Exchange: TSXV | Sector: Consumer Cyclical | Industry: Auto Manufacturers
Q1 2026
Published: Aug 18, 2025
Earnings Highlights
Revenue of $1.55M down 69.4% year-over-year
EPS of $-0.14 increased by 46.2% from previous year
Gross margin of 23.3%
Net income of -4.16M
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GreenPower Motor Company Inc (GPV.V) QQ1 2026 Results Analysis: Revenue Decline, Margin Recovery Signals, and Tight Liquidity
Executive Summary
GreenPower Motor Company reported a challenging Q1 2026, characterized by a sharp revenue decline and ongoing cash burn. Revenue came in at $1.55 million, down 69.44% year-over-year and 78.54% quarter-over-quarter, while gross profit reached $0.36 million for a gross margin of 23.34%. Despite a gross-margin uplift relative to earlier periods, the quarter remained deeply unprofitable, with EBITDA of -$3.18 million and net income of -$4.16 million, translating to an EPS of -$0.14. The operating loss was driven primarily by high operating expenses (SG&A and others totaling $4.95 million), resulting in an operating income of -$3.58 million and negative cash flow from operations of -$1.41 million.
EBITDA: -3,179.79; EBITDA Margin: -2.05x; YoY: +? (data indicates positive percentage but absolute values are negative)
Net Income: -4,163.85; Net Margin: -2.69%; YoY: +36.93%; QoQ: +12.14%
Financial Highlights
Key quarterly metrics (USD, in thousands unless noted):
- Revenue: 1,549.5; YoY: -69.44%; QoQ: -78.54%
- Gross Profit: 361.7; Gross Margin: 23.34%; YoY: +169.63%; QoQ: -65.69%
- Operating Income: -3,584.98; Operating Margin: -2.31%; YoY: +43.64%; QoQ: +14.25%
- EBITDA: -3,179.79; EBITDA Margin: -2.05x; YoY: +? (data indicates positive percentage but absolute values are negative)
- Net Income: -4,163.85; Net Margin: -2.69%; YoY: +36.93%; QoQ: +12.14%
- EPS: -0.14; Diluted EPS: -0.14; YoY: +46.15%; QoQ: +17.65%
- Cash from Operations: -1,406.64; Free Cash Flow: -1,406.64; Cash at End of Period: 248.18
- Balance Sheet (selected): Total Assets 33,334.46; Total Liabilities 38,511.69; Total Stockholders’ Equity -5,177.23; Cash & Equivalents 248.18; Inventory 24,980.80; Current Assets 26,522.90; Current Liabilities 20,567.64; Total Debt 20,973.63; Net Debt 20,725.45
- Leverage and liquidity indicators: Negative equity and light cash balance imply a tight liquidity runway and dependence on external financing to sustain operations.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.55M
-69.44%
-78.54%
Gross Profit
361.68K
169.63%
-65.69%
Operating Income
-3.58M
43.64%
14.25%
Net Income
-4.16M
36.93%
12.14%
EPS
-0.14
46.15%
17.65%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Earnings call transcript not provided in the data set. As a result, no direct management quotes or theme-based highlights could be extracted from the QQ1 2026 call. The synthesis below therefore relies on the disclosed financials and typical sector narratives; a full qualitative overlay would be enhanced by the official transcript.
