AUSTIN, Texas--(BUSINESS WIRE)--Hyliion Holdings Corp. (NYSE American: HYLN), a developer of innovative electricity-producing technology, today announced that the United States Environmental Protection Agency (EPA) has issued a determination confirming that Hyliion's KARNOâ"¢ Power Module is not regulated as an internal combustion engine under existing federal law and regulations. Instead, the KARNO Power Module will primarily be subject to local air permitting requirements applicable to power ge. ...

Summary of Hyliion (HYLN) 2025 Conference Call Company Overview - **Company Name**: Hyliion - **Ticker**: HYLN - **Industry**: Clean energy and power generation - **Headquarters**: Austin, Texas, with an R&D facility in Cincinnati, Ohio - **Founded**: 2015 - **Focus**: Innovative solutions for clean, flexible, and affordable electricity production, targeting distributed power generation for commercial and waste management industries [2][10] Core Points and Arguments - **Vision for Power Generation**: Hyliion aims to create on-site power generation solutions that operate continuously, providing cheaper and cleaner electricity compared to traditional grid sources [4][8] - **Power Output**: Each generator unit produces 200 kilowatts of electricity, with the ability to stack units for higher output. A two-megawatt system is also in development [5][36] - **Market Demand**: Significant growth in electricity demand is anticipated, particularly from data centers, which are projected to increase their consumption from 6 gigawatts in 2025 to 40 gigawatts in five years [7] - **Infrastructure Challenges**: 60% of U.S. transmission lines are at or past their life expectancy, necessitating on-site power generation solutions [8] - **Use Cases**: Target markets include data centers, military applications (e.g., Navy and Air Force), waste gas management, and EV charging infrastructure [12][22] Financial and Operational Highlights - **Revenue**: The company reported $1 million in revenue from a Navy contract, which is valued at $20 million, including unit shipments and ongoing advancements [47][48] - **Cash Position**: As of the last quarter, Hyliion had approximately $185 million in cash and investments, with an annual burn rate of $60-65 million, providing a runway of about three years without needing additional capital [47] - **Tax Incentives**: The recent legislation includes a 30% tax credit for customers adopting Hyliion's technology, which is expected to facilitate adoption and reduce costs [17][45] Technology and Innovation - **Carnot Technology**: Acquired from GE, this technology allows for fuel-agnostic power generation, capable of using various fuels including natural gas, hydrogen, and contaminated gases [11][15][28] - **Efficiency**: The system operates at up to 50% fuel-to-electric efficiency, outperforming traditional grid electricity sources [28] - **Low Maintenance**: The design features only one moving part per shaft, significantly reducing maintenance needs compared to conventional engines [14][29] - **Environmental Impact**: The technology aims for ultra-low emissions, working with regulatory bodies to meet stringent air quality standards [30] Market Position and Future Outlook - **Customer Base**: End customers include data center infrastructure providers, military branches, oil and gas companies, and EV infrastructure owners [21][22] - **Growth Potential**: Hyliion has signed letters of intent (LOIs) for nearly 500 units, indicating strong market interest and potential for revenue growth [52] - **Commercialization Timeline**: The company plans to ramp up production and commercialization in 2026, following initial deployments in 2025 [46][52] Additional Insights - **Historical Context**: Hyliion initially focused on electric vehicle powertrains but pivoted to power generation due to high costs and market challenges in the EV sector [19] - **Technological Advancements**: The use of 3D printing in manufacturing components allows for intricate designs that enhance performance and efficiency [26][43] This summary encapsulates the key points discussed during the Hyliion conference call, highlighting the company's strategic direction, market opportunities, and technological innovations.

