Executive Summary

Q2 2025 revenue was $5.4M, down 12% YoY due to a non-recurring $1.7M wireless infrastructure design win in Q2 2024; automotive grew 39.5% to $2.7M and catalog rose 6% to $2.3M, partially offsetting the decline .
Contribution margin improved 100 bps to 75.4% on mix, pricing actions (~60 bps) and low-cost NRE recognition (~40 bps); gross margin was 64.9%, down 40 bps YoY on lower revenue leverage .
Operating expenses fell 7% YoY to $4.8M on headcount and discretionary cuts; operating loss was $1.4M vs $1.2M in Q2 2024, reflecting lower revenue .
Liquidity: cash ended the quarter at $4.8M; backlog increased vs last year to $6.6M at June 30, 2025 (non-GAAP) .
No formal numerical guidance provided; management is constructive on H2 driven by backlog and demand resilience in automotive and catalog, while monitoring rates and tariff uncertainty .

What Went Well and What Went Wrong

What Went Well

Automotive strength: revenue up 39.5% YoY to $2.7M; catalog up 6% YoY to $2.3M, demonstrating demand resilience despite macro headwinds .
Cost discipline: operating expenses declined 7% YoY to $4.8M through headcount actions and tighter equipment/discretionary spending; “We have been executing targeted reductions across the organization…” — CFO Mike John‑Williams .
Contribution margin expansion: +100 bps to 75.4% on favorable mix and pricing actions; management highlighted recent pricing contributing ~60 bps and NRE ~40 bps .

What Went Wrong

Top-line decline: revenue fell 12% YoY due to a prior-year one-time $1.7M wireless infrastructure design win that did not recur in 2025 .
Operating loss widened vs prior year: $1.4M loss vs $1.2M in Q2 2024 primarily from lower revenue; overhead ratio increased to 10.5% of sales (from 9.1%) on reduced top line .
Gross margin compression: 64.9% (–40 bps YoY) reflecting lower revenue leverage despite mix/pricing tailwinds .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$4.39	$4.40	$5.40
Gross Margin %	N/A	61.1%	64.9%
Contribution Margin %	N/A	73.0%	75.4%
Operating Expenses ($USD Millions)	$5.77	N/A	$4.80
Operating Income (Loss) ($USD Millions)	$(3.12)	$(3.20)	$(1.40)
Cash and Equivalents ($USD Millions)	$7.97	N/A	$4.80
Backlog ($USD Millions, non‑GAAP)	$5.40	$6.70	$6.60

Notes:

Q2 2025 YoY reference points: revenue $6.1M in Q2 2024; gross margin down 40 bps; contribution margin up 100 bps; overhead ratio up to 10.5% from 9.1% .

Segment breakdown (Q2 2025):

Segment	Q2 2025 Revenue ($USD Millions)	YoY Change	Commentary
Automotive	$2.70	+39.5%	OEM demand resilience; mix tailwinds
Catalog	$2.30	+6.0%	Strength in military/aerospace/navigation
Wireless Infrastructure	N/A	Negative YoY (lap of $1.7M one‑time win in Q2 2024)	Non-recurring prior-year design win did not repeat

KPIs (non‑GAAP; definitions per releases):

KPI	Q4 2024	Q1 2025	Q2 2025
Number of products released	32 (FY24)	8 (quarter)	18 (six months)
Total products	163 (FY24)	171 (as of 3/31/25)	181 (as of 6/30/25)
Products with lifetime revenue >$100k	73 (FY24)	76 (as of 3/31/25)	78 (as of 6/30/25)
Product backlog ($M)	$5.44 (FY24)	$6.70 (quarter)	$6.60 (six months)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025 / H2 2025	None provided	No quantitative guidance; management “remains optimistic” on H2 given backlog and outlook	Maintained: no formal guidance
Gross Margin %	FY 2025	None provided	No quantitative guidance; margin drivers cited: mix, pricing, NRE	Maintained: no formal guidance
Operating Expenses	FY 2025	None provided	Ongoing cost reductions; –7% YoY in Q2	Maintained: qualitative reduction trajectory
Other (OI&E, tax rate, dividends)	FY 2025	None provided	Not addressed in releases	N/A

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was published/found; themes below reflect press release content and prior quarter releases.

