Twin Vee PowerCats (VEEE) Q3 2026 earnings summary

Executive summary

• Q3 net sales fell 19% YoY to $2.77M; gross loss widened to $377K and net loss increased 9% to $3.01M. Nine-month net loss was $8.01M, and management cited substantial doubt about the ability to continue as a going concern.

• Lower boat volumes and unfavorable fixed-cost absorption weighed on margins; higher professional fees tied to merger and corporate ratification matters also pressured results.

Financial highlights

• Q3 2026 net sales were $2.77M vs. $3.43M YoY; 10 boats sold at an average price of ~$277K, compared with 31 boats at ~$149K in Q3 2025.

• Q3 gross loss was $377K vs. $45K; operating loss was $3.11M vs. $2.78M; net loss was $3.01M vs. $2.76M.

• 9M sales declined 16% to $9.87M; 47 boats sold vs. 78, while average unit price rose to ~$210K from ~$151K, mainly due to Bahama model mix.

• 9M gross loss was $364K vs. gross profit of $1.15M; operating loss reached $8.27M and net loss was $8.01M vs. $6.02M.

• 9M basic and diluted loss per share was $17.99; weighted average shares were 453,249 vs. 50,743, with share data adjusted for reverse splits.

Outlook and guidance

• Management expects near-term revenue growth and expense reductions to be insufficient for cash-flow breakeven; cost controls, operational improvements and revenue initiatives are underway.

• The USFM merger remains subject to stockholder approvals, an effective Form S-4, the pre-closing CVR restructuring and other conditions; the merger agreement sets a December 31, 2026 end date.