Microvast Holdings, Inc. (NASDAQ: MVST) saw its stock price surge 7.53% in 24 hours following the release of its impressive first-quarter 2025 financial results. The company, a leader in advanced battery technologies, reported record-breaking revenue and a significant turnaround in profitability, while maintaining a positive outlook for the remainder of the year.

For the first quarter of 2025, Microvast reported record Q1 revenue of $116.5 million, marking a substantial 43.2% increase compared to $81.4 million in the same period last year. This figure significantly beat the Street estimate of $103.75 million. The company's bottom line also showed remarkable improvement, with a net profit of $61.8 million, a dramatic turnaround from a net loss of $24.8 million in Q1 2024. Earnings per share came in at $0.19, compared to a loss of $0.08 per share in the prior year's quarter.

Microvast's profitability metrics saw considerable enhancement, with gross margin expanding from 21.2% to 36.9% year-over-year. The company's adjusted EBITDA turned positive at $28.5 million, contrasting with a negative $3.7 million in Q1 2024. CEO Yang Wu attributed these strong results to increasing demand for Microvast's advanced battery solutions and the effectiveness of the company's focus on profitability and operational efficiency. Adding to investor optimism, Microvast maintained its previous guidance for the remainder of 2025, targeting revenue growth of 18% to 25% year-over-year and revenue between $450 million and $475 million. The company also aims to achieve a gross margin of 30% for the year, supported by regional efficiencies and increased utilization.