Deep cash burn and cost cuts define REE Automotive (NASDAQ: REE) 2025

Rhea-AI Filing Summary

REE Automotive reported fiscal 2025 results showing smaller losses but a much weaker balance sheet. Revenue rose to $1.3 million from $0.2 million, driven by growing engagements, while GAAP net loss narrowed to $55.8 million from $111.8 million.

The company paused production, shifted toward a software-led model, and implemented a 40% reduction-in-force, cutting R&D payroll by about $2.6 million and SG&A payroll by about $2.7 million, excluding $2.1 million of one-time termination costs. Supplier production commitments were reduced from roughly $42 million to $13 million.

Despite these actions, cash and cash equivalents fell to $14.2 million at year-end 2025 from $72.3 million, and total shareholders’ equity declined to $6.8 million. Free cash flow was a negative $75.0 million, and the company booked a $24.7 million impairment of long-lived assets and $15.9 million of inventory write-downs related to the production pause. Management is evaluating further cost reductions and strategic alternatives to preserve liquidity and maximize shareholder value.

Positive

• None.

Negative

• Liquidity and capital erosion: Cash and cash equivalents fell from $72.3 million to $14.2 million, total assets declined to $38.2 million, and shareholders’ equity shrank to $6.8 million while free cash flow remained a negative $75.0 million, highlighting significant ongoing funding and balance sheet pressure.

Insights

Equity analyst

Losses narrowed but liquidity and equity eroded sharply in 2025.

REE Automotive cut its GAAP net loss from $111.8M to $55.8M, helped by cost reductions and large non-cash items, while non-GAAP net loss decreased to about $57.7M. Revenue increased to $1.3M, still very small relative to operating expenses.

However, cash and cash equivalents dropped from $72.3M to $14.2M, and total assets fell to $38.2M. Total shareholders’ equity declined to $6.8M as accumulated deficit grew to $1,003.7M. Free cash flow remained deeply negative at $75.0M.

The company paused production, took a $24.7M impairment and $15.9M of inventory write-downs, and executed a 40% reduction-in-force to reduce future cash obligations. Management states it is evaluating strategic alternatives and additional cost cuts, indicating that future disclosures will be important for understanding its ability to address liquidity and capital structure pressures.

Key Figures

Revenue 2025: $1,297 thousand GAAP net loss 2025: $55,807 thousand Non-GAAP net loss 2025: $57,691 thousand +5 more

8 metrics

Revenue 2025 $1,297 thousand Twelve months ended December 31, 2025

GAAP net loss 2025 $55,807 thousand Twelve months ended December 31, 2025

Non-GAAP net loss 2025 $57,691 thousand Twelve months ended December 31, 2025

Free Cash Flow 2025 $75,015 thousand negative Twelve months ended December 31, 2025

Cash and cash equivalents $14,246 thousand As of December 31, 2025

Shareholders’ equity $6,750 thousand As of December 31, 2025

Reduction-in-force 40% of workforce As of year-end 2025

Supplier commitments cut $42,000 thousand to $13,000 thousand 2025 and future production-related commitments

Key Terms

non-GAAP net loss, Free Cash Flow, Adjusted EBITDA, impairment of long-lived assets, +2 more

6 terms

non-GAAP net loss financial

"As a result, our non-Generally Accepted Accounting Principles (GAAP) net loss for 2025 decreased by 18%"

Non-GAAP net loss is a company’s reported loss that has been adjusted by removing certain costs or one-time items that the company believes hide its core operating performance. Think of it like looking at a household budget but excluding an unusual repair or sale; it can show a clearer view of everyday results, which helps investors judge ongoing profitability, but it can also omit real expenses so it should be compared with the standard GAAP loss.

Free Cash Flow financial

"We believe that Free Cash Flow (FCF) to be a liquidity measure that provides useful information"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

Adjusted EBITDA financial

"Reconciliation of Net Loss to Adjusted EBITDA"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

impairment of long-lived assets financial

"Impairment of long-lived assets (2) | | | 24,716"

An impairment of long-lived assets occurs when a company concludes that a physical or intangible asset—like a building, equipment, or a patent—is worth less than its recorded value on the books, so the company writes down that asset to its recoverable amount. For investors this matters because such write-downs reduce reported profits and company net worth, signaling potential problems with future cash flow or that management overpaid for assets; think of it like recognizing that a car you bought has lost more value than you expected.

reduction-in-force financial

"Non-recurring expenses related to reduction-in-force (3) | | | 2,101"

