EZGO Technologies reported a revenue rebound in QQ4 2023, underscoring early signs of operating leverage as the company expands its ebicycle/etricycle ecosystem and battery rental services in China. Revenue rose to $5.38 million, a YoY increase of 108.4%, with gross profit of $0.479 million and a gross margin of 8.9%. Despite the top-line recovery, the company remains unprofitable at the EBITDA and net income levels, posting an EBITDA loss of $0.839 million and a net loss of $0.994 million for the quarter. The negative profitability is primarily driven by ongoing investment in R&D, SG&A, and working-capital needs tied to inventory buildup as EZGO scales its rental and software-enabled services.
A key driver of the liquidity position was a substantial equity funding event translating into $17.45 million of common stock issued during the period, contributing to a positive net cash provided by financing activities of $11.28 million and ending cash and cash equivalents of approximately $17.25 million. Operating cash flow remained negative at $0.46 million, while investing activities consumed about $2.84 million, yielding a negative free cash flow of around $2.08 million. The balance sheet remains healthy with a robust current ratio (~4.79x) and ample liquidity to support near-term product launches and market expansion. Going forward, management’s qualitative commentary centers on scaling EZGO’s ebike/etricycle offerings, expanding the battery rental network, and leveraging software platforms to enhance monetization, though no explicit forward-looking targets were disclosed in the available materials.