Executive Summary

Q3 2023 was marked by severe revenue compression and negative gross margin on a reported basis, with management emphasizing “continuing operations excluding a change in accounting estimate” to provide comparability; adjusted revenue was $3.5M (down 57% YoY), adjusted gross profit was -$0.5M and adjusted gross margin was -14.8% .
Reported GAAP showed total revenue of $0.665M, gross loss of $1.453M, and total diluted loss per share of $5.39; continuing-ops diluted loss per share was $5.19 .
Management is prioritizing divestitures and refocusing on last‑mile/local delivery fleets and charging solutions, citing capital constraints and sector turbulence; WAVE achieved an OEM‑approved wireless charging installation on a Kenworth medium‑duty BEV and Energica secured police fleet wins in France and Barbados .
No formal numeric guidance was issued; management highlighted ongoing cost reductions (Q3 opex ex impairments and contingent liability of $16.9M, down ~46% sequentially) and forthcoming shareholder proposals to enable financing flexibility; they also noted the small post‑reverse‑split float as a potential catalyst if execution improves .
Consensus estimates from S&P Global were unavailable, so beat/miss versus Street cannot be assessed; results and narrative likely drive trading around divestiture announcements and proof points in fleet deployments .

What Went Well and What Went Wrong

What Went Well
- WAVE achieved an OEM‑approved installation of wireless charging on a Kenworth truck, underpinned by Ideanomics’ energy cloud platform, advancing commercial validation with a large logistics fleet customer .
- Energica expanded public‑sector credibility, selected by police services in France and Barbados for electric motorcycles, supporting brand and pipeline development .
- Operating discipline: Q3 operating expenses (continuing ops, excluding impairments and contingent liabilities) fell to $16.9M, a ~46% reduction from Q2, reflecting cost actions to preserve liquidity amid capital scarcity .
What Went Wrong
- Material revenue decline: adjusted continuing‑ops revenue fell to $3.5M (‑57% YoY), with management attributing reduced sales conversion to limited capital availability and an accounting reserve update at Solectrac’s dealer program .
- Negative margins: adjusted gross margin was ‑14.8% and reported GAAP gross loss was $1.453M on $0.665M revenue, underscoring poor absorption and mix .
- Large net loss per share and equity erosion: diluted loss per share was $5.39 (total) and $5.19 (continuing ops) in Q3, with total stockholders’ equity declining to $16.431M by Sept 30, 2023 .

Financial Results

Reported GAAP and company‑defined adjusted figures are shown separately to reflect the change in accounting estimate and continuing‑ops focus.

Reported (GAAP) financials

Metric	Q3 2022	Q1 2023	Q2 2023	Q3 2023
Total Revenue ($USD Millions)	$8.221	$10.562	$8.200 (continuing ops)	$0.665
Gross Profit ($USD Millions)	-$0.657	-$0.569	$0.700 (continuing ops)	-$1.453
Gross Margin %	N/A	-5.4%	8.4% (continuing ops)	N/A
Diluted EPS – Total ($USD)	-$9.47	-$0.12	N/A	-$5.39
Diluted EPS – Continuing Ops ($USD)	-$8.07	N/A	N/A	-$5.19
Net Loss Attributable to Common ($USD Millions)	-$37.414	-$84.317	N/A	-$63.007

Adjusted (continuing operations, excluding change in accounting estimate)

Adjusted Metric	Q2 2023	Q3 2023
Revenue ($USD Millions)	$8.2	$3.5
Gross Profit ($USD Millions)	$0.7	-$0.5
Gross Margin %	8.4%	-14.8%
Operating Expenses (ex impairments & contingent liability, $USD Millions)	$31.4	$16.9

Balance sheet snapshot

Metric	Dec 31, 2022	Sep 30, 2023
Cash and Cash Equivalents ($USD Millions)	$3.245	$1.884
Total Assets ($USD Millions)	$242.801	$151.284
Total Liabilities ($USD Millions)	$96.238	$128.151
Total Stockholders’ Equity ($USD Millions)	$132.125	$16.431

KPI and segment notes (selected disclosures)

KPI/Segment	Q1 2023	Q2 2023	Q3 2023
EV revenue ($USD Millions)	$5.9	Not disclosed in docs reviewed	Not disclosed in docs reviewed
Highlights (non-financial)	VIA transaction finalized; consolidation of charging under WAVE	Pilot POCs with large logistics fleets; evaluating divestitures	WAVE OEM‑approved Kenworth install; Energica police fleets

Notes: In Q3, a change in accounting estimate at Solectrac debited sales $2.8M and credited cost of goods sold $1.9M to establish reserves for returns, impacting reported GAAP revenue/COGS and necessitating adjusted comparisons .

