IDEANOMICS, INC. (IDEX)·Q3 2022 Earnings Summary

Executive Summary

• Q3 2022 revenue was $24.3M, down 29% sequentially vs Q2 ($34.2M) and down 9% year over year; EPS was $(0.08), with gross margin at (2.7%) as fixed costs and mix weighed on profitability .
• EV-related products and services revenue rose to $16.2M (+55% YoY), with US/EU EV revenue at $8.8M (4x YoY), reflecting growth at Energica, Solectrac, WAVE, and US Hybrid despite macro and supply chain headwinds .
• Management reiterated a path to US Hybrid profitability by end-2023 and is pursuing capital from diverse sources (debt, ESG/private equity, selective equity) to support growth; VIA acquisition remains a strategic priority in progress .
• No formal quantitative guidance was issued; focus remains on cost discipline, financing, and execution. Potential catalysts include capital announcements, VIA closing progress, municipal/fleet orders at Energica/Solectrac, and WAVE commercial deployments .

What Went Well and What Went Wrong

What Went Well

• EV revenue expansion: “In Q3, we generated $16.2M in EV, charging and battery products and services, an increase of more than 50% YoY... $8.8M came from the US and Europe, 4x higher YoY” .
• Operational wins: Energica delivered 88 motorcycles for the Indonesian National Police for the G20 Summit; WAVE tested a 500kW wireless charger at the Port of Los Angeles; US Hybrid propulsion kits for 62 zero-emission street sweepers .
• Execution and capacity: Solectrac expanded manufacturing (Nolan JV and Windsor facility) enabling up to 120 tractors/month single shift; dealer expansion driving immediate orders .

What Went Wrong

• Profitability pressure: Gross profit of $(0.7)M and margin (2.7%) in Q3, down from $3.95M in Q3 2021; management cited fixed-cost burden and mix as drivers .
• Liquidity and going concern: Cash fell to $25.2M at quarter-end; Q3 10‑Q disclosed substantial doubt about going concern absent additional financing .
• Non-core/legacy drag: Declines at Timios and China EV resale offset EV growth; restructuring of PRC operations initiated (charges taken) .

Financial Results

Segment/disaggregation by product/service (YoY comparison):

Geographic revenue (YoY comparison):

KPIs and Operating Metrics:

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We make electrification fast, simple and more affordable for the commercial EV fleet operator… combining EVs, charging and financing under one roof.” — CEO Alf Poor .
• “Revenue for the quarter was $24.3M, 9% lower than the same time last year… primarily due to Timios and China-based EV resale declines, offset by growth in US/EU EV businesses.” — CFO Stephen Johnston .
• “In Q3, we generated $16.2M in EV, charging and battery products and services, +50% YoY; $8.8M from US/EU, 4x YoY.” — CFO Stephen Johnston .
• “US Hybrid is a prime example. We expect that business to be profitable in 2023.” — CEO Alf Poor .
• “Energica provided 88 motorcycles for the upcoming G20 Summit in Bali… WAVE successfully tested its 500kW wireless charger at the Port of Los Angeles.” — Press release .

Q&A Highlights

• Capital strategy: Management is pursuing debt and ESG/private equity structures that may be cheaper than mezzanine, with selective equity use; expects to conclude significant transactions before year-end .
• VIA acquisition and product timeline: Deal progress ongoing; skateboard architecture validated with “alpha” vehicles to customer hands by end Q1 2023; market entry targeted by end Q1 2024 .
• Reverse split: Not under consideration; management expects sector to recover and seeks to preserve liquidity, aiming for NASDAQ compliance via market normalization .
• WAVE funding approach: Shift from technology development grants to customer-applied federal funding for commercial deployments under IRA .

Estimates Context

• Wall Street consensus (S&P Global) for Q3 2022 EPS and revenue was unavailable via our feed due to missing CIQ mapping. As a result, comparisons vs estimates cannot be provided at this time. Values would normally be retrieved from S&P Global.

Key Takeaways for Investors

• EV core scaling while legacy drags: Strong EV product/services growth (+55% YoY) and US/EU momentum offset declines at Timios and China resale; watch mix shift and capacity utilization to improve margins .
• Near-term funding is pivotal: With cash at $25.2M and going-concern disclosures, timely execution of non-dilutive/debt/ESG financing is a key stock driver; announcements could catalyze shares .
• Operational validation: Energica fleet deliveries, Solectrac capacity ramp, US Hybrid municipal deployments, and WAVE milestones support commercial traction; monitor follow-on fleet orders and deployments .
• VIA integration optionality: VIA’s skateboard platform timelines (alpha by Q1 2023; market entry by Q1 2024) and eventual closing could be a medium-term thesis lever; look for closing updates and customer pilots .
• Margin inflection requires cost/mix: Negative Q3 gross margin reflects fixed cost/mix; ongoing cost measures and higher-margin manufactured product revenue are priorities for margin recovery .
• Policy tailwinds: IRA-related funding and regulatory-driven electrification (warehouse emissions compliance) position WAVE/Energy offerings well; customer-led grants may accelerate deployments .
• Risk management: Going-concern, financing execution, supply chain, and litigation/SEC investigation disclosures warrant caution; position sizing should reflect funding and execution risk .

Additional Document Notes

• We read the full Q3 2022 Form 8-K (including Exhibit 99.1 press release and Exhibit 99.2 transcript) and Q3 2022 and Q2 2022 Forms 10‑Q for cross-references. No standalone additional press releases within Q3 2022 were found beyond the 8‑K attachment .
• Prior two quarters: Q2 2022 10‑Q was read and used for sequential comparisons; Q1 2022 earnings materials were not found in our document index, so we used Q3 2021 comparatives from Q3 2022 filings for YoY trends .