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]

Financial Data and Key Metrics Changes - The company recorded revenue of $500,000 for Q1 2025, compared to no revenue in Q1 2024, indicating a significant year-over-year improvement [20] - Operating expenses increased to $19,700,000 in Q1 2025 from $19,000,000 in Q1 2024, with R&D costs rising to $12,200,000 from $8,000,000, reflecting increased R&D activities [21] - The net loss for Q1 2025 was $17,300,000, up from $15,600,000 in Q1 2024, indicating ongoing financial challenges [22] 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, indicating strong interest in the Carnot power module [10] - Initial definitive agreements are in place with early adopter customers, including the U.S. Navy and several Fortune 500 companies, which is a positive sign for future revenue [10] Market Data and Key Metrics Changes - The ACT Expo showcased the Carnot power module, highlighting the underdeveloped state of the power segment and the growing demand for alternative power generation technologies [7][8] - A recent competitor raised over $250 million, signaling investor confidence in the distributed power market, which may benefit the company [8] 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 the end of 2025 [19][30] - The company is addressing production challenges by bringing some manufacturing in-house and improving component sourcing, which is expected to enhance production capabilities [13][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the reliability of the Carnot system tested with the U.S. Navy, noting no unplanned downtime since operations began [12][33] - The company remains on track for commercialization and expects to generate revenue between $10 million and $15 million for the full year 2025, driven by early adopter unit deployments [19][27] Other Important Information - The company is facing potential tariff impacts on capital spending, particularly related to additive printers sourced from the EU, which could increase costs by $2 million to $3 million [24] - Capital expenditures for 2025 are now expected to be closer to $30 million, up from the previous estimate of $25 million, due to increased spending on additive printing machines [26] 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 need for repairs or rebuilds since operations began, indicating a stable system [32][33] Question: Given the challenges discussed, how will this impact growth plans for next year? - Management indicated that while production challenges exist, they do not foresee a negative impact on the ability to scale manufacturing next year, with plans to continue commercialization as scheduled [35][37]

Group 1 - Hyliion Holdings Corp. reported a quarterly loss of $0.10 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.08, marking a 25% earnings surprise [1] - The company generated revenues of $0.49 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 55.55%, compared to zero revenues a year ago [2] - Hyliion shares have declined approximately 31.4% since the beginning of the year, contrasting with the S&P 500's decline of only 0.6% [3] Group 2 - The earnings outlook for Hyliion is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.09 on revenues of $1.15 million, and -$0.30 on revenues of $12.45 million for the current fiscal year [7] - The Zacks Industry Rank places the Automotive - Original Equipment sector in the bottom 36% of over 250 Zacks industries, indicating potential challenges for stock performance [8] Group 3 - The estimate revisions trend for Hyliion is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Business Updates - Hyliion unveiled the KARNO Power Module at ACT Expo 2025, introducing a new naming convention: KARNO Power Module and KARNO Core[5] - The US Navy unit is currently testing the KARNO system, with LEM development and depowdering in progress[5] - Mesa Natural Gas Solutions has a Letter of Intent (LOI) for a potential deployment of up to 2.4 MW using the 200 kW KARNO Power Module[10] - Over 100 KARNO units are under contract and non-binding LOIs across various segments, including EV Charging, Stationary, Mobile, Data Centers, Prime Power, and Defense[13] - The company plans to deliver 10 Early Adopter Customer Units throughout 2025 and commercialize the 200 kW Power Module in the second half of 2025[21] Financial Highlights - Hyliion anticipates revenue of $10 million to $15 million from the KARNO Power Module commercial launch in 2025[24] - Q1 2025 R&D service revenue was $0.5 million, a $0.5 million increase compared to Q1 2024[25] - Total operating expenses for Q1 2025 were $19.7 million, a $0.7 million increase compared to $19.0 million in Q1 2024[25] - Net loss for Q1 2025 was $17.3 million, compared to a net loss of $15.6 million in Q1 2024, representing a $1.7 million increase in net loss[25] - The company ended Q1 with $198.8 million in cash and long and short-term investments[31] - Total cash use for 2025 is estimated at $65 million[30, 31]

