Name: MULLEN AUTOMOTIVE INC. Q1 2025 Earnings Call
Start: 2025-02-19T00:00:00.000Z

Executive Summary

Q1 FY2025 revenue recognized was $2.92M, with $4.37M invoiced and $6.00M cash collected on vehicles delivered; Bollinger B4 contributed $2.78M of recognized revenue from 20 delivered units, making this Mullen’s strongest quarter to date by cash collections and invoicing .
Despite operational momentum, the quarter posted a net loss attributable to common shareholders of $114.9M and diluted EPS of $(661.33), driven largely by non-cash items ($91.0M, 79% of loss) including warrant/derivative revaluation and financing costs .
Liquidity remains constrained: cash and restricted cash totaled $2.74M at quarter-end and working capital was negative $186.2M; financing relied on convertible notes, warrants, and an equity line, while Bollinger secured a $10M long-term loan .
Management is executing cost cuts (approx. $13M annual reduction effective Feb. 1, 2025) and continues to streamline opex; additional staff and facility reductions are planned for April 2025 .
No Wall Street consensus estimates from S&P Global were available for Q1 FY2025 at the time of analysis; comparisons to estimates are therefore not possible. Attempted S&P Global retrieval returned unavailable mapping (consensus data unavailable).

What Went Well and What Went Wrong

What Went Well

“For the quarter, we invoiced for over $4.4M and received $6M for vehicles delivered, which is our strongest quarter to date.” — David Michery, CEO .
Bollinger delivered 20 B4 Class 4 trucks and recognized $2.8M in revenue; dealer/service network expanded to 50+ locations, and the B4 qualified for Sourcewell and NY Truck Voucher incentives (up to $100K voucher) .
Battery manufacturing progress: three battery lines installed in Fullerton (high-volume standard chemistry, low-volume standard chemistry R&D, low-volume solid-state polymer R&D); DOE modified plan submitted seeking $55M matching funds for U.S. battery/pack production .

What Went Wrong

Gross loss of $(3.67)M on $2.92M revenue underscores negative gross margins at current scale; COGS was $6.59M, reflecting early-stage cost absorption and inventory write-down pressures .
Heavy non-cash charges drove the loss: $34.63M warrant/derivative revaluation, $16.08M financing costs (warrants initial recognition), $17.68M amortization of debt discount/other non-cash interest .
Liquidity and balance sheet strain: cash and restricted cash $2.74M; working capital negative $186.2M; derivative liabilities $136.99M; operations financed via convertible notes/warrants and an equity line, indicating continued capital needs .

Financial Results

Metric	Q1 FY2024 (Dec 31, 2023)	Q3 FY2024 (Jun 30, 2024)	Q4 FY2024 (Sep 30, 2024)	Q1 FY2025 (Dec 31, 2024)
Revenue ($USD Millions)	$0.00	$0.07 (reported)	N/A (company reported $1.09M for FY2024; Bollinger FY24 recognized $0.70M)	$2.92
Gross Loss ($USD Millions)	N/A	N/A	N/A	$(3.67)
Loss from Operations (EBIT) ($USD Millions)	$(59.40)	N/A	N/A	$(51.44)
Net Loss ($USD Millions)	$(61.39)	N/A	N/A	$(114.89)
Diluted EPS ($USD)	$(91,940.42)	N/A	N/A	$(661.33)

Notes:

Prior quarter comparisons are limited by disclosure; Oct. 2, 2024 preliminary guidance expected ~$4.5M Q4 revenue, but FY2024 actual recognized revenue was $1.09M, reflecting Mullen’s deferral of revenue until invoices are paid and return provisions are nullified .

Segment/Product Breakdown (Q1 FY2025)

Vehicle Type / Line Item	Units Invoiced	Amount Invoiced ($000)	Cash Received ($000)	Revenue Recognized ($000)
Mullen THREE (UU)	11	2,852	32	32
Mullen Urban Delivery (UD1)	27	885	248	0
Bollinger B4	20	2,777	2,777	2,777
Destination Freight & Other Services	—	—	112	112
Total	58	4,368	5,988	2,920

KPIs (Q1 FY2025)

KPI	Value
Vehicles Invoiced (Total)	58
Cash Collected on Delivered Vehicles	$6.00M
Revenue Recognized (Total)	$2.92M
Cash & Restricted Cash (Quarter-end)	$2.74M
Working Capital	$(186.2)M
Derivative Liabilities	$136.99M
Operating Cash Flow	$(25.56)M
G&A Expense	$36.48M
R&D Expense	$11.28M
COGS	$6.59M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
GAAP Revenue	Next 6 months (Oct 2024–Mar 2025)	None disclosed	$75M expected	New
Monthly Cash Burn (Operating + Investing)	Immediate (Oct 2024)	~$12.8M (Q2 FY2024)	~$7.3M (immediate reduction)	Lowered
Cash Breakeven	By Dec 2025	None disclosed	Target cash breakeven by Dec 2025	New
Annual Opex Reduction	Effective Feb 1, 2025	None disclosed	~$13M annual personnel/headcount reduction	New
Additional Cost Cuts (staff/facilities)	Planned April 2025	None disclosed	Additional staff reductions, facility eliminations, lower burn rate	New

Earnings Call Themes & Trends

Note: No Q1 FY2025 earnings call transcript was found in the document catalog for MULN in the relevant window; themes are synthesized from 8-Ks and press releases.

