Executive Summary

Q2 FY2024 revenue was $1.10M, up ~302% q/q from $0.29M; GAAP gross margin improved to 16.9%, and non-GAAP gross margin to 33.7%. GAAP loss from operations narrowed to $(8.56)M; non-GAAP loss from operations was $(4.08)M, modestly better q/q .
Management introduced revenue guidance (subject to RaGE closing): Q3 FY2024 $1.8–$2.2M and Q4 FY2024 $2.6–$3.2M; longer-term targets are 60% non-GAAP gross margin and 30% non-GAAP operating margin .
Strategic catalysts: signed definitive agreement to acquire RaGE Systems (expected to be accretive), Arrow Electronics distribution, and multiple defense/aerospace program wins (Tomahawk, Javelin, M1 Abrams, Gulfstream), supporting pipeline expansion and mix shift toward higher-reliability end-markets .
No S&P Global consensus estimates were available for CLAY/MOBX at Q2 FY2024, so beats/misses vs. Street could not be assessed (S&P Global data unavailable for this ticker mapping).

What Went Well and What Went Wrong

What Went Well

Material q/q revenue acceleration (+302%) to $1.10M, demonstrating early traction post-EMI acquisition and ahead of RaGE contribution; management highlighted a “record quarter for product revenue” and expanding end markets from M&A .
Margin progress: GAAP gross margin rose to 16.9% and non-GAAP gross margin to 33.7% (from deeply negative in Q1), reflecting mix and acquisition scaling; non-GAAP operating loss improved slightly to $(4.08)M .
Commercial momentum: Arrow global distribution for EMI products; design-in wins and deliveries across defense/aerospace (Tomahawk, Javelin, M1 Abrams; sole-source Gulfstream filtered connectors) and initial sales to GE HealthCare and PerkinElmer .

What Went Wrong

Profitability remains challenged: GAAP operating loss of $(8.56)M and low GAAP gross margin (16.9%) underscore early scale and cost structure; SG&A at $7.36M weighed on results .
Balance sheet tightness: cash was $2.99M at quarter-end; reliance on external financing (up to $100M equity line with B. Riley) and general risk disclosures on going concern, capital needs, Nasdaq listing compliance, and dilution risk .
Estimates visibility limited: absence of widely tracked sell-side coverage/consensus (S&P Global unavailable) reduces external benchmarking of execution and expectations.

Financial Results

P&L summary vs. prior year and prior quarter

Metric	Q2 2023	Q1 2024	Q2 2024
Revenue ($USD Millions)	$1.43	$0.29	$1.15
GAAP Gross Margin %	10.4%	-553.1%	16.9%
Non-GAAP Gross Margin %	28.7%	-306.3%	33.7%
GAAP Loss from Operations ($USD Millions)	N/A (quarterly figure not reliably isolated in table)	$(11.84)	$(8.56)
Non-GAAP Loss from Operations ($USD Millions)	$(8.18)	$(5.73)	$(4.08)
EPS Basic ($)	$(0.06)	$(0.94)	$(0.09)
EPS Diluted ($)	$(0.10)	$(0.94)	$(0.21)

Notes: Company presents non-GAAP metrics excluding depreciation, amortization of intangibles, M&A costs, inventory write-offs, and stock-based comp; reconciliations provided in 8-K Exhibit 99.1 .

Q3 FY2024 (subsequent quarter) for trend context

Metric	Q2 2024	Q3 2024
Revenue ($USD Millions)	$1.15	$2.06
GAAP Gross Margin %	16.9%	35.5%
Adjusted Gross Margin %	33.7%	40.3%
GAAP Loss from Operations ($USD Millions)	$(8.56)	$(9.35)
Adjusted Loss from Operations ($USD Millions)	$(4.08)	$(4.14)
EPS Basic ($)	$(0.09)	$(0.25)

Balance sheet snapshot

Metric	Q2 2024
Cash ($USD Millions)	$2.99
Total Assets ($USD Millions)	$29.50
Total Liabilities ($USD Millions)	$25.34
Stockholders’ Equity ($USD Millions)	$4.15

Segment breakdown / KPIs: The company does not report segment revenue detail; KPIs cited qualitatively include program wins and distribution expansion (Arrow) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	Q3 FY2024	N/A	$1.8 – $2.2	Introduced
Revenue ($USD Millions)	Q4 FY2024	N/A	$2.6 – $3.2	Introduced
Long-term Non-GAAP Gross Margin	Multi-year target	N/A	~60% target	Introduced
Long-term Non-GAAP Operating Margin	Multi-year target	N/A	~30% target	Introduced