PART I. FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS (Unaudited)](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) Presents Hyliion's unaudited Q1 2025 financial statements and notes, with a net loss of **$17.3 million** from increased R&D [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (Amounts in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--------------------------------- | :------------- | :---------------- | | **Assets** | | | | Cash and cash equivalents | **$12,332** | **$9,227** | | Short-term investments | **$108,781** | **$110,918** | | Assets held for sale | **$—** | **$2,563** | | Total current assets | **$127,969** | **$131,032** | | Property and equipment, net | **$29,446** | **$25,920** | | Long-term investments | **$77,670** | **$99,584** | | Total assets | **$240,976** | **$263,046** | | **Liabilities** | | | | Accounts payable | **$1,503** | **$5,243** | | Total current liabilities | **$9,238** | **$14,291** | | Total liabilities | **$12,989** | **$18,657** | | **Stockholders' Equity** | | | | Total stockholders' equity | **$227,987** | **$244,389** | | Total liabilities and stockholders' equity | **$240,976** | **$263,046** | - Total assets decreased from **$263.0 million** at December 31, 2024, to **$241.0 million** at March 31, 2025, primarily due to a reduction in investments and the reclassification of assets held for sale[11](index=11&type=chunk) - Total current liabilities decreased by approximately **35.4%** from **$14.3 million** at December 31, 2024, to **$9.2 million** at March 31, 2025, mainly driven by a decrease in accounts payable and accrued expenses[11](index=11&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (Amounts in thousands, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Revenues | **$489** | **$—** | | Cost of revenues | **$477** | **$—** | | Gross profit | **$12** | **$—** | | Research and development expense | **$12,230** | **$7,968** | | Selling, general and administrative | **$6,081** | **$6,592** | | Exit and termination costs | **$1,423** | **$4,431** | | Total operating expenses | **$19,734** | **$18,991** | | Loss from operations | **$(19,722)** | **$(18,991)** | | Interest income | **$2,468** | **$3,396** | | Net loss | **$(17,254)** | **$(15,592)** | | Net loss per share, basic and diluted | **$(0.10)** | **$(0.09)** | | Weighted-average shares outstanding | **174,344,218** | **178,482,894** | - Total revenues for R&D services increased to **$0.5 million** in Q1 2025 from zero in Q1 2024, with a corresponding cost of revenues of **$0.5 million**, resulting in a gross profit of **$12 thousand**[13](index=13&type=chunk)[99](index=99&type=chunk) - Net loss increased by **10.7%** to **$17.3 million** in Q1 2025 from **$15.6 million** in Q1 2024, primarily due to higher R&D expenses and lower interest income, partially offset by reduced exit and termination costs[13](index=13&type=chunk)[98](index=98&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Changes in Stockholders' Equity (Amounts in thousands, except share data) | Metric | Balance at Dec 31, 2024 | Exercise of options/RSUs, net | Share-based compensation | Net loss | Balance at Mar 31, 2025 | | :-------------------------- | :---------------------- | :---------------------------- | :----------------------- | :------- | :---------------------- | | Common Stock (Shares) | **184,428,472** | **1,414,392** | **—** | **—** | **185,842,864** | | Common Stock (Amount) | **$18** | **$1** | **—** | **—** | **$19** | | Treasury Stock (Shares) | **(10,610,070)** | **—** | **—** | **—** | **(10,610,070)** | | Treasury Stock (Amount) | **$(14,132)** | **—** | **—** | **—** | **$(14,132)** | | Additional Paid-In Capital | **$408,315** | **$(444)** | **$1,295** | **—** | **$409,166** | | Accumulated Deficit | **$(149,812)** | **—** | **—** | **$(17,254)** | **$(167,066)** | | Total Stockholders' Equity | **$244,389** | **$(443)** | **$1,295** | **$(17,254)** | **$227,987** | - Total stockholders' equity decreased from **$244.4 million** at December 31, 2024, to **$228.0 million** at March 31, 2025, primarily due to a net loss of **$17.3 million**[15](index=15&type=chunk) - Share-based compensation expense was **$1.3 million** for both Q1 2025 and Q1 2024[15](index=15&type=chunk)[53](index=53&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (Amounts in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | **$(14,004)** | **$(22,702)** | | Net cash provided by investing activities | **$17,553** | **$27,908** | | Net cash used in financing activities | **$(444)** | **$(11,290)** | | Net increase (decrease) in cash and cash equivalents and restricted cash | **$3,105** | **$(6,084)** | | Cash and cash equivalents and restricted cash, end of period | **$12,997** | **$15,380** | - Net cash used in operating activities decreased to **$14.0 million** in Q1 2025 from **$22.7 million** in Q1 2024, primarily due to a smaller change in working capital accounts[17](index=17&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) - Net cash provided by investing activities was **$17.6 million** in Q1 2025, mainly from the sale and maturity of investments, compared to **$27.9 million** in Q1 2024[17](index=17&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) - Net cash used in financing activities significantly decreased to **$0.4 million** in Q1 2025 from **$11.3 million** in Q1 2024, as there were no treasury stock repurchases in the current quarter[17](index=17&type=chunk)[114](index=114&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [Note 1. Overview](index=9&type=section&id=Note%201.%20Overview) - Hyliion Holdings Corp. designs and develops the KARNO Power Module for stationary and mobile applications and provides R&D services[18](index=18&type=chunk) - The KARNO Power Module is a complete, fuel-agnostic power generating solution that uses a linear generator and flameless oxidation process to convert thermal energy into electrical energy with near-zero emissions[18](index=18&type=chunk) [Note 2. Disposals](index=9&type=section&id=Note%202.%20Disposals) - The Company approved a strategic plan on November 7, 2023, to wind down its powertrain business and focus on the

Exhibit 99.1 HYLIION HOLDINGS REPORTS FIRST-QUARTER 2025 FINANCIAL RESULTS AUSTIN, Texas, May 13, 2025 – Hyliion Holdings Corp. (NYSE American: HYLN) ("Hyliion"), a developer of modular power plant technology, today reported financial results for the first quarter ended March 31, 2025, and provided key updates on the development and commercialization of the KARNO™ generator platform. Key Business Highlights Executive Commentary "We kicked off 2025 with meaningful momentum, marked by the successful public de ...