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MOBIX LABS, INC (MOBX)·Q1 2025 Earnings Summary

Executive Summary

  • Revenue of $3.17M exceeded prior guidance and marked a 7.3% sequential increase and ~11x YoY growth, while adjusted gross margin was 54.1% and adjusted loss from operations improved 28.9% QoQ to $2.5M .
  • Management withheld Q2 2025 revenue guidance due to variability from acquisitions and sales cycles, but reaffirmed long-term targets of 60% gross margin and 30% adjusted operating margin .
  • Strategic M&A remained central: agreed to acquire Spacecraft Components Corp. and SCP Manufacturing to strengthen aerospace/defense exposure and enhance efficiency and margins; RaGE Systems won a DoD Phase 1 SBIR grant .
  • Likely stock reaction catalysts: guidance beat/actual revenue above Q4 guide, continued margin discipline, and pending M&A closings versus near-term uncertainty from withholding Q2 revenue guidance .

What Went Well and What Went Wrong

What Went Well

  • Exceeded guidance with revenue of $3.17M, fifth consecutive quarter of growth; adjusted loss from operations improved 28.9% QoQ to $2.5M and adjusted gross margin held at 54.1% .
  • Strategic expansion via agreed acquisitions (Spacecraft Components Corp. and SCP Manufacturing) expected to strengthen aerospace/defense position and improve margins and profitability .
  • DoD-backed innovation: RaGE Systems awarded Phase 1 SBIR grant; growing bookings for filtered ARINC connectors and deployments in Apache and Chinook helicopters signal product traction in defense/aerospace .
    • CEO: “In fiscal Q1 2025, we delivered revenue of $3.17 million, exceeding our prior guidance and marking our fifth consecutive quarter of growth.”

What Went Wrong

  • GAAP losses remain sizable: Q1 2025 GAAP net loss of $(19.839)M and GAAP EPS of $(0.52); GAAP loss from operations $(14.630)M despite non-GAAP improvement .
  • Q2 2025 revenue guidance withheld due to acquisition and sales cycle variability, increasing near-term uncertainty for investors .
  • Balance sheet strained: cash rose but remains modest at $0.405M; total liabilities $40.31M exceeded total assets $37.27M, with stockholders’ equity in deficit at $(3.039)M .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$2.058 $2.954 $3.169
GAAP Gross Margin %35.5% 56.6% 53.2%
Adjusted Gross Margin %40.3% 56.6% 54.1%
Adjusted Loss from Operations ($USD Millions)$(4.142) $(3.639) $(2.588)
GAAP EPS (Basic) ($USD)$(0.25) $(0.34) $(0.52)

Notes:

  • Management stated sequential revenue growth of 7.3% in Q1 2025 and ~11x YoY growth vs same quarter last year .
  • Prior-year quarter net revenue was $0.285M (for three months ended Dec 31, 2023), underscoring the YoY step-up .

Segment breakdown: No segmented revenue disclosure provided in the quarter’s materials (company discussed EMI Interconnect Solutions, RaGE/Wireless Systems, and imaging qualitatively without numeric splits) .

