Can Microvast (MVST) Stock Recover After Its Worst Quarter in Recent Memory?

TLDR

• Microvast Q1 2026 revenue fell 48% year-over-year to $60.6 million, missing the $99 million estimate
• EPS loss of $0.04 missed analyst forecast of $0.05; adjusted EBITDA swung to -$5.5 million
• U.S. revenue collapsed 96% to $234,000; Asia-Pacific dropped 66%; Europe down 28%
• MVST stock fell 5.16% in after-hours trading to $2.09, down 55% over the past six months
• Company launched its KAF electric powertrain for school buses and ended Q1 with $174 million in cash

Microvast (MVST) posted a rough Q1 2026, with revenue falling 48% year-over-year to $60.6 million — well below the single analyst estimate of $99 million. The stock dropped 5.16% in after-hours trading to $2.09.

Microvast Holdings, Inc., MVST

The EPS loss came in at $0.04, missing the $0.05 forecast. Adjusted EBITDA swung from a positive $28.5 million in Q1 2025 to a negative $5.5 million this quarter.

Sales volume dropped nearly in half, from 536 MWh in Q1 2025 to 274 MWh in Q1 2026. That decline hit the bottom line hard, though gross margin held up better than expected at 31.6%, down from 36.9% a year ago.

Adjusted net loss for the quarter was $14.6 million, compared to an adjusted net profit of $19.3 million in the same period last year.

Regional Breakdown

Europe remained the largest market at 71% of revenue, or $43.2 million, but that was still a 28% drop year-over-year. The company cited a delayed OEM platform rollout and slower-than-expected ramp-up.

Asia-Pacific fell 66% to $17.1 million, with Microvast pointing to geopolitical pressures in Korea and India, plus a demand shift toward lower-cost products.

The U.S. was the most dramatic decline — revenue fell 96% to just $234,000. The company said revenue was pulled forward into 2025 due to tariff uncertainty, creating a tough comparison this quarter.

New Products and Expansion Plans

Despite the weak numbers, Microvast used the earnings presentation to spotlight new products. The KAF integrated electric powertrain targets the school bus market, bundling eight components — including battery packs, thermal management, and onboard charging — into a single modular system.

The company also launched 290Ah cell LFP battery packs for commercial and heavy-duty industrial use.

On the manufacturing side, Microvast is advancing its Huzhou Phase 3.2 expansion in China, which is expected to add 2 GWh of annual production capacity when it hits serial production in 2026. The company also plans to localize pack operations in Clarksville, Tennessee this year.

Cash and cash equivalents ended the quarter at $174 million, up $4.8 million from the start of the period. Operating activities used $22.8 million in cash during the quarter.

The one analyst covering the stock has a buy rating and a 12-month price target of $6.00 — roughly 181% above the May 8 closing price of $2.13.

Microvast said it expects a recovery in delivery schedules and a gradual revenue ramp through the rest of 2026, with Q2 revenue projected at $103.2 million and Q3 at $135.6 million.

The company holds over 890 global patents and has been in battery development for nearly 20 years. R&D spending increased in Q1 as it expanded its U.S. presence.

Operating expenses declined 7.1% to $27.1 million, with lower credit loss allowances driving the G&A reduction.

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