HOUSTON, Nov. 09, 2026 (GLOBE NEWSWIRE) — Mic ovast Holdi gs, I c. (NASDAQ:MVST) (“Mic ovast” o the “Compa y”), today a ou ced its u audited co solidated fi a cial esults fo the qua te e ded Septembe 30, 2026 (“Q3 2026”).
“The thi d qua te p ese ted a highly challe gi g ope ati g e vi o me t as we avigated softe comme cial vehicle dema d ac oss ou key ma kets i Eu ope a d APAC, compou ded by o goi g i dust y p ici g p essu es,” said Ya g Wu, Mic ovast’s Fou de , Chai ma , a d Chief Executive Office . The mate ial decli e i sales, g oss ma gi a d ope ati g pe fo ma ce du i g the qua te have sig ifica tly co st ai ed ou liquidity. Co side i g ou cu e t bala ce sheet positio , ou focus is o the actio s withi ou co t ol: educi g costs, p ese vi g liquidity, a d egotiati g with ou le de s i a attempt to efi a ce, exte d o est uctu e ou ea -te m debt obligatio s. Rega di g ou cu e t ope atio s, i stallatio a d commissio i g of ou Huzhou Phase 3.2 p oductio equipme t have bee completed a d the pack assembly li e at ou Cla ksville facility is substa tially completed. We ecog ize that the outcome of these effo ts is u ce tai a d depe ds o facto s outside ou co t ol, i cludi g le de decisio s a d custome dema d.”
- Reve ues of $45.8 millio , compa ed to $123.3 millio i Q3 2025, dec easi g by $77.5 millio , o 62.8%. The dec ease was p ima ily d ive by a 62.2% eductio i sales volume f om app oximately 501.7 MWh i Q3 2025 to app oximately 189.6 MWh i Q3 2026. The decli e eflected weake sales ac oss Eu ope a d APAC as the esult of softe e d-ma ket dema d fo heavy-duty t ucks, po t equipme t, a d heavy mi i g equipme t, which led to educed o de s f om seve al of ou lo g-sta di g custome s ac oss Eu ope a d APAC. Dema d co ti ued to be adve sely affected by evolvi g comme cial vehicle egulato y a d geopolitical dy amics, i cludi g the I dia a d Ko ea ma kets, a d dema d shift towa ds lowe cost p oducts i I dia. The dec ease i U.S. sales ve sus the p io yea pe iod was p ima ily due to ou la gest custome b i gi g p oduct i to 2025 as a esult of u ce tai ty a ou d ta iff outcomes.
- G oss ma gi dec eased to 5.2% f om 37.6% i Q3 2025. This cha ge was p ima ily att ibutable to a $9.3 millio w ite-dow fo obsolete i ve to ies elated to specialized e e gy sto age system (“ESS”) compo e ts a d othe i ve to ies, which egatively impacted ou g oss ma gi by 20.4 pe ce tage poi ts. Excludi g the impact of this o -cash cha ge, the dec eased g oss ma gi eflected the sig ifica t eductio i sales volume, a d co ti ued p ici g p essu e i the lithium batte y i dust y. The dec ease i eve ue also educed the abso ptio of fixed ma ufactu i g a d ope ati g costs, fu the comp essi g g oss ma gi .
- Ope ati g expe ses i c eased to $69.0 millio , compa ed to $31.6 millio i Q3 2025. This i c ease i ope ati g expe ses was p ima ily d ive by o -cash impai me t cha ges of lo g-lived assets of $35.7 millio , i cludi g a $15.0 millio , $4.4 millio , a d $16.3 millio impai me t loss fo ou ope atio s i Chi a, Ge ma y, a d the U.S., espectively. The impai me t cha ges esulted f om impai me t testi g of all p oductio li e assets a d co st uctio -i -p og ess assets, t igge ed by a mate ial decli e i sales, g oss ma gi , a d ope ati g pe fo ma ce du i g Q3 2026.
- Net loss of $76.8 millio , compa ed to et loss of $1.5 millio i Q3 2025. The i c ease i et loss was p ima ily att ibutable to the $35.7 millio o -cash impai me t cha ges of lo g-lived assets a d lowe g oss p ofit o educed eve ue i the qua te . No -GAAP adjusted et loss* was $76.0 millio , compa ed to o -GAAP adjusted et p ofit* of $11.9 millio i Q3 2025.
- Net loss pe sha e of $0.20, compa ed to et loss pe sha e of $0.00 i Q3 2025. No -GAAP adjusted et loss pe sha e* was $0.20, compa ed to o -GAAP adjusted et p ofit pe sha e* of $0.04 i Q3 2025.
- No -GAAP adjusted EBITDA* of egative $60.8 millio i Q3 2026, compa ed to o -GAAP adjusted EBITDA* of $21.9 millio i Q3 2025.
- Capital expe ditu es of $2.3 millio , compa ed to $17.4 millio i Q3 2025.
- Cash, cash equivale ts a d est icted cash of $124.4 millio as of Septembe 30, 2026, compa ed to $169.2 millio as of Decembe 31, 2025, a d $142.6 millio as of Septembe 30, 2025.
- Reve ues of $193.7 millio compa ed to $331.1 millio i the i e mo ths e ded Septembe 30, 2025 (“YTD 2025”), a dec ease of 41.5%. The dec ease was p ima ily d ive by a 37.4% eductio i sales volume, which eflected weake sales ac oss Eu ope a d APAC as the esult of softe e d-ma ket dema d fo heavy-duty t ucks, po t equipme t, a d heavy mi i g equipme t, which led to educed o de s f om seve al of ou lo g-sta di g custome s, ac oss Eu ope a d APAC, a d a $2.7 millio IEEPA(1) ta iff efu d issued to a custome eco ded as a eductio to ou eve ue i the cu e t pe iod.
