Cenntro (CENN) Q3 2025 earnings summary

Executive summary

• Net revenues for the nine months ended September 30, 2025, were $13.1M, down 49.3% year-over-year, mainly due to lower vehicle and spare-part sales volume and average selling price, partially offset by higher other sales.

• Gross profit for the nine months was $0.4M, with a gross margin of 3.1%, down from $8.0M and 31.1% in the prior year, reflecting a sharp decline in vehicle sales margin.

• Net loss attributable to shareholders was $22.2M for the nine months, compared to $27.4M in the prior year.

• The company restructured its European operations, shifting to a dealership distribution model and classifying three subsidiaries as discontinued operations.

Financial highlights

• Vehicle sales revenue for the nine months was $12.1M, down from $23.1M year-over-year; spare-part sales were $0.8M, down from $2.7M.

• Cost of goods sold decreased 28.7% to $12.7M, mainly due to lower sales and reduced inventory write-downs.

• Operating expenses fell 27.2% to $21.6M, with significant reductions in selling, marketing, general, and administrative, and R&D expenses.

• Adjusted EBITDA for the nine months was $(16.6)M, compared to $(23.1)M in the prior year.

• Cash and cash equivalents at September 30, 2025, were $4.4M, down from $22.4M a year earlier.

Outlook and guidance

• Management expects to continue rolling out new ECV models in North America and Europe, establish local assembly facilities, and expand the Changxing factory.

• The company believes current cash and cash equivalents are sufficient to execute its business strategy over the next twelve months, with ongoing initiatives to improve operating efficiency and working capital.