Exchange: NASDAQ | Sector: Industrials | Industry: Electrical Equipment Parts
Q2 2025
Published: Feb 7, 2025
Earnings Highlights
Revenue of $1.07M up 5.3% year-over-year
EPS of $-0.03 decreased by 74.9% from previous year
Gross margin of 30.2%
Net income of -971.14K
"Transcript not available for QQ2 2025." -
NeoVolta Inc (NEOVW) QQ2 2025 Results: Revenue Acceleration Amid Ongoing Losses in US Residential Energy Storage
Executive Summary
NeoVolta reported QQ2 2025 revenue of 1,071,581 USD and gross profit of 323,911 USD, delivering a gross margin of 30.23%. While top-line momentum improved materially on a QoQ basis (QoQ revenue up 81.6% from Q1 2025 to Q2 2025) and modestly versus prior year (YoY revenue +5.28%), the company remains unprofitable with operating income of -946,930 USD and net income of -971,137 USD. EBITDA stood at -946,591 USD, reflecting heavy operating expenses that continue to eclipse gross margins. EPS came in at -0.0292 for the quarter.
From a liquidity and balance sheet perspective, NeoVolta maintains a solid current ratio of 12.02 and a quick ratio of 5.94, underscoring liquidity to cover near-term obligations. However, the company holds a meaningful debt load (total debt 633,249 USD; net debt 304,503 USD) and carries accumulated losses (retained earnings of -22,678,169 USD), with other equity components contributing to overall equity. Operating cash flow was negative at -858,299 USD, and free cash flow was also negative in QQ2 2025, illustrating ongoing cash burn despite growing revenue. The quarter’s results imply improving top-line dynamics but indicate that significant profitability and cash-flow inflection must come from margin expansion and tighter cost controls, including SG&A leverage and working-capital optimization.
In sum, the QQ2 2025 print signals a revenue ramp in a still-loss-making business. The key questions for investors are whether NeoVolta can translate incremental revenue into meaningful EBITDA and free cash flow through margin expansion, scaling of installed base, and disciplined capital deployment. Absent a clear path to profitability, the stock remains a higher-risk, growth-oriented exposure within the Industrial sector.
Key Performance Indicators
Revenue
1.07M
QoQ: 81.55% | YoY:5.28%
Gross Profit
323.91K
30.23% margin
QoQ: 248.87% | YoY:57.34%
Operating Income
-946.93K
QoQ: 1.96% | YoY:-66.47%
Net Income
-971.14K
QoQ: -0.69% | YoY:-74.65%
EPS
-0.03
QoQ: -0.69% | YoY:-74.85%
Revenue Trend
Margin Analysis
Key Insights
Cash and cash equivalents: 328,746 USD
Net cash provided by operating activities: -858,299 USD
Free cash flow: -858,299 USD
Net change in cash: -64,650 USD
Current ratio: 12.02; Quick ratio: 5.94; Cash ratio: 0.98
Net Income: -971,137 USD; YoY -74.65%; QoQ -0.69%; Net Margin: -90.63%
Earnings Per Share (EPS): -0.0292; YoY -74.85%; QoQ -0.69%
Liquidity and Cash Flow:
- Cash and cash equivalents: 328,746 USD
- Net cash provided by operating activities: -858,299 USD
- Free cash flow: -858,299 USD
- Net change in cash: -64,650 USD
- Current ratio: 12.02; Quick ratio: 5.94; Cash ratio: 0.98
Balance Sheet Highlights:
- Total assets: 4,018,118 USD
- Total liabilities: 717,830 USD; Long-term debt: 383,538 USD; Short-term debt: 249,711 USD; Total debt: 633,249 USD
- Total stockholders’ equity: 3,300,288 USD; Retained earnings: -22,678,169 USD; Other equity: 25,945,040 USD
- Working capital dynamics (Accounts receivable 1,656,114 USD; Inventory 2,033,258 USD; Accounts payable 38,465 USD) indicate elevated working-capital levels and longer-cycle receivables and inventory days.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.07M
5.28%
81.55%
Gross Profit
323.91K
57.34%
248.87%
Operating Income
-946.93K
-66.47%
1.96%
Net Income
-971.14K
-74.65%
-0.69%
EPS
-0.03
-74.85%
-0.69%
Key Financial Ratios
currentRatio
12.02
grossProfitMargin
30.2%
operatingProfitMargin
-88.4%
netProfitMargin
-90.6%
returnOnAssets
-24.2%
returnOnEquity
-29.4%
debtEquityRatio
0.19
operatingCashFlowPerShare
$-0.03
freeCashFlowPerShare
$-0.03
priceToBookRatio
20.18
priceEarningsRatio
-17.15
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings-call transcript data were provided for QQ2 2025. As a result, management quotes and thematic insights from the QQ2 2025 call could not be extracted for this report.
