Phoenix Motor (PEVM) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was $2.7M, down 77% year-over-year due to post-acquisition inventory fulfillment and cash shortages impacting production.

• Net loss for Q2 2025 was $1.2M, compared to net income of $3.0M in Q2 2024; six-month net loss was $4.7M versus $19.7M net income prior year, which included a large bargain purchase gain.

• Gross margin improved to 33.4% in Q2 2025 from 15.2% in Q2 2024, driven by higher-margin sales despite lower volumes.

• The company faces substantial doubt about its ability to continue as a going concern due to recurring losses and negative cash flow.

Financial highlights

• Q2 2025 revenue: $2.7M (Q2 2024: $12.0M); six months: $7.2M (2024: $21.5M).

• Q2 2025 net loss: $1.2M (Q2 2024: net income $3.0M); six months: $4.7M loss (2024: $19.7M income).

• Gross margin Q2 2025: 33.4% (Q2 2024: 15.2%); six months: 31.9% (2024: 20.2%).

• Cash and cash equivalents at June 30, 2025: $0.1M.

• Net cash used in operations for six months ended June 30, 2025: $5.0M.

Outlook and guidance

• Management is pursuing cost control, operational integration, and new financing to address liquidity challenges.

• No assurance that planned measures will succeed; failure to secure funding may require asset sales or operational reductions.