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FF

FARADAY FUTURE INTELLIGENT ELECTRIC INC. (FFAI)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $0.32M with net loss from operations of $43.8M; net loss was $10.3M as non‑operating fair value items offset operating losses . Financing inflows were $24.6M vs operating cash outflows of $20.3M, marking a third straight quarter of financing > operating burn .
  • Management highlighted early FX Super One traction: 1,000-unit and 300-unit B2B non-binding pre-orders with non‑refundable deposits, and a target of ~10,000 paid pre‑orders around the late‑June launch event; first FX Super One targeted to roll off the line by year‑end 2025 .
  • Balance sheet metrics improved: net assets increased 21.6% to $139.8M and debt-to-assets improved ~700 bps to 66% vs YE’24, largely via a $25.8M reduction in notes payable .
  • Key near-term stock catalysts: FX Super One launch and paid pre‑order momentum, progress on Hanford trial/assembly readiness, and funding milestones to support FX ramp, AI R&D, and market expansion .

What Went Well and What Went Wrong

What Went Well

  • “Third consecutive quarter where financing inflows exceeded operating outflows,” supporting operations while the FX program advances (CFO) .
  • Net assets up 21.6% to $139.8M; debt‑to‑asset ratio improved to ~66% (≈+700 bps) on lower notes payable (CFO) .
  • Early FX demand validation: 1,000 + 300 B2B non‑binding pre‑orders with non‑refundable deposits; management aims for ~10,000 paid pre‑orders around launch (Jerry Wang; YT Jia) .

What Went Wrong

  • Minimal commercial scale: Q1 revenue $0.32M and a gross loss of $21.07M reflect high cost absorption before FX scaling .
  • Operating cash outflow increased 38% YoY to $20.3M despite disciplined OpEx, driven by working capital movements (CFO) .
  • Continued reliance on external financing and execution dependencies (homologation, supply chain localization, permits/licensing) explicitly flagged as risks in forward‑looking statements .

Financial Results

Core P&L vs prior periods and estimates

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$0.235*$0.316 $0.054*
Operating Income (Loss) ($USD Millions)$(30.3) $(43.8) $(48.1)
Net Income (Loss) ($USD Millions)$(121.26)*$(10.28) $(124.68)*
Diluted EPS - Continuing Ops ($)$(2.60)*$(0.14)*$(1.20)*
  • Values with an asterisk (*) retrieved from S&P Global.

Notes and drivers:

  • Q1 operating loss widened to $(43.8)M despite modest OpEx stability; net loss improved to $(10.3)M as fair value changes and other non‑operating items offset operating losses .
  • Q2 2025 shown to illustrate subsequent trend: operating loss $(48.1)M with continued small revenue, pending FX scale .

Cash flow and financing

MetricQ4 2024Q1 2025
Operating Cash Outflow ($USD Millions)$18.4 $20.3
Financing Cash Inflow ($USD Millions)$25.0 $24.6

KPIs and operating metrics

KPIQ4 2024Q1 2025Subsequent Update
FF 91 deliveries (units)Company continued limited deliveries2 deliveries (CA, NY) Mentioned new owner (Mariah Carey) added later
FX Super One B2B pre‑orders—1,000 + 300 non‑binding with non‑refundable deposits >4,000 Q2 reservations; >10,000 by Jul 31
Net assets ($USD Millions)—$139.8 —
Debt-to-assets (%)—~66% (improved ~700 bps) —

Guidance Changes

Metric/TopicPeriodPrevious GuidanceCurrent GuidanceChange
FX Super One launch timingMid‑2025Launch in Q2 2025; begin paid reservations End‑June launch; begin B2C paid pre‑orders; aim for 10,000 paid pre‑orders around launch Maintained/tightened timing; quantified target
First FX off the line2025First vehicle by end‑2025 On track for first FX Super One off the line by end‑2025 Maintained
FX gross margin expectationPost‑launchTarget positive GM relatively quickly Target positive GM relatively quickly Maintained
Capital markets/insider alignment2025Maintain Nasdaq compliance; prudent equity; consider insider purchases Continue to avoid reverse split; new exec stock purchases; YT bonus fully into open‑market stock purchases (≥1‑yr lock‑up) Reinforced insider alignment