Guidance Changes

No formal numeric guidance provided. Management focused commentary on divestitures, cost reduction, shareholder proposals enabling financing flexibility, and 2024 execution.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4 2023	None	None	Maintained: no formal guidance
Gross Margin	FY/Q4 2023	None	None	Maintained: no formal guidance
Operating Expenses	Near-term	Not quantified previously	Commentary: opex ex impairments & contingent liability cut to $16.9M in Q3 (sequential reduction)	Reduction (execution update)
Financing/Capital	Near-term	N/A	Shareholder vote proposals for financing optionality; focus on demonstrating proof points pre equity	New governance items
Dividends/Tax/Segments	FY/Q4 2023	None	None	Maintained: no formal guidance

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2023)	Previous Mentions (Q2 2023)	Current Period (Q3 2023)	Trend
Capital constraints/financing	Pursuing debt, non‑dilutive options; cash $18.9M at Q1; sector funding tight	Divesting Timios; winding down China; exploring strategic investors; continuing capital scarcity	Capital scarcity constraining revenue conversion; push to complete divestitures; shareholder proposals for financing optionality	Persistent headwind; mitigation via divestitures and cost cuts
Last‑mile/local delivery focus	Strategic focus articulated; VIA platform target segment	Emphasis on VIA Motors and three customer paths (fleet, upfitter, OEM licensing)	Reiterated focus; Q&A underscores billion‑dollar opportunity vs dealer/distributor retail models	Sharpening focus and messaging
WAVE charging & digital platform	Charging consolidation under WAVE completed	POCs with three large logistics fleets; reduce reliance on gov‑funded projects	OEM‑approved Kenworth wireless charging install; telematics/energy cloud integration	From consolidation → pilots → OEM‑backed validation
Energica traction	APAC expansion (Japan, Australia, Pakistan)	Distribution growth; lap record at Laguna Seca; “Energica Inside” partnerships	Police fleet wins (France, Barbados); continued dealer expansion	Broadening channels, public sector visibility
Divestitures	Considering asset sales; engaged advisers for Energica/Solectrac	Process initiated; non‑dilutive capital options	“Strong push” to complete by year‑end; expect realized capital > market cap	Accelerating execution
Regulatory/governance	—	—	Upcoming shareholder vote with critical proposals; compensation reset tied to share price	New governance actions
Macro EV sector	Challenging industry conditions	Continued challenges	Sector turbulence; consolidation; some peers cease operations	Ongoing pressure

Management Commentary

Strategic refocus: “This is a strategic move to streamline our operations… focus on local and last mile delivery, as well as charging solutions.”
Capital and divestitures: “With the capital from these divestitures, we can begin addressing our remaining liabilities… invest into growing our business.”
Market conditions: “We’ve observed a great deal of turbulence… some companies ceasing operations and others consolidating.”
Accounting change detail: “This debited sales $2.8 million and credited cost of goods sold $1.9 million… reserve amounts will be assessed and adjusted.”
Cost actions and opex: “Operating expenses… excluding impairments and an adjustment to contingent liabilities were $16.9 million, a reduction of 46% from the $31.4 million spent in the second quarter.”
2024 outlook and governance: “2024 is the time to thrive… executive compensation reset… rewards share price growth.”
WAVE validation: “OEM approved installation of wireless charging onto a medium‑duty BEV for testing by a mutual customer… as far as we know, the first in the industry.”

Q&A Highlights

Small float dynamics post reverse split: Management highlighted potential share price sensitivity to improved earnings and proof points given a “much smaller float,” expecting buyers to “compete harder in price” for limited shares .
Strategic focus rationale: Local last‑mile delivery and charging offer “the really big opportunity” versus dealer/distributor retail models; intent to sell some assets to fund core focus and liabilities, then invest behind the fleet opportunity .

Estimates Context

S&P Global consensus was unavailable for IDEX in our dataset due to missing CIQ mapping, so we could not retrieve Q3 2023 EPS and revenue consensus for beat/miss analysis. Where estimates are needed, note that Wall Street consensus from S&P Global could not be obtained at this time .

Key Takeaways for Investors

Execution proof points matter: WAVE’s OEM‑approved Kenworth installation and large logistics fleet pilots are tangible validations; further deployments and announced contracts could be stock catalysts .
Watch divestiture proceeds: Management expects realized capital potentially exceeding current market cap; announcements and terms will be critical for liquidity runway and equity value .
Operating discipline is improving: Sequential opex reduction to $16.9M (ex impairments/contingent liability) supports the pivot to a leaner model amid constrained capital; monitor sustainability of cuts and margin trajectory .
Revenue trajectory is the swing factor: Adjusted continuing‑ops revenue fell sharply sequentially (Q2 $8.2M → Q3 $3.5M) due to capital constraints; restoring conversion from pipeline to shipments hinges on funding and asset sales .
Margin path needs repair: Adjusted gross margin of ‑14.8% in Q3 underscores poor absorption/mix; near‑term focus should be on higher‑margin product revenue and scaled fleet programs .
Governance and financing optionality: Upcoming shareholder vote and compensation alignment to share price indicate intent to pursue financing when proof points are visible; watch timing and dilution risk .
Narrative for medium‑term thesis: If divestitures fund core businesses and fleet wins scale, the last‑mile/charging focus plus WAVE’s differentiated wireless charging and digital platform could support a path to profitable growth as EV commercial adoption matures .

IDEANOMICS, INC. (IDEX)·Q3 2023 Earnings Summary