- G oss ma gi dec eased to 24.4% f om 36.6% i YTD 2025. This cha ge was p ima ily att ibutable to a $11.1 millio w ite-dow fo obsolete i ve to ies elated to specialized ESS compo e ts a d othe i ve to ies, which egatively impacted ou g oss ma gi by 5.7 pe ce tage poi ts. Excludi g the impact of this o -cash cha ge, the dec eased g oss ma gi eflected the sig ifica t eductio i sales volume, cha ges i geog aphic ma kets, co ti ued p ici g p essu e i the lithium batte y i dust y highe aw mate ial p ices, a d lowe p oductio utilizatio , which educed fixed cost abso ptio , slightly offset by the ecog itio of IEEPA(1) ta iff efu ds eceived.
- Ope ati g expe ses i c eased to $123.6 millio , compa ed to $84.4 millio i YTD 2025. This i c ease i ope ati g expe ses was p ima ily d ive by o -cash impai me t cha ges of lo g-lived assets of $35.8 millio .
- Net loss of $40.6 millio , compa ed to et loss of $45.8 millio i YTD 2025. The dec ease i et loss was p ima ily att ibutable to a $58.0 millio o -cash gai f om the cha ge i fai value of the wa a t liability p io to thei expi atio o July 23, 2026 a d co ve tible loa p io to its settleme t o May 28, 2026, compa ed to a $91.0 millio o -cash loss i YTD 2025, pa tially offset by the $35.8 millio o -cash impai me t of lo g-lived assets, lowe g oss p ofit, a $15.4 millio fo eig excha ge loss compa ed to a $9.0 millio fo eig excha ge gai i YTD 2025, $5.4 millio of i come tax expe se esulti g f om a full valuatio allowa ce agai st ou defe ed tax assets. No -GAAP adjusted et loss* was $96.0 millio , compa ed to o -GAAP adjusted et p ofit of $47.5 millio i YTD 2025.
- Net loss pe sha e of $0.11, compa ed to et loss pe sha e of $0.14 i YTD 2025. No -GAAP adjusted et loss pe sha e* was $0.27, compa ed to o -GAAP adjusted et p ofit pe sha e* of $0.15 i YTD 2025.
- No -GAAP adjusted EBITDA* of egative $62.7 millio i YTD 2026, compa ed to o -GAAP adjusted EBITDA* of $76.3 millio i YTD 2025.
- Capital expe ditu es of $17.9 millio , compa ed to $31.4 millio i YTD 2025.
*The Compa y p ese ts its fi a cial esults i acco da ce with ge e ally accepted accou ti g p i ciples i the U ited States of Ame ica (“GAAP”). Howeve , ma ageme t believes that usi g additio al o -GAAP measu es will e ha ce the evaluatio of the p ofitability of the Compa y a d its o goi g ope atio s. Please see the tables o pages 14-17 below fo eco ciliatio s of GAAP to o -GAAP fi a cial measu es. The Co solidated Bala ce Sheets, Co solidated Stateme ts of Ope atio s, a d Co solidated Stateme ts of Cash Flows a e de ived f om the co solidated fi a cial stateme ts p ese ted i ou Qua te ly Repo t o Fo m 10-Q as of a d fo the th ee- a d i e-mo th pe iods e ded Septembe 30, 2026.
(1)I Feb ua y 2026, the U ited States Sup eme Cou t uled that ce tai ta iffs imposed u de the I te atio al Eme ge cy Eco omic Powe s Act (“IEEPA”) we e ot autho ized by statute. Followi g the uli g, the U.S. Cou t of I te atio al T ade o de ed U.S. Customs a d Bo de P otectio to suspe d collectio of such ta iffs a d to establish a p ocess to efu d amou ts p eviously collected. As a esult of this uli g, the Compa y is eligible to eceive efu ds of ta iffs p eviously paid o qualifyi g impo ts. Du i g the i e mo ths e ded Septembe 30, 2026, the Compa y eceived $4.4 millio i ta iff efu ds, excludi g i te est. Of this amou t, $2.7 millio was issued i ta iff efu ds to a custome . The IEEPA ta iff efu ds eceived we e ecog ized as a eductio to the cost of eve ue, while the efu d issued to ou custome was ecog ized as a eductio of eve ue fo the i e mo ths e ded Septembe 30, 2026.
- Cash, cash equivale ts a d est icted cash totaled $124.4 millio as of Septembe 30, 2026, of which $84.8 millio was comp ised of cash a d cash equivale ts. Of the cash a d cash equivale ts, $30.4 millio was held by ou Chi ese subsidia ies a d $14.4 millio was held by ou Eu opea subsidia ies. Due to fo eig egulato y est ictio s, adve se tax co seque ces a d localized wo ki g capital eeds, we a e cu e tly u able to epat iate cash f om Chi a a d Eu ope to fu d ou U.S. ope atio s. We cu e tly i te d to etai available fu ds a d a y futu e ea i gs to satisfy ou debt obligatio s a d to suppo t o goi g ope atio s i Chi a, Eu ope a d the U.S.
- Net cash used i ou ope ati g activities was $65.4 millio fo the i e mo ths e ded Septembe 30, 2026, compa ed to $59.5 millio i cash ge e ated by ope ati g activities i the same pe iod i 2025.