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Forward Guidance
No explicit forward guidance was included in the provided materials for QQ1 2026. Absent formal guidance, the forward-looking assessment must rely on implied signals from the cash burn, balance sheet constraints, and strategic actions keyworded in management commentary (not available here). Given the liquidity position (cash 0.248M, net debt ~$20.73M, negative equity) the near-term guidance would hinge on: (1) securing additional financing or debt refinancing to extend runway, (2) cost containment and SG&A reduction to improve margins, and (3) timely production ramp and contract wins to scale revenue. The achievability of a meaningful turnaround will depend on access to capital markets, supplier terms, and the company’s ability to convert backlog or opportunities into funded orders at scale.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
GPV.V Focus
23.34%
N/A
N/A
N/A
DOC.V
22.70%
-16.30%
-17.00%
-1.42%
NFI.TO
11.20%
3.70%
-0.92%
-37.72%
DCBO.TO
80.10%
2.98%
2.81%
147.62%
WELL.TO
39.90%
2.60%
-5.58%
-5.57%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The QQ1 2026 results underscore a high-risk, high-uncertainty investment profile for GreenPower. The company generated meaningful gross profit but remains structurally unprofitable due to outsized operating expenses and a heavy cash burn, with negative equity and a substantial debt load. Near-term value realization hinges on securing additional funding to extend runway, executing cost-containment initiatives, and achieving revenue growth through fleet contracts and higher-volume production. In a sector with notable competition and funding volatility, the stock offers potential upside if GreenPower can convert backlog or opportunities into funded orders, monetize partnerships, and reach a sustainable path to positive EBITDA. Investors should monitor liquidity runway, debt refinancing actions, order visibility, and any management commentary on strategic options. Absent explicit forward guidance, the investment thesis relies on the company’s ability to secure external capital and demonstrate a credible plan to scale revenue while containing operating costs.
Key Investment Factors
Growth Potential
Longer-term growth hinges on GreenPower capturing scalable, contracted EV fleet opportunities in commercial markets (buses, shuttles, cargo vans) in the US and Canada, plus any expansion into adjacent markets. A potential uplift could come from improved unit economics at higher volumes, strategic partnerships, and favorable subsidy/tax incentives for electric fleet adoption that could drive fleet deals and leasing revenue.
Profitability Risk
Key risks include sustained liquidity pressure (negative equity, high debt, minimal cash), reliance on external financing to fund operations, and potential dilution from equity issuance. Operating leverage remains high, with SG&A and other operating costs (>$4.9M) overwhelming the $1.55M revenue base. Competitive pressure from established EV OEMs (e.g., Lion Electric, BYD), supply-chain volatility, and policy changes affecting subsidies and fleet procurement could impact demand and pricing. High inventory levels relative to cash raise concerns about working capital management and potential obsolescence.
Financial Position
The balance sheet shows total assets of $33.3M against liabilities of $38.5M and negative equity (~$5.18M). Cash is exceptionally limited (only $0.25M), with substantial short- and long-term debt (~$11.64M and $9.34M, respectively) and total debt of ~$21.0M. Inventory stands at ~$24.98M, signaling potential capacity to support production if demand recovers, but also implying a liquidity trap risk if turnover remains weak. The current ratio and quick ratio are not reported but given the large inventory and modest cash, liquidity risk is elevated.
SWOT Analysis
Strengths
Diversified product portfolio in the electric commercial vehicle space (medium/heavy-duty EVs, transit buses, school buses, cargo vans, shuttles, etc.).
Established presence in North American markets (US and Canada) with a direct sales and leasing model.
Indications of gross margin generation (23.3%) in Q1 2026, suggesting some degree of product pricing or mix advantage relative to certain prior periods.
Weaknesses
Significant net losses and negative stockholders' equity, signaling ongoing profitability and balance-sheet fragility.
Extremely tight liquidity with only about $0.25M in cash and a heavy debt-load (~$21.0M); reliance on external financing to sustain operations.
High inventory level (~$25.0M) relative to cash, which raises working-capital efficiency and obsolescence risk concerns.
Opportunities
Tailwinds from rising demand for electrified fleets and potential government incentives for EV adoption could unlock contract wins and leasing revenue.
Opportunities to optimize cost structure (SG&A reduction) and achieve volume-driven economies of scale as production scales.
Potential strategic partnerships, debt refinancing, or equity capital raises that could extend runway and fund growth initiatives.
Threats
Competitive intensity from established EV OEMs and potential pricing pressure in a nascent EV fleet market.
Funding risk: failure to secure additional capital could constrain operations and delay growth plans.
Macro and policy shifts affecting subsidies, fleet procurement, or currency exposure could negatively impact demand and margins.
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