Ecovacs Robotics has released its financial report for the first three quarters and the third quarter of 2026. While the company saw its total revenue grow by 16.39% year-on-year to 14.988 billion yuan in the first nine months, its net profit attributable to parent company shareholders declined by 3.47% to 1.369 billion yuan.
Q1-Q3 2026 Performance Highlights
For the first three quarters of 2026 (January to September), Ecovacs reported total revenue of 14.988 billion yuan, marking a 16.39% increase compared to the same period last year. The gross profit reached 6.858 billion yuan, up 7.07% year-on-year, with a gross profit margin of 45.75%.
However, the net profit attributable to the parent company’s shareholders stood at 1.369 billion yuan, a decrease of 3.47% compared to the previous year. The net profit after deducting non-recurring items (扣非净利润) saw a more significant drop of 19.71%, reaching 1.031 billion yuan.
Operating cash flow experienced a sharp decline of 117.42% to -0.342 billion yuan. The company attributed this to a large amount of government subsidies received in the same period last year and the proactive stocking of semiconductor components like memory chips during the reporting period.
The weighted average return on equity was 14.33%. Basic earnings per share were 2.4 yuan, down 4.38%, and diluted earnings per share were 2.37 yuan, down 4.05%. The asset-liability ratio was 49.57%.
Q3 2026 Single Quarter Performance
In the third quarter of 2026 (July to September), Ecovacs’ total revenue increased by 10.61% year-on-year to 4.647 billion yuan, continuing the double-digit growth trend seen in revenue.
Despite the revenue growth, the net profit attributable to the parent company’s shareholders plummeted by 72.43% to 0.121 billion yuan. The net profit after deducting non-recurring items also fell by 46.77% to 0.226 billion yuan. This significant profit decline was primarily due to the rising costs of memory chips impacting the gross profit margin and fluctuations in the fair value of listed external investment projects.
The total profit for the third quarter was 78.82 million yuan, an 81.38% decrease year-on-year.
Analysis of Performance Drivers
Ecovacs, a leading domestic brand in sweeping robots and floor washers, maintains a strong market position with its core brands. The Ecovacs brand holds the top spot in China’s sweeping robot market for both sales volume and value, while the Tineco brand leads in floor washers across all channels.
The company’s revenue growth in the first three quarters is in line with institutional forecasts. However, profitability has been under pressure. The increase in storage chip prices and the strengthening of the RMB exchange rate have significantly impacted the gross profit margin, which declined by 3.99 percentage points to approximately 45.75% in the first nine months.
The increase in inventory to 5.41 billion yuan at the end of the period, compared to 6.774 billion yuan at the beginning of the year, reflects the company’s strategy of pre-stocking semiconductor components.
R&D expenses remained robust, with 801 million yuan invested in the first three quarters, indicating continued commitment to innovation. Selling expenses amounted to 4.123 billion yuan.
Future Outlook and Investment Considerations
Ecovacs has not provided specific guidance for the next quarter. Key factors to monitor include the pace at which storage chip prices decline, the potential for the RMB exchange rate to improve gross margins, the performance of overseas channels, and the sales of high-end new products. Additionally, the company’s ability to restore operating cash flow after the current inventory build-up phase will be crucial.
