Forward Industries (FORD) investor relations material

Executive summary

• Revenue from continuing operations declined 50.5% year-over-year for the quarter and 32.8% for the nine months, primarily due to the loss of a major customer and lower project volume, partially offset by new customer projects.

• The company completed the sale of its OEM segment in May 2025 and previously exited its retail distribution segment, both classified as discontinued operations, resulting in a $1.4M gain on sale in Q3 2025.

• Cost reduction measures included two workforce reductions in January and June 2025 to mitigate revenue declines.

• The company raised $1M via Series B Convertible Preferred Stock in May 2025 and $2.4M through an equity line of credit and $2.2M in a registered direct offering post-quarter end.

Financial highlights

• Q3 2025 revenue from continuing operations: $2.5M, down from $5.0M in Q3 2024; nine-month revenue: $10.2M, down from $15.2M year-over-year.

• Gross margin for the quarter dropped to -24.9% from 26.0% year-over-year; nine-month gross margin fell to 3.3% from 26.7%.

• Operating loss for Q3 2025 was $2.6M versus $0.5M in Q3 2024; nine-month operating loss was $5.3M versus $1.4M year-over-year.

• Net loss attributable to common shareholders for Q3 2025 was $0.9M ($0.77/share) and $3.0M ($2.73/share) for the nine months.

• Income from discontinued operations (OEM and retail) was $1.6M in Q3 2025 and $2.1M for the nine months, including a $1.4M gain on sale.

Outlook and guidance

• Management expects continued material revenue decreases due to the loss of its largest customer and ongoing macroeconomic uncertainty, including tariffs.

• Cost reduction efforts are ongoing, and further adjustments may be made based on business needs.

• There is substantial doubt about the company's ability to continue as a going concern for 12 months from the financial statement issuance date.