Financial Data and Key Metrics Changes - In Q2 2025, the company recorded revenue of $1.5 million from research and development services, compared to no revenue in Q2 2024 [19] - Gross profit for Q2 2025 was $131,000, with a net loss of $13.4 million, up from a net loss of $10.9 million in Q2 2024 [19][22] - Year-to-date revenue reached $2 million, all from R&D services, with a total net loss of $30.7 million compared to $26.4 million in the same period last year [22] Business Line Data and Key Metrics Changes - Operating expenses for Q2 2025 were $15.8 million, an increase from $14 million in Q2 2024, primarily due to higher R&D costs [20] - R&D expenses rose to $10.1 million in Q2 2025 from $8.3 million in Q2 2024, reflecting increased production of additive components [20] Market Data and Key Metrics Changes - The introduction of a 30% investment tax credit for customers deploying linear generators or fuel cells is expected to drive customer adoption and interest in the company's Carnot power module [5][18] - The company signed a strategic MOU with Al Qaraif Industries for a potential $1 billion opportunity to deploy Carnot power modules in Saudi Arabia [16] Company Strategy and Development Direction - The company aims to execute the early adopter program and prepare for a commercial launch in 2026, focusing on scaling manufacturing and improving product performance [27] - The transition to in-house production of linear electric motors (LEMs) is expected to enhance quality and execution, minimizing risks of delays [9][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about overcoming key engineering and manufacturing challenges, which will facilitate continued production and customer deployments [4][18] - The company anticipates delivering all 10 early adopter units in 2025, with commercialization efforts extending into 2026 to incorporate customer feedback [12][24] Other Important Information - The company achieved a significant technical milestone by confirming the effectiveness of a new powder removal method for the REGEN component, which is critical for the Carnot system's performance [10] - The company has received a Phase II small business innovation research contract from the U.S. Navy for further R&D work, focusing on software development for multi-megawatt Carnot systems [14] Q&A Session Summary Question: Can you share more on the 30% tax credit? - Management emphasized the importance of the tax credit for both the company and its customers, highlighting its simplicity and long-term applicability without fuel stipulations [30][32] Question: Are there other large issues that need to be resolved prior to shipping? - Management confirmed that the main issues regarding LEMS and REGEN have been addressed, allowing for resumed production and improved performance [33][35] Question: How is the Navy planning to use the Carnot, and are there other military contracts being pursued? - The Carnot is intended for use in autonomous unmanned vessels and stationary applications at military bases, with ongoing efforts to expand military applications [37][39]

Production Updates & Roadmap - Hyliion delivered the second early adopter unit to the U S Navy[10] - The company is nearing completion of two more KARNO Power Modules, one for UL Certification and the other for a commercial customer[10] - Hyliion plans to deliver 10 early adopter customer units in 2025, with full product commercialization shifting into 2026[14] - The company continues to build an inventory of printed components for KARNO Power Modules[14] Financial Performance & Outlook - In Q2 2025, Hyliion reported $1.5 million in R&D service revenue and a gross margin of $0.1 million[19, 22] - The net loss for Q2 2025 was $13.4 million[19] - Year-to-date R&D service revenue reached $2.0 million, with a gross margin of $0.1 million[19] - The net loss year-to-date was $30.7 million[19] - Hyliion anticipates total cash use of approximately $65 million for the full year 2025[26, 28] Strategic Initiatives - A 30% Investment Tax Credit has been established for businesses deploying linear electric motors or fuel cells[5] - Hyliion sees up to a $1 billion KARNO Power Modules opportunity in Saudi Arabia[17]

Company Performance - Hyliion Holdings Corp. reported a quarterly loss of $0.08 per share, which was better than the Zacks Consensus Estimate of a loss of $0.09, but worse than a loss of $0.06 per share a year ago, indicating an earnings surprise of +11.11% [1] - The company posted revenues of $1.52 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.26%, compared to zero revenues a year ago [2] - Hyliion shares have declined approximately 39.9% since the beginning of the year, contrasting with the S&P 500's gain of 8.