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MI

Movano Inc. (MOVE)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 results materially missed Wall Street: revenue of $0.21M vs $3.88M consensus (MISS) and EPS of -$7.27 vs -$7.00 consensus (MISS). The company also disclosed it would not timely file its 10-Q due to resource constraints, and the Board initiated a strategic alternatives process on May 16. Revenue softness reflects a modest D2C sales run-rate post late-2024 relaunch and limited B2B contribution, amid tight cash management . Revenue Consensus and EPS Consensus are from S&P Global estimates; actuals from S&P Global as well.*
  • Liquidity remained constrained: as of March 31, 2025, the company estimated ~$4.3M cash, ~$2.5M accounts payable, and ~$7.8M total assets, underscoring urgency around strategic alternatives and cost control .
  • Operational momentum continued on product/regulatory vectors: new EvieAI features, Apple Health integration, and ongoing cuffless blood pressure trials (70+ participants in Feb’25; larger arterial line study planned mid-2025) position the platform for future B2B opportunities, contingent on regulatory and commercial execution .
  • Key near-term stock catalysts: clarity on strategic alternatives; progress on FDA pathways for EvieMED and BP device; commercial traction with pilot partners mentioned in prior quarters (pharma, CRO, payer) once foundational issues (filing timeliness, liquidity) stabilize .

What Went Well and What Went Wrong

  • What Went Well
    • Product pipeline and AI: EvieAI beta launched (medical-journal trained assistant) and app upgrades (Apple Health integration, trend graphs, expanded workout tracking) strengthen the consumer experience and data narrative .
    • Cuffless blood pressure momentum: commenced Feb’25 clinical trial with improved proprietary RF hardware; prior April study achieved MAD of 4.9 mmHg vs 7 mmHg threshold, indicating continued sensor/algorithm improvement ahead of pivotal trials .
    • Strategic optionality: Board initiated a strategic alternatives process to maximize shareholder value (sale/merger), engaging Aquilo Partners and K&L Gates .
  • What Went Wrong
    • Financial underperformance/visibility: Q1 revenue and EPS missed consensus; company also indicated it would not timely file its 10-Q due to resource constraints, limiting transparency and likely pressuring investor confidence . Revenue Consensus and EPS Consensus are from S&P Global estimates; actuals from S&P Global as well.*
    • Limited scale in D2C: Q3’24 shipments were 339 units following the back-in-stock date, underscoring modest run-rate and the challenge of scaling without significant marketing spend and broader platform differentiation .
    • Liquidity constraints: Estimated period-end cash of ~$4.3M and payables of ~$2.5M highlight tight runway; this follows a late-2024 reverse split and earlier listing deficiency remediation—context that keeps capital structure top of mind .

Financial Results

Revenue, EPS, margins vs prior periods and estimates

Note: Asterisks indicate S&P Global values (actuals/estimates). All such values are retrieved from S&P Global.*

MetricQ1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q1 2025 Consensus
Revenue ($USD Millions)$0.85 $0.00 (deferred rev offset by refunds) $0.05 $0.11*$0.21*$3.88*
Net Income ($USD Millions)-$5.72 -$6.19 -$7.20 -$4.62*-$5.18*—
Diluted EPS ($)-$0.10 -$0.06 -$1.06 -$6.70*-$7.27*-$7.00*
EBITDA ($USD Millions)———-$4.65*-$5.20*—
Gross Margin (%)————-211.7%*—

Estimates vs Actuals – Q1 2025

MetricConsensus (S&P Global)Actual (S&P Global)Surprise
Revenue ($USD Millions)$3.88*$0.21*-$3.67 (MISS)
EPS ($)-$7.00*-$7.27*-$0.27 (MISS)

Balance sheet snapshot (as of 3/31/25, company estimate)

MetricQ1 2025
Cash & Cash Equivalents~$4.3M
Accounts Payable~$2.5M
Total Assets~$7.8M

KPIs

KPIQ1 2024Q2 2024Q3 2024Q4 2024Q1 2025
Evie Rings Shipped (Units)5,305 1,837 339 ——

Important comparability note: EPS figures across periods may be affected by the 1-for-15 reverse split effective Oct 29, 2024 (Q3 2024 PR shows post-split share count) .

Guidance Changes

No formal guidance was provided for revenue, margins, or OpEx. The company disclosed it does not plan to timely file its Q1 2025 10-Q citing resource constraints; management and the Board initiated a strategic alternatives process (sale/merger) .

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/Q1 2025NoneNoneMaintained (no guidance)
Gross MarginFY/Q1 2025NoneNoneMaintained (no guidance)
OpExFY/Q1 2025NoneNoneMaintained (no guidance)
Regulatory Milestones2025Expected 510(k) EvieMED under review in 2024/Q1 2025 context No explicit new timing; resource constraints and strategic process disclosed —

Earnings Call Themes & Trends

(Using prior two quarters’ calls for trend; no detailed Q1 2025 call materials were provided.)

