Lucid (US:LCID)2025-05-06 20:09Revenue and Expenses - Revenue for the three months ended March 31, 2025, was $172.7 million, a decrease of $62.3 million or 36% compared to $235.0 million in the same period of 2024[198][199] - Cost of revenue increased by $58.8 million or 15% for the three months ended March 31, 2025, primarily due to higher delivery volume of Lucid Air vehicles and increased inventory write-downs[200][202] - Operating expenses decreased by $34.4 million or 7% for the three months ended March 31, 2025, totaling $463.4 million compared to $497.9 million in 2024[207] - Research and development expenses decreased by $33.4 million, or 12%, for the three months ended March 31, 2025, compared to the same period in the prior year[209] - Selling, general, and administrative expenses remained relatively flat, with a reversal of $35.4 million in stock-based compensation offset by increases in payroll and facilities costs[211] Profitability and Margins - Gross margin improved to (97.2)% for the three months ended March 31, 2025, compared to (134.3)% for the same period in the prior year, driven by increased regulatory credit sales[205] - Total other income increased significantly to $324.4 million for the three months ended March 31, 2025, compared to $49.2 million in the prior year, driven by a gain of $281.7 million from derivative liabilities[212] Financing and Capital Structure - The company issued $1.10 billion aggregate principal amount of 5.00% convertible senior notes due in April 2030, with net proceeds of approximately $1.08 billion[187] - The company repurchased approximately $1,052.5 million of its 1.25% convertible senior notes due 2026, using approximately $935.6 million of the net proceeds from the 2030 Notes[188] - The company anticipates cumulative capital expenditures of approximately $1.4 billion for fiscal year 2025 to support growth objectives and manufacturing capabilities[228] - The company expects to continue to receive financing for capital expenditures related to AMP-2 construction and machinery purchases[228] - The company had outstanding borrowings of SAR 725 million (approximately $193.3 million) as of March 31, 2025, with a weighted average interest rate of 6.84%[245] Cash Flow and Liquidity - As of March 31, 2025, the company had $4,532.5 million in cash, cash equivalents, and investments, along with $750.0 million in unused credit from various facilities[226] - Cash used in operating activities for the three months ended March 31, 2025, was $428.6 million, compared to $516.7 million for the same period in 2024[257] - Net cash used in operating activities decreased by $88.1 million to $428.6 million for the three months ended March 31, 2025, compared to the same period in the prior year[259] - Net cash provided by investing activities increased by $296.5 million to $614.0 million during the three months ended March 31, 2025, due to a higher volume of investment maturities[261] - Net cash provided by financing activities decreased by $934.5 million to $62.7 million during the three months ended March 31, 2025, following gross proceeds of $1.0 billion from the issuance of Series A Redeemable Convertible Preferred Stock in the prior year[263] Strategic Initiatives and Expansion - The company acquired select facilities and assets in Arizona from Nikola Corporation, expanding its manufacturing footprint and supporting EV production capabilities[189] - The Lucid Gravity began commercial production in December 2024, leveraging technological advancements from the Lucid Air[186] - The company plans to expand its vehicle lineup with a Midsize platform scheduled for production start in late 2026[186] - As of March 31, 2025, the company has opened 57 studios and service centers globally, with plans for further expansion in sales and service operations[195] - The company announced the establishment of its first international manufacturing plant in King Abdullah Economic City, Saudi Arabia, with operations starting with re-assembly of Lucid Air vehicle kits[233] Risks and Liabilities - The derivative liabilities associated with redeemable convertible preferred stock were remeasured to a fair value of $357.7 million as of March 31, 2025, resulting in a gain of $281.7 million[219] - A hypothetical 100 basis point increase in interest rates would result in a $22.9 million incremental decline in the fair market value of the company's investment portfolio[286] - The fair value of equity securities held by the company was $25.6 million as of March 31, 2025, with a hypothetical 10% decrease in stock price not being material[287] - The company is dependent on single-source suppliers, which poses a risk to its operations and financial condition if these suppliers fail to deliver necessary components[288] Other Financial Metrics - Interest income increased by $1.6 million, or 3%, for the three months ended March 31, 2025, primarily due to higher average balances and interest rates[220] - Interest expense rose by $4.4 million, or 58%, for the three months ended March 31, 2025, mainly due to higher interest from the GIB credit facility[222] - As of March 31, 2025, the company reported an accumulated deficit of $13.3 billion, reflecting significant operational losses[255]