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $2.5 million, and for the current fiscal year, it is -$0.33 on revenues of $10.04 million [7] - The estimate revisions trend for Hyliion was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6] Industry Context - The Automotive - Original Equipment industry, to which Hyliion belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Hyliion Holdings Corp. as of June 30, 2025, and for the three and six-month periods then ended. It includes the balance sheets, statements of operations, changes in stockholders' equity, statements of cash flows, and accompanying notes, which detail the company's financial position and performance [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, the company's total assets decreased to $229.2 million from $263.0 million at year-end 2024, primarily due to a reduction in investments. Total liabilities also decreased to $13.3 million from $18.7 million. The decline in total stockholders' equity to $215.9 million from $244.4 million was mainly driven by the accumulated deficit from net losses Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$229,210** | **$263,046** | | Cash and cash equivalents | $15,591 | $9,227 | | Total investments | $169,709 | $210,502 | | **Total Liabilities** | **$13,340** | **$18,657** | | **Total Stockholders' Equity** | **$215,870** | **$244,389** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the second quarter of 2025, the company generated $1.5 million in revenue from R&D services, a new revenue stream. However, the net loss widened to $13.4 million from $10.9 million in the prior-year quarter, driven by increased R&D expenses. For the six-month period, net loss increased to $30.7 million from $26.4 million year-over-year Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $1,515 | $— | $2,004 | $— | | Gross Profit | $131 | $— | $143 | $— | | Research and development | $10,137 | $8,311 | $22,367 | $16,279 | | Loss from operations | $(15,623) | $(14,017) | $(35,345) | $(33,008) | | Net loss | $(13,414) | $(10,856) | $(30,668) | $(26,448) | | Net loss per share | $(0.08) | $(0.06) | $(0.18) | $(0.15) | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%20Equity) Stockholders' equity decreased by $28.5 million during the first six months of 2025, falling from $244.4 million to $215.9 million. The primary driver for this reduction was the net loss of $30.7 million incurred during the period, which was partially offset by $2.7 million in share-based compensation - The decrease in total stockholders' equity from **$244.4 million** at the end of 2024 to **$215.9 million** at June 30, 2025, was primarily caused by the net loss of **$30.7 million** for the six-month period[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, net cash used in operating activities was $24.0 million, an improvement from $33.4 million in the prior year period. Net cash provided by investing activities was $30.9 million, mainly from the sale and maturity of investments. Financing activities used $0.5 million. Overall, cash and cash equivalents increased by $6.4 million during the period Six Months Ended June 30, Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(23,999) | $(33,396) | | Net cash provided by investing activities | $30,895 | $46,027 | | Net cash used in financing activities | $(532) | $(14,297) | | **Net increase (decrease) in cash** | **$6,364** | **$(1,666)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide context to the financial statements, detailing the company's strategic shift to focus on the KARNO Power Module after winding down its powertrain business. Key details include the basis of presentation, accounting for the powertrain business disposal, revenue recognition from new R&D service contracts with the U.S. government, and details on investments and share-based compensation - The company is winding down its powertrain business to focus on the commercialization of its KARNO Power Module technology, with wind-down activities expected to be complete in Q4 2025[19](index=19&type=chunk) - Hyliion began recognizing revenue from R&D service contracts with the U.S. government in Q4 2024. For the six months ended June 30, 2025, two customers (Customer A and Customer B) accounted for **77%** and **23%** of revenue, respectively[42](index=42&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) - The company believes it has sufficient funds to execute its business strategy for the next twelve months, with total equity of **$215.9 million**, including **$15.6 million** in cash and **$169.7 million** in investments as of June 30, 2025[26](index=26&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strategic focus on the KARNO Power Module, a fuel-agnostic power generator targeting various markets from data centers to defense. The analysis covers R&D progress, including overcoming production challenges with key components. The financial review details an increase in net loss due to higher R&D spending, despite new revenue from government contracts. The company confirms sufficient liquidity for the next year, projecting to end 2025 with approximately $155 million in cash and investments [Overview and Strategy](index=20&type=section&id=Overview%20and%20Strategy) Hyliion is focused on its primary product, the KARNO Power Module, a fuel-agnostic generator designed for clean and efficient electricity production. The company is targeting diverse markets including data centers, prime power, defense, EV charging, and biogas. Management highlights the technology's key advantages over conventional generators, such as higher efficiency (up to 50%), lower maintenance, fuel flexibility (over 20 sources), and low emissions - The company's primary focus is the KARNO Power Module, a fuel-agnostic power generating solution targeting commercial, industrial, and utility-scale applications[66](index=66&type=chunk) - Key competitive advantages of the KARNO Power Module include high efficiency, low maintenance, fuel flexibility, low noise, and modularity[82](index=82&type=chunk) - Target markets are