Revenue and profitability momentum
- Revenue: $7.2189 million in QQ3 2025, up 35.0% QoQ but down 13.89% YoY. The QoQ gain reflects stronger BEAST/Nano BEAST sales in California and Oregon and ongoing EV Star orders.
- Gross profit: $1.054 million with gross margin 14.60%, up from prior quarters as BEAST/Nano BEAST contributions offset by West Virginia ramp costs and truck body margins.
- EBITDA/operating loss: EBITDA negative at -$3.777 million; operating loss -$4.181 million. Margin indicators remain negative (EBITDA margin -52.32%, operating margin -57.91%).
- Net income: -$4.739 million; diluted EPS -$0.17.
Cost structure and cash flow
- R&D: $380k; SG&A (selling, general and administrative): $4.084 million; total operating expenses: $5.234 million.
- Operating cash flow: -$1.059 million; free cash flow: -$1.062 million.
- Working capital: change in working capital positive $2.987 million, driven by inventory build and receivables dynamics; cash balance at period end: $0.621 million.
Liquidity and balance sheet strength
- Total debt: $17.415 million; net debt: $16.794 million; long-term debt: $6.396 million; short-term debt: $11.019 million.
- Cash and equivalents: $0.621 million; current assets: $31.636 million; current liabilities: $18.800 million; current ratio: 1.68x; quick ratio: 0.185x; cash ratio: 0.033x.
- Shareholders’ equity: $2.139 million; total assets: $37.367 million.
- Leverage: debt-to-capitalization approximately 89.1%; debt-to-equity extremely elevated (~8.14x), underscoring significant balance-sheet risk amid ongoing ramp and consolidation costs.
Operational mix and back-half outlook
- Product mix in QQ3 2025: 13 BEAST Type D school buses, 1 Nano BEAST Type A school bus, 14 EV Star vehicles, plus parts/leasing revenue. Management cited improving BEAST/Nano BEAST contributions in California and Oregon as primary drivers of gross profit improvement.
- Production cadence: 1 BEAST per week currently, target 2 per week by April, with Nano BEAST production planned to support East Coast demand. A new West Virginia production manager (James Redd) was added to accelerate throughput and shift optimization.
- California footprint consolidation: planned to consolidate three to one facility in Riverside, enabling better collaboration and cost savings; expected to contribute to gross margin improvements over time via centralized manufacturing, sales, and engineering functions.
- Financing and capital deployment: October equity offering of 3 million shares (~$3 million gross proceeds) to support vehicle production and R&D; continued use of EDC revolving facility and letters of credit to fund manufacturing.
Policy and demand backdrop
- Federal incentives: EPA Clean School Bus program funding remains fluid; some dealers have drawn down funds, but full contract closures and disbursements depend on ongoing processes.
- State incentives: California and New York present meaningful, near-term demand catalysts with sizable committed program funds for electric school buses and related fleet upgrades; California’s approach emphasizes smaller fleets and commercial Class 4 EVs, which align with GreenPower’s EV Star lineup. New York’s incentive program adds to the growth runway over the next several years.