Sono Group N.V. Reports Third Quarter 2025 Results: Stronger Balance Sheet and Nasdaq Uplisting Mark Key Milestones

Rhea-AI Summary

Sono Group (Nasdaq: SSM) reported Q3 2025 results and milestone corporate actions on November 20, 2025. Key outcomes include a completed conversion of convertible debentures into preferred equity and an uplisting to Nasdaq on September 5, 2025, which helped restore the balance sheet.

Financial highlights: shareholders' equity €2.5m (from a €22.7m deficit at year-end 2024), cash €2.3m, Q3 revenue €49k (doubled QoQ), Q3 net loss narrowed to €1.4m from €9.5m, and 9M net income €6.6m driven primarily by non-cash fair‑value movements. Management cites OEM traction, initial commercialization revenue, and evaluation of funding and M&A options to support growth.

Positive

• Shareholders' equity improved to €2.5m from a €22.7m deficit at year-end 2024
• Q3 revenue of €49k, described as a quarter-over-quarter doubling
• Q3 net loss narrowed to €1.4m from €9.5m year-ago
• Net cash used in operations improved 62% to €5.2m for 9M 2025

Negative

• Cash balance remained low at €2.3m as of September 30, 2025
• Operating loss of €1.6m in Q3 2025 indicates ongoing negative operating cash flow
• 9M net income of €6.6m driven mainly by non-cash fair-value movements, not recurring operating profit
• Revenue level remains minimal (€101k for 9M 2025), signaling early commercialization

Insights

Equity Analyst

Positive balance-sheet repair and Nasdaq uplisting; early commercialization signs but cash and execution remain key near-term risks.

The company converted all outstanding convertible debentures into preferred equity, moving shareholders' equity from a deficit of €22.7 million at year-end 2024 to a positive €2.5 million at September 30, 2025, and completed a Nasdaq Capital Market uplisting under "SSM". Cash on hand rose to €2.3 million from €1.4 million at December 31, 2024, while net cash used in operating activities improved to €5.2 million for the nine months ended September 30, 2025 from €13.5 million in the prior period, a 62% improvement. These are clear balance-sheet and liquidity datapoints that restore basic financial flexibility and expand investor access via Nasdaq listing.

Revenueization is nascent: Q3 revenue of €49k (9M revenue €101k) and quarter-over-quarter revenue doubling indicate initial commercialization but remain small relative to operating costs. Q3 net loss narrowed to €1.4 million from €9.5 million a year earlier, while 9M net income of €6.6 million reflects non-cash fair value movements rather than operating profitability. The company disclosed OEM programs with MAN Truck & Bus and Mitsubishi Heavy Industries Thermal Transport Europe GmbH, and recognized ~€0.25 million in government grants in Q3; these are concrete commercialization signals but not yet large revenue contributors.

Dependencies and risks include sustaining cash runway, converting OEM programs into repeatable revenue, and successful execution of any M&A or funding actions management pursues. Management explicitly notes evaluation of funding options and potential M&A to strengthen liquidity. Monitor cash balance and operating cash flow trends, material OEM contract awards or purchase orders, and any announced funding/M&A milestones over the next 12 months as the most direct indicators of whether the balance-sheet improvement leads to scalable commercial growth.

Nine month (9M) 2025 net income of €6.6 million primarily driven by fair value adjustments; revenue begins to reflect initial commercialization; continued progress on OEM collaborations

MUNICH, Nov. 20, 2025 (GLOBE NEWSWIRE) -- Sono Group N.V. (Nasdaq: SSM) (hereafter referred to as “Sono” or the “Company”, parent company to Sono Motors GmbH, hereafter referred to as “Sono Solar” or “Subsidiary”), the solar technology company, today announced its financial results for the third quarter ended September 30, 2025 and the first nine months of 2025.

