Financial Data and Key Metrics Changes - The company achieved record revenue of $18.4 million in Q2 2025, with 135 vehicle deliveries, marking the highest quarterly revenue and unit deliveries in its history [7][20] - GAAP gross margin for Q2 was 8.8%, down from 20.6% in Q1 2025 and 13.1% in Q2 2024, primarily due to a shift in product mix and unexpected tariff impacts [21] - Operating loss for Q2 was approximately $7.1 million, the lowest since going public, improving from $9.3 million in Q1 2025 [9][23] - Positive free cash flow of $4.6 million was reported, the highest in company history, compared to negative $4.8 million in Q1 2025 [25] Business Line Data and Key Metrics Changes - The Step Van platform remains a significant revenue contributor, while the company is diversifying into higher-margin products like powertrain systems and charging infrastructure [12] - Deliveries to Bluebird Corporation for electric school buses are increasing, with nearly 20 powertrain units ordered since the quarter ended [12] Market Data and Key Metrics Changes - The company is experiencing strong demand from national carriers like UPS and FedEx, which underscores confidence in its products [7] - The Hub product has attracted interest from various industries facing grid constraints, indicating a growing market for fleet electrification solutions [13] Company Strategy and Development Direction - The company focuses on disciplined growth, improving gross margins, and ensuring liquidity as its strategic pillars [6] - Plans to enhance margins and reduce customer concentration through a diversified product portfolio are in place, with ongoing development of the Hub product and power resiliency solutions [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving gross margins over time as production scales and cost reduction initiatives are executed [21] - The company remains optimistic about its long-term vision and future, emphasizing adaptability in navigating supply chain challenges and tariff impacts [34][49] Other Important Information - The company amended the repayment structure for a convertible note, allowing for principal repayment in installments, which enhances liquidity [11] - The company is actively exploring options for enhancing liquidity and has maintained positive non-GAAP gross margins for eight consecutive quarters [10][21] Q&A Session Summary Question: Performance compared to competitors - Management highlighted the strength of their team, customer trust built over years, and adaptability in operations as key factors for outperforming competitors [30][32][34] Question: Update on MDXT truck - Management reported strong customer interest and ongoing demonstrations, indicating a solid potential order backlog for the MDXT truck [36][38][40] Question: Impact of tariffs - Management quantified the tariff impact on average selling prices, noting it varies by product and customer, and emphasized their approach to share tariff costs with customers [41][43][44]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported revenue of $5.9 million, down from $11.5 million in Q4 2024 and $13.2 million in Q1 2024, with 29 units delivered compared to 51 units in Q4 2024 and 62 units in Q1 2024 [24][27] - Cost of goods sold decreased to $4.7 million from $15.2 million in Q4 2024 and $10.4 million in Q1 2024 [24] - GAAP gross margin was a profit of $1.2 million or 20.6%, compared to a loss of $3.7 million or negative 32.4% in Q4 2024 and a profit of $2.8 million or 21.2% in Q1 2024 [25] - Non-GAAP gross margin was approximately $900,000 or 15%, down from $2.7 million or 23.2% in the prior quarter and a profit of $1.7 million or 12.8% in Q1 2024 [25][26] - Operating expenses for Q1 2025 were $10.5 million, down from $10.9 million in Q4 2024 and $13 million in Q1 2024 [27] - The operating loss for Q1 2025 was $9.3 million, an improvement from a loss of $14.6 million in Q4 2024 and $10.2 million in Q1 2024 [27] Business Line Data and Key Metrics Changes - The company shipped a total of 60 units in Q1 2025, including 31 additional strip chassis for UPS, but only recognized revenue for 29 units due to GAAP revenue recognition rules [24][7] - The MD XT, a new medium-duty chassis cab, was launched, targeting a total addressable market of up to 100,000 units per year in the U.S. [11][12] Market Data and Key Metrics Changes - Customer demand remains consistent, with growing interest from national fleets, while smaller regional operators are leveraging state incentive programs [8] - The company is experiencing increased visibility into near-term tariff exposure and has implemented mitigation strategies expected to take effect in the second half of the year [27] Company Strategy and Development Direction - The company is focused on three pillars: growth, liquidity, and margins, aiming to grow sales, manage cash discipline, and improve margin performance [17][18] - The MD XT is seen as a natural extension of the company's existing product line, leveraging existing technology and components to minimize costs and maximize reliability [12][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges such as new emissions rules, tariffs, and a tough interest rate environment, emphasizing the importance of customer trust and reliable product performance [6][7] - The company reaffirmed its full-year 2025 guidance for revenue between $50.2 million and $65.8 million, with unit deliveries expected between 320 and 420 units [29] Other Important Information - The company is actively exploring options to enhance liquidity and has made significant progress in collecting receivables, totaling $10.2 million in Q1 2025 [29] - The MD XT is currently undergoing safety certifications and is expected to ramp production by Q3 2026 [16] Q&A Session Summary Question: Can you speak about the parts commonality between your step vans and the MD XT? - The MD XT shares over 90% of the same commodity components with the step van, which reduces costs and training requirements [35][36] Question: What are potential customers saying about the MD XT? - The market for conventional chassis cab products like the MD XT can sell up to 100,000 units per year, indicating a larger market opportunity compared to the strip chassis product [40] Question: How should we think about revenue recognition for the UPS units? - The company expects a heavy concentration of revenue recognition in Q2 and Q3, with smaller orders in Q4 generally at higher margins [44] Question: Can you provide an update on the ChargeHub? - The ChargeHub has received significant interest and orders beyond just truck customers, addressing charging issues faced by many fleets [46][47]