Reduction-in-force is a planned, permanent cut to a company's workforce—eliminating jobs or roles through layoffs, reorganizations, or by not filling open positions. Investors care because it can lower operating costs and lift short-term profits, like pruning a plant to encourage new growth, but it can also signal weak demand, trigger one-time expenses, reduce morale or productivity, and change future revenue and legal risk.

warrants liability financial

"Warrants liability | | | 3,197 | | | | 41,150"

Warrants liability is an accounting label for warrants when they are treated as a company obligation rather than equity. Think of a warrant like a coupon that might force the company to hand over cash or change the amount of stock depending on future events; when those outcomes aren’t fixed, accountants put it on the liabilities side of the balance sheet. For investors this matters because it can increase a company’s reported debt, affect future cash needs, and change potential share dilution and valuation.

Form 6-K: How Foreign Companies Report to the SEC →

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2026

Commission File Number: 001-40649

REE AUTOMOTIVE LTD.

(Exact name of registrant as specified in its charter)

Kibbutz Glil-Yam 

4690500, Israel

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒       Form 40-F ☐

EXPLANATORY NOTE

On May 15, 2026, REE Automotive Ltd. (the “Company”) announced its financial results for the fiscal year ended December 31, 2025. The full text of the press release is furnished as Exhibit 99.1 to this Report of Foreign Private Issuer on Form 6-K.

The information in this Report on Form 6-K is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise set forth herein or as shall be expressly set forth by specific reference in such a filing.

1 

EXHIBIT INDEX

Exhibit No.		Description
99.1		Press Release of REE Automotive Ltd., dated May 15, 2026

2 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	REE AUTOMOTIVE LTD.
	By:	/s/ Avital Futterman
	Name:	Avital Futterman
	Title:	General Counsel

Date: May 15, 2026

3 

Exhibit 99.1

REE Automotive Announces Fiscal Year 2025 Financial Results

TEL AVIV, Israel, May 15, 2026 – REE Automotive Ltd. (Nasdaq: REE) (“REE” or the “Company”), an automotive technology company that develops and builds software-defined vehicle technology, today announced its financial results for the fiscal year ended December 31, 2025.

During 2025, we grew our engagement with industry leaders such as Mitsubishi Fuso Truck and Bus Corporation, a Japanese manufacturer of trucks and buses and a subsidiary of Archion since 2026 and others. In addition, as part of our announced production pause and shift to being a software-led business, we took significant actions to reduce our net operating expenses, including through a 40% reductions-in-force as of year-end 2025, which lowered our research and development payroll expenses by approximately $2.6 million and our selling, general, and administrative payroll expenses by approximately $2.7 million YoY. This excludes one-time termination costs associated with our reductions-in-force, which totaled approximately $2.1 million.

Additionally, following our production pause, we decreased our outstanding 2025 and future production-related commitments with our suppliers from approximately $42 million to approximately $13 million. Through these and other actions, we reduced the Company’s future cash obligations and further streamlined our operating expenses. As a result, our non-Generally Accepted Accounting Principles (GAAP) net loss for 2025 decreased by 18%, from $70 million for the year ended 2024, to $58 million for the year ended 2025.

“We continue to believe that REE’s technology, engineering capabilities and intellectual property portfolio represent meaningful strategic value, and we remain focused on evaluating strategic alternatives and opportunities for the business,” said Daniel Barel, REE’s CEO and co-founder.

2025 Year-End Financial Results and Recent Highlights

● Cash & cash equivalents were $14.2 million as of December 31, 2025, compared to $54.3 million (excluding a credit facility of $18 million, which expired at year-end 2025) in cash & cash equivalents as of December 31, 2024. As of May 4, 2026, our cash and cash equivalents were $4.9 million.

● Free Cash Flow (FCF) burn decreased year-over-year (YoY) by $1.5 million or 2%, from $76.5 million for the year ended December 31, 2024 to $75.0 million for the year ended December 31, 2025. The decrease was primarily due to the cost-reduction-plan announced in June 2025 and was partially offset by production-related costs incurred prior to the pause in production, which mainly related to inventory purchases for the P7 program, a lower UK R&D tax credits YoY, and the absence in 2025 of UK APC grants that were previously received in 2024.

● GAAP net loss decreased by approximately 50%, from $111.8 million for the year ended December 31, 2024 to $55.8 million for the year ended December 31, 2025. The YoY improvement was primarily driven by non-cash income from the remeasurement of warrants and derivative liabilities following a decrease in REE’s share price in 2025 as well as by savings realized in connection with our cost-reduction-plan and the related reduction-in-force. These improvements were partially offset by non-cash inventory write-downs and impairment of long-lived assets related to the pause in production, a lower UK R&D tax credits YoY, and the absence in 2025 of UK APC grants that were previously received in 2024.

