Cenntro (CENN) Q4 2025 earnings summary

Executive summary

• Net revenues for 2025 were $18.1 million, down 42.2% from $31.3 million in 2024, primarily due to lower vehicle sales and average selling prices, as well as the suspension of government subsidies impacting high-value models.

• Gross loss for 2025 was $2.3 million, compared to a gross profit of $7.6 million in 2024, with gross margin dropping to -12.8% from 24.3% year-over-year.

• Net loss attributable to shareholders was $73.0 million in 2025, compared to $44.9 million in 2024, driven by lower revenues, negative gross margin, and significant non-cash charges.

• The company sold 1,309 electric commercial vehicles (ECVs) in 2025, up from 1,122 in 2024, with the majority of sales in Europe and Asia.

• Strategic shift in 2025 included restructuring European operations, closing or divesting subsidiaries, and transitioning to a centralized dealership distribution model.

Financial highlights

• Vehicle sales revenue was $16.1 million (88.9% of total), spare-part sales $1.65 million (9.1%), and other sales $0.35 million (2.0%) in 2025.

• Cost of goods sold decreased 13.9% to $20.4 million, mainly due to lower sales and inventory write-downs, but inventory write-offs increased to $2.8 million.

• Operating expenses fell 23.4% to $30.2 million, with selling and marketing down 65.8% to $2.5 million, general and administrative down 22.7% to $20.3 million, and R&D down 45.5% to $2.8 million.

• Adjusted EBITDA for 2025 was $(53.2) million, compared to $(28.2) million in 2024.

• Cash and cash equivalents at year-end 2025 were $4.5 million, down from $12.5 million at year-end 2024.

• Working capital decreased to $19.0 million from $36.8 million year-over-year.

Outlook and guidance

• Management expects to continue rolling out new ECV models in North America and Europe and to further develop local distribution channels in the U.S.

• The company plans to regionalize manufacturing and supply chains, invest in R&D, and expand after-sales service offerings.

• Cash improvement initiatives are underway, with a focus on operating efficiency and inventory management to reduce negative cash flow.