BurTech Acquisition (BRKH) - 2025 Q2 - Quarterly Results

Executive Summary & Company Overview Blaize is transitioning from technology validation to execution, focusing on Hybrid AI and smart infrastructure, securing major contracts, launching its AI Platform, and specializing in energy-efficient edge and data center AI processing Introduction and Strategic Shift Blaize is transitioning from technology validation to execution, focusing on Hybrid AI and smart infrastructure deployments, particularly in Asia, securing major contracts and launching its AI Platform, indicating strong revenue growth and market momentum - Blaize announced financial results for Q2 2025, marking a critical inflection point as the company shifts from technology validation to execution[1] - The company is deploying technologies to progress sovereign AI strategies, delivering intelligence to critical infrastructure and powering AI for public safety networks, including citywide traffic management, optimized by its programmable, power-efficient Blaize AI Platform[2] - CEO Dinakar Munagala stated that Blaize has secured major contracts for large-scale customer deployments and launched the Blaize AI Platform to accelerate Hybrid AI adoption, believing the company is entering a new chapter defined by execution and momentum with strong revenue growth and a growing customer base[4] About Blaize Blaize specializes in full-stack programmable processor architecture and low-code/no-code software platforms for energy-efficient edge and data center AI processing, delivering real-time insights with low power consumption and cost - Blaize provides a full-stack programmable processor architecture suite and low-code/no-code software platform enabling AI processing solutions for high-performance computing at the network's edge and in the data center[16] - Blaize solutions deliver real-time insights and decision-making capabilities with low power consumption, high efficiency, minimal size, and low cost[16] - Headquartered in El Dorado Hills, CA, Blaize has over 200 employees worldwide with teams in San Jose (CA), Cary (NC), Hyderabad (India), Leeds, and Kings Langley (UK)[16] Financial Performance Blaize reported strong GAAP and non-GAAP revenue growth in Q2 2025, with improved gross margins and reduced net loss, while projecting continued revenue growth for Q3 and FY2025 Second Quarter 2025 Financial Highlights (GAAP) Blaize reported significant GAAP revenue growth in Q2 2025, nearly doubling QoQ, while net loss decreased substantially and gross margin improved significantly year-over-year GAAP Financial Highlights (Three Months Ended June 30, 2025, in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | QoQ Change | YoY Change | | :-------------------------------- | :------------ | :------------- | :------------ | :--------- | :--------- | | Revenue | $1,982 | $1,007 | $223 | 97% | NM | | Gross margin | 59% | 68% | (15)% | (9)pp | 74pp | | Research and development | $9,613 | $13,118 | $5,872 | (27)% | NM | | Selling, general and administrative | $12,992 | $13,357 | $5,004 | (3)% | NM | | Net loss | $(29,589) | $(147,761) | $(12,153) | (80)% | NM | Second Quarter 2025 Financial Highlights (Non-GAAP) Non-GAAP results for Q2 2025 show strong revenue growth and a significant improvement in gross margin and a reduction in Adjusted EBITDA loss compared to the previous quarter and prior year Non-GAAP Financial Highlights (Three Months Ended June 30, 2025, in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | QoQ Change | YoY Change | | :-------------------------------- | :------------ | :------------- | :------------ | :--------- | :--------- | | Revenue | $1,982 | $1,007 | $223 | 97% | NM | | Gross margin | 64% | 5% | (15)% | 59pp | 79pp | | Research and development | $6,417 | $7,143 | $5,702 | (10)% | NM | | Selling, general and administrative | $8,622 | $8,292 | $4,828 | 4% | NM | | Adjusted EBITDA loss | $(12,933) | $(15,380) | $(10,560) | (16)% | NM | Financial Outlook Blaize projects continued revenue growth for Q3 2025 and the full fiscal year 2025, with an expected increase in Adjusted EBITDA loss Financial Guidance (Q3 2025 and FY 2025) | Metric | Three Months Ended Sep 30, 2025 | Year Ended Dec 31, 2025 | | :-------------------------- | :------------------------------ | :---------------------- | | Revenue | $11.0 million to $11.5 million | $35.0 million to $38.0 million | | Adjusted EBITDA loss | $13.5 million to $14.5 million | $55.0 million to $58.0 million | | Stock-based compensation | Approximately $9.0 million | Approximately $33.0 million | | Weighted average shares outstanding | Approximately 106.1 million shares | Approximately 102.9 million shares | Business Developments & Strategy Blaize is transitioning to real deployments, securing foundational contracts, launching its AI Platform for edge-to-cloud AI, and anticipating continued revenue growth while managing supply chain and advancing platform development Recent Business Announcements and Updates Blaize is transitioning from pilot programs to real deployments, securing foundational