Nuvve (NVVE) - 2025 Q2 - Quarterly Results

Second Quarter Highlights and Recent Developments Nuvve is undergoing a strategic transition, focusing on Energy, AI, and Crypto, marked by the Fermata acquisition and new advisors, despite a significant Q2 revenue decline to $0.3 million and slightly increased cash operating losses Management Discussion CEO Gregory Poilasne characterized Q2 as a transition quarter, emphasizing Nuvve's strategic repositioning at the intersection of Energy, AI, and Crypto, alongside successful Fermata integration and a new digital asset focus - The company is strategically repositioning itself at the intersection of Energy, Artificial Intelligence, and Crypto[3] - Q2 revenue softness was attributed to a transition to a new hardware supplier for charging stations and a shift to a dropship model, reducing the need to carry inventory[3] - Nuvve has successfully integrated the recent acquisition of Fermata and is enhancing its digital asset strategy by adding specialist consultants and a cryptocurrency strategist to its Board of Directors[3] Key Developments Summary Nuvve raised $6.9 million in Q2 and an additional $5.5 million in July 2025, while Q2 2025 revenue dropped to $0.3 million from $0.8 million year-over-year, cash operating losses widened slightly, and a significant $8.19 million non-cash expense was recorded for warrants - Raised $6.9 million in gross proceeds during Q2 2025 and an additional $5.5 million in July 2025 through an underwritten public offering[4] Q2 2025 vs Q2 2024 Financial Snapshot | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $0.3M | $0.8M | -$0.5M | | Gross Profit | $0.2M | $0.2M | $0.0M | | Cash Operating Losses | $5.5M | $5.2M | +$0.3M | - Recorded a non-cash expense of $8.19 million for the fair value of 11,000,004 warrants granted to consultants for cryptocurrency strategy services[4] - Cash and cash equivalents increased to $1.8 million as of June 30, 2025, from $0.4 million at December 31, 2024[4] 2025 Second Quarter Financial Review Q2 2025 revenue fell 58.5% year-over-year to $0.33 million, driven by declines across all segments, while gross margin significantly improved to 60.6%, but operating expenses surged 209.7% to $13.9 million due to a large non-cash warrant expense, widening the net loss to $13.6 million Revenue Total revenue for Q2 2025 decreased by 58.5% to $0.33 million compared to $0.80 million in Q2 2024, with declines across products, services, and grants Revenue Breakdown (Q2 2025 vs Q2 2024) | Revenue Source | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Products | $141,905 | $369,192 | -61.6% | | Services | $191,084 | $301,567 | -36.6% | | Grants | $0 | $131,421 | -100.0% | | Total Revenue | $332,989 | $802,180 | -58.5% | Cost of Revenue and Gross Margin Cost of products and services revenue decreased by 78.3% to $0.1 million, while gross margin significantly improved to 60.6% from 10.1% due to a favorable sales mix shift towards higher-margin engineering services - Cost of products and services revenue decreased by 78.3% to $0.1 million, corresponding with lower sales orders[6] - Products and services margin increased significantly to 60.6% in Q2 2025 from 10.1% in Q2 2024[6] - The margin improvement was driven by a sales mix shift towards higher-margin engineering services and away from lower-margin hardware sales[6] Operating Expenses Total operating expenses surged, with Selling, General, and Administrative (SG&A) expenses rising 209.7% to $13.9 million primarily due to an $8.1 million non-cash warrant expense, while Research and Development (R&D) expenses decreased by 25.8% to $1.1 million Operating Expenses (Q2 2025 vs Q2 2024) | Expense Category | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Selling, General & Administrative | $13.9M | $4.5M | +209.7% | | Research & Development | $1.1M | $1.5M | -25.8% | - The primary driver for the increase in SG&A was an $8.1 million non-cash expense for the fair value of warrants issued for cryptocurrency strategy consulting services[8] - Other significant SG&A increases included $1.2 million in bad debt expenses and $0.5 million in travel and marketing, partially offset by a $0.6 million decrease in compensation[8] Other Income (Expense) and Net Loss The company recorded a net other expense of $1.23 million, a shift from $1.81 million in income, leading to a dramatically widened net loss of $13.6 million for Q2 2025, a 243.6% increase from the prior year Net Loss Summary (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Other Income (Expense), Net | ($1.23M) | $1.81M | | Net Loss | ($13.6M) | ($3.9M) | | Net Loss per Share | ($2.12) | ($6.70) | - The increase in net loss was primarily due to an $8.6 million increase in total operating expenses, a $0.6 million decrease in other income, and a $0.5 million decrease in revenue[11] Net Income (Loss) Attributable to Non-Controlling Interest The net loss attributable to non-controlling interests remained flat year-over-year, reflecting Nuvve's 51% ownership in consolidated entities Fermata Energy II LLC and Deep Impact - Nuvve owns 51% of Fermata Energy II LLC and Deep Impact common units[13] - The company consolidates these entities and records a non-controlling interest for the share owned by other