Earnings Call Themes & Trends

TopicPrevious Mentions (Q‑2 and Q‑1)Current Period (Q1 2025)Trend
AI/Technology2024: AI agent OS, “Open AI Day”; ~1,600 OTA updates Delivered first internal AI‑powered vehicle OS; formed AIHER; filed 3 AIHER patents Accelerating AI stack integration
Supply chain & manufacturingHanford efficiency gains; insource FF91 seats Hanford preparing flexible line for 30k+ total units (incl. FF); mixed‑line assembly plan Moving to FX parts procurement/trial production
Tariffs/macroIndicated potential policy tailwinds Dual approach to China tariffs: increase U.S. content/localization and seek govt support Active policy engagement/mitigation
Product performanceLimited FF91 deliveries2 FF91 deliveries (CA, NY); enter East Coast market Expanded pre‑orders; >10k by 7/31
Regional (UAE “Third Pole”)Secured RAKEZ site; UAE planning RAKEZ facility ready for occupancy Handover completed in Q2
Capital & liquidityQ4 financing inflows > op outflows; regained Nasdaq compliance 3rd straight quarter financing inflows > op outflows; $41M new commitments Continued funding activity in Q2

Note: No Q3 2024 documents were found in our set; we used Q4 2024 as “Q‑1” and subsequent Q2 2025 where useful for trend.

Management Commentary

  • “We are going all in on AI, accelerating the design and development of a Super AI Hybrid Extended Range System (AIHER), and pushing forward with our AI cabin and aiDriving platform.” — YT Jia, Co‑CEO .
  • “Financing activities generated $24.6 million in Q1 2025…[the] third consecutive quarter where financing inflows exceeded operating cash outflows.” — CFO .
  • “Our Hanford factory is now preparing a flexible production line for FX units with an annual capacity of over 30,000 total units, including FF.” — YT Jia .
  • “Target to achieve around 10,000 paid pre‑orders…FX is on track to have the first FX Super One off the line by the end of 2025.” — Company press release .

Q&A Highlights

  • Pricing transparency: Pricing will be published closer to launch; deviations will reflect tariffs, local incentives, and supply‑chain dynamics .
  • Brand architecture: FX will leverage FF91 tech to deliver accessible AI features while FF91 remains the flagship innovation showcase .
  • B2B pre‑orders & deposits: 1,300 non‑binding pre‑orders (NY JC Auto; CA Skyhorse Auto) with non‑refundable deposits ($100k and $30k) applicable to purchases .
  • Tariffs strategy: Increase localization (already up to ~50% domestic content on FF91), pursue supplier localization and government support to mitigate tariff impact .
  • Insider alignment: Management plans to purchase stock post‑blackout in compliance with SEC rules; YT to invest after‑tax $1.2M bonus into open‑market purchases with ≥1‑yr lock‑up .

Estimates Context

Coverage for Q1 2025 was limited on S&P Global; consensus EPS and revenue for Q1 were not available. S&P shows a single‑estimate consensus emerging from Q3 2025 onward (EPS −$0.36; revenue ~$0.25M for Q3/Q4 2025), underscoring sparse sell‑side coverage [GetEstimates].

Q1 2025 actuals vs S&P consensus:

  • Revenue: $0.316M actual; no published consensus for Q1 2025 [GetEstimates].
  • EPS: $(0.14) actual; no published consensus for Q1 2025 [GetFinancials]*.

Forward S&P Global consensus (illustrative):

  • Q3 2025: EPS −$0.36; Revenue $0.25M (1 estimate) [GetEstimates].
  • Q4 2025: EPS −$0.36; Revenue $0.25M (1 estimate) [GetEstimates].

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Liquidity managed actively: financing inflows exceeded operating outflows for a third straight quarter, but continued external funding is essential to execute FX and AI roadmaps .
  • Core catalyst: late‑June FX Super One launch and paid pre‑order trajectory (management targets ~10,000 around launch), a key sentiment and demand signal for the mass‑market strategy .
  • Execution watch‑items: homologation, supplier localization, permitting/licensing and U.S. assembly readiness at Hanford; progress includes FX moving into parts procurement and trial production .
  • Unit economics inflection hinges on FX scale: current gross losses reflect sub‑scale operations; management targets positive FX gross margins “relatively quickly” post‑launch .
  • Policy/tariff sensitivity: dual approach (localize content; seek governmental support) aims to mitigate tariff risk; track updates on domestic content and supplier localization .
  • Visibility tailwinds: later addition to Russell 3000 (Q2) and potential executive stock purchases improve investor awareness and alignment, respectively .
  • Stock setup: near‑term stock reaction likely tied to FX launch execution, pre‑order conversion, and funding milestones versus explicit revenue/EPS beats given limited sell‑side coverage [GetEstimates].

Appendix: Detailed Sources

  • Q1 2025 8‑K with EX‑99.1 (press release) and EX‑99.2 (presentation) .
  • Q1 2025 press release (standalone) .
  • Q1 2025 earnings call transcripts .
  • Q4 2024 press release + call .
  • Q2 2025 press release (subsequent trend) .
  • B2B pre‑order (JC Auto) press release .
  • AIHER patents press release .

S&P Global data used where noted with an asterisk (*).