broad, including data centers, microgrids, defense, EV charging, biogas conversion, and mobile applications[84](index=84&type=chunk)[86](index=86&type=chunk) [KARNO Power Module Development](index=25&type=section&id=KARNO%20Power%20Module%20Development) R&D activities are concentrated on testing and validating the 200 kW KARNO Power Module. The company has addressed earlier delays caused by design and production issues with a key printed component (the regenerator) and has insourced linear electric motor production to improve quality control and ramp-up speed. As of the report date, two of the ten planned early adopter units for 2025 have been delivered under an R&D contract with the Office of Naval Research (ONR) - The company has overcome initial production delays related to a key component (the regenerator) and has insourced linear electric motor production to accelerate ramp-up[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - Two of the ten planned early adopter units for 2025 have been delivered and are undergoing testing under the ONR contract[89](index=89&type=chunk) - The company was awarded a cost-plus-fixed-fee contract of up to **$16.0 million** by the ONR to assess the KARNO Power Module for Navy applications[94](index=94&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) For Q2 2025, the company recorded $1.5 million in R&D services revenue, which was not present in 2024. R&D expenses rose 22% to $10.1 million, driving an increased operating loss of $15.6 million. For the six-month period, R&D expenses increased 37.4% to $22.4 million, and the operating loss grew to $35.3 million. The increases in R&D spending are attributed to the design, testing, and production ramp-up for the KARNO Power Module Comparison of Three Months Ended June 30 (in thousands) | Account | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $1,515 | $— | $1,515 | N/A | | Research and development | $10,137 | $8,311 | $1,826 | 22.0% | | Loss from operations | $(15,623) | $(14,017) | $(1,606) | 11.5% | | Net loss | $(13,414) | $(10,856) | $(2,558) | 23.6% | Comparison of Six Months Ended June 30 (in thousands) | Account | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $2,004 | $— | $2,004 | N/A | | Research and development | $22,367 | $16,279 | $6,088 | 37.4% | | Loss from operations | $(35,345) | $(33,008) | $(2,337) | 7.1% | | Net loss | $(30,668) | $(26,448) | $(4,220) | 16.0% | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, Hyliion held $114.5 million in current assets, including $15.6 million in cash and $93.0 million in short-term investments, against $10.3 million in current liabilities. The company believes its current assets and $76.7 million in long-term investments are sufficient to meet capital requirements for the next twelve months. Management projects ending 2025 with approximately $155 million in total cash and investments - The company projects to have approximately **$155 million** in cash, short-term, and long-term investments remaining on its balance sheet at the end of 2025[120](index=120&type=chunk) - Hyliion has paused its **$20 million** share repurchase program, with up to **$6.1 million** remaining authorized for repurchases[120](index=120&type=chunk) - Primary short-term cash needs are for KARNO Power Module development, initial deployment units, and capital investments in additive printer acquisitions[120](index=120&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Hyliion is not required to provide the information for this item - The company is exempt from providing quantitative and qualitative disclosures about market risk because it qualifies as a smaller reporting company[134](index=134&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the Principal Executive Officer and Principal Financial Officer, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025. There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[135](index=135&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the quarter ended June 30, 2025[136](index=136&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently involved in any material legal proceedings - Hyliion is not currently a party to any material legal proceedings[139](index=139&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) This section highlights a specific risk related to changes in U.S. tariff policies. The company notes that it imports components from overseas, including Germany and China, and the imposition of tariffs could increase costs for these items, which may not be passable to customers, potentially harming business operations and financial condition - The company identifies potential adverse effects from changes in U.S. tariff policies, as it imports parts and supplies from countries like Germany and China[141](index=141&type=chunk) - Increased tariffs could raise component costs, and the company may be unable to pass these costs on to customers, which could materially affect financial results[141](index=141&type=chunk)[142](index=142&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities,%20Use%20of%20Proceeds,%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company reported no repurchases of its Common Stock during the quarter ended June 30, 2025. The share repurchase program announced in December 2023, which has approximately $6.1 million remaining, is currently paused Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1 - 30, 2025 | — | $— | | May 1 - 31, 2025 | — | $— | | June 1 - 30, 2025 | — | $— | | **Total** | **—** | **$—** | - The company's share repurchase program has been paused. The maximum approximate dollar value of shares that may yet be purchased under the program is **$6,144,349**[143](index=143&type=chunk) [Item 3. Defaults Upon Senior Securities](index=35&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None [Item 4. Mine Safety Disclosures](index=35&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - None [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer, and XBRL data files