Transcript not available for QQ2 2025.
—
Transcript not available for QQ2 2025.
—
Forward Guidance
No formal forward guidance was disclosed in the QQ2 2025 filing. Given the current results, our assessment emphasizes the need for a clear profitability path and cash-flow normalization. Investors should monitor:
- Gross margin trajectory and potential improvements from scale and sourcing;
- SG&A leverage relative to revenue growth;
- Working-capital optimization (receivables, inventories, and payables days) to reduce cash burn;
- Balance-sheet resilience in light of total debt and interest obligations;
- Any stated strategic initiatives (partner programs, installer network expansion, product mix shifts) that could materially alter the margin and cash flow profile. A credible path to EBITDA break-even or positive free cash flow within the next 4–6 quarters would be a meaningful catalyst.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
NEOVW Focus
30.23%
-88.40%
-29.40%
-17.15%
NEOV
30.20%
-88.40%
-29.40%
-44.66%
NCPLW
88.40%
-12.92%
-5.94%
-0.11%
CEADW
10.20%
-27.10%
-4.30%
-0.57%
NXLIW
73.00%
-48.32%
-95.10%
-42.60%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Moderate to cautious. QQ2 2025 shows meaningful top-line momentum with revenue up QoQ and a respectable gross margin, but NeoVolta remains unprofitable with negative cash flow and a non-trivial debt load. The key to a constructive investment thesis is a clear path to profitability through margin expansion and efficient SG&A control, accompanied by working-capital optimization to convert revenue growth into cash flow improvements. If management can demonstrate EBITDA break-even or positive free cash flow within the next 4–6 quarters and maintain or reduce debt levels, the stock could re-rate on improving risk-reward. In the near term, however, the stock carries elevated risk given the current cash burn, high operating expenses, and limited liquidity runway. Investors should monitor margin progression, cash flow trajectory, and any guidance on cost control or strategic partnerships that could alter the profitability outlook.
Key Investment Factors
Growth Potential
NeoVolta operates in the US residential energy-storage segment with NV14/NV14K/NV24 platforms. The addressable market remains robust amid rising solar adoption and increasing consumer interest in storage. If NeoVolta can translate incremental revenue into meaningful margin expansion and scale production efficiently, the company could improve operating leverage and cash generation. The near-term growth potential hinges on installer network expansion, improved supply-chain economics, and potential product mix optimization to higher-margin systems.
Profitability Risk
Key risks include continued negative profitability and cash burn, high SG&A relative to revenue, and heavy working-capital demands (DSO ~139 days and DIO ~245 days). Financing risk exists given debt load and interest costs, with negative EBITDA reducing cushion for debt service. Competitive pressures and battery cost volatility could compress margins. Execution risk in scaling manufacturing and distribution, and potential dilution if additional capital is required, are notable concerns.
Financial Position
Liquidity metrics show a strong current ratio (12.02) and substantial quick ratio (5.94), but the company carries meaningful debt (633,249 USD total) and negative retained earnings (-22,678,169 USD). Cash at end of period was 328,746 USD, with operating cash flow of -858,299 USD and free cash flow of -858,299 USD, indicating ongoing cash burn. The equity base is bolstered by other equity components, but sustained profitability is essential to support the balance sheet without further dilution.
SWOT Analysis
Strengths
Gross margin of ~30.2% in QQ2 2025 despite a net loss, indicating a potential margin floor that could improve with scale and cost control.
NeoVolta Inc (NEOVW) QQ1 2025 Earnings Analysis: Revenue Pressure in a High-Growth Residential Energy Storage Market with Lean Cash Burn and No Debt...
NeoVolta Inc (NEOVW) QQ4 2024 Results Analysis — Energy Storage Solutions Performance, Profitability Gaps, and Cash Position in US Residential Stora...