● Non-GAAP net loss decreased by approximately 18%, from $70.3 million for the year ended December 31, 2024, to $57.7 million for the year ended December 31, 2025. The YoY improvement was primarily driven by savings in connection with our cost-reduction plan and the reduction-in-force thereunder. These savings were partially offset by lower UK R&D tax credits YoY and the absence in 2025 of UK APC grants that were previously received in 2024.

● Subsequently, in the fourth quarter 2025, the Company began engaging with counterparties regarding strategic alternatives intended to maximize shareholder value and it engaged TD Securities (USA) LLC as its financial advisor to assist it in its strategic review process.

The Company continues to evaluate measures intended to preserve liquidity and maximize shareholder value, including additional operational cost reductions and strategic alternatives.

A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Non-GAAP Financial Measures

We have provided financial information in this press release that has not been prepared in accordance with GAAP. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.

We believe that Free Cash Flow (FCF) to be a liquidity measure that provides useful information to management and investors about the amount of cash used in our operational activities and capital expenditures. Free Cash flow burn represents the negative cash outflow used in our operating activities and for purchases of property and equipment.

We believe that non-GAAP net loss reflects an additional means of evaluating REE’s ongoing operating results and trends. We believe that this non-GAAP measure provides useful information about our operating results, enhances the overall understanding of our past performance and future prospects and allows for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.

2

About REE Automotive

REE Automotive (Nasdaq: REE) is an automobile technology company that develops and produces cutting edge software-defined vehicle, or SDV, technology that manages vehicle operations and features through proprietarily-developed software, enabling what we believe to be safer, more modular, and better performing vehicles. Our advanced SDV technology utilizes zonal architecture to enhance redundancy and stability and it contains the capabilities for updates and improvements over-the-air throughout an SDV’s lifespan. This makes Powered by REE® vehicles highly adaptable to customer and market changes and our technology is designed in an effort to be future proofed, autonomous capable. As the first company to FMVSS certify a full by-wire vehicle in the U.S., REE’s proprietary by-wire technology for drive, steer and brake control eliminates the need for mechanical connection. Our approach of “complete not compete” allows original equipment manufacturers, or OEMs, and technology companies to license our technology in order to design and build vehicles reliant upon our SDV technology to their specific requirements and needs. To learn more about REE Automotive’s patented technology and unique value proposition that position the Company to break new ground in e-mobility, visit www.ree.auto.

Caution About Forward-Looking Statements

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include, among others, statements about the Company’s evaluation of methods to preserve liquidity and maximize shareholder value, including operational cost reductions and strategic alternatives. Actual results of matters addressed in these forward-looking statements involve risks and uncertainties and may differ substantially from those expressed or implied. Factors that could cause actual results to differ are discussed in the sections entitled “Cautionary Note Regarding Forward-Looking Statements”, “Risk Factors”, and “Operating and Financial Review and Prospects” in REE’s annual report filed with the U.S. Securities and Exchange Commission (the “SEC”) on May 15, 2026, as updated by the REE’s subsequent filings with the SEC. The forward-looking statements in this press release speak only as of the date of this press release, and we undertake no obligation to update any forward-looking statements.

3

REE AUTOMOTIVE LTD.

Condensed Consolidated Statements of Comprehensive Loss

U.S. dollars in thousands (except share and per share data) (Unaudited)

		Twelve Months Ended
		December 31,				December 31,
		2025				2024
Revenues		$	1,297			$	183
Cost of revenues			17,571				3,681
Gross loss		$	(16,274	)		$	(3,498	)
Operating expenses:
Research and development expenses, net			45,432				49,460
Selling, general and administrative expenses			19,988				26,171
Other expenses			24,716				—
Total operating expenses			90,136				75,631
Operating loss		$	(106,410	)		$	(79,129	)
Income (Loss) from warrants remeasurement			37,953				(22,750	)
Financial income (expenses), net			10,658				(7,812	)
Net loss before income tax			(57,799	)			(109,691	)
Taxes on income (tax benefit)			(1,992	)			2,063
Net loss		$	(55,807	)		$	(111,754	)
Net comprehensive loss		$	(55,807	)		$	(111,754	)
Basic and diluted net loss per Class A ordinary share		$	(1.74	)		$	(7.01	)
Weighted average number of ordinary shares used in computing basic and diluted net loss per share			32,140,321				15,933,291

4

REE AUTOMOTIVE LTD.

