Microvast Holdings: Navigating Growth Amidst Persistent Challenges

After a period of significant headwinds, battery technology firm Microvast Holdings is demonstrating tangible operational progress. While strategic partnerships and a strengthened financial foundation have provided recent momentum for its shares, analysts caution that the investment thesis continues to carry substantial risk.

The company's latest quarterly results underscore a positive shift. For Q3 2025, Microvast reported revenue of $123.29 million, marking a year-over-year increase of 21.6%. Perhaps more notably, the firm achieved a gross margin of 37.6% and posted a positive adjusted EBITDA. This improved profitability, driven by heightened customer demand, better margins, and reduced operating expenses, has allowed management to substantially alleviate prior "Going Concern" doubts for that quarter.

These financial improvements are being fueled by the commercial deployment of its technology. A key development is the expanded partnership with Škoda in the EMEA region, which serves to validate Microvast's operational capabilities and provides a growing revenue stream.

Should investors sell immediately? Or is it worth buying Microvast Holdings?

Expansion Plans and Underlying Risks

To meet rising demand, Microvast is actively scaling its manufacturing footprint. A new 2 GWh production line at its Huzhou facility is slated for completion before the end of Q4 2025. Management has reaffirmed its full-year guidance, projecting 2025 revenue to land between $450 million and $475 million.

However, challenges persist beneath the surface of growth. The company recorded a net loss of $1.49 million for the third quarter, reminding investors that profitability remains a work in progress. Furthermore, its concentrated production base in China introduces a geopolitical risk factor that market participants must continually monitor.

Market Perspective and Future Catalysts

The equity has delivered strong performance over the past twelve months, with shares currently trading around €3.25. The upcoming release of the full-year 2025 financial results will serve as a critical test, providing evidence on whether the current growth trajectory can be sustained over the long term. For now, Microvast presents a narrative of recovery and expansion, yet one that is still intertwined with familiar uncertainties.