- Total debt was $177.0 millio as of Septembe 30, 2026, co sisti g of $135.3 millio of ba k bo owi gs a d $41.7 millio of co ve tible bo ds issued by Mic ovast Powe Systems Co., Ltd. (“MPS”), ou p i cipal ope ati g subsidia y i Chi a, to Huzhou Saiyua . Cu e t ba k bo owi gs, otes payable a d cu e t bo ds payable totaled app oximately $196.0 millio , a d we had a wo ki g capital deficit of $3.1 millio .
- As of the date of this elease, ou ea -te m debt obligatio s i clude: (i) $41.7 millio of co ve tible bo ds, due, togethe with acc ued i te est, o o befo e Ja ua y 31, 2027; (ii) $84.0 millio of sho t-te m ba k loa s of ou PRC subsidia ies, which matu e at va ious dates du i g the ext twelve mo ths; a d (iii) $373 thousa d, $149 thousa d, $13.8 millio a d $149 thousa d of p i cipal u de MPS’s lo g-te m wo ki g capital loa s, due Decembe 19, 2026, Ma ch 18, 2027, Ju e 19, 2027 a d Septembe 18, 2027, espectively. Ou ability to make these payme ts depe ds o ou ability to efi a ce o exte d these obligatio s. We a e i o goi g egotiatio s with ou le de s ega di g these obligatio s, but the e ca be o assu a ce that these obligatio s will be efi a ced o exte ded o acceptable te ms, o at all. A failu e to make a y of these payme ts will esult i a eve t of default a d the accele atio of substa tially all of ou ba k bo owi gs a d bo ds payable a d the e fo ceme t of secu ity ove MPS’s assets a d ou equity i te est i MPS. As of Septembe 30, 2026, we also had outsta di g bo owi gs of $22.4 millio u de ou loa facilities ag eeme t e te ed i to o Septembe 27, 2022 with a g oup of le de s led by a ba k i Chi a, which we e due o Decembe 10, 2026. Subseque t to Septembe 30, 2026, we epaid the emai i g bala ce of $22.4 millio , a d that facility was fully epaid a d eti ed. Additio ally, du i g the i e mo ths e ded Septembe 30, 2026, we secu ed $95.8 millio of ba k bo owi gs, of which $59.8 millio ep ese ted efi a ced debt, a d si ce Septembe 30, 2026, we have efi a ced a additio al $8.9 millio of sho t-te m ba k bo owi gs.
- As of Octobe 31, 2026, ou total usable cash ac oss all of ou e tities was app oximately $71.3 millio . Based o ou cu e t fo ecasts, abse t additio al fi a ci g, the efi a ci g o exte sio of ou debt obligatio s, o fu the cost eductio s, we expect ou available cash to be i sufficie t to meet ou obligatio s as they come due ove the ext twelve mo ths, i cludi g ou ea -te m debt matu ities a d pe di g legal settleme ts.
- Ou eve ues a e mate ially co ce t ated with a small umbe of custome s, a d the e is sig ifica t u ce tai ty ega di g the level of futu e o de s f om ce tai of ou la gest custome s. O e of ou sig ifica t Eu opea custome s was ece tly acqui ed by a thi d pa ty, which c eates additio al u ce tai ty ega di g its futu e pu chases f om us. We cu e tly have limited visibility i to ou eve ue fo the ext seve al qua te s a d i to cash collectio s i the ea te m, a d ou fi st qua te has histo ically eflected omi al eductio s i activity elated to the Chi ese New Yea holiday.
Based o ou cu e t cash flow fo ecasts, abse t additio al fi a ci g, the efi a ci g, exte sio o est uctu i g of ou debt obligatio s, o sig ifica t fu the eductio s i costs, we expect ou available cash to be i sufficie t to meet ou obligatio s as they come due ove the ext twelve mo ths. Ma ageme t has co cluded that its pla s to alleviate the substa tial doubt about ou ability to co ti ue as a goi g co ce ca ot be deemed p obable of bei g effectively impleme ted a d, acco di gly, the substa tial doubt has ot bee alleviated.
I light of the u ce tai ty ega di g ou liquidity positio , ou o goi g discussio s with ou le de s ega di g the efi a ci g, exte sio o est uctu i g of ou ea -te m debt obligatio s, a d softe e d-ma ket dema d, we a e impleme ti g ope ati g cost eductio i itiatives ac oss all a eas of the busi ess, educi g o defe i g ce tai disc etio a y capital expe ditu es a d impleme ti g ta geted eductio s i wo kfo ce i ce tai of ou ope atio s. Ou cost- eductio p og am has ot bee fully impleme ted, a d the cash costs associated with these actio s have st ai ed a d may co ti ue to st ai ou ea -te m liquidity.
- We co ti ue to explo e pote tial oppo tu ities i the comme cial vehicle ma ket.
- I stallatio a d commissio i g of the Phase 3.2 p oductio equipme t at ou Huzhou, Chi a facility have bee completed. P oductio amp-up is depe de t o custome dema d, p oductio yields, p oduct qualificatio , ope ati g efficie cy a d wo ki g capital availability. U less p oductio volumes i c ease sufficie tly, the Phase 3.2 li e will ope ate below its desig ed capacity.
- The pack assembly li e at ou Cla ksville facility is substa tially completed. Resumptio of full-scale co st uctio at the facility emai s co ti ge t upo secu i g additio al fi a ci g o st ategic pa t e ships.