Management indicates Q3 and Q4 revenue outlooks are subject to closing of the RaGE acquisition .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 FY2024)	Trend
Public company cadence and disclosures	First earnings call as a public company; limited prior public call history	Established earnings call format; prepared remarks and introduced guidance	Building IR cadence
M&A strategy (EMI, RaGE, pipeline)	EMI acquired in late Dec; mid-quarter update guided >250% q/q growth	Signed definitive agreement to acquire RaGE (expected accretive); pipeline expansion highlighted	Accelerating via acquisitions
Defense/aerospace traction	Not previously detailed publicly	Tomahawk deliveries; Javelin and M1 Abrams awards; sole-source Gulfstream connectors	Expanding high-reliability wins
Channel expansion	Not previously detailed publicly	Arrow Electronics global distribution for EMI filtering products	Scaling go-to-market
Liquidity and financing	N/A	Up to $100M equity line with B. Riley; pursuing additional financing	Active capital sourcing
Product innovation	N/A	Launched MBX3110 SP10T RF switch for LMR; expanding filtered connectors	Broadening portfolio

Management Commentary

CEO: “I am excited about March quarter’s execution on foundational milestones including our entering into a definitive agreement for the synergistic acquisition of RaGE Systems, which is expected to be immediately accretive.”
CFO: “We were pleased with our revenue growth of over 300% sequentially… we expect to have access to substantial liquidity through our up to $100 million equity line of credit… targeting to achieve a 60% gross margin and a 30% operating margin on a non-GAAP basis.”
Prepared remarks emphasized a “record quarter for product revenue,” EMI integration progress, and defense/aerospace design-in momentum with customers such as BAE, General Dynamics, Raytheon, and Lockheed Martin .

Q&A Highlights

A full Q&A transcript was not available in the SEC document set; the company posted prepared remarks and hosted a live call with webcast replay noted in the press release .
Investor focus areas (inferred from prepared remarks and disclosures): acquisition integration/timing (RaGE), defense/aerospace pipeline durability, margin trajectory toward 60%/30% targets, and financing plans including the equity line .

Estimates Context

S&P Global (Capital IQ) consensus estimates were not available for CLAY/MOBX for Q2 FY2024 in our retrieval, so we cannot assess beats/misses vs. Street; as a result, estimate comparisons are not included here. Values would have been retrieved from S&P Global if available.

Key Takeaways for Investors

Sequential growth inflection: Q2 revenue ramped >300% q/q to $1.10M, followed by Q3 to $2.06M, underscoring early scaling from acquisitions and defense/aerospace traction .
Improving unit economics: GAAP gross margin improved to 16.9% (adj. 33.7%) in Q2 and 35.5% (adj. 40.3%) in Q3, suggesting mix/pricing and M&A-driven leverage are beginning to show through .
Operating discipline is progressing on a non-GAAP basis (Q2 $(4.08)M; Q3 $(4.14)M), but GAAP losses remain heavy; sustained opex control and gross margin execution are key to de-risking the long-term 60%/30% target model .
Execution catalysts: integration of RaGE, Arrow distribution, and defense program awards could support continued revenue/margin momentum and backlog visibility through FY2024–FY2025 .
Liquidity watchlist: low quarter-end cash and reliance on external financing (equity line, private placements) imply dilution/financing sensitivity; monitor capital raises against growth trajectory .
Near-term setup: Management guided Q3/Q4 revenue ranges and then delivered Q3 within that framework; watch full-year exit run-rate and product mix in defense/aerospace as potential stock catalysts .
Estimate formation likely to evolve as coverage builds; absence of S&P Global consensus limits near-term “beat/miss” trading catalysts but also creates potential asymmetry as disclosures and cadence mature.

Sources:

Q2 FY2024 8-K and Exhibit 99.1 press release (financials, outlook, business highlights) .
Q3 FY2024 8-K and Exhibit 99.1 press release (trend context) .
Preliminary Q4 FY2024 update (trend context) .
Prepared remarks PDF and IR site (call logistics, qualitative themes) .
Earnings date press release for Q2 call (background) .

MOBIX LABS, INC (CLAY)·Q2 2024 Earnings Summary