AQUABOUNTY TECHNOLOGIES INC (AQB)·Q1 2025 Earnings Summary

Executive Summary

• AquaBounty reported net income of $0.4M and total EPS of $0.10, driven by a $2.0M non-cash loan forgiveness and a $0.31M gain on asset sales; operating loss narrowed to $1.26M as the company wound down R&D and sales activities .
• No product revenue was recorded in continuing operations; prior operating farms were reclassified as discontinued operations, consistent with 2024 wind-down actions and asset sales .
• Liquidity improved to $1.37M in cash from $0.23M at year-end, funded by sales of Ohio equipment ($2.3M net proceeds) and the Canadian subsidiary and IP ($1.9M net proceeds); going concern risk remains elevated as management continues to pursue strategic alternatives for the Ohio farm project .
• No formal guidance or earnings call transcript was available; near-term stock catalysts are progress on Ohio asset monetization, resolution of legal matters (e.g., Gilbane lien) and Nasdaq bid-price compliance .

What Went Well and What Went Wrong

• What Went Well

  • Reported net income of $0.4M versus an $11.2M loss in Q1 2024, aided by $2.0M loan forgiveness and $0.31M gain on asset sales, reflecting reduced operating spend and successful asset monetization .
  • Cash increased to $1.37M from $0.23M at year-end, supported by $2.3M net proceeds from Ohio equipment auction and $1.9M net proceeds from sale of Canadian subsidiary and Corporate IP .
  • Management reaffirmed focus on strategic alternatives and marketing/sale of remaining Ohio assets: “These transactions have provided us with the liquidity to continue to pursue strategic alternatives for our Ohio Farm Project” — David Frank, Interim CEO/CFO .

• What Went Wrong

  • No continuing operations revenue; business transition to discontinued operations underscores the cessation of fish rearing activities and lack of operating income sources .
  • Substantial doubt regarding going concern persists; additional capital and/or asset sales are required to fund working capital and any Ohio project completion .
  • Legal and listing overhangs: January 2025 Nasdaq minimum bid price deficiency notice; February 2025 complaint by Gilbane on Ohio project mechanics’ lien of $1.5M .

Financial Results

• Income Statement and EPS Trend

• YoY Comparison (Q1 2025 vs Q1 2024)

• Balance Sheet and Liquidity

• Non-GAAP/Management KPI: Net Cash Expenditures (by area)

Notes:

• Q1 2025 net income was boosted by $2.008M loan forgiveness and $306,886 gain on asset sales; without these items, core profitability remains negative (operating loss) .
• Discontinued operations reflect the 2024–2025 wind-down and asset sales (Indiana farm sold in July 2024; Canadian subsidiary and Corporate IP sold in March 2025) .

Guidance Changes

No formal quantitative guidance (revenue, margins, OpEx, tax, etc.) was provided. Management reiterated strategic focus:

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was available. Themes below derived from company filings and press releases.

Management Commentary

• “These transactions have provided us with the liquidity to continue to pursue strategic alternatives for our Ohio Farm Project.” — David Frank, Interim CEO/CFO (Q1 2025 press release) .
• “We will continue to keep all stakeholders apprised of our progress.” — David Frank (Q1 2025 press release) .
• Prior tone (Q2 2024): “Our focus…was securing a buyer for the Indiana farm and continuing to explore a variety of financing initiatives to maintain liquidity.” — Dave Melbourne, CEO .
• Prior tone (Q3 2024): “We continue to focus…to extend our cash runway…reduce costs…significant reduction in both operating spend and net loss.” — Dave Melbourne .

Q&A Highlights

• No Q1 2025 earnings call transcript or Q&A was available in the document set [ListDocuments: no earnings-call-transcript].
• No additional clarifications beyond press releases and the 10-Q narrative.

Estimates Context

• Wall Street consensus estimates via S&P Global were unavailable for AQB for Q1 2025 and FY 2025 (EPS, revenue, target price, and # of estimates returned empty). Values retrieved from S&P Global.*

Implications:

• With no active consensus, investor models should rely on filings and announced asset monetizations; revisions are likely focused on liquidity runway rather than operating metrics [GetEstimates: empty].

Key Takeaways for Investors

• Profitability was a one-off driven by $2.0M loan forgiveness and $0.31M asset-sale gain; underlying operations still show an operating loss and no continuing revenue .
• Liquidity improved but remains constrained; continued asset sales (Ohio equipment) and strategic options around the Ohio farm are critical to runway extension .
• Going concern risk persists, and the company explicitly warns of the need to raise additional capital to sustain operations and any project completion .
• External overhangs include Nasdaq bid-price compliance and litigation related to the Ohio project; resolution of these issues could influence sentiment and access to capital .
• Near-term trading catalysts: updates on Ohio farm monetization/partners, further asset sales, and any financing announcements; absence of operating revenue suggests price sensitivity to corporate actions rather than fundamentals .
• Medium-term thesis hinges on unlocking value from the Ohio farm site through investment, partnership, or sale; failure to secure capital could force deeper restructuring .
• R&D and farming operations are discontinued; any future operating narrative will be driven by strategic transactions rather than growth in salmon production .

Citations:
All facts and figures are sourced from AquaBounty’s Q1 2025 8-K and press release , Q1 2025 10-Q , FY 2024 press release , Q3 2024 press release , Q2 2024 press release , March 4, 2025 8-K (Canadian subsidiary sale) , Nasdaq notice .