Condensed Consolidated Balance Sheets

U.S. dollars in thousands (except share and per share data) (Unaudited)

		December 31, 2025				December 31, 2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	14,246			$	72,262
Accounts receivable			24				11
Inventory			—				3,075
Other accounts receivable and prepaid expenses			691				7,158
Total current assets			14,961				82,506
NON-CURRENT ASSETS:
Non-current restricted cash			1,973				2,510
Other accounts receivable and prepaid expenses			2,386				3,091
Operating lease right-of-use assets			15,004				20,063
Property and equipment, net			3,857				22,110
Total non-current assets			23,220				47,774
TOTAL ASSETS		$	38,181			$	130,280
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short term loan		$	—			$	18,008
Trade payables			1,736				5,602
Other accounts payable and accrued expenses			7,337				7,966
Operating lease liabilities			3,637				4,607
Total current liabilities			12,710				36,183
NON-CURRENT LIABILITIES:
Warrants liability			3,197				41,150
Convertible promissory notes			4,830				14,758
Deferred tax liability			—				1,782
Operating lease liabilities			10,694				13,279
Total non-current liabilities			18,721				70,969
TOTAL LIABILITIES			31,431				107,152
SHAREHOLDERS’ EQUITY:
Ordinary Shares of no par value			—				—
Additional paid-in capital			1,010,447				971,018
Accumulated deficit			(1,003,697	)			(947,890	)
Total shareholders’ equity			6,750				23,128
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	38,181			$	130,280

5

REE AUTOMOTIVE LTD.

Condensed Consolidated Statements of Cash Flows

U.S. dollars in thousands (Unaudited)

		Twelve Months Ended
		December 31,				December 31,
		2025				2024
Cash flows from operating activities:
Net loss		$	(55,807	)		$	(111,754	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation			3,090				3,182
Share-based compensation			5,067				9,585
Change in fair value of warrants liability			(37,953	)			22,750
Change in fair value of derivative liability			(11,751	)			9,143
Amortization of discount of convertible promissory note			883				476
Interest expenses			932				872
Decrease (increase) in accrued interest on short-term investments			—				895
Decrease (increase) in inventory			3,075				(3,412	)
Decrease (increase) in accounts receivable			(13	)			444
Decrease (increase) in other accounts receivable and prepaid expenses			5,269				(419	)
Change in operating lease right-of-use assets and liabilities, net			1,065				390
Increase (decrease) in trade payables			(4,280	)			1,905
Increase (decrease) in other accounts payable and accrued expenses			(1,230	)			(4,956	)
Increase (decrease) in deferred tax liability			(1,782	)			1,782
Impairment of long-lived assets			24,716				—
Loss from property and equipment sales and disposals			9				132
Net cash used in operating activities			(68,710	)			(68,985	)
Cash flows from investing activities:
Purchase of property and equipment			(6,305	)			(7,531	)
Proceeds from sale of property and equipment			100				—
Proceeds from short-term investments			—				43,500
Net cash provided by (used in) investing activities			(6,205	)			35,969
Cash flows from financing activities:
Proceeds from issuance of Ordinary Shares, net			34,361				45,535
Proceeds from exercise of options and warrants			1				13
Repayment of short term loan			(18,000	)			(15,000	)
Proceeds from short term loan			—				18,000
Proceeds from issuance of warrants			—				15,000
Net cash provided by financing activities			16,362				63,548
Increase (Decrease) in cash, cash equivalents and restricted cash			(58,553	)			30,532
Cash, cash equivalents and restricted cash at beginning of year			74,772				44,240
Cash, cash equivalents and restricted cash at end of period		$	16,219			$	74,772

6

Reconciliation of GAAP Financial Metrics to Non-GAAP

U.S. dollars in thousands (except share and per share data) (Unaudited)

Reconciliation of Net Loss to Adjusted EBITDA

		Twelve Months Ended
		Dec 31,				Dec 31,
		2025				2024
Net loss on a GAAP Basis		$	(55,807	)		$	(111,754	)
Financial expenses (income), net			(10,658	)			7,812
Taxes on income (tax benefit)			(1,992	)			2,063
Loss (Income) from warrants remeasurement			(37,953	)			22,750
Depreciation and amortization			7,030				6,767
Share-based compensation			5,067				9,585
Inventory write-downs and non-recurring expenses related to pause in production (1)			15,936				—
Impairment of long-lived assets (2)			24,716				—
Non-recurring expenses related to reduction-in-force (3)			2,101				—
Adjusted EBITDA		$	(51,560	)		$	(62,777	)

(1) Includes inventory write-downs to net realizable value and write-offs of inventory that currently has no operational use and one-time costs related to the pause in production.