Compa y ma ageme t will host a co fe e ce call a d webcast o Novembe 9, 2026, at 4:00 p.m. Ce t al Time, to discuss the Compa y’s fi a cial esults. The live webcast a d accompa yi g slide p ese tatio will be accessible f om the Eve ts & P ese tatio s sectio of Mic ovast’s i vesto elatio s website (https://i .mic ovast.com/eve ts-p ese tatio s/eve ts). A eplay will be available followi g the co clusio of the eve t.
Mic ovast st ives to be a global leade i adva ced batte y tech ologies, with a po tfolio of mo e tha 890 pate ts. Fou ded i Texas i 2006 a d headqua te ed i Housto , the compa y has spe t two decades e gi ee i g cutti g-edge batte y systems that a e i te ded to powe a clea e futu e.
Fo mo e i fo matio , please visit www.mic ovast.com o follow us o Li kedI (@mic ovast).
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This commu icatio co tai s “fo wa d-looki g stateme ts” withi the mea i g of the P ivate Secu ities Litigatio Refo m Act of 1995. Fo wa d-looki g stateme ts a e based o assumptio s with espect to the futu e a d ma ageme t’s cu e t expectatio s, i volve ce tai isks a d u ce tai ties a d a e ot gua a tees. These fo wa d-looki g stateme ts i clude, but a e ot limited to, ou ability to alleviate the substa tial doubt ega di g ou ability to co ti ue as a goi g co ce , ou ability to impleme t ou pla s to alleviate that substa tial doubt, ou ability to meet ou cu e t a d ea -te m debt a d liquidity equi eme ts, ou futu e esults of ope atio s a d fi a cial positio a d liquidity, ou ope atio al pe fo ma ce, ou st ategy, ou explo atio of pote tial efi a ci gs o exte sio s of ou debt obligatio s, i cludi g pote tial esults the eof, ou ability to egai complia ce with a d mai tai the listi g of ou commo stock o the Nasdaq stock excha ge, the pote tial developme t a d comme cializatio of Mic ovast’s KAF™ (“Kids A e Futu e”) elect ic powe t ai platfo m, the p ojected costs, p ospects, pla s a d objectives of ma ageme t fo co ti ued ope atio s, i cludi g ega di g dema d fo ou p oducts a d i t oductio of ew p oducts, the adoptio of such offe i gs by custome s, ou expectatio s elati g to backlog, cu e t expectatio s elati g to legal p oceedi gs as well as pote tial impacts f om a y p oposed o ece tly e acted legislatio , i cludi g impacts f om the ewly-effective co sumptio tax o lithium p oducts a d fo thcomi g elimi atio of ce tai batte y p oducts expo t value-added tax ebates i Chi a. I some cases, you may also ide tify fo wa d-looki g stateme ts by wo ds such as “a ticipate,” “believe,” “ca ,” “co ti ue,” “could,” “estimate,” “expect,” “i te d,” “may,” “might,” “objective,” “pla ,” “p oject,” “p edict,” “outlook,” “should,” “will,” “would,” o the egative of these te ms, o othe compa able te mi ology i te ded to ide tify stateme ts about the futu e. Such fo wa d-looki g stateme ts a e based upo the cu e t beliefs a d expectatio s of ma ageme t a d a e i he e tly subject to sig ifica t busi ess, eco omic a d competitive u ce tai ties a d co ti ge cies, ma y of which a e difficult to p edict a d ge e ally beyo d ou co t ol. Actual esults o outcomes, o the timi g of esults o outcomes, may diffe mate ially f om the esults a ticipated i these fo wa d-looki g stateme ts. We do ot assume a y obligatio to update a y fo wa d-looki g stateme ts.
I additio to facto s ide tified elsewhe e i this commu icatio , the followi g facto s, amo g othe s, could cause actual esults a d the timi g of eve ts to diffe mate ially f om the a ticipated esults o othe expectatio s exp essed i the fo wa d-looki g stateme ts: (1) the isk that ou pla s i te ded to alleviate substa tial doubt about ou ability to co ti ue as a goi g co ce will ot be effectively impleme ted withi o e yea afte the date ou fi a cial stateme ts a e issued o , whe impleme ted, will ot mitigate the co ditio s a d eve ts that aise substa tial doubt; (2) the isk that we will ot be able to timely se vice a d pay off ou existi g debt obligatio s a d othe wise satisfy ou liquidity equi eme ts, i cludi g ou sho t-te m ba k bo owi gs a d bo ds payable p io to thei matu ity, as well as to successfully egotiate with ou le de s to efi a ce, est uctu e o exte d existi g debt o i cu additio al debt o te ms a d at ates acceptable to us; (3) the isk that MPS, ou p i cipal ope ati g subsidia y i Chi a, becomes i solve t, a d the effect of a y such i solve cy o ou busi ess, fi a cial co ditio a d esults of ope atio s; (4) isks that we will co ti ue to expe ie ce difficulties i ge e ati g a d mai tai i g dema d fo ou p oducts, leadi g to a co ti ued decli e i ou eve ue, fi a cial co ditio a d esults of ope atio s; (5) isks ega di g ou depe de cy o a small umbe of custome s, the loss of a y additio al sig ifica t custome s a d a y additio al eductio s i p ici g o volume, defe als o ca cellatio s of existi g o futu e o de s f om ou cu e t custome s; (6) isks elated to ou ability to att act ew custome s a d etai existi g custome s; (7) isks that we will ot be able to collect ove due accou ts eceivable; (8) isks elated to the effects of existi g a d futu e litigatio a d how such litigatio has affected a d will co ti ue to affect ou cash positio ; (9) isk of additio al p oduct liability o egulato y lawsuits o p oceedi gs elati g to ou p oducts o se vices; (10) isks elated to est ictio s i ou existi g a d a y futu e c edit facilities, ou ability to comply with fi a cial cove a ts a d the isk