contracts that validate product-market fit and global demand for Hybrid AI infrastructure, and has a significant active global pipeline - Blaize is capitalizing on growing global demand for edge AI, translating pipeline into execution across priority sectors, advancing from pilot programs to real deployments in the first half of 2025[8] - The company secured two foundational contracts that validate its product-market fit and reinforce global demand for Hybrid AI infrastructure[8] - Blaize has over $725 million in active global pipeline opportunities through 2027, with over $300 million representing revenue opportunities in advanced discussions[9] Blaize AI Platform Introduction Blaize launched its AI Platform, a programmable, plug-and-play AI infrastructure stack for edge-to-cloud deployments, combining GSP-based silicon, software stacks, SDKs, and an expanding ecosystem, aiming to reduce latency, cost, and deployment friction for AI applications - Blaize recently launched the Blaize AI Platform, a programmable, plug-and-play AI infrastructure stack built for edge-to-cloud deployments[10] - The platform combines Blaize's GSP-based silicon, verticalized software stacks, low-code/no-code SDKs, and a fast-growing ecosystem of solution providers and system integrators[10] - The Blaize AI Platform enables faster time-to-value for AI applications across smart cities, defense, logistics, and industrial automation by reducing latency, cost, and deployment friction[11] Company Outlook and Execution Readiness Blaize anticipates continued revenue growth from existing and new contracts across Asia, the Americas, and the Gulf Region, actively managing its supply chain, optimizing revenue timing, enhancing systems for order fulfillment, and advancing next-generation platform development to meet growing demand - Blaize expects continued revenue growth from existing contracts and new wins across Asia, the Americas, and the Gulf Region[12] - Secured a $120 million agreement with Starshine, a strategic systems partner, to deliver sovereign-ready Hybrid AI infrastructure in Thailand, Indonesia, India, Korea, China, and beyond, with deployments expected to commence in Q3 2025[12] - Received a $56 million purchase order for smart infrastructure rollout in South Asia, with $1.8 million shipped to date and a remaining backlog of $4.6 million expected this year[12] - To meet growing customer demand, Blaize is working closely with chip and contract manufacturers to secure supply chain capacity, aligning technical milestones with billing cycles, enhancing internal systems for order fulfillment and revenue recognition, and advancing next-generation platform development[13] Non-GAAP Measures & Forward-Looking Statements Blaize utilizes non-GAAP financial measures to provide a clearer view of core operations and includes cautionary statements regarding forward-looking statements, acknowledging inherent risks and uncertainties Non-GAAP Measures Explanation Blaize uses non-GAAP financial measures like EBITDA, Adjusted EBITDA, non-GAAP gross profit/margin, and non-GAAP R&D/SG&A to provide a clearer view of core operations by excluding certain non-cash and non-recurring items, intended to facilitate comparisons but not replace GAAP metrics - Blaize utilizes non-GAAP financial measures such as EBITDA, Adjusted EBITDA, non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development expense, and non-GAAP sales, general and administrative expense to supplement GAAP financial statements[17] - Adjusted EBITDA is defined as net loss before interest, taxes, depreciation and amortization, certain non-cash items, and other adjustments like stock-based compensation, non-recurring inventory cost realignments, and other non-recurring expenses[17] - The company believes these non-GAAP measures are valuable for management, investors, and other users to more fully and accurately assess Blaize's performance, but they should not be considered in isolation or as an alternative to GAAP measures[17] - Forward-looking Adjusted EBITDA guidance for Q3 2025 and FY 2025 is not reconciled to GAAP net income due to the high variability and difficulty in predicting certain excluded items without unreasonable efforts, which would imply a misleading degree of precision[18] Cautionary Statement Regarding Forward-Looking Statements The press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from projections, including changes in business conditions, regulatory compliance, competition, and the ability to execute on contracts and grow profitably, with Blaize disclaiming any obligation to update these statements - This press release contains forward-looking statements regarding the collaboration with Starshine, the ultimate value of recent contracts, expectations for Hybrid AI rollout, projected growth, industry, market opportunities, and product offerings[19] - Forward-looking statements are subject to risks and uncertainties, and many factors could cause actual future events to differ materially, including changes in domestic and foreign