Twin Vee PowerCats (VEEE) Q1 2026 earnings summary

Executive summary

• Net sales increased 10% year-over-year to $3.96 million for Q1 2026, driven by new dealer initiatives and higher average selling prices, despite selling fewer units than the prior year.

• Sequential revenue growth was 31% from Q4 2025 to Q1 2026.

• Net loss widened to $2.09 million from $1.61 million year-over-year, primarily due to lower gross margins and higher SG&A expenses.

• Adjusted EBITDA loss improved by 11% year-over-year, totaling $776,000.

• Product line expanded with the relaunch of Bahama Boat Works and new 21-foot and 23-foot models.

Financial highlights

• Net sales: $3.96 million (up 10% year-over-year).

• Gross profit margin declined to 5.0% from 14.9% due to increased labor costs and a significant non-cash inventory reserve adjustment.

• Operating loss: $2.14 million (up 27% year-over-year).

• Cash, cash equivalents, and restricted cash: $5.67 million as of March 31, 2026.

• Working capital: $6.37 million, up from $2.65 million at year-end 2025.

Outlook and guidance

• Management continues to implement cost controls and operational improvements but does not expect to achieve cash-flow breakeven in the short term.

• Management remains confident in progress toward profitability, emphasizing disciplined execution and cost management.

• Focus remains on expanding the Bahama Boat Works lineup and optimizing working capital.

• Uncertainty remains regarding the ability to raise additional capital or generate sufficient revenue to sustain operations.