Microvast Shares Tumble Despite Record Quarterly Performance

Microvast Holdings experienced significant price swings following the release of its third-quarter 2025 financial results. The battery technology company’s stock reversed early gains to finish deeply negative, raising questions about whether investors are capitalizing on positive news to secure profits.

Strong Revenue Overshadowed by Earnings Miss

The company posted impressive third-quarter revenue of $123.3 million, representing substantial year-over-year growth of 21.6%. Gross margins expanded to a robust 37.6%, while operating profit reached $13 million. Adjusted net income came in at $11.9 million for the period.

However, market enthusiasm was tempered by the company’s earnings per share of $0.04, which fell short of the $0.05 consensus estimate among analysts. This discrepancy between strong top-line performance and disappointing bottom-line results appeared to unsettle investors.

Trading Session Sees Dramatic Reversal

Initially, share prices surged as much as 7% following the earnings announcement before encountering significant selling pressure. The early optimism quickly evaporated, with the stock ultimately closing down more than 10% from the previous session’s price of $4.98 to settle at $4.48.

Trading volume increased by 502,000 shares during the decline, potentially signaling continued downward momentum. The mixed financial picture included:

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

• Record Q3 2025 revenue of $123.3 million
• Strong gross margin performance of 37.6%
• Operating profit of $13 million
• GAAP net loss of $1.5 million
• Operating expenses rising 22% to $33.5 million

Strategic Developments Provide Long-Term Optimism

Despite the market’s negative reaction, Microvast continues to demonstrate strategic forward momentum. Management reaffirmed its full-year revenue guidance range of $450 to $475 million while raising margin targets to 32-35%.

The company’s recent partnership with Skoda Group for rail and public transportation applications highlights its technological capabilities. Simultaneously, the expansion of its Huzhou facility approaches completion, with additional annual capacity of up to 2GWh expected to come online beginning in the first quarter of 2026.

Analyst Community Remains Cautious

Market experts reflect the prevailing uncertainty with a consensus “Hold” rating and average price target of just $3.00. While Wall Street Zen upgraded its recommendation to “Buy,” Zacks Research downgraded to “Hold” and Weiss Ratings maintains its “Sell” position.

Technical indicators currently point to continued weakness, with both short-term and long-term moving averages suggesting additional downward pressure. The stock’s 52-week trading range between $7.12 and $0.172 underscores the extreme volatility that has characterized this equity.

The central question for investors remains whether Microvast can leverage its fundamental strengths to exceed expectations in coming quarters, or if the current downturn will persist despite solid operational performance.