Executive Summary

Q3 revenue reached $0.89M, a new company high, driven partly by higher-margin engineering services; Adjusted EBITDA improved to $(37.7)M and Adjusted EPS to $(0.54), continuing sequential improvement from Q2 $(38.6)M and $(0.61) respectively .
GAAP turned to positive net income of $3.26M in Q3 (vs $(112.0)M) YoY), primarily due to a $61.8M non-cash gain on fair value changes of warrants/derivatives; underlying non-GAAP loss remains material .
Management guided Q4 cash outflow to $30–$40M and Adjusted EBITDA to $(30)–$(35)M; prior guidance referenced H2 2024 Adj. EBITDA of $(120)–$(140)M without a quarterly split .
Strategic catalysts: (1) FTZ final activation in Oklahoma City (management cites ~5% BoM reduction for imported parts), (2) UK market entry/activation center with right-hand-drive pilots, and (3) ongoing USPS and government/commercial fleet pipeline; liquidity remains the swing factor (letter of encouragement for U.S. government program loans; working capital line) .

What Went Well and What Went Wrong

What Went Well

Record quarterly revenue with sequential gross margin improvement: revenue $0.89M and gross profit $0.72M in Q3 vs negative gross profit in Q2, aided by higher-margin engineering services .
Structural cost actions: consolidation from six facilities to three, HQ relocation to Texas, estimated annualized savings of $12–$14M; quarterly cash outflow fell to $31.3M from $39.4M in Q2 and from Q3’23 by ~59% .
Strategic positioning: (i) FTZ activation to reduce BoM and provide tariff benefits (~5% BoM reduction on imported parts), (ii) UK legal entity/activation center with right-hand-drive capability and rapid IVA approval (<2% BoM change), (iii) continued government/fleet progress (USPS pilots, DoD program) .

Selected quotes:

“We must continue to take aggressive actions to consolidate our operations, reduce costs, and catch-up to our plan.” — Tony Aquila, CEO .
“We reported our highest revenue quarter at $891,000… includes higher margin engineering service revenues…” — Kunal Bhalla, CFO .
“We have achieved… FTZ… [and] established [UK] legal entity… IVA… with less than 2% changes to bill of materials.” — Management .

What Went Wrong

Capital remains the gating factor; company behind plan on manufacturing ramp; furloughed ~23% of OKC workforce (30 teammates) amid consolidation .
GAAP profitability driven by non-cash revaluation gains ($61.8M), masking underlying operating loss (Adjusted Net Loss $(42.6)M; Adj. EBITDA $(37.7)M) .
Limited visibility on quarterly unit deliveries and production cadence; management targets ~3 jobs/day by Q4 2025, multiple jobs/hour in 2026 but contingent on capital and supply chain harmonization .

Financial Results

Core P&L metrics (USD Millions unless noted)

Metric	Q1 2024	Q2 2024	Q3 2024
Revenue ($M)	$0.00	$0.61	$0.89
Gross Profit ($M)	N/A	$(1.24)	$0.72
Gross Margin (%)	N/A	(1.24/0.61) = (204.9%)	(0.72/0.89) = 80.9%
GAAP Net Income (Loss) ($M)	$(110.69)	$(4.96)	$3.26
GAAP EPS (basic)	$(2.20)	$(0.09)	$0.03
GAAP EPS (diluted)	$(2.20)	$(0.09)	$(0.31)
Adjusted EBITDA ($M)	$(48.30)	$(38.61)	$(37.74)
Adjusted Net Loss ($M)	$(57.32)	$(42.70)	$(42.63)
Adjusted EPS	$(1.13)	$(0.61)	$(0.54)

Notes:

Q3 GAAP net income benefited from $61.8M gain on warrant/derivative fair value changes; non-cash .
Management attributed margin mix to higher-margin engineering service revenue in Q3 .

YoY snapshot (Q3 2024 vs Q3 2023)

Metric	Q3 2023	Q3 2024
Revenue ($M)	$0.52	$0.89
GAAP Net Income (Loss) ($M)	$(112.0)	$3.26
Adjusted EBITDA ($M)	$(40.37)	$(37.74)
Adjusted EPS	$(1.71)	$(0.54)

KPIs and Liquidity

KPI	Q1 2024	Q2 2024	Q3 2024
Cash, Cash Equivalents & Restricted Cash ($M, period-end)	$18.24	$19.10	$16.07
Operating Cash Outflow ($M, quarterly)	$47.52	$35.90	$31.30

Additional balance sheet context (Q3): total cash & equivalents $1.53M; restricted cash (current+non-current) $14.54M .