of c oss-default, the isk that waive s o ame dme ts may ot be obtai ed f om ou le de s, the isk that ou i debted ess may be accele ated o classified as cu e t, a d the isk of a y defaults diluti g ow e ship i ou subsidia ies; (11) isks elated to the impact of ou i debted ess, debt se vice obligatio s a d debt cove a ts, a d how they have affected a d will co ti ue to affect ou cash positio ; (12) isks elated to the effect of the substa tial doubt about ou ability to co ti ue as a goi g co ce o ou elatio ship with custome s a d supplie s, ou ability to mai tai labo elatio s a d att act a d etai qualified key full-time a d co t act pe so el, a d ou ability to aise capital; (13) isks elated to fluctuatio s i availability a d co ti ued i c eases i the p ice of aw mate ials; (14) the isk that ta iffs imposed o p oducts of the PRC i to the U ited States will co ti ue to i c ease costs a d impact ou busi ess, that pu sui g efu ds of such ta iffs may ot be successful a d the isk that pu suit of such efu ds may dive t the time a d atte tio of ma ageme t; (15) isks ega di g ou ability to egai a d mai tai complia ce with Nasdaq listi g equi eme ts, that ou commo stock may be delisted a d the e will o lo ge be a ma ket fo ou commo stock, a d that stockholde s may lose some o all of thei i vestme t i ou commo stock; (16) isks elated to difficulties i co t olli g ma ufactu i g costs, mai tai i g ma ufactu i g capacity a d establishi g ma ufactu i g capacity i the futu e, a d the isk of issues, delays, dis uptio s o quality co t ol p oblems; (17) the isk that the u availability, eductio o elimi atio of, o u ce tai ty ega di g, gove me t a d eco omic i ce tives o subsidies available to us, e d-use s o OEMs will co ti ue to have a mate ial adve se effect o ou busi ess, fi a cial co ditio a d esults of ope atio s; (18) isks of ope atio s i the People’s Republic of Chi a (“PRC” o “Chi a”); (19) isks elated to pote tial cha ges i ge e al eco omic co ditio s, i cludi g i c eases i i te est ates a d associated Fede al Rese ve policies, a pote tial eco omic ecessio , a d the impact of i flatio o ou busi ess; (20) isks elated to ou ability to compete i the highly competitive ma ket i which we compete, i cludi g with espect to ou competitive la dscape, tech ology evolutio o egulato y cha ges; (21) isks elated to supplie co ce t atio a d co st ai ed supplie capacity, that ou limited supplie s may fail to delive compo e ts acco di g to schedules, p ices, quality a d volumes that a e acceptable to us, the isk that we may be u able to ma age these compo e ts effectively a d the isks elated to ou status as a elatively low-volume pu chase ; (22) isk that we a e u able to secu e o p otect ou i tellectual p ope ty; (23) isk that ou custome s o thi d-pa ty supplie s a e u able to meet thei obligatio s fully o i a timely ma e ; (24) isks elated to ou le gthy sales cycle fo ou p oducts; (25) isks elated to ou ability to mai tai a d e ha ce ou eputatio a d b a d ecog itio ; (26) isks elati g to faci g st o g competitio fo ou p oducts a d se vices f om a g owi g list of established a d ew competito s; (27) isks elated to the effective ess of ou i fo matio tech ology a d ope atio al tech ology systems a d p actices to detect a d defe d agai st evolvi g cybe attacks; (28) isks elated to cha gi g laws ega di g cybe secu ity a d data p ivacy, a d a y cybe secu ity th eat o eve t; (29) isks elated to the effects a d associated cost of complia ce with existi g a d futu e laws a d gove me tal egulatio s; (30) isks elati g to whethe e ewable e e gy tech ologies a e suitable fo widesp ead adoptio o if sufficie t dema d fo ou offe i gs does ot develop o takes lo ge to develop tha we a ticipate; (31) isks of eco omic, fi a cial a d othe impacts of a mate ial global eve t such as a pa demic, i cludi g global supply chai dis uptio s; (32) isks to ou busi ess caused by the impacts of geopolitical eve ts, such as the o goi g co flicts i the Middle East, i cludi g hostilities with I a , the wa betwee Russia a d Uk ai e, a d othe cu e t o futu e co flicts; a d (33) isks associated with mai tai i g ou i te atio al ope atio s, i cludi g u favo able a d u ce tai egulato y, political, eco omic, tax, a d labo co ditio s. Mic ovast’s a ual, qua te ly a d othe fili gs with the U.S. Secu ities a d Excha ge Commissio (the “SEC”) ide tify, add ess a d discuss these a d othe facto s i the sectio s e titled “Risk Facto s.”
The fo egoi g list of facto s is ot exhaustive a d ew facto s may eme ge f om time to time that could also affect actual pe fo ma ce a d esults. Fo mo e i fo matio , please see the isk facto s i cluded i Pa t I, Item 1A of ou A ual Repo t o Fo m 10-K fo the yea e ded Decembe 31, 2025 a d i Pa t II, Item 1A of ou Qua te ly Repo t o Fo m 10-Q fo the qua te e ded Septembe 30, 2026.
Actual esults, pe fo ma ce o achieveme ts may diffe mate ially, a d pote tially adve sely, f om a y fo wa d-looki g stateme ts a d the assumptio s o which those fo wa d-looki g stateme ts a e based. The e ca be o assu a ce that the data co tai ed he ei is eflective of futu e pe fo ma ce to a y deg ee. You a e cautio ed ot to place u due elia ce o fo wa d-looki g stateme ts as a p edicto of futu e pe fo ma ce as fo wa d-looki g stateme ts a e based o estimates a d assumptio s that a e i he e tly subject to va ious sig ifica t isks, u ce tai ties a d othe facto s, ma y of which a e beyo d ou co t ol.