Q3 & Year-to-Date 2025 Financial Highlights                                                                                

• Balance sheet strengthened: Completed the conversion of all outstanding convertible debentures into preferred equity. As a result, shareholders’ equity improved from a deficit of €22.7 million at year-end 2024 to a positive €2.5 million at September 30, 2025, a major milestone that restores financial flexibility and reinforces the Company’s capital position ahead of growth.
• Revenue: Doubled quarter-over-quarter in Q3 2025, reflecting continued progress along the commercialization roadmap.
• Profitability: Demonstrated sustained financial discipline with Q3 net loss reduced to €1.4 million from €9.5 million a year earlier. Operating loss held broadly stable at €1.6 million, highlighting effective cost control and operating efficiency as the Company scales commercialization.
• 9M results: Net income of €6.6 million for the nine months ended September 30, 2025, reflecting non-cash fair value movements; the year-over-year change versus 2024 primarily relates to the non-recurring reconsolidation gain recorded in 2024.
• Cash: €2.3 million at September 30, 2025 compared to €1.4 million at December 31, 2024. Net cash used in operating activities improved to €5.2 million for 9M 2025 from €13.5 million for 9M 2024 reflecting a 62% improvement from prior period.
  

Business Updates and Outlook

Uplisting complete; investor reach expanded. Ordinary shares commenced trading on the Nasdaq Capital Market under “SSM” on September 5, 2025, enhancing visibility and access to global investors.

Capital structure simplified; equity base strengthened. Following the conversion of all outstanding convertible debentures into preferred equity, Sono entered Q4 with a positive shareholders’ equity position as of September 30, 2025 with significant balance sheet flexibility compared to prior period.

OEM traction and commercialization progress. The Company advanced key OEM collaborations, including disclosed programs with MAN Truck & Bus and Mitsubishi Heavy Industries Thermal Transport Europe GmbH, targeting solar integration in buses, trucks, and refrigerated trailers. Q3 included initial revenues recognized and ~€0.25 million in government grants supporting development and deployment.

Rebranding aligned to strategy. The operating subsidiary adopted the Sono Solar brand, underscoring the Company’s focus on solar mobility integrations for commercial vehicles.

George O’Leary, Managing Director, said: “Q3 was an execution quarter: we uplisted to Nasdaq, simplified the capital structure, and began converting pipeline into revenue. With a tighter operating focus and a sharper brand, we worked on OEM partnerships and high-impact use cases to put solar on every commercial vehicle.”

Kevin McGurn, Chief Executive Officer, stated: “With Sono now trading on Nasdaq, our focus turns to strategic growth and disciplined execution. We are actively exploring opportunities that could accelerate scale, including potential M&A, while maintaining a strong emphasis on aligning revenue growth with our cost base.”

Sono will continue to prioritize OEM-led commercialization, disciplined cost control, and selective investment in programs with clear customer value. Following the uplisting, management is evaluating funding options to support growth and strengthen liquidity through M&A as commercialization of solar mobility advances slower than expected.

The full unaudited quarterly report on Form 10-Q for the period ended September 30, 2025, is available on the Company’s investor relations website at ir.sonomotors.com and filed with the U.S. Securities and Exchange Commission.

ABOUT SONO GROUP N.V.

Sono Group N.V. (Nasdaq: SSM) and its wholly owned subsidiary Sono Motors GmbH, operating under the brand name Sono Solar, are on a pioneering mission to accelerate the revolution of mobility by making every commercial vehicle solar. Our disruptive solar technology has been developed to enable seamless integration into all types of commercial vehicles to reduce the impact of CO2 emissions and pave the way for climate-friendly mobility. For more information about Sono Group N.V., Sono Solar, and their solar solutions, visit sonogroupnv.com and sono-solar.com. Follow us on social media: LinkedIn, Facebook, BlueSky, Truth Social, and X.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. The words "expect", "anticipate", "intend", "plan", "estimate", "aim", "forecast", "project", "target", "will" and similar expressions (or their negative) identify certain of these forward-looking statements. These forward-looking statements are statements regarding the intentions, beliefs, or current expectations of the Company and its subsidiary Sono Motors GmbH (together, the “companies”). Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and could cause the companies’ actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and assumptions include, but are not limited to, risks, uncertainties and assumptions with respect to: our ability to comply with the continued listing requirements of the Nasdaq Capital Market, our ability to maintain relationships with creditors, suppliers, service providers, customers, employees and other third parties in light of the performance and credit risks associated with our constrained liquidity position and capital structure; our ability to comply with OTCQB continuing standards; our ability to achieve our stated goals; our strategies, plan, objectives and goals, including, among others, the successful implementation and management of the pivot of our business to exclusively retrofitting and integrating our solar technology onto third party vehicles; our ability to raise the additional funding required beyond the investment from Yorkville to further develop and commercialize our solar technology and business as well as to continue as a going concern. For additional information concerning some of the risks, uncertainties and assumptions that could affect our forward-looking statements, please refer to our filings with the U.S. Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2024, which are accessible on the SEC’s website at www.sec.gov and on our website at ir.sonomotors.com. Many of these risks and uncertainties relate to factors that are beyond our ability to control or estimate precisely, such as the actions of courts, regulatory authorities and other factors. Readers should therefore not place undue reliance on these statements, particularly not in connection with any contract or investment decision. Except as required by law, the Company assumes no obligation to update any such forward-looking statements.

