Parrot SA (0OPY.L) Q2 2025 Earnings Report

Revenue and profitability
- Revenue: €33.60 million in QQ2 2025, up 9.83% YoY (vs. €30.59 million in QQ2 2024);
- Gross profit: €25.10 million, gross margin 74.70% (consistent with high gross margin profile for Parrot’s mix of hardware and software/services);
- EBITDA: -€12.10 million; EBIT margin: -38.39%; operating income: -€12.90 million (EBIT margin -38.39%).

Cost structure and operating efficiency
- Research and Development: €22.70 million (tight correlation with product roadmap, software/services expansion);
- Selling, General & Administrative: €15.30 million (SG&A line item under review; reflects sales & marketing scale + support infrastructure);
- Operating expenses: €38.00 million; cost and expenses: €46.50 million; interest expense: €0.10 million; depreciation & amortization: €2.00 million.

Net income and earnings per share
- Net income: -€14.40 million; net income margin: -42.86%; basic/diluted EPS: -€0.47; weighted average shares outstanding: 30.70 million.

Cash flow and liquidity
- Net cash from operating activities: -€13.80 million;
- Free cash flow: -€14.60 million;
- Capex: -€0.80 million; cash at end of period: €17.00 million; cash at beginning of period: €33.60 million; net cash change: -€16.60 million.

Balance sheet and leverage
- Total assets: €66.50 million; total liabilities: €36.60 million; total equity: €26.80 million; cash and equivalents: €17.00 million; net debt: -€8.60 million (net cash).
- Current ratio: 1.89x; quick ratio: 1.35x; cash ratio: 0.64x; long-term debt: €5.70 million; total debt: €8.40 million.

Valuation and relative metrics
- Price-to-sales: 9.14x; price-to-book: 11.46x; price-to-earnings: negative (no current earnings);
- Enterprise value multiple: negative (-24.66x) given the net cash position and negative earnings backdrop; price fair value implied: €11.46 per share (contextual benchmark from the data).

Observations
- The quarter demonstrates strong gross margin resilience but ongoing profitability challenges driven by high R&D and go-to-market expenditure intended to unlock longer-term software/SaaS revenue streams.
- The company’s liquidity appears solid for near-term operational needs, but the negative cash flow from operations highlights the need for either improved operating leverage or faster monetization of software services to achieve sustainable cash generation.

Notes: No earnings call transcript was provided for QQ2 2025. Consequently, there are no management quote summaries available in this dataset. Investors should rely on the disclosed financials and the accompanying management commentary in the formal earnings release for qualitative guidance on strategy, product cadence, and go-to-market expectations.

Investment thesis: Parrot is transitioning from a hardware-centric business to a hybrid model that leverages software and services. The QQ2 2025 results show revenue growth and strong gross margins, but profitability remains constrained by aggressive R&D and commercialization investments. Near-term investors should monitor the pace of software monetization and the extent to which recurring revenue can meaningfully improve operating leverage and cash flow. If the company can convert software adoption into durable recurring revenue—while maintaining gross margins and controlling opex growth—the valuation could re-rate toward a more favorable multiple of sales or operating cash flow. In the interim, a cautious stance is warranted given negative earnings and ongoing cash burn, even as liquidity supports execution of growth initiatives. Key factors to watch: software adoption rate, gross margin stability during scale, and any signs of incremental profitability in the ensuing quarters.