All i fo matio set fo th he ei speaks o ly as of the date he eof, a d we disclaim a y i te tio o obligatio to update a y fo wa d-looki g stateme ts as a esult of developme ts occu i g afte the date he eof except as may be equi ed u de applicable secu ities laws. Fo ecasts a d estimates ega di g ou i dust y a d e d ma kets a e based o sou ces we believe to be eliable, howeve , the e ca be o assu a ce these fo ecasts a d estimates will p ove accu ate i whole o i pa t.
All efe e ces to the “Compa y,” “we,” “us,” o “ou ” efe to Mic ovast Holdi gs, I c. a d its co solidated subsidia ies.
To p ovide i vesto s with additio al i fo matio ega di g ou fi a cial esults, Mic ovast has disclosed i this ea i gs elease o -GAAP fi a cial measu es, i cludi g o -GAAP adjusted g oss p ofit, o -GAAP EBITDA, o -GAAP adjusted EBITDA, o -GAAP adjusted ope ati g expe ses, o -GAAP adjusted et p ofit/(loss), o -GAAP adjusted et p ofit/(loss) pe sha e, a d o -GAAP adjusted g oss ma gi which a e o -GAAP fi a cial measu es as defi ed u de the ules of the SEC. These a e i te ded as suppleme tal measu es of ou fi a cial pe fo ma ce that a e ot equi ed by, o p ese ted i acco da ce with GAAP.
Reco ciliatio s to the most compa able GAAP measu es, g oss p ofit, g oss ma gi , ope ati g expe ses, et p ofit/(loss), a d et p ofit/(loss) pe sha e, a e co tai ed i tabula fo m i the u audited fi a cial stateme ts below. No -GAAP adjusted g oss p ofit is GAAP g oss p ofit as adjusted fo o -cash sha e-based compe satio expe se i cluded i cost of eve ues. No -GAAP adjusted et p ofit/(loss) is GAAP et p ofit/(loss) as adjusted fo o -cash sha e-based compe satio expe se a d cha ge i valuatio of wa a t liability a d co ve tible loa . No -GAAP adjusted et p ofit/(loss) pe commo sha e is GAAP et p ofit/(loss) pe commo sha e as adjusted fo o -cash sha e-based compe satio expe se a d cha ge i valuatio of wa a t liability a d co ve tible loa pe commo sha e. No -GAAP EBITDA is defi ed as et p ofit/(loss) excludi g dep eciatio a d amo tizatio , i te est expe se, i te est i come, a d i come tax expe se o be efit. No -GAAP adjusted EBITDA is defi ed as et p ofit/(loss) excludi g dep eciatio a d amo tizatio , o -cash settled sha e-based compe satio expe se, i te est expe se, i te est i come, cha ges i fai value of ou wa a t liability a d co ve tible loa a d i come tax expe se o be efit. No -GAAP adjusted ope ati g expe ses is defi ed as ope ati g expe ses excludi g o -cash sha e-based compe satio expe se. No -GAAP adjusted g oss ma gi is defi ed as GAAP g oss ma gi as adjusted fo o -cash sha e-based compe satio expe se i cluded i cost of eve ues.
We use o -GAAP adjusted g oss p ofit, o -GAAP EBITDA, o -GAAP adjusted EBITDA, o -GAAP adjusted ope ati g expe ses, o -GAAP adjusted et p ofit/(loss), o -GAAP adjusted et p ofit/(loss) pe sha e a d o -GAAP adjusted g oss ma gi fo fi a cial a d ope atio al decisio -maki g a d as a mea s to evaluate pe iod-to-pe iod compa iso s. We co side them to be impo ta t measu es because they help illust ate u de lyi g t e ds i ou busi ess a d ou histo ical ope ati g pe fo ma ce o a mo e co siste t basis. We believe that these o -GAAP fi a cial measu es, whe take togethe with thei most di ectly compa able GAAP measu es p ovide mea i gful suppleme tal i fo matio ega di g ou pe fo ma ce by excludi g ce tai items that may ot be i dicative of ou ecu i g co e busi ess ope ati g esults.
We believe that both ma ageme t a d i vesto s be efit f om efe i g to these o -GAAP fi a cial measu es i assessi g ou pe fo ma ce a d whe pla i g, fo ecasti g, a d a alyzi g futu e pe iods. These o -GAAP fi a cial measu es also facilitate ma ageme t’s i te al compa iso s to ou histo ical pe fo ma ce. We believe these o -GAAP fi a cial measu es a e useful to i vesto s both because (1) they allow fo g eate t a spa e cy with espect to key met ics used by ma ageme t i its fi a cial a d ope atio al decisio -maki g a d (2) they a e used by ou i stitutio al i vesto s a d the a alyst commu ity to help them a alyze the health of ou busi ess. Acco di gly, we believe that these o -GAAP fi a cial measu es p ovide useful i fo matio to i vesto s a d othe s i u de sta di g a d evaluati g ou ope ati g esults i the same ma e as ou ma ageme t team a d boa d of di ecto s.