parties[13] Key Operating Metrics Megawatts under Management, a primary operating metric, declined to 25.6 MW in Q2 2025 from 31.8 MW in the prior quarter, primarily due to the decommissioning of end-of-life stationary batteries and strategic discontinuation of certain Japanese operations Megawatts Under Management Megawatts under management decreased by 19.5% quarter-over-quarter and 5.5% year-over-year to 25.6 MW, primarily due to the decommissioning of stationary batteries in California and Japan Megawatts Under Management (MW) | Period | Total MW | Change (QoQ) | | :--- | :--- | :--- | | Q2 2025 | 25.6 | -19.5% | | Q1 2025 | 31.8 | N/A | - The quarterly decline was caused by the decommissioning of 2.5 MW of stationary batteries in California (end of useful life) and 4.4 MW in Japan (strategic decision)[15] - Excluding stationary batteries, megawatts under management from EV chargers increased by 0.7 MW over the first quarter of 2025 to 25.4 MW[15] Financial Statements The unaudited condensed consolidated financial statements provide a detailed view of Nuvve's financial position as of June 30, 2025, and its performance for the three and six months then ended, including the Balance Sheet, Statement of Operations, Statement of Comprehensive Loss, and Statement of Cash Flows Condensed Consolidated Balance Sheets As of June 30, 2025, Nuvve reported total assets of $17.0 million and total liabilities of $19.8 million, resulting in a total stockholders' deficit of $2.8 million, with cash and cash equivalents increasing to $1.8 million Selected Balance Sheet Data (Unaudited) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash | $1,767,406 | $371,497 | | Total Current Assets | $8,783,101 | $9,275,117 | | Total Assets | $16,993,377 | $16,797,812 | | Total Current Liabilities | $13,285,044 | $11,351,158 | | Total Liabilities | $19,821,616 | $18,087,459 | | Total Stockholders' Deficit | ($2,828,239) | ($1,289,647) | Condensed Consolidated Statements of Operations For Q2 2025, Nuvve reported total revenues of $0.33 million, an operating loss of $14.8 million, and a net loss of $13.6 million, significantly wider than the prior year due to higher operating expenses and a large non-cash warrant expense Statement of Operations Summary (Three Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | $332,989 | $802,180 | | Total Operating Expenses | $15,130,214 | $6,566,054 | | Operating Loss | ($14,797,225) | ($5,763,874) | | Net Loss | ($13,568,462) | ($3,949,015) | | Net Loss per Share | ($2.12) | ($6.70) | Condensed Consolidated Statements of Comprehensive Loss The comprehensive loss for Q2 2025 was $13.6 million, closely aligning with the net loss, with $13.4 million attributable to Nuvve's common stockholders after minor foreign currency translation adjustments Comprehensive Loss Summary (Three Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Loss | ($13,568,462) | ($3,949,015) | | Total Comprehensive Loss | ($13,561,311) | ($3,957,108) | Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities was $7.3 million, offset by $9.0 million provided by financing activities, resulting in a net increase in cash and restricted cash to $2.1 million Cash Flow Summary (Six Months Ended June 30, 2025) | Activity | Net Cash Flow | | :--- | :--- | | Operating Activities | ($7,274,280) | | Investing Activities | ($394,373) | | Financing Activities | $9,009,815 | | Net Increase in Cash | $1,395,909 | Supplementary Information This section provides logistical details for investors, including conference call information, a corporate overview, and mandatory legal disclaimers regarding forward-looking statements Conference Call Details The company will hold an investor conference call on August 14, 2025, at 5:00 PM Eastern Time to discuss Q2 financial results, with a live webcast and replay available on its investor relations website - A conference call to review financial results is scheduled for 5:00 PM Eastern Time on August 14, 2025[17] - A live webcast and replay will be accessible via the 'Events' section of Nuvve's investor relations website[18] About Nuvve Holding Corp. Nuvve Holding Corp. is a leader in vehicle-to-grid (V2G) technology, founded in 2010, utilizing its intelligent energy platform to manage power between EV batteries and the electric grid, with deployments across five continents - Nuvve is a leader in vehicle-to-grid (V2G) technology, utilizing an intelligent energy platform to manage power between EV batteries and the grid[19] - The company's mission is to support the transition to clean energy by transforming EVs into mobile energy storage assets, making the grid more resilient[19] Cautionary Statement Regarding Forward-Looking Statements This section contains a standard safe harbor statement, cautioning investors that the press release includes forward-looking statements subject to numerous risks and uncertainties, advising readers to consult SEC filings for comprehensive risk discussions - The press release contains forward-looking statements that are subject to numerous risks and uncertainties, which could cause actual results to differ materially[21] - Readers are advised not to place undue reliance on these statements and are directed to Nuvve's SEC filings for a comprehensive list of risks[21]