NeoVolta Inc (NEOVW) Q1 2025 Earnings Report

NeoVolta reported Q1 2025 results with a revenue of $590,236, a YoY decline of 22.8% and a modest QoQ increase of 1.9%. Gross profit was $92,847 for a gross margin of 15.7%, while the company posted a net loss of $964,494 and an EBITDA wash of negative $965,889 ( EBITDA margin -163.6%). Operating loss stood at $965,889 (operating margin -1.64%). Total operating expenses were $1,058,736, dominated by General and Administrative expenses of $1,050,119, with R&D modest at $8,617. Cash burn was evident, as operating cash flow was $(593,031) for the period and free cash flow was negative $(593,031). The balance sheet shows $393,396 in cash and equivalents and no outstanding debt, but a heavy working capital footprint: net receivables of $1.95 million and inventory of $1.77 million support a very extended cash conversion cycle (~578 days) and a DSO around 297 days. Liquidity remains robust on a current-ratio basis (16.35x) and a quick ratio (9.39x), but the business remains unprofitable with a substantial accumulated deficit (retained earnings at $(21.7) million). The quarter underscores NeoVolta’s ongoing investment in SG&A and product development as it seeks scale in the rapidly evolving residential energy storage market. Given the negative earnings trajectory and cash burn, the near-term investment thesis hinges on top-line acceleration, operating leverage, and improved working capital efficiency to drive meaningful profitability.