Topic	Previous Mentions (Q3 FY2024, Q4 FY2024)	Current Period (Q1 FY2025)	Trend
Cost Cutting / Opex	Plan to cut monthly spend to $7.3M; 20% headcount reduction; program eliminations (Oct 7)	$13M annual reduction effective Feb 1; further staff/facility cuts planned for April	Intensifying cost discipline
Bollinger B4 Ramp	Production launch Sept 16; first deliveries; $703K FY24 revenue	20 B4 delivered; $2.8M revenue recognized; 50+ dealer/service locations; government fleet procurement channels	Ramping deliveries and channel build-out
Revenue Recognition & Collections	Q4 prelim ~$4.5M expected (did not materialize as recognized FY revenue was $1.09M)	$2.92M recognized vs $6.00M cash collected; deferral policy tied to invoice payment and dealer sale to end user	Improving cash collections; accounting recognition lag persists
Battery Manufacturing	Facility build-out and investments; three lines described in FY update	Three lines operational; DOE matching funds plan submitted ($55M)	Progress toward U.S. battery assembly
Incentives / Regulatory	HVIP approvals; CARB certifications; NYTVIP eligibility	Continued NYTVIP voucher eligibility; Sourcewell procurement access	Supportive incentive environment
Liquidity & Financing	FY2024: cash $10.7M; notes/warrants financing; equity line	Q1 cash $2.74M; negative working capital; financing via notes/warrants/ELOC; Bollinger $10M loan	Ongoing funding needs; subsidiary debt support

Management Commentary

“For the quarter, we invoiced for over $4.4M and received $6M for vehicles delivered, which is our strongest quarter to date. Bollinger is now moving with speed and attaining solid commercial sales results. Mullen Commercial also has solid momentum… We’ve recently reduced our expenses even further…” — David Michery, CEO .
“Our fiscal Q2 will close with our strongest revenue performance to-date. Our revenue and overall momentum continues to build at a strong clip…” — David Michery (Record GAAP revenue update) .
“We continue as an organization, taking every opportunity to adapt our verticals… Our continued focus is on selling vehicles and advancing our battery technologies.” — David Michery (cost cutting initiatives) .

Q&A Highlights

No Q1 FY2025 earnings call transcript was available in the document catalog; no analyst Q&A themes to report for the quarter. This recap relies on the 8-K, accompanying press release, and subsequent press releases.

Estimates Context

Wall Street consensus (S&P Global) for Q1 FY2025 EPS, revenue, and EBITDA was unavailable at time of analysis; as a result, we cannot assess beats/misses to estimates. Attempt to retrieve S&P Global consensus failed due to unavailable mapping (consensus data unavailable).

Key Takeaways for Investors

Deliveries and cash collections are accelerating: $6.00M cash received vs $2.92M recognized revenue reflects real demand and the impact of conservative revenue recognition (dealer sell-through criterion) . Near-term stock narrative likely hinges on conversion of invoicing/collections to recognized revenue.
Bollinger is the current revenue engine: 20 B4 units delivered, $2.8M recognized, growing dealer/service footprint and eligibility for key government vouchers should support continued Class 4 traction .
Cost controls are material: $13M annual personnel reductions effective Feb. 1 and additional cuts planned in April aim to reduce burn and extend runway; monitor execution and impact on operational capacity and sales support .
Liquidity is tight: quarter-end cash/restricted cash $2.74M and negative working capital highlight ongoing financing risk; recent reliance on convertible notes/warrants and ELOC persists; Bollinger’s $10M loan provides subsidiary support but not a group solution .
Accounting dynamics matter: deferral of revenue until invoices are paid and dealer resale to end customer creates a gap between cash collections and revenue; watch cadence of dealer sell-through to gauge recognized revenue trajectory .
Battery manufacturing capability is advancing: three battery lines installed and DOE $55M matching funds plan submitted could be a medium-term differentiator if funded; near-term revenue impact is limited but strategic optionality is positive .
Prior guidance vs actuals: Oct. 2, 2024 preliminary Q4 revenue expectation (~$4.5M) did not flow through to FY2024 recognized revenue ($1.09M), underscoring the importance of revenue recognition mechanics and dealer sell-through in forecasting .

Appendix: Additional Data Points

Cash from Operations: $(25.56)M in Q1 FY2025 .
G&A and R&D in Q1 FY2025: $36.48M and $11.28M, respectively .
Non-cash components of Q1 FY2025 loss: $91.01M (warrant/derivative revaluation $34.63M; financing costs $16.08M; amortization of debt discount $17.68M; SBC $18.59M; D&A $4.75M) .

MULLEN AUTOMOTIVE INC. (MULN)·Q1 2025 Earnings Summary