Topic	Previous Mentions (Q4 2024)	Prior Quarter (Q1 2025)	Current Period (Q2 2025)	Trend
Macro: interest rates & tariffs	Supply chain price increases mitigated via customer pricing	Economic uncertainty impacted Q1; focus on reaching profitability	“Continued macroeconomic headwinds, including elevated interest rates and tariff uncertainty”	Headwinds acknowledged; improving internal controls
Cost discipline	Expense management cited; FY24 OpEx flat YoY despite +33% revenue	“Significant cost reduction measures,” severance and consulting costs in Q1	OpEx down 7% YoY; headcount and discretionary cuts	Improving efficiency, lower cash expense base
Product mix & margins	Contribution margin 74.8% in FY24 on pricing	Contribution margin 73.0%; gross margin 61.1%	Contribution margin 75.4%; gross margin 64.9%; pricing +60 bps, NRE +40 bps	Positive mix/pricing tailwinds
Segment demand	Q4: Catalog +62%; Infrastructure +10%; Automotive –42% (quarter)	Automotive +72%; catalog modest gains	Automotive +39.5% to $2.7M; catalog +6% to $2.3M	Auto/catalog resilient, infra lapping one-time
Backlog trajectory	$5.4M at YE; rose to $6.8M by Mar 14, 2025	$6.7M backlog at Q1	$6.6M backlog at Q2 (six months)	Elevated backlog supports H2 outlook

Management Commentary

“We are pleased with the resiliency of our automotive and catalog markets… Our strong product backlog and encouraging business outlook for the second half of the year causes us to remain optimistic about the rest of 2025.” — Founder & CEO Ryan Pratt .
“We have been executing targeted reductions across the organization… beginning to see the reductions on payroll and operating expenses as we continue towards resetting our spending baseline. In this uncertain environment we are focusing on what we can control.” — CFO Mike John‑Williams .
Q1 tone: “We continue to focus on growing revenue and managing expenses as we seek to implement our plan to reach profitability.” — CEO Ryan Pratt .

Q&A Highlights

No Q2 2025 earnings call transcript was available; Q&A highlights and any clarifications cannot be assessed from primary sources [SearchDocuments returned none; ListDocuments had no transcripts].

Estimates Context

Metric	Period	Consensus (S&P Global)	Actual	Beat/Miss
Revenue ($USD Millions)	Q2 2025	Unavailable*	$5.369*	N/A*
Primary EPS ($USD)	Q2 2025	Unavailable*	Unavailable from releases	N/A*

Values retrieved from S&P Global.*
S&P Global data returned actual revenue but no consensus mean or EPS for GUER in Q2 2025; company releases did not disclose EPS [GetEstimates Q2 2025].

Key Takeaways for Investors

Mix/pricing benefits supported margins despite lower revenue; contribution margin expansion (+100 bps) and disciplined OpEx (–7% YoY) are positive quality-of-earnings signals .
The YoY decline is tied to a non-recurring infra design win; core demand in automotive and catalog remains resilient, which should aid H2 trajectory if macro stabilizes .
Backlog at $6.6M (non‑GAAP) provides near-term visibility; monitor conversion pace and potential cancellations given macro uncertainty (management historically reports low cancellations) .
Liquidity at $4.8M warrants close tracking of cash burn versus cost-reduction progress and margin trajectory into H2 .
With no formal guidance or consensus, traders should focus on intra-quarter order flow, backlog updates, and any new design wins in infrastructure to gauge top-line reacceleration .
Watch operating leverage: Q2 overhead was 10.5% of revenue (vs 9.1% YoY); further top-line recovery could alleviate margin compression .
Catalysts: confirmation of H2 demand, additional pricing actions, and new product ramps; risks: rates/tariffs, infra demand variability, and working capital needs .

Citations:
Q2 2025 press release and 8-K (ITEM 2.02, Exhibit 99.1) ; liquidity/KPIs .
Q1 2025 press release and 8-K .
Q4 2024 press release and 8-K, financial tables .
Earnings call transcript: not found [SearchDocuments, ListDocuments].
Estimates: S&P Global GetEstimates (Q2 2025) — revenue actual only, no consensus/EPS*.

Guerrilla RF, Inc. (GUER)·Q2 2025 Earnings Summary