Exro Technologies Reports Second Quarter 2025 Results

Rhea-AI Summary

Exro Technologies (TSX: EXRO) reported challenging Q2 2025 results, with revenue declining to $2.9 million from $4.7 million in Q2 2024. The company delivered 18 electric propulsion units during the quarter, with lower volumes attributed to slower EV adoption rates.

The company reported a significant net loss of $81.7 million, largely due to non-cash adjustments including a $48.5 million impairment of intangible assets and an $11.1 million inventory provision. Exro has accessed $10 million of its available $30 million debt facility and completed a strategic wind-down of Asia-Pacific operations while retaining intellectual property.

The company continues its previously announced strategic review process and is in active negotiations with potential strategic partners.

Positive

• Improved gross margin per unit compared to prior year (excluding inventory provisions)
• Access to US$30 million debt facility with US$10 million already drawn
• Active negotiations ongoing with credible strategic partners
• Retained intellectual property despite APAC operations wind-down

Negative

• Revenue declined 38% year-over-year to $2.9 million in Q2 2025
• Significant net loss of $81.7 million from continuing operations
• $48.5 million impairment of intangible assets due to APAC wind-down
• $11.1 million inventory provision for excess and obsolete inventory
• Reduced unit volumes due to slower EV adoption rates

CALGARY, AB, Aug. 14, 2025 /PRNewswire/ - Exro Technologies Inc. (TSX: EXRO) ("Exro" or the "Company"), a leading technology company specializing in power control solutions for electric vehicles and energy storage, today announced its financial results for the second quarter ended June 30, 2025.

Q2 2025 Highlights

• Revenue of $2.9 million from the delivery of 18 electric propulsion units and aftersales services.
• Completed strategic wind-down of Asia-Pacific operations, retaining intellectual property and key subsidiaries.
• To date, accessed US$10.0 million of the up to US$30.0 million debt facility from an existing lender.

Financial Results

Revenue for Q2 2025 was $2.9 million, compared to $4.7 million in Q2 2024, reflecting reduced unit volumes in response to slower EV adoption rates. Gross margin per unit improved versus the prior year, excluding inventory provisions. Net loss from continuing operations was $81.7 million, which includes significant non-cash adjustments associated with the Company's strategic focus. These adjustments include:

• A $48.5 million impairment of intangible assets — primarily developed technology, brand, and customer relationships — reflecting the wind-down of APAC operations, and updated production forecasts.
• An $11.1 million inventory provision, also non-cash, related to the identification of excess and obsolete inventory. This provision aligns inventory values with near-term forecasted production and a leaner capital-efficient operating model.

Update on Strategic Process

The Company confirms that the strategic review process described in its May 16, 2025 press release remains ongoing. The Company is in active negotiations with credible strategic partners, and continues to draw on its US$30 million interim finance facility as appropriate. The Company will provide further updates in due course, but cautions that there can be no assurance that any transaction will be consummated.

ABOUT EXRO TECHNOLOGIES INC.

Exro Technologies Inc., now expanded through the strategic acquisition of SEA Electric, is a leading technology company that has developed new-generation power control electronics. Its innovative suite of solutions, including Coil Driver™, Cell Driver™, and SEA-Drive®, expand the capabilities of electric motors and batteries and offer OEMs a comprehensive e-propulsion solution with unmatched performance and efficiency. Exro is reshaping global energy consumption, accelerating adoption towards a circular electrified economy by delivering more with less – minimum energy for maximum results. 

For more information visit our website at www.exro.com.

To view our Corporate Presentation visit us at www.exro.com/investors

Visit us on social media @exrotech.

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS

This news release contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified using terminology such as "plans", "expects", "estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved". Forward looking statements involve risks, uncertainties and other factors disclosed under the heading "Risk Factors" and elsewhere in the Company's filings with Canadian securities regulators, that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although the Company believes that the assumptions and factors used in preparing these forward-looking statements are reasonable based upon the information currently available to management as of the date hereof, actual results and developments may differ materially from those contemplated by these statements. Readers are therefore cautioned not to place undue reliance on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

This information is qualified in its entirety by cautionary statements and risk factor disclosure contained in filings made by the Company with the Canadian securities regulators, including the Company's annual information form for the financial year ended December 31, 2024, and financial statements and related MD&A for the financial year ended December 31, 2024, filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.ca. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties, and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated, or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

Neither the Toronto Stock Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this press release.

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SOURCE Exro Technologies Inc.

FAQ

What were Exro Technologies' (EXROF) Q2 2025 revenue and earnings?

Exro reported revenue of $2.9 million and a net loss of $81.7 million from continuing operations in Q2 2025.

Why did Exro Technologies record such a large loss in Q2 2025?

The large loss primarily resulted from non-cash adjustments including a $48.5 million impairment of intangible assets and an $11.1 million inventory provision related to APAC wind-down and excess inventory.

How many electric propulsion units did Exro deliver in Q2 2025?

Exro delivered 18 electric propulsion units during Q2 2025, with lower volumes due to slower EV adoption rates.

What is the status of Exro's strategic review process?

The strategic review process announced on May 16, 2025, is ongoing, with the company in active negotiations with credible strategic partners while utilizing its US$30 million interim finance facility.

How much debt financing does Exro Technologies have access to?

Exro has access to a US$30 million debt facility from an existing lender, of which it has already accessed US$10 million.