Phoenix Motor Reports Q1 2025 Financial Results

Rhea-AI Summary

Phoenix Motor (OTC PINK:PEVM) reported its Q1 2025 financial results, with revenue of $4.4 million, down from $9.4 million in Q1 2024. The company achieved a gross margin of 30.9%, up from 26.6% year-over-year, while operating expenses decreased to $3.3 million. Net loss was $2.8 million compared to net income of $16.8 million in Q1 2024.

Key achievements include launching the world's first wirelessly charged medium-duty electric shuttle bus, unveiling 40-foot zero-emission automated buses, and surpassing 60 million zero-emission miles. The company secured strategic partnerships, including a cooperation with Guorun Venture Capital for an RMB 1 billion M&A fund, and won contracts from California DGS and Los Angeles County.

Management projects revenue between $40-50 million for 2025.

Positive

• Gross margin expanded to 30.9% from 26.6% year-over-year
• Operating expenses reduced significantly to $3.3M from $8.6M in Q1 2024
• Secured $6M loan financing for expansion and working capital
• Won statewide contract with California DGS for zero-emission buses
• Launched innovative wireless charging technology for electric shuttle buses
• Established RMB 1 billion M&A fund with Guorun Venture Capital
• Board approved $5M share repurchase program

Negative

• Revenue declined 53% to $4.4M from $9.4M in Q1 2024
• Net loss of $2.8M compared to net income of $16.8M in Q1 2024
• Low cash position of $0.83M as of March 31, 2025
• Total equity decreased to $9.4M from $10.3M in December 2024

Insights

Financial Analyst

Phoenix Motors shows mixed Q1 results with declining revenue but improved margins amid post-acquisition normalization.

Phoenix Motor's Q1 2025 results present a mixed financial picture with some concerning metrics balanced by operational improvements. Revenue declined significantly to $4.4 million from $9.4 million in Q1 2024, representing a 53% drop. However, this decline was anticipated as the company noted the prior year benefited from one-time sales of pre-owned transit buses acquired through the Proterra acquisition.

The gross margin expansion to 30.9% from 26.6% is a notable positive, suggesting improved unit economics and better cost management. The company has also made significant progress in reducing operating expenses, which decreased to $3.3 million from $8.6 million, a 62% reduction that demonstrates effective cost control measures.

The net loss of $2.8 million appears concerning at first glance, especially compared to the previous year's net income of $16.8 million. However, the comparison is skewed by a substantial one-time $32.9 million gain from the Proterra acquisition in Q1 2024. Excluding this non-recurring item, the underlying operational performance actually shows improvement.

The company's liquidity position remains tight with just $0.83 million in cash, though slightly improved from year-end. This limited cash reserve could constrain growth initiatives despite the recent $6 million loan financing. The $5 million share repurchase program, while potentially boosting shareholder confidence, raises questions about capital allocation given the cash constraints.

The forward revenue guidance of $40-50 million for 2025 implies significant growth in upcoming quarters, requiring approximately $12-15 million quarterly revenue run-rate to achieve the annual target. This represents a substantial acceleration from the current $4.4 million quarterly pace, making execution on new partnerships and contracts critical to meeting these projections.

EV Industry Specialist

Phoenix's strategic innovations and partnerships strengthen market position despite revenue challenges.

Phoenix Motor's strategic developments showcase a company actively positioning itself at the cutting edge of commercial vehicle electrification technology. The launch of the world's first wirelessly charged medium-duty electric shuttle bus represents a significant technological breakthrough that could reduce operational complexity for fleet operators by eliminating manual charging requirements. This innovation addresses a key friction point in EV adoption and could create meaningful competitive differentiation.

The company's expansion into autonomous vehicle technology across multiple applications—40-foot transit buses, food delivery, and last-mile delivery robots—demonstrates a forward-looking product strategy targeting high-growth segments. These technologies align with industry trends toward automation in commercial transportation, potentially opening new revenue streams beyond traditional vehicle sales.

