NeoVolta Inc (NEOV) Q3 2025 Earnings Report

NeoVolta reported a material top-line acceleration in QQ3 2025, delivering revenue of $2.01 million, up 609% YoY and 88% QoQ. The gross profit of $0.515 million yielded a gross margin of 25.5%, but the quarter remained deeply unprofitable with operating income of -$1.371 million and a net loss of -$1.449 million. The negative earnings were driven by high operating expenses, including stock-based compensation of $0.889 million, continued R&D investment, and SG&A overhead associated with the growth phase. Operating cash flow was -$2.051 million, contributing to a free cash flow of -$2.051 million for the period, while the company generated $2.256 million in financing activities to support working capital needs. From a liquidity perspective, NeoVolta ended QQ3 2025 with cash of $0.536 million and total debt of $1.803 million, resulting in a net debt position of about $1.27 million. The current ratio stood at 3.80 and the quick ratio at 2.29, underscoring adequate near-term liquidity to fund ongoing ramp activities, albeit with a modest cash buffer. The balance sheet shows sizable receivables ($2.356 million) and inventory ($2.280 million), contributing to longer working-capital cycles (DSO ~105 days; DIO ~137 days). These dynamics are typical for a hardware growth-stage supplier expanding through installer channels, but they imply continued reliance on external financing to sustain operations during the growth ramp. Management commentary is not included in the provided data, so there is no direct quote-based narrative from the QQ3 2025 earnings call. The key investment takeaway is that NeoVolta is successfully growing revenue at a rapid pace but remains well short of profitability, with a cash-burn trajectory that will require disciplined cost control or further funding as the business scales.