CONTACT:

Press:
press@sono-solar.com | ir.sonomotors.com/news-events

Investors:
ir@sonomotors.com | ir.sonomotors.com

LinkedIn:
https://www.linkedin.com/company/sonogroupnv

FINANCIAL RESULTS
(amounts in € thousands, except share and per share data)

CONDENSED CONSOLIDATED BALANCE SHEETS

€k	September 30, 2025	December 31, 2024
ASSETS
Current Assets
Cash	2,250	1,354
Inventory	312	304
Prepaid taxes	597	531
Prepaid expenses and other	102	103
Total Current Assets	3,261	2,292
Property, plant and equipment	106	129
Right of use lease assets	588	630
TOTAL ASSETS	3,955	3,051

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable and accrued expenses	595	575
Lease liability, current portion	167	58
Convertible notes payable at fair value	-	24,035
VAT payable	236	487
Other current liabilities	27	5
Total Current Liabilities	1,025	25,160
Long-Term Liabilities
Lease liability, long term portion	421	572
Total Liabilities	1,446	25,732
Shareholders’ Equity
Preferred Shares	420	-
Ordinary Shares	14	28
High Voting Shares	10	20
Additional paid-in capital	316,859	298,699
Accumulated deficit	(314,794)	(321,428)
Total Shareholders’ Equity	2,509	(22,681)
TOTAL EQUITY AND LIABILITIES	3,955	3,051

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

€k	Q3 2025	Q3 2024	9M 2025	9M 2024
Revenue	49	–	101	–
Cost of sales	18	–	57	–
Gross margin	31	–	44	–
Operating Expenses and Costs
Selling and distribution expenses	186	205	662	448
General and administrative expenses	1,231	753	3,512	3,627
Research and development	435	519	1,402	1,076
Gain on deconsolidation/reconsolidation	–	–	–	(63,491)
Other operating income	(250)	4	(381)	(66)
Total Operating Expenses and Costs	1,602	1,481	5,195	(58,406)
(Loss)/Income from Operations	(1,571)	(1,481)	(5,151)	58,406
Other Income (Expenses)
(Loss) / Income from changes in fair value of convertible note payable carried at fair value	(35)	(8,809)	11,108	13,100
Gain/(Loss) on foreign currency transactions	215	783	675	(1,575)
Total other income / (expense)	(180)	(8,026)	11,783	11,525
NET (LOSS) / INCOME	(1,391)	(9,507)	6,632	69,931

Net (loss) / income per share to common shareholders:
Basic, €	(0.95)	(6.56)	4.56	48.26
Diluted, €	(0.95)	(6.56)	0.72	3.58
Weighted average number of common shares:
Basic, €	1,463,101	1,449,868	1,454,361	1,449,094
Diluted, €	1,463,101	1,449,868	9,206,350	19,542,240

FAQ

When did Sono Group start trading on Nasdaq under the symbol SSM?

Ordinary shares commenced trading on the Nasdaq Capital Market under SSM on September 5, 2025.

How much did Sono Group report in cash and shareholders' equity at September 30, 2025 (SSM)?

As of September 30, 2025 Sono reported cash €2.3m and shareholders' equity €2.5m.

What drove Sono Group's €6.6m net income for the nine months ended September 30, 2025 (SSM)?

The €6.6m 9M net income primarily reflected non-cash fair-value movements rather than recurring operating profit.

How did Sono Group's Q3 2025 revenue and profitability change (SSM)?

Q3 2025 revenue was €49k (reported as doubled QoQ) and Q3 net loss narrowed to €1.4m from €9.5m a year earlier.

What balance-sheet action did Sono Group complete before Q4 2025 (SSM)?

The company converted all outstanding convertible debentures into preferred equity, simplifying its capital structure and improving equity to €2.5m.