EBITDA was negative $1.9 million, compared with $54.4 million a year earlier.
Founder, Chairman and Chief Executive Officer Yang Wu said the company progressed through a pivotal phase of global capacity expansion and that returning the $2.7 million in IEEPA tariff refunds to U.S. customers reinforced long-term commercial partnerships.
Huzhou Phase 3.2 is expected to deliver up to 2 GWh of next-generation modular capacity. Localized pack assembly at Clarksville remains on schedule, with initial operations anticipated by year-end. The company continues to target a stable gross-margin profile through operational discipline and premium product positioning, seeking to balance inflationary raw-material pricing, duties and tariffs, and elevated logistics costs against planned absorption of ramp-up expenses tied to the Phase 3.2 expansion.
The company continues to seek new commercial momentum across EMEA, North America, and APAC, with a long-term focus on heavy industrial and transit markets, subject to product validation, OEM integration, customer qualification, and availability of domestic manufacturing capacity and capital.