Phoenix's international expansion initiatives are particularly noteworthy. The formation of EdisonFuture International and the RMB 1 billion M&A fund with Guorun Venture Capital signal a serious push into the Chinese market, which represents the world's largest EV ecosystem. This could accelerate growth but also introduces execution risks in a complex regulatory environment.

The statewide contract with California DGS and the Los Angeles County fleet order highlight Phoenix's growing presence in the public sector market, which offers more stable, policy-driven demand. As government zero-emission vehicle mandates intensify, Phoenix's Buy America-compliant platform positions it favorably for public sector contracts.

The 60 million zero-emission miles milestone is particularly impressive for a company of Phoenix's size, suggesting strong product reliability and customer adoption. This operational track record, combined with the strategic appointment of a new CTO focused on drivetrain, software, and autonomous systems, indicates a company building technical capabilities to support its ambitious growth targets.

ANAHEIM, CA / ACCESS Newswire / June 27, 2025 / Phoenix Motor Inc. (OTC PINK:PEVM), a leading manufacturer of heavy-duty transit buses and electrification solutions provider for medium-duty vehicles, today announced financial results for the first quarter ended March 31, 2025.

Q1 2025 Financial Highlights

• Revenue totaled $4.4 million, compared to $9.4 million in Q1 2024. The prior-year period benefited from one-time sales of pre-owned transit buses acquired through the Proterra Transit Business acquisition.

• Gross margin expanded to 30.9%, compared to 26.6% in Q1 2024, driven by stronger unit economics on EV and transit bus sales and improved cost discipline.

• Operating expenses decreased to $3.3 million, down from $8.6 million in Q1 2024, reflecting effective cost management and a leaner organizational structure.

• Net loss was $2.8 million, compared to net income of $16.8 million in Q1 2024, which included a one-time $32.9 million gain related to the Proterra acquisition.

• Cash and cash equivalents were $0.83 million as of March 31, 2025, up from $0.76 on December 31, 2024.

• Total equity was $9.4 million as of March 31, 2025, compared to equity of $10.3 million on December 31, 2024.

Q1 2025 and Recent Company Highlights

Strategic Innovation & Product Leadership

• Launched the world's first wirelessly charged, medium-duty electric shuttle bus, in partnership with InductEV-marking a major milestone in commercial EV innovation.

• Unveiled 40-foot zero-emission automated buses in collaboration with ADASTEC Corp., reinforcing Phoenix's leadership in next-generation, autonomous transit solutions.

• Expanded autonomous technology development, including AV systems for food and beverage delivery as well as last-mile package pickup and delivery robots.

• Surpassed 60 million cumulative zero-emission miles driven, a testament to Phoenix's operational scale, customer trust, and product reliability.

Global Expansion & Strategic Alliances

• Formed EdisonFuture International Co., Ltd., to lead international expansion efforts across Asia and other emerging EV markets.

• Signed a strategic cooperation agreement with Guorun Venture Capital, establishing an RMB 1 billion M&A fund to support EV manufacturing site development in China.

• Announced a strategic collaboration with Noodoe, a leader in EV charging infrastructure, to accelerate adoption of Phoenix's transit and medium-duty vehicles.

Commercial Momentum & Customer Wins

• Awarded a statewide contract by the California Department of General Services (DGS) to supply zero-emission buses, expanding Phoenix's market presence with public agencies.

• Secured a major fleet order from Los Angeles County, with five all-electric, zero-emission shuttle buses scheduled for delivery.

Corporate & Capital Structure Enhancements

• Appointed Tony Zhou as Chief Technology Officer, strengthening Phoenix's innovation leadership across drivetrain, software, and autonomous systems.

• Closed a $6 million loan financing agreement to support expansion, working capital, and increased production capacity.

• Board approved a $5 million share repurchase program, reflecting confidence in long-term shareholder value.