business, market, financial, political, and legal conditions, and the effects of competition[19] - Readers are cautioned not to put undue reliance on forward-looking statements, and Blaize assumes no obligation to update or revise these statements, except as required by law[19] - Financial projections are based on assumptions inherently subject to significant uncertainties and contingencies beyond Blaize's control, and their inclusion should not be regarded as an indication that they are a reliable prediction of future events[20] Condensed Consolidated Financial Statements (Unaudited) Blaize's unaudited financial statements show a decrease in total assets and liabilities, improved stockholders' deficit, significant revenue growth with reduced net loss, and increased cash used in operating activities Condensed Consolidated Balance Sheets As of June 30, 2025, Blaize reported total assets of $53.8 million, a decrease from $80.5 million at December 31, 2024, with total liabilities also significantly decreasing, primarily due to the conversion of warrant liabilities and convertible notes, and stockholders' deficit improving from $(110.5) million to $(4.8) million Condensed Consolidated Balance Sheets (Selected Items, in thousands) | Metric | As of June 30, 2025 | As of Dec 31, 2024 | | :-------------------------------- | :------------------ | :----------------- | | Total current assets | $47,413 | $73,690 | | Total assets | $53,828 | $80,516 | | Total current liabilities | $39,612 | $188,143 | | Total liabilities | $58,638 | $190,979 | | Total stockholders' deficit | $(4,810) | $(110,463) | Condensed Consolidated Statements of Operations For the three months ended June 30, 2025, Blaize reported total revenue of $1.98 million, a significant increase from $0.22 million in the prior year period, with the net loss for the quarter at $(29.6) million, a substantial improvement from $(147.8) million in the previous quarter, largely due to changes in fair value of convertible notes and earnout share liabilities Condensed Consolidated Statements of Operations (Selected Items, in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended March 31, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :-------------------------------- | :------------------------------- | | Total revenue | $1,982 | $1,007 | $223 | | Cost of revenue | $804 | $327 | $257 | | Research and development | $9,613 | $13,118 | $5,872 | | Selling, general and administrative | $12,992 | $13,357 | $5,004 | | Loss from operations | $(21,883) | $(38,021) | $(11,135) | | Net loss | $(29,589) | $(147,761) | $(12,153) | | Net loss per share - basic and diluted | $(0.28) | $(1.61) | $(0.89) | Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities was $(32.4) million, an increase from $(21.6) million in the prior year, with net cash provided by financing activities significantly decreasing to $11.4 million from $105.9 million, primarily due to the conversion of convertible notes in the current period, and cash and cash equivalents decreasing to $28.6 million from $87.4 million at the beginning of the period Condensed Consolidated Statements of Cash Flows (Selected Items, in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(32,373) | $(21,626) | | Net cash used in investing activities | $(681) | $(81) | | Net cash provided by financing activities | $11,428 | $105,858 | | Net change in cash, cash equivalents and restricted cash | $(21,626) | $84,151 | | Cash, cash equivalents and restricted cash at end of period | $28,862 | $87,364 | - Significant non-cash financing activities for the six months ended June 30, 2025, included the conversion of convertible notes to common stock ($314.3 million) and the net exercise of warrants for common stock ($75.1 million)[27] Reconciliations of GAAP to Non-GAAP Measures (Unaudited) This section details reconciliations from GAAP to non-GAAP measures, including gross profit, R&D, SG&A, and Adjusted EBITDA, with adjustments for non-cash items GAAP to Non-GAAP Reconciliations This section provides detailed reconciliations from GAAP to non-GAAP measures, including gross profit, R&D expense, SG&A expense, and Adjusted EBITDA, highlighting adjustments for non-cash inventory costs, stock-based compensation, and fair value changes GAAP to Non-GAAP Reconciliations (Three Months Ended June 30, 2025, in thousands) | Metric | GAAP (June 30, 2025) | Non-GAAP (June 30, 2025) | Adjustments | | :-------------------------------- | :------------------- | :--------------------- | :---------- | | Gross profit | $1,178 | $1,259 | $81 (Non-cash inventory) | | Gross margin | 59% | 64% | 5pp | | Research and development expense | $9,613 | $6,417 | $(3,196) (Stock-based comp) | | Selling, general and administrative | $12,992 | $8,622 | $(4,370) (Stock-based comp) | | Net loss | $(29,589) | $(12,933) (Adjusted EBITDA) | Various adjustments | - Adjusted EBITDA for Q2 2025 was $(12.9) million, a 16% improvement from $(15.4) million in Q1 2025, after adjusting for stock-based compensation, fair value changes, non-cash inventory cost realignments, and other items[29]