No -GAAP fi a cial measu es have limitatio s as a a alytical tool, a d you should ot co side them i isolatio , o as a substitute fo , fi a cial i fo matio p epa ed i acco da ce with GAAP. Fo example, ou calculatio of o -GAAP adjusted EBITDA may diffe f om simila ly titled o -GAAP measu es, if a y, epo ted by ou pee compa ies, o ou pee compa ies may use othe measu es to calculate thei fi a cial pe fo ma ce, a d the efo e ou use of o -GAAP adjusted EBITDA may ot be di ectly compa able to simila ly titled measu es of othe compa ies. The p i cipal limitatio of o -GAAP adjusted EBITDA is that it excludes sig ifica t expe ses a d i come that a e equi ed by GAAP to be eco ded i ou fi a cial stateme ts. I additio , it is subject to i he e t limitatio s as it eflects the exe cise of judgme ts by ma ageme t about which expe se a d i come a e excluded o i cluded i dete mi i g this o -GAAP fi a cial measu e. I o de to compe sate fo these limitatio s, ma ageme t p ese ts o -GAAP fi a cial measu es i co ectio with GAAP esults. I additio , such fi a cial i fo matio is u audited a d does ot co fo m to SEC Regulatio S-X a d as a esult, such i fo matio may be p ese ted diffe e tly i ou futu e fili gs with the SEC. Cha ges i the fai value of ou wa a t liability a d co ve tible loa , which a e excluded f om o -GAAP adjusted EBITDA a d o -GAAP adjusted et p ofit/(loss), a e ot expected to ecu i futu e pe iods, because the public a d p ivate wa a ts issued i co ectio with the July 23, 2021 busi ess combi atio with Tusca Holdi gs Co p. expi ed u exe cised o July 23, 2026 a d the co ve tible loa was co ve ted a d settled o May 28, 2026.
| Cu e t assets: | Cash a d cash equivale ts | $ | 84,833 | $ | 104,963 | Rest icted cash | 39,611 | 64,275 | Accou ts eceivable ( et of allowa ce fo c edit losses of $3,087 a d $4,693 as of Septembe 30, 2026 a d Decembe 31, 2025, espectively) | 103,064 | 155,763 | Notes eceivable | 1,051 | 5,590 | I ve to ies, et | 95,043 | 89,411 | P epaid expe ses a d othe cu e t assets | 29,111 | 17,221 | Assets held fo sale | — | 11,500 | P ope ty, pla t a d equipme t, et | 497,050 | 508,057 | La d use ights, et | 11,834 | 11,570 | Acqui ed i ta gible assets, et | 1,864 | 2,183 | Ope ati g lease ight-of-use assets | 16,861 | 17,336 | Defe ed tax assets | — | 5,429 | Othe o -cu e t assets | 12,597 | 12,150 | Cu e t liabilities: | Accou ts payable | $ | 48,473 | $ | 47,003 | Notes payable | 33,470 | 78,321 | Adva ce f om custome s | 4,492 | 5,605 | Acc ued expe ses a d othe cu e t liabilities | 106,712 | 123,429 | Amou ts due to elated pa ties | 212 | 2 | Co ve tible loa measu ed at fai value | — | 140,929 | Sho t-te m ba k bo owi gs | 120,794 | 93,052 | Bo ds payable | 41,693 | — | Lo g-te m bo ds payable | — | 41,693 | Lo g-te m ba k bo owi gs | 14,468 | 13,227 | Ope ati g lease liabilities | 13,475 | 14,476 | Othe o -cu e t liabilities | 36,290 | 37,198 | Commo Stock ($0.0001 pa value, 750,000 sha es autho ized; 386,235 a d 333,474 sha es issued, a d 384,547 a d 331,786 sha es outsta di g as of Septembe 30, 2026 a d Decembe 31, 2025) | $ | 39 | $ | 34 | P efe ed Stock ($0.0001 pa value, 50,000 sha es autho ized; o e issued a d outsta di g as of Septembe 30, 2026 a d Decembe 31, 2025) | — | — | Additio al paid-i capital | 1,627,962 | 1,543,797 | Statuto y ese ves | 6,032 | 6,032 | Accumulated deficit | (1,162,753 | ) | (1,122,176 | ) | Accumulated othe comp ehe sive loss | 1,560 | (17,174 | ) |
| Reve ues | $ | 45,805 | $ | 123,287 | $ | 193,679 | $ | 331,117 | Cost of eve ues | (34,092 | ) | (72,151 | ) | (135,311 | ) | (205,242 | ) | W ite-dow fo obsolete i ve to ies | (9,346 | ) | (4,724 | ) | (11,067 | ) | (4,724 | ) | Ge e al a d admi ist ative expe ses | (20,371 | ) | (17,760 | ) | (47,198 | ) | (43,064 | ) | Resea ch a d developme t expe ses | (8,362 | ) | (7,757 | ) | (26,032 | ) | (23,724 | ) | Selli g a d ma keti g expe ses | (4,569 | ) | (6,006 | ) | (14,654 | ) | (16,229 | ) | Impai me t loss of lo g-lived assets | (35,741 | ) | (36 | ) | (35,765 | ) | (1,400 | ) | Subsidy i come | 9 | 44 | 27 | 2,455 | I te est i come | 364 | 236 | 1,479 | 611 | I te est expe se | (1,358 | ) | (1,255 | ) | (3,913 | ) | (3,695 | ) | Cha ges i fai value of wa a t liability a d co ve tible loa | — | (12,641 | ) | 58,001 | (91,002 | ) | Fo eig excha ge (loss) gai | (3,772 | ) | (1,903 | ) | (15,377 | ) | 8,951 | Othe i come (expe se), et | 62 | (84 | ) | 983 | 1,148 | I come tax expe se | (5,429 | ) | (739 | ) | (5,429 | ) | (959 | ) | Net loss pe sha e – Basic a d diluted | $ | (0.20 | ) | $ | — | $ | (0.11 | ) | $ | (0.14 | ) | Weighted ave age sha es outsta di g – Basic a d diluted | 384,537 | 323,756 | 355,649 | 323,611 |