KPIs and Balance Sheet Snapshot

KPIQ3 2024Q4 2024Q1 2025
Cash and Equivalents ($USD Millions)$0.205 $0.266 $0.405
Accounts Receivable ($USD Millions)$1.478 $2.813 $1.876
Inventory ($USD Millions)$1.906 $1.725 $1.242
Total Assets ($USD Millions)$41.277 $39.088 $37.271
Total Liabilities ($USD Millions)$32.741 $33.558 $40.310
Stockholders’ Equity ($USD Millions)$8.536 $5.530 $(3.039)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance / ActualChange
RevenueQ1 2025$3.05–$3.15M (guided on Q4 call) $3.17M actual Exceeded
RevenueQ2 2025None providedWithheld due to variability Withdrawn/Withheld
Adjusted Gross Margin (LT target)Long-term60% 60% (reaffirmed) Maintained
Adjusted Operating Margin (LT target)Long-term30% 30% (reaffirmed) Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q1 2025)Trend
AI/technology initiativesFocus on imaging/security, MSID programs, UMass Lowell SATCOM SoC feasibility; exploring new product introductions in 2025–2026 AI-driven, power-efficient radio architectures partnership (TalkingHeads Wireless); continued UMass Lowell collaboration; RaGE awarded DoD Phase 1 SBIR Advancing; external validation via SBIR
Defense/aerospace demandIncreased bookings for filtered ARINC connectors; new customers; visibility ~2 quarters; geopolitical strife driving EMI demand Apache/Chinook deployments; ARINC connector bookings; strengthening relationships with defense/aerospace customers Strengthening; product deployments
Product performanceRaGE Systems first full quarter strong revenue/margins; EMI filtered connectors launched and booking growth Stable adjusted gross margin; continued bookings and integration progress; 5th consecutive revenue growth quarter Consistent growth trajectory
M&A strategyLOI to acquire Spacecraft Components; expected to be accretive and add ~150 employees Agreed to acquire Spacecraft Components Corp. and SCP Manufacturing; expected margin/efficiency benefits Accelerating pipeline and scope
Macro/geopoliticalDefense demand linked to geopolitical strife Continued defense sector traction and bookings Supportive backdrop
Guidance postureQ4 guided Q1 revenue to $3.05–$3.15M Withheld Q2 revenue guidance; reaffirmed LT margin targets Near-term uncertainty, LT targets intact

Management Commentary

  • CEO (Fabian Battaglia): “In fiscal Q1 2025, we delivered revenue of $3.17 million, exceeding our prior guidance and marking our fifth consecutive quarter of growth.”
  • CEO on M&A: Agreed to acquire Spacecraft Components Corp. and SCP Manufacturing to strengthen aerospace/defense position and improve efficiency/margins .
  • CFO (Keyvan Samini): “Adjusted loss from operations improved by an impressive 28.9%, narrowing to $2.5 million from $3.6 million in Q4… We believe it is in the best interest of our stakeholders to withhold revenue guidance at this time. However, long-term financial objectives remain firmly in place… gross margin of 60% and an adjusted operating margin of 30%.”

Q&A Highlights

  • No Q&A occurred on the Q1 2025 call; operator noted no questions in the queue .
  • For context (prior quarter): investors asked about EMI bookings visibility (~2 quarters) and synergies from Spacecraft Components acquisition; management emphasized geopolitical-driven demand and integration synergies .

Estimates Context

  • S&P Global consensus (EPS and revenue) for Q1 2025 was unavailable to us at this time due to data limits; therefore, comparisons vs Wall Street consensus cannot be provided. We note that the company exceeded its own Q4 guidance range with $3.17M reported revenue .
  • Where estimates may need to adjust: continued bookings/defense deployments and planned acquisitions suggest potential revenue scale, while withholding Q2 guidance introduces near-term variability that could temper consensus trajectory .

Key Takeaways for Investors

  • Revenue momentum is intact: Q1 2025 at $3.17M exceeded guidance and marked the fifth straight sequential growth quarter; adjusted op loss improved materially QoQ to $2.5M .
  • Margin discipline continues: adjusted gross margin held at 54.1% after a strong 56.6% in Q4; favorable mix and pricing underpin resilience .
  • Near-term visibility is limited: Q2 2025 revenue guidance was withheld given acquisition/sales cycle variability; traders should expect volatility around deal timing and integration updates .
  • Strategic M&A and defense traction are the medium-term thesis pillars: pending Spacecraft Components/SCP Manufacturing deals plus ARINC connector bookings and helicopter deployments reinforce aerospace/defense exposure .
  • Innovation pipeline: DoD SBIR grant and AI-driven radio architectures partnership provide external validation and potential future growth vectors .
  • Balance sheet watch: cash rose to $0.405M but equity moved to deficit and liabilities exceed assets; financing actions remain a critical monitor for execution capacity .
  • Actionable: Position for catalysts tied to M&A closings and program wins, but manage risk around lack of near-term guidance and financing needs; use pullbacks to build if defense bookings and integration milestones stay on track .