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q1 2025)Trend
FDA – EvieMED 510(k)Meeting mid-August; confidence in data and process “Final stage” of review; responded to medical questions (Oct 28 package) No new detailed update; 10-Q delayed; strategic alternatives underway From proactive to delayed disclosure; outcome still pending
D2C – Evie RingPreparing relaunch; ops, app, customer service upgrades; Android app planned Back-in-stock; 339 units shipped; organic marketing focus; holiday plans Continued app enhancements (Apple Health, trends) ; demand signals unclearIncremental product progress; scaling remains challenged
B2B – Pilots/PartnersAgreement phase with pharma, payer; CRO interest Agreement phase with large healthcare company for Q1’25 pilot Strategic alternatives could influence timelines; no Q1 pilot update in filings Execution risk rising until business visibility improves
RF Cuffless BPJune’24 study; more studies planned; productizing form factor UCSF hypoxia study; 12 new mmWave antennas; clean signals; more trials Feb’25 study (70+ participants) using new hardware; larger arterial line study planned mid-2025 Positive technical momentum continues
AI/InsightsExpanding AI insights engine; auto activity detect AI-powered insights improving; Android parity EvieAI beta live; app personalization features expanded Consistent enhancement of AI-driven value prop
Regulatory/Legal/Listing—Reverse split; regained Nasdaq compliance; manipulation investigation Q1 10-Q will not be timely; strategic alternatives launched Governance/financing remain central

Management Commentary

  • “We are in the final stages of the FDA 510(k) review process for the EvieMed ring… we responded [the week of October 28]… we are standing by to answer any additional inquiries” – CEO John Mastrototaro (Q3’24 call) .
  • “We shipped 339 rings in the stub period of the third quarter… focus… has been on execution and notably on a fully organic basis without marketing dollars… We had $11.3 million in cash… at September 30, 2024” – CFO Jeremy Cogan (Q3’24 call) .
  • “The Board… initiated a process to explore strategic alternatives, including a sale, merger or similar transaction… [and] due to resource constraints, [the Company] does not plan to timely file its… 10-Q for the quarter ended March 31, 2025” – Form 8‑K (May 19, 2025) .
  • “Commenced a blood pressure clinical trial with its newly developed cuffless blood pressure wrist wearable… 70+ participants… a larger 100–150 person arterial line study planned mid-2025” – Press Release (Feb 4, 2025) .

Q&A Highlights

(From Q3 2024, the most recent available call)

  • Cuffless BP roadmap: Additional antennas reduced placement sensitivity; multiple trials planned; commercialization targeted “within the next couple of years or so” (execution contingent on accuracy and form factor progress) .
  • Android app parity and demand: Functionality to match iOS; management cites ~40% Android user base interest, expecting a demand bump .
  • Expense control and marketing: Continued discipline; incremental spend focused on ROI-positive initiatives around holidays and feature launches .
  • 510(k) process status: Labeling and medical device questions addressed; management “confident” in clinical data and testing results .

Estimates Context

  • Q1 2025 vs consensus (S&P Global): Revenue $0.21M vs $3.88M (MISS); EPS -$7.27 vs -$7.00 (MISS). Revenue Consensus and EPS Consensus are from S&P Global estimates; actuals from S&P Global as well.*
  • Implications: Consensus models likely need to reset near-term revenue run-rate lower and revisit Opex cadence/cash burn assumptions given delayed filing and strategic review. Longer-term, estimates should incorporate potential B2B pilot timing slippage and binary outcomes from strategic alternatives.

Key Takeaways for Investors

  • Near-term financial execution disappointed materially vs Street; combined with the delayed 10-Q and small cash balance, this elevates financing and going-concern risk before any strategic outcome is resolved . Revenue Consensus and EPS Consensus are from S&P Global estimates; actuals from S&P Global as well.*
  • Strategic alternatives could unlock value (sale/merger), but timing and outcome are uncertain; process news flow is a swing factor for the stock .
  • Product and data moat continue to develop: EvieAI and cuffless BP advances sustain the medium-term medtech thesis if the company can navigate liquidity and regulatory milestones .
  • D2C scale remains constrained without heavier marketing investment; prior shipment cadence (5,305 in Q1’24 → 1,837 in Q2’24 → 339 in Q3’24) shows retrenchment; confirm demand elasticity post-feature launches and Android parity before underwriting faster growth .
  • B2B path (pharma/CRO/payer) hinges on regulatory clarity for EvieMED and demonstrating operational readiness; execution risk rises until 510(k) path and financial footing solidify .
  • Watch list of catalysts: any 8‑K on the strategic process, regulatory updates (EvieMED, BP pivotal), B2B pilot announcements, and financing actions (dilution risk vs runway extension) .

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Asterisked values (*) were retrieved from S&P Global (Capital IQ).