Microvast Holdings, Inc. (NASDAQ: MVST) reported unaudited financial results for the quarter ended September 30, 2026, revealing a significant contraction in revenue and operating performance. The company announced a net loss of $76.8 million for the third quarter of 2026, compared to a net loss of $1.5 million in the same period of the prior year.
Revenues for Q3 2026 totaled $45.8 million, a decrease of $77.5 million, or 62.8%, from $123.3 million in Q3 2025. The decline was attributed to a 62.2% reduction in sales volume, driven by softer commercial vehicle demand in Europe and the Asia-Pacific region. Specific factors included reduced orders for heavy-duty trucks, port equipment, and mining equipment, as well as geopolitical dynamics and a shift toward lower-cost products in India. U.S. sales also decreased due to a major customer bringing product into 2025 to hedge against tariff uncertainty.
Gross margin for the quarter dropped to 5.2% from 37.6% in Q3 2025. This deterioration was primarily caused by a $9.3 million write-down for obsolete inventory related to specialized energy storage system components, which negatively impacted gross margin by 20.4 percentage points. Operating expenses rose to $69.0 million from $31.6 million, largely due to non-cash impairment charges of $35.7 million against long-lived assets in China, Germany, and the U.S.
On a year-to-date basis (nine months ended September 30, 2026), revenues decreased by 41.5% to $193.7 million. The company reported a net loss of $40.6 million for the period, with non-GAAP adjusted EBITDA falling to negative $62.7 million from positive $76.3 million in the prior year.
Microvast highlighted liquidity challenges, noting that cash, cash equivalents, and restricted cash totaled $124.4 million as of September 30, 2026. The company stated that it expects available cash to be insufficient to meet obligations over the next twelve months absent additional financing, refinancing, or further cost reductions. Management has concluded that substantial doubt regarding the company's ability to continue as a going concern has not been alleviated.
Regarding operations, the installation and commissioning of Huzhou Phase 3.2 production equipment have been completed, and the pack assembly line at the Clarksville facility is substantially completed. The company is currently negotiating with lenders to refinance or restructure near-term debt obligations, which include $41.7 million of convertible bonds due January 31, 2027, and various short-term bank loans.