(2) Impairment charges of long-lived assets and loss from lease termination.

(3) Includes one-time expenses related to reduction-in-force plan.

Reconciliation of net cash used in operating activities to Free Cash Flow

Twelve Months Ended Dec 31, 2025 Dec 31, 2024

		Twelve Months Ended
		Dec 31,				Dec 31,
		2025				2024
Net cash used in operating activities		$	(68,710	)		$	(68,985	)
Purchase of property and equipment			(6,305	)			(7,531	)
Free Cash Flow		$	(75,015	)		$	(76,516	)

7

Reconciliation of GAAP operating expenses to Non-GAAP operating expenses; GAAP net loss to Non-GAAP net loss, and presentation of Non-GAAP net loss per Share, basic and diluted:

		Twelve Months Ended
		Dec 31,				Dec 31,
		2025				2024
GAAP operating expenses		$	90,136			$	75,631
Share-based compensation			(5,067	)			(9,585	)
Impairment of long-lived assets (2)			(24,716	)			—
Non-recurring expenses related to reduction-in-force (3)			(2,101	)			—
Non-GAAP operating expenses		$	58,252			$	66,046
GAAP net loss		$	(55,807	)		$	(111,754	)
Loss (Income) from warrants remeasurement			(37,953	)			22,750
Loss (Income) from derivatives remeasurement			(11,751	)			9,143
Share-based compensation			5,067				9,585
Inventory write-downs and non-recurring expenses related to pause in production (1)			15,936				—
Impairment of long-lived assets (2)			24,716				—
Non-recurring expenses related to reduction-in-force (3)			2,101				—
Non-GAAP net loss		$	(57,691	)		$	(70,276	)
Weighted average number of ordinary shares used in computing basic and diluted net loss per share			32,140,321				15,933,291
Non-GAAP basic and diluted net loss per share		$	(1.79	)		$	(4.41	)

(1) Includes inventory write-downs to net realizable value and write-offs of inventory that currently has no operational use and one-time costs related to the pause in production.

(2) Impairment charges of long-lived assets and loss from lease termination.

(3) Includes one-time expenses related to reduction-in-force plan.

8

FAQ

How did REE (REE) perform financially in fiscal year 2025?

REE cut its GAAP net loss to $55.8 million in 2025, compared with $111.8 million in 2024. Revenue increased from $0.2 million to $1.3 million, but the business still generated substantial losses and required heavy cash usage to fund operations and restructuring actions.

What cost-cutting measures did REE (REE) implement in 2025?

REE executed a 40% reduction-in-force and paused production as it shifted toward a software-led model. These actions lowered R&D payroll by about $2.6 million and SG&A payroll by about $2.7 million year over year, excluding $2.1 million of one-time termination expenses.

What is REE Automotive’s cash and liquidity position at the end of 2025?

REE ended 2025 with $14.2 million in cash and cash equivalents, down from $72.3 million a year earlier. Total assets declined to $38.2 million and shareholders’ equity to $6.8 million, while free cash flow was a negative $75.0 million over the twelve-month period.

How did REE’s non-GAAP results change in 2025?

REE’s non-GAAP net loss decreased to about $57.7 million in 2025, from $70.3 million in 2024. Non-GAAP operating expenses fell to $58.3 million, reflecting adjustments for share-based compensation, impairments, reduction-in-force costs, and other non-recurring production pause-related items.

What strategic steps is REE (REE) considering following its 2025 results?

REE is evaluating additional cost reductions and strategic alternatives aimed at preserving liquidity and maximizing shareholder value. Management also reduced supplier production commitments from approximately $42 million to $13 million as part of a broader shift toward a software-led business model.

How did REE’s production pause impact its 2025 financials?

The production pause led to significant non-cash charges and lower commitments. REE recorded a $24.7 million impairment of long-lived assets, $15.9 million of inventory write-downs and related expenses, and cut supplier production commitments from about $42 million to $13 million for 2025 and future periods.

Filing Exhibits & Attachments

1 document

Press Releases

• EX-99.1 PRESS RELEASE OF REE AUTOMOTIVE LTD., DATED MAY 15, 2026 98.7 KB