Nuvve Holding Corp. (NVVE)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 revenue was $0.93M, up 19.8% year-over-year, with gross margin of 39.9% driven by higher service mix; operating loss improved to $(5.59)M as OpEx fell materially. However, net loss was $(6.88)M and EPS $(3.88), with non-operating losses from fair value changes and interest expense weighing on results .
• Backlog increased to $19.7M and megawatts under management to 31.8 MW (+3.6% QoQ, +19.5% YoY), providing visibility to 2025 conversion and pipeline execution .
• Liquidity improved: cash rose to $1.19M (excluding $0.32M restricted), supported by ~$5.3M gross proceeds during the quarter from equity/debt and warrant exercises; net cash used in operations was $(1.81)M .
• Strategic updates: Tellus drop-ship hardware transition slowed revenue recognition near-term; M&A added Fermata assets (software, OEM ties) to strengthen behind-the-meter V2G and reduce annual expenses; Jefferies engaged to finance the “Electrify New Mexico” initiative (potential >$400M CapEx over four years) .

What Went Well and What Went Wrong

What Went Well

• Service mix expansion lifted gross margin to 39.9% vs 34.7% YoY; product/services margin ex-grants rose to 32.6% vs 26.8% YoY, reflecting engineering services and pricing mix improvements .
• Backlog grew to $19.7M; MW under management reached 31.8 MW (+3.6% QoQ), supporting near-term conversion and grid services scaling .
• Management executed strategic levers: “Though the sales numbers are not yet reflecting it… the transformation we have been undertaking since last year is coming together,” and highlighted M&A with Fermata and the Tellus hardware partnership to streamline operations and broaden reach .

What Went Wrong

• Non-operating items swung to $(1.29)M from $0.52M income a year ago due to fair value changes on convertible notes and warrants and higher interest expense, offsetting OpEx gains and keeping net loss elevated at $(6.88)M .
• Revenue recognition slowed amid transition to drop-ship with Tellus; despite 28 charger orders, top-line remained subscale ($0.93M), limiting operating leverage .
• Accrued expenses increased to $4.80M (+$1.4M QoQ) and total liabilities rose to $19.72M, underscoring continued balance sheet constraints despite cash improvement .

Financial Results

Segment revenue breakdown:

KPIs and balance sheet highlights:

Estimates vs actual (Q1 2025):

Guidance Changes

No formal quantitative guidance (revenue, margins, EPS, tax, dividends) was provided for Q1 2025; management reiterated qualitative expectations on OpEx, MW growth, and backlog conversion .

Earnings Call Themes & Trends

Management Commentary

• “Though the sales numbers are not yet reflecting it… the transformation we have been undertaking since last year is coming together. We are also very excited about the possibility of future business expansion through potential merger and acquisition activities like our recent acquisition of Fermata.” — Gregory Poilasne, CEO .
• “Margins on products, services and grant revenues were 39.9%… primarily due to a higher mix of service revenues… Operating costs, excluding cost of sales, was $6 million… We expect the lower operating costs… to continue in future quarters.” — David Robson, CFO .
• “This project represents a potential opportunity greater than $400 million of CapEx deployment over the next four years… Jefferies will structure and secure capital markets transactions to fund the buildout.” — Management on Electrify New Mexico .
• “We have been able to execute [Fermata] acquisition without any cash coming from the Nuvve Holding balance sheet while acquiring a mature pipeline.” — CEO, earnings call ; press release details transaction structure and integration benefits .

Q&A Highlights

• The Q1 2025 call concluded without substantive Q&A; management reiterated transformation progress, cost discipline, and M&A execution before closing the session .

Estimates Context

• S&P Global consensus estimates for Q1 2025 EPS and revenue were not available for NVVE; therefore, no beat/miss determination can be made. Values retrieved from S&P Global.
• Actuals: Revenue $0.93M; EPS $(3.88). The lack of consensus suggests limited or no analyst coverage at this time . Values retrieved from S&P Global.

Key Takeaways for Investors

• Execution visibility improving: backlog rose to $19.7M and MW under management to 31.8 MW; conversion across 2025 should support revenue normalization as Tellus drop-ship transition completes .
• Margin story depends on mix: service and engineering-driven quarters deliver materially higher gross margins (Q1 at 39.9%); DC-heavy hardware quarters compress margins (Q4 at 15.8%). Position sizing should account for mix volatility .
• Balance sheet still tight: liabilities increased and accrued expenses rose QoQ; though cash improved via financing, watch interest expense and fair value swings that impacted non-operating results this quarter .
• Strategic catalysts: Fermata integration (software-first revenue streams, OEM access, targeted ~$2M cost reduction) and Jefferies partnership for New Mexico (> $400M potential CapEx) are medium-term drivers of scale and financing access .
• Near-term trading: headline revenue light vs Q4 and non-operating losses may cap upside; however, updates on New Mexico project awards, backlog conversion, and Fermata synergies could trigger idiosyncratic rallies on execution milestones .
• Thesis: Nuvve is transitioning toward a platform-plus-services model with selective hardware partners; if service/engineering mix sustains alongside state-level electrification financing, operating leverage and cash burn should improve despite subscale revenue today .
• Monitoring list: backlog conversion timing, Tellus fulfillment cadence, cash/interest expense trajectory, MW growth pace, Japan capital raise progress, and any formal guidance initiation in upcoming quarters .