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Guerrilla RF, Inc. (GUER)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $4.40M, down 14% year over year due to a $1.5M non-recurring wireless infrastructure design win in Q1 2024; gross margin fell to 61.1% and contribution margin to 73.0% as mix shifted, while operating loss widened to $3.2M driven by lower gross profit and one-time consulting ($0.4M) and severance ($0.4M) costs .
  • Automotive revenue rose 72% year over year, partially offsetting infrastructure weakness; backlog stood at $6.7M, and management emphasized demand stability and focus on expense control to drive profitability .
  • Sequential revenue was roughly flat vs Q4 2024 ($4.39M), but margins compressed from Q3 2024 levels (65.3% then vs 61.1% now) as product mix shifted .
  • No formal quantitative guidance was provided; management expects cost actions to meaningfully improve cash and margin profile, a potential catalyst if sustained while automotive momentum continues .

What Went Well and What Went Wrong

What Went Well

  • Automotive revenue increased 72% year over year, and catalog markets (military, aerospace, navigation) saw modest gains, partially offsetting the infrastructure lapse .
  • Backlog remained healthy at $6.7M and product velocity was strong (8 new products released; total products now 171), supporting future revenue visibility .
  • Management tone highlighted stable demand into the remainder of the year and a disciplined focus on expense management and profitability: “we are not experiencing a material decrease in demand as we look to the remainder of the year… [we] continue to focus on growing revenue and managing expenses as we seek to implement our plan to reach profitability” .

What Went Wrong

  • Revenue declined 14% year over year, driven by the absence of a $1.5M wireless infrastructure design win that bolstered Q1 2024, highlighting exposure to large one-off deals .
  • Gross margin compressed to 61.1% from 63.3% year over year and contribution margin to 73.0% from 74.3%, reflecting adverse mix shift; overhead as a % of sales increased to 12% (vs 11% YoY) on lower revenue .
  • Operating loss widened to $3.2M (vs $1.8M YoY), including $0.4M consulting and $0.4M severance tied to efficiency efforts; these are one-time but affected quarterly profitability .

Financial Results

Summary Financials (Quarterly)

MetricQ1 2024Q3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$5.10 $4.52 $4.39 $4.40
Diluted EPS ($USD)N/A$(0.71) $0.154*$(0.344)*
Gross Profit Margin %63.3% 65.3% 60.4%*61.1%
Contribution Margin %74.3% 77.2% N/A73.0%
Operating Income ($USD Millions)N/A$(2.61) $(3.12) $(3.16)

Values marked with an asterisk (*) retrieved from S&P Global.

Segment/End-Market Context (Q1 2025 vs Q1 2024)

SegmentQ1 2024Q1 2025YoY Change
AutomotiveN/AN/A+72%
Wireless InfrastructureN/AN/A$(1.5)M vs Q1 2024 (non-recurring design win)
Catalog (Military/Aerospace/Navigation)N/AN/AModest gains

KPIs (Non-GAAP)

KPIQ1 2024Q1 2025
Number of products released2 8
Total products133 171
Products with lifetime revenue >$100K67 76
Product backlog ($USD Millions)$8.30 $6.70

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY25None providedNone providedMaintained (no formal guidance)
Gross MarginFY25None providedNone providedMaintained (no formal guidance)
OpExFY25None providedCost reduction measures executed; one-time severance and consulting Efficiency-focused; not quantified
EBITDA/Operating ProfitFY25None providedNone providedMaintained (no formal guidance)
Tax Rate/DividendsFY25None providedNone providedMaintained (no formal guidance)

Earnings Call Themes & Trends

Note: A Q1 2025 earnings call transcript was not available in our document set; themes below reflect press releases across the last two quarters and Q1 commentary.

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Automotive demandQ3: automotive soft; 24.6% of revenue . Q4: automotive sales down 42% YoY .Automotive revenue +72% YoY .Improving
Wireless infrastructureQ3: +277% YoY; 28.8% mix . Q4: +10% YoY .Lapped $1.5M Q1’24 design win → YoY decline .Mixed/normalizing
MarginsQ3: gross margin 65.3% (up 956bps) . Q4: quarter gross margin ~60.4%*; FY24 GM 63.7% .Gross margin 61.1%; contribution margin 73.0% .Compressed vs Q3 peak
Backlog/visibilityQ3 backlog $5.4M . Q4 backlog $5.4M; increased to $6.8M by Mar 14, 2025 .Backlog $6.7M .Improving
Financing/capitalQ3: closed $22M private placement; reduced primary loan to $4.5M . Q4: cash $7.97M; net income boosted by warrant liability fair value .Cost reductions; one-time severance/consulting aimed at margin and cash improvement .Strengthening cost discipline
R&D/product pipelineQ3: 9 new products; total 23 YTD . Q4: R&D expenses decreased YoY .8 products released; total products 171 .Continued execution

Values marked with an asterisk (*) retrieved from S&P Global.

Management Commentary

  • “While economic uncertainty during the first quarter has impacted our first quarter results, we are not experiencing a material decrease in demand as we look to the remainder of the year” — Ryan Pratt, Founder & CEO .
  • “We continue to focus on growing revenue and managing expenses as we seek to implement our plan to reach profitability” — Ryan Pratt .
  • Company executed significant cost reduction measures (including one-time severance), expected to meaningfully improve cash position and margin profile going forward .

Q&A Highlights

  • A Q1 2025 earnings call transcript was not found in our document set; no Q&A highlights or clarifications are available at this time [Search: none found].

Estimates Context

  • S&P Global consensus estimates for Q1 2025 were not available for EPS, revenue, or EBITDA; actuals in S&P Global reflect reported results: Revenue $4.37M*, EBITDA $(2.86)M*; no consensus or number of estimates recorded for these metrics [GetEstimates].
  • As a result, formal beat/miss assessment vs Wall Street consensus cannot be made for Q1 2025. Values retrieved from S&P Global.
MetricPeriodConsensusActualBeat/Miss
Revenue ($USD)Q1 2025N/A*$4.37M*N/A
EPS ($USD)Q1 2025N/A*$(0.344)*N/A
EBITDA ($USD)Q1 2025N/A*$(2.86)M*N/A

Values marked with an asterisk (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Mix dynamics drove YoY revenue decline despite strong automotive recovery; the Q1 lapse was attributable to a large non-recurring infrastructure deal in Q1 2024, not broad-based demand erosion .
  • Margin compression reflects mix shift; cost actions and improving backlog suggest potential stabilization if automotive strength persists and infrastructure normalizes .
  • One-time severance and consulting costs indicate near-term pain for potential medium-term margin and cash improvements; monitor OpEx trajectory and non-GAAP margin recovery .
  • Backlog and product velocity (8 products released; total products 171) underpin forward visibility; track conversion and new design wins amid diversified end markets .
  • With no formal guidance and limited external estimate coverage, near-term stock reaction may hinge on narrative around cost reductions, automotive momentum, and infrastructure pipeline rather than headline beats/misses .
  • Sequential revenue stability vs Q4 2024 suggests baseline demand; monitor Q2/Q3 margins vs Q3 2024 peak to assess mix and pricing power .
  • Capital structure and cash metrics improved in late 2024; continued discipline and avoidance of one-off volatility (warrant accounting, debt extinguishment) will be key for investor confidence .