Hyliion (HYLN) - 2025 Q2 - Quarterly Results

Business Overview and Key Highlights 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][4][5] - 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][5][10] - 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][9] - 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][12] 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 Hyliion resumed KARNO production, delivered to the U.S. Navy, brought LEM production in-house, and achieved key technical milestones Commercial Updates 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] - 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] - The U.S. Air Force designated the KARNO Power Module as an "awardable technology," positioning it for broader military applications[8] - 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] Development and Production 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] - 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] - 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] Financial Performance and Guidance 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] - 2025 revenue guidance was revised downward to $5-$10 million from a previous $10-$15 million, reflecting the shift of commercialization to 2026[17] - 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] Consolidated Financial Statements 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 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 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 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) |