| Cash flows f om ope ati g activities | Net loss | $ | (40,577 | ) | $ | (45,757 | ) | Adjustme ts to eco cile et loss to et cash used i ope ati g activities: | Dep eciatio of p ope ty, pla t a d equipme t | 24,775 | 24,169 | No cash lease expe ses | 2,067 | 1,962 | Sha e-based compe satio | 2,614 | 2,277 | Cha ges i fai value of wa a t liability a d co ve tible loa | (58,001 | ) | 91,002 | (Reve sal) p ovisio of c edit losses | (813 | ) | 1,844 | Impai me t loss of lo g-lived assets | 35,765 | 1,400 | P oduct wa a ty | 7,786 | 13,376 | Defe ed i come taxes | 5,429 | — | W ite-dow fo obsolete i ve to ies | 11,067 | 4,724 | Othe , et | (50 | ) | 198 | Cha ges i ope ati g assets a d liabilities: | Notes eceivable | (3,722 | ) | (18,270 | ) | Accou ts eceivable | 56,042 | (22,960 | ) | I ve to ies | (18,165 | ) | 17,382 | P epaid expe ses a d othe cu e t assets | (12,029 | ) | 7,568 | Amou ts due f om/to elated pa ties | 207 | (5 | ) | Othe o -cu e t assets | 2,750 | 1,070 | Notes payable | (46,877 | ) | 4,225 | Accou ts payable | (623 | ) | (6,813 | ) | Adva ce f om custome s | (1,347 | ) | (38,176 | ) | Acc ued expe ses a d othe liabilities | (27,692 | ) | 20,645 | Ope ati g lease liabilities | (1,966 | ) | (2,158 | ) | Othe o -cu e t liabilities | (2,081 | ) | 1,783 | Cash flows f om i vesti g activities | Pu chases of p ope ty, pla t a d equipme t | (16,502 | ) | (19,191 | ) | P oceeds o disposal of p ope ty, pla t a d equipme t | 10,865 | 3,736 | Cash flows f om fi a ci g activities | P oceeds f om ba k bo owi gs | 95,763 | 70,050 | Repayme t of ba k bo owi gs | (72,104 | ) | (65,965 | ) | Repayme t of bo ds payable | — | (1,375 | ) | P oceeds f om sale of commo stocks | 1,350 | — | Payme t fo equity issua ce costs | (329 | ) | — | Defe ed payme t elated to pu chases of p ope ty, pla t a d equipme t | (1,368 | ) | (12,254 | ) | Effect of excha ge ate cha ges o cash, cash equivale ts a d est icted cash | 2,972 | (1,461 | ) | (Dec ease) i c ease i cash, cash equivale ts a d est icted cash | (44,794 | ) | 33,026 |
| Reco ciliatio to amou ts o co solidated bala ce sheets | Cash a d cash equivale ts | $ | 84,833 | $ | 90,748 | Rest icted cash | 39,611 | 51,879 |
| Reve ues | $ | 45,805 | $ | 123,287 | $ | 193,679 | $ | 331,117 | Cost of eve ues | (34,092 | ) | (72,151 | ) | (135,311 | ) | (205,242 | ) | W ite-dow fo obsolete i ve to ies | (9,346 | ) | (4,724 | ) | (11,067 | ) | (4,724 | ) | G oss ma gi | 5.2 | % | 37.6 | % | 24.4 | % | 36.6 | % | No -cash settled sha e-based compe satio (i cluded i cost of eve ues) | 29 | 60 | 101 | 184 | Adjusted g oss ma gi ( o -GAAP) | 5.2 | % | 37.7 | % | 24.5 | % | 36.6 | % |
| Ge e al a d admi ist ative expe ses | $ | (20,371 | ) | $ | (17,760 | ) | $ | (47,198 | ) | $ | (43,064 | ) | Resea ch a d developme t expe ses | (8,362 | ) | (7,757 | ) | (26,032 | ) | (23,724 | ) | Selli g a d ma keti g expe ses | (4,569 | ) | (6,006 | ) | (14,654 | ) | (16,229 | ) | Impai me t loss of lo g-lived assets | (35,741 | ) | (36 | ) | (35,765 | ) | (1,400 | ) | No -cash settled sha e-based compe satio (i cluded i ope ati g expe ses) | 735 | 668 | 2,513 | 2,093 |
| Cha ges i fai value of wa a t liability a d co ve tible loa * | — | 12,641 | (58,001 | ) | 91,002 | No -cash settled sha e-based compe satio * | 764 | 728 | 2,614 | 2,277 |
*The tax effect of the adjustme ts was il.
| Cha ges i fai value of wa a t liability a d co ve tible loa pe commo sha e | — | 0.04 | (0.17 | ) | 0.28 | No -cash settled sha e-based compe satio pe commo sha e | — | — | 0.01 | 0.01 |
| I te est expe se (i come), et | 994 | 1,019 | 2,434 | 3,084 | I come tax expe se | 5,429 | 739 | 5,429 | 959 | Dep eciatio a d amo tizatio | 8,815 | 8,272 | 25,374 | 24,747 | Cha ges i fai value of wa a t liability a d co ve tible loa | — | 12,641 | (58,001 | ) | 91,002 | No -cash settled sha e-based compe satio | 764 | 728 | 2,614 | 2,277 |
