While numerous battery manufacturers continue to grapple with losses, Microvast Holdings is executing a quiet but significant operational pivot. The company’s latest financial report reveals a milestone: its first-ever quarterly operating profit. This fundamental improvement is drawing increased attention from large-scale institutional money managers, who are now expanding their holdings.
A Milestone Quarter for Profitability
Microvast’s third-quarter results for 2025 provided a stark contrast to the margin pressures common in its industry. The company reported record revenue of $123.3 million, representing a year-over-year increase exceeding 21%. More notably, it achieved an operating profit of approximately $13 million. A gross margin of 37.6% underscores the effectiveness of its vertically integrated strategy and its focused approach on the commercial vehicle sector.
The “Smart Money” Vote of Confidence
This demonstrated progress toward sustainable profitability has not gone unnoticed by major investors. Recent regulatory filings show that institutional players, including Geode Capital Management and Intech Investment Management, have adjusted their positions in Microvast stock. Overall institutional ownership has stabilized around 20.7%. Such activity suggests that long-term oriented funds are beginning to acknowledge the company’s fundamental trajectory, looking beyond short-term market volatility.
Should investors sell immediately? Or is it worth buying Microvast Holdings?
Financial Health and Forward Outlook
Current data also dispels some outdated market narratives concerning Microvast’s stability. The company’s funded backlog remains robust at $237.7 million. For capital needs, Microvast utilizes a controlled “At-The-Market” equity program, which provides flexible access to up to $125 million. This mechanism offers financial agility without the market disruption of a large, single-tranche equity offering.
Market analysts currently maintain a consensus price target of about $5.61 per share for Microvast, indicating significant potential upside from recent trading levels. The next critical test for the company’s sustained turnaround will be the full-year 2025 results, anticipated in early 2026.
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