Gauzy (GAUZ) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $22.4M, with gross margin improving to 25.6% from 25.1% year-over-year, reflecting operational efficiencies and business model resilience.

• Major milestones included new contracts with Air France-KLM, Mercedes-Benz, Cadillac, and Ford, expanding presence in key markets and supporting a growing backlog.

• Signed the first $10M of a planned $20M debt financing at improved terms, enhancing liquidity and reducing financing costs.

• Free cash flow improved, and the balance sheet was strengthened, with total liquidity at $36.2M including $1.2M cash and $35M undrawn credit.

• Reaffirmed 2025 guidance, supported by a record backlog of purchase orders and a strengthened balance sheet.

Financial highlights

• Q1 2025 revenue was $22.4M, down from $24.7M year-over-year, with gross profit at $5.7M and gross margin at 25.6%.

• Operating expenses decreased to $14.4M, mainly due to lower R&D, G&A, and sales/marketing costs.

• Adjusted EBITDA was $(5.5)M, with a margin of (24.4)%.

• Net loss for Q1 2025 was $(10.8)M, with a net loss margin of (48)%.

• Free cash flow improved to -$2.3M from -$8.4M year-over-year, with cash used in operations at $0.6M.

Outlook and guidance

• Full-year 2025 revenue guidance reiterated at $130–$140M, representing over 30% growth at midpoint.

• First ever full-year positive adjusted EBITDA expected, with stronger performance in the second half.

• Guidance supported by strong demand, recurring revenue, and expanded production capacity.