[Business Overview and Key Highlights](index=1&type=section&id=Business%20Overview%20and%20Key%20Highlights) Hyliion reported $1.5M Q2 revenue, secured 30% ITC for KARNO, resumed production, and shifted commercialization to 2026 - The KARNO Power Module now qualifies for a **30% Investment Tax Credit (ITC)** under the One Big Beautiful Bill Act (OBBBA), expected to accelerate customer adoption starting in 2026[3](index=3&type=chunk)[4](index=4&type=chunk)[5](index=5&type=chunk) - The company resolved significant production issues by transitioning all **Linear Electric Motor (LEM)** manufacturing in-house and solving a critical depowdering challenge for printed parts[3](index=3&type=chunk)[5](index=5&type=chunk)[10](index=10&type=chunk) - A non-binding **$1 billion Memorandum of Understanding (MOU)** was signed with Alkhorayef Industries for potential deployment of KARNO Power Modules in Saudi Arabia, with initial deployment targeted for 2026[5](index=5&type=chunk)[9](index=9&type=chunk) - The company reiterated its plan to deliver **ten Early Adopter Units in 2025**, but shifted the broader commercialization timeline from late 2025 to **2026**[5](index=5&type=chunk)[12](index=12&type=chunk) Q2 2025 Financial Snapshot | Metric | Value | | :--- | :--- | | Q2 Revenue | $1.5 million | | Q2 Ending Cash & Investments | $185 million | | Expected Year-End Cash | ~$155 million | | Revised 2025 Revenue Forecast | $5 - $10 million | [KARNO Generator Platform Updates](index=2&type=section&id=KARNO%20Generator%20Platform%20Updates) Hyliion resumed KARNO production, delivered to the U.S. Navy, brought LEM production in-house, and achieved key technical milestones [Commercial Updates](index=2&type=section&id=Commercial%20Updates) Hyliion resumed KARNO production, delivered to the U.S. Navy, secured a $1.5M SBIR contract, and signed a $1B MOU - Production has resumed, with the **second Early Adopter KARNO unit** delivered to the U.S. Navy for testing, and two additional units are near completion for UL certification and a commercial customer[7](index=7&type=chunk) - Awarded a Phase II SBIR contract worth up to **$1.5 million** to develop software for managing multi-megawatt KARNO systems for the U.S. Navy[8](index=8&type=chunk) - The U.S. Air Force designated the KARNO Power Module as an "**awardable technology**," positioning it for broader military applications[8](index=8&type=chunk) - Signed a non-binding MOU with Alkhorayef Industries for a potential **$1 billion opportunity** to deploy KARNO systems in Saudi Arabia, subject to a definitive purchase agreement[9](index=9&type=chunk) [Development and Production](index=2&type=section&id=Development%20and%20Production) Hyliion brought LEM production in-house, resolved depowdering issues, and shifted KARNO commercial launch to 2026 - All **Linear Electric Motor (LEM)** production has been fully transitioned in-house, resolving previous quality issues and production constraints from a contract manufacturer[10](index=10&type=chunk) - A key technical milestone was achieved by resolving a **depowdering challenge** for complex printed parts, enabling a redesign of the regen component to improve power output and efficiency[11](index=11&type=chunk) - The commercial launch of the KARNO Power Module is now anticipated to occur in **2026**, a delay from the previous target of late 2025, though delivery of **ten Early Adopter units in 2025** is still expected[12](index=12&type=chunk) [Financial Performance and Guidance](index=3&type=section&id=Financial%20Performance%20and%20Guidance) Hyliion reported $1.5M Q2 revenue, a $13.4M net loss, $185.3M cash, and revised 2025 revenue guidance to $5-$10M Q2 2025 vs Q2 2024 Financials | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $1.5M | $0 | | Gross Profit | $131K | $0 | | R&D Expenses | $10.1M | $8.3M | | Operating Expenses | $15.8M | $14.0M | | Net Loss | ($13.4M) | ($10.9M) | Year-to-Date 2025 vs 2024 Financials | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | $2.0M | $0 | | Gross Profit | $143K | $0 | | Operating Expenses | $35.5M | $33.0M | | Net Loss | ($30.7M) | ($26.4M) | - The company ended Q2 with **$185.3 million** in cash and investments, with cash use during the quarter being **$13.5 million**, including **$4.3 million** for capital expenditures[16](index=16&type=chunk) - 2025 revenue guidance was revised downward to **$5-$10 million** from a previous **$10-$15 million**, reflecting the shift of commercialization to 2026[17](index=17&type=chunk) - The company maintains its forecast for a 2025 year-end cash and investment balance of approximately **$155 million** and targets breakeven gross margins on a cash basis by the end of **2026**[17](index=17&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) Hyliion's unaudited financials show a Q2 net loss of $13.4M, total assets of $229.2M, and $24.0M net cash used in H1 2025 operations [Statements of Operations](index=5&type=section&id=Statements%20of%20Operations) Hyliion reported Q2 2025 revenue of $1.5M and a net loss of $13.4M, with increased operating expenses Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $1,515 | $0 | $2,004 | $0 | | Gross Profit | $131 | $0 | $143 | $0 | | Total Operating Expenses | $15,754 | $14,017 | $35,488 | $33,008 | | Loss from Operations | ($15,623) | ($14,017) | ($35,345) | ($33,008) | | Net Loss | ($13,414) | ($10,856) | ($30,668) | ($26,448) | | Net Loss Per Share | ($0.08) | ($0.06) | ($0.18) | ($0.15) | [Balance Sheets](index=6&type=section&id=Balance%20Sheets) Hyliion's balance sheet shows total assets of **$229.2M** and total liabilities of **$13.3M** as of June 30, 2025 Condensed Consolidated Balance Sheets (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $15,591 | $9,227 | | Short-term investments | $92,964 | $110,918 | | Long-term investments | $76,745 | $99,584 | | **Total Assets** | **$229,210** | **$263,046** | | **Liabilities & Equity** | | | | Total Current Liabilities | $10,259 | $14,291 | | **Total Liabilities** | **$13,340** | **$18,657** | | **Total Stockholders' Equity** | **$215,870** | **$244,389** | [Statements of Cash Flows](index=7&type=section&id=Statements%20of%20Cash%20Flows) Cash flow statement indicates **$24.0M** net cash used in operations for H1 2025, with positive investing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($23,999) | ($33,396) | | Net cash provided by investing activities | $30,895 | $46,027 | | Net cash used in financing activities | ($532) | ($14,297) | | **Net increase (decrease) in cash** | **$6,364** | **($1,666)** |

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in navigating significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2] - The individual has a background in auditing with PricewaterhouseCoopers before transitioning to day trading [2]

Core Viewpoint - Hyliion Holdings Corp. is conducting its Q1 2025 earnings conference call, indicating a focus on financial performance and future business outlook [1][3]. Group 1: Company Overview - The conference call features key executives including CEO Thomas Healy and CFO Jon Panzer, highlighting the leadership team's involvement in discussing the company's performance [3]. - A slide presentation is available on Hyliion's Investor Relations website, providing additional context and data for investors [3]. Group 2: Forward-Looking Statements - The company will make forward-looking statements regarding its business outlook, which are based on current expectations and assumptions, subject to risks and uncertainties [4]. - Factors that could cause actual results to differ from these forward-looking statements are acknowledged, emphasizing the importance of caution in interpreting these predictions [4].

Financial Data and Key Metrics Changes - In Q1 2025, the company recorded revenue of $500,000 for R&D services, with cost of sales also at $500,000, resulting in approximately breakeven operating income [21] - Operating expenses increased to $19,700,000 from $19,000,000 in Q1 2024, with R&D costs rising to $12,200,000 from $8,000,000 due to ramp-up in R&D work [22] - The total net loss for Q1 2025 was $17,300,000, up from $15,600,000 in Q1 2024 [23] Business Line Data and Key Metrics Changes - The company has over 100 units under non-binding Letters of Intent (LOIs) across various markets, including data centers and EV charging [11] - Initial definitive agreements are in place with early adopter customers, including the U.S. Navy and several Fortune 500 companies [11] Market Data and Key Metrics Changes - The ACT Expo showcased the Carnot power module, highlighting the underdeveloped power segment and the growing need for alternative power generation technologies [8] - A recent competitor raised over $250 million, indicating strong investor confidence in the distributed power market [9] Company Strategy and Development Direction - The company is focused on delivering reliable, fuel-flexible, and scalable power solutions, with plans to commercialize the Carnot power module by year-end 2025 [20][29] - The company is addressing production challenges by bringing some manufacturing in-house and improving component quality and lead times [14][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the reliability of the Carnot Core system and the progress made in resolving production challenges [32][34] - The company expects to generate between $10 million and $15 million in revenue for 2025, driven by early adopter unit deployments and R&D activities [20][26] Other Important Information - The company plans to offset cash capital spending with around $10 million of equipment financing if favorable terms are available [26] - The company is participating in a partnership related to a visit by President Trump to Saudi Arabia, indicating potential international opportunities [39] Q&A Session Summary Question: Can you tell us more about the Navy's unit performance? - Management reported strong reliability from the Navy's unit, with no unplanned downtime since operation began [32][34] Question: How will this impact your growth plans for next year? - Management indicated that production challenges were anticipated and that they do not foresee a negative impact on scaling manufacturing next year [35][37]