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Total Revenue: $30.4 million in Q3, down from $33.9 million last year.
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Adjusted Gross Margin: 22.4%, an increase of 150 basis points year-over-year.
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Adjusted EBITDA: $1.4 million, up from $572,000 last year.
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Cash and Cash Equivalents: $20.7 million at the end of the quarter.
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Operating Cash Flow: Inflow of $4.9 million.
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Cash Flow from Financing Activities: Outflow of $1.8 million.
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Cash Flow from Investing Activities: Outflow of $3.5 million.
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Total Liquidity: $30.7 million as of March 31.
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Fiscal Year 2025 Revenue Guidance: Expected to be approximately $130 million, same as fiscal year 2024.
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CapEx Spending: Expected $4 million to $5 million in the next two quarters, reducing to $2 million to $3 million thereafter.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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NanoXplore Inc (NNXPF) reported an increase in adjusted gross margins, reaching 22.4% during the quarter, reflecting improved manufacturing efficiency and higher sales of graphene powder.
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The company is progressing well with its expansion in North Carolina, supported by booked contracts with existing and new customers, with equipment expected to arrive soon and revenues to pick up by late summer.
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NanoXplore Inc (NNXPF) has ordered equipment to produce industrial volumes of dry process graphene, with production anticipated to start in 2026, enabling larger supply to testing partners.
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The company is seeing promising results from its customers in drilling fluid and insulation foam, with commercial rollout expected soon, potentially impacting future growth significantly.
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NanoXplore Inc (NNXPF) ended the quarter with a strong liquidity position of $30.7 million, including cash and unused credit lines, supporting its strategic initiatives and expansions.
Negative Points
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The company experienced a reduction in total revenues for Q3, down to $30.4 million from $33.9 million last year, mainly due to lower progress revenue recognition and reduced volumes from major customers.
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Delays in program launches and customer order hesitations, influenced by macroeconomic uncertainties and potential tariffs, have clouded the near-term outlook and affected revenue growth.
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The expansion plan for CSPG and dry process graphene is facing delays due to pending confirmation from Hydro-Quebec on electricity allocation, causing frustration and potential project segmentation.
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Despite a positive EBITDA in the Battery Sales and Materials segment, the overall market for commercial vehicles remains soft, impacting anticipated growth for fiscal year 2025.
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The company has revised its fiscal year 2025 sales guidance to remain flat compared to fiscal year 2024, due to delayed program launches and unchanged volumes from existing programs.