Estimates vs Actuals

Wall Street consensus (S&P Global) for GOEV was unavailable (mapping not found). As a result, beat/miss vs consensus cannot be determined for Q3 2024. Values retrieved from S&P Global were unavailable for this issuer.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash Outflow	Q4 2024	Reaffirmed “prior cash flow guidance” in Q2 (no numeric range disclosed)	$30M–$40M	New explicit quarterly range
Adjusted EBITDA	Q4 2024	H2 2024: $(120)M–$(140)M (half-year basis)	$(30)M–$(35)M (quarter)	Quarterly specificity introduced; not directly comparable to H2 range

Notes: Company does not provide full GAAP reconciliations for forward-looking non-GAAP measures due to uncertainty in reconciling items .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2024)	Current Period (Q3 2024)	Trend
Capital access & structure	Incremental, milestone-based raises; pursuing non-dilutive sources; significant AFV support; added Russell indexes; YTD capital raised cited	Letter of encouragement from U.S. government program; working capital line clarified as 12-month facility; considering PO financing and ATM as needed	Improving optionality; still core gating factor
Manufacturing ramp & cadence	Focus on step-level manufacturing; bought distressed equipment; FTZ activation in process; targeting 20k run-rate longer term	Behind plan; targeting ~3 jobs/day by Q4’25; multi-job/hour in 2026; access to paint shop capacity via tenant exit; ramp tied to capital/supply chain	Delayed vs aspirations; plan more granular
Supply chain harmonization	Supplier engagement (52% BoM represented), re-harmonization after product changes; focus on non-China inputs	Continued harmonization; FTZ activation should lower costs; supplier share pool to align partners	Gradual progress, cost tailwinds
Go-to-market focus (fleet/govt)	USPS right-hand drive pilots; DIU Phase 3; avoidance of consumer market initially	Refunding consumer deposits; concentrate on fleet/government; USPS and other pilots continue	Tighter focus on fleet/government
International expansion	KSA pilot and order (Jazeera Paints); UK debuts and outreach	UK legal entity/activation center at Bicester; IVA achieved with <2% BoM change; UK pilot underway	Execution momentum in RHD markets
Tariffs/China exposure	Early pivot away from China-based components; policy tailwinds discussed	FTZ offers tariff mitigation; continued de-risking of supply chain geographies	Policy insulation strengthening

Management Commentary

Strategic focus and cost actions: “Flatten the organization and take aggressive actions to be more cost disciplined… consolidate our operations…” — Tony Aquila .
Liquidity strategy: “We’re focused on raising capital that is non-dilutive where we can… ATM efficiently… revolving line of credit… PO financing…” — Tony Aquila .
Manufacturing outlook: “By the Q4 of 2025, we should be at 3 jobs per day and moving up to multiple jobs per hour in 2026… access to an entire paint shop…” — Tony Aquila .
Market focus: “We have made the difficult decision to refund customer deposits for consumer vehicles… focus on… fleet order books.” — Tony Aquila .
Margin drivers: “Highest revenue quarter at $891,000… includes higher margin engineering service revenues…” — Kunal Bhalla (CFO) .

Q&A Highlights

Capital roadmap: Management pursuing a mix of non-dilutive sources (government programs, supplier share pool), working capital line (12-month), ATM usage as needed, and PO financing tied to sold units .
Production cadence: Acknowledged delays; near-term slow/manual builds; detailed 2025–2026 cadence contingent on capital and supply chain; paint shop access could accelerate throughput .
Government support: First “letter of encouragement” from U.S. government programs; timing of commitment uncertain .
Right-hand-drive and USPS: Confirmed RHD builds and extensive delivery miles in USPS workflows; maintains confidentiality around pilots/customers .
Guidance color: Q4 cash outflow guided to $30–$40M, Adjusted EBITDA $(30)–$(35)M; reiteration that full GAAP reconciliation not feasible due to variable reconciling items .

Estimates Context

S&P Global consensus for GOEV was unavailable (mapping not found), so we cannot quantify beats/misses for Q3 revenue or EPS. Management’s Q4 non-GAAP guidance implies sequential improvement in Adjusted EBITDA and further reduction in cash outflows if achieved .
Given the lack of published consensus, sell-side models may need to reflect: (i) sequential gross margin improvement driven by services mix, (ii) lower quarterly cash burn from consolidation, (iii) continued capital-dependence for production ramp .

Key Takeaways for Investors

Operating progress with improving sequential non-GAAP losses and cash burn, but the investment case remains binary around capital access and execution of the manufacturing ramp .
GAAP profitability was non-cash and not reflective of core operations (large warrant/derivative fair value gains); underwriting should focus on Adjusted EBITDA, cash burn, and order conversion .
Structural cost tailwinds (facility consolidation savings $12–$14M/yr; FTZ ~5% BoM reduction on imported parts) support unit economics as volumes scale .
Strategic focus on government and large-fleet customers (USPS, UK fleets, KSA) de-risks demand but requires bespoke validation cycles; timing of formal order disclosures remains customer-controlled .
Near-term catalysts: confirmation of government-backed financing, PO financing/major customer allocation schedules, USPS RFP outcomes, and UK pilot conversion to orders .
Risk monitor: liquidity runway (Q3 end cash/restricted cash $16.1M), pace of non-dilutive fundings, supply chain harmonization and paint shop commissioning, and maintenance of Nasdaq compliance .
Trading frame: stock likely to be most sensitive to funding milestones and credible production ramp evidence; guidance delivery on Q4 Adj. EBITDA and cash outflow could be incremental positives .

Appendix: Additional Business Updates (Q3 timeframe)

FTZ final activation in Oklahoma City; management cites ~5% immediate BoM reduction benefit on imported parts .
UK activation center at Bicester Motion; established Canoo Technologies UK Ltd; focused on right-hand-drive commercial vehicles and pilots in cold/wet season .
Workforce realignment and relocations; 45 relocations achieved; furloughs amid consolidation .

Canoo Inc. (GOEV)·Q3 2024 Earnings Summary