The fourth quarter revenue was $96.4 million, down 15.0% from $113.4 million in Q4 2024, attributed to regulatory shifts in South Korea and delays in customer platform ramp-up in the EMEA region. The gross margin for the year decreased to 28.6%, primarily due to a $32.5 million inventory impairment charge related to specialized energy storage system components. Operating expenses were reduced by 50.4% to $118.3 million compared to $238.3 million in 2024.
CEO Yang Wu expressed optimism about the company's future, stating, "We achieved record revenue in 2025, capping off a year of significant progress. While our full-year revenue landed below our guidance due to evolving regulatory shifts in the Korean market and customer platform ramp-up delays, our underlying fundamentals remain strong. The momentum in EMEA is encouraging as we continue into 2026, particularly as previous vehicle platform delays in the region begin to resolve."
Looking ahead, Microvast is focused on maintaining revenue growth and achieving profitability, with plans for serial production at its Huzhou Phase 3.2 expansion expected to come online in 2026. The company aims to continue expanding its global footprint and is targeting new customer pipelines across EMEA, North America, and APAC, particularly in high-barrier-to-entry segments such as heavy industrials and transit. The company will host a conference call and webcast on March 16, 2026, to discuss these results and future outlook.