"Phoenix Motor continues to chart a bold course in the electrification of commercial transportation," said Denton Peng, CEO of Phoenix Motor. "While Q1 results reflect a return to normalized delivery patterns following the extraordinary revenue from one-time fleet sales last year, we remain squarely focused on sustainable, long-term growth. Our expanded gross margin, leaner operations, and strengthened cost structure demonstrate the early returns of our post-acquisition integration and operational discipline."

"We are building one Phoenix-an agile, coast-to-coast organization with the scale, technology, and vision to lead in zero-emission mobility. As government mandates and incentive programs continue to accelerate electrification across the country, our Buy America-compliant platform, AI-driven innovation, and industry-proven vehicle portfolio position us at the forefront of this market transformation. With growing customer demand, a strong pipeline, and a clear strategic roadmap, we are executing from a position of strength-and remain confident that we will deliver between $40 and $50 million in revenue for 2025," Peng added.

About Phoenix Motor Inc.

Phoenix Motor, a pioneer in the electric vehicle ("EV") industry, designs, builds, and integrates electric drive systems and manufactures heavy duty transit buses and medium and light duty commercial EVs. Phoenix operates two primary brands, "Phoenix", which is focused on commercial products including heavy and medium duty EVs (transit buses, shuttle buses, school buses and delivery trucks, among others) and "EdisonFuture", which intends to offer light-duty EVs. Phoenix endeavors to be a leading designer, developer and manufacturer of electric vehicles and electric vehicle technologies. To learn more, please visit: phoenixev.ai.

Forward-Looking Statements

This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as "may," "might," "will," "intend," "should," "could," "can," "would," "continue," "expect," "believe," "anticipate," "estimate," "predict," "outlook," "potential," "plan," "seek," and similar expressions and variations or the negatives of these terms or other comparable terminology. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's current expectations and speak only as of the date of this release. Actual results may differ materially from the Company's current expectations depending upon a number of factors. These risk factors include, among others, those related to our ability to raise additional capital necessary to grow our business, operations and business and financial performance, our ability to grow demand for our products and revenue, our ability to become profitable, our ability to have access to an adequate supply of parts and materials and other critical components for our vehicles on the timeline we expect, the coronavirus (COVID-19) and the effects of the outbreak and actions taken in connection therewith, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business, and those other risks and uncertainties that are described in the "Risk Factors" section of the Company's annual report filed on Form 10-K filed with the Securities and Exchange Commission. Except as required by law, the Company does not undertake any responsibility to revise or update any forward-looking statements.

Contact:
IR@phoenixev.ai

Dave Gentry, CEO
RedChip Companies, Inc.
1-407-644-4256
PEV@redchip.com

SOURCE: Phoenix Motor Inc.

View the original press release on ACCESS Newswire

FAQ

What were Phoenix Motor's (PEVM) Q1 2025 revenue and earnings?

Phoenix Motor reported Q1 2025 revenue of $4.4 million and a net loss of $2.8 million, compared to revenue of $9.4 million and net income of $16.8 million in Q1 2024.

How much did Phoenix Motor's (PEVM) gross margin improve in Q1 2025?

Phoenix Motor's gross margin expanded to 30.9% in Q1 2025, up from 26.6% in Q1 2024, driven by stronger unit economics and improved cost discipline.

What is Phoenix Motor's (PEVM) revenue guidance for 2025?

Phoenix Motor expects to deliver between $40 and $50 million in revenue for 2025, according to CEO Denton Peng.

What major contracts did Phoenix Motor (PEVM) secure in Q1 2025?

Phoenix Motor secured a statewide contract with the California Department of General Services for zero-emission buses and received an order from Los Angeles County for five all-electric shuttle buses.

What new technology did Phoenix Motor (PEVM) launch in Q1 2025?

Phoenix Motor launched the world's first wirelessly charged medium-duty electric shuttle bus in partnership with InductEV and unveiled 40-foot zero-emission automated buses with ADASTEC Corp.

How much is Phoenix Motor's (PEVM) share repurchase program?

Phoenix Motor's board approved a $5 million share repurchase program, demonstrating confidence in long-term shareholder value.