Nuvve Holding Corp. (NVVE)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 revenue was $0.33M, down 58.5% year over year and down 64.4% sequentially; products/services margin improved to 60.6% on mix shift to engineering services, but operating loss widened to $14.80M and net loss to $13.57M due to noncash warrant expense and a bad-debt reserve tied to the Fresno project .
• Management framed Q2 as a “transition quarter,” integrating the Fermata acquisition, shifting to a drop-ship hardware model, and repositioning Nuvve at the intersection of energy, AI, and crypto; they expect hardware deliveries to normalize in Q3 .
• Balance sheet liquidity improved: cash was $1.77M at June 30 vs. $0.37M at year-end, aided by $6.9M raised in Q2 and an additional $5.5M in July; an S-3 shelf filing for up to $300M provides capital flexibility .
• Megawatts under management fell to 25.6 MW (−19.5% q/q) after decommissioning stationary batteries in CA and Japan; backlog slipped to $19.1M (from $19.7M) as deployments progressed and certain contract values were reduced .
• Street consensus (S&P Global) for EPS and revenue was not available for Q2; estimate comparisons are therefore unavailable. Values retrieved from S&P Global.*

What Went Well and What Went Wrong

What Went Well

• Mix-driven margin improvement: products/services margin rose to 60.6% vs. 10.1% a year ago, benefiting from lower hardware and higher engineering services mix .
• Strategic repositioning and M&A execution: “Nuvve is now strategically positioned at the intersection between Energy, Artificial Intelligence and Crypto... we successfully integrated our recent acquisition of Fermata into the Nuvve organization” — CEO Gregory Poilasne .
• Liquidity actions and capital access: $6.9M raised during Q2 and $5.5M in July; filed an S-3 shelf for up to $300M to support initiatives including digital assets strategy .

What Went Wrong

• Top-line contraction: revenue fell to $0.33M (−58.5% YoY) on lower hardware orders/shipments, timing of EPA funding awards, and transition to new charger models; services and grants also declined .
• Operating expense spike and one-time charges: SG&A rose to $13.9M (+210% YoY) driven by $8.19M noncash warrants expense for crypto strategy consulting and ~$1.2M bad-debt expense related to Fresno; net loss widened to $13.57M .
• KPI and pipeline softness: megawatts under management declined to 25.6 MW (−19.5% q/q) due to decommissioning; backlog slipped to $19.1M from $19.7M at Q1 end .

Financial Results

Headline Metrics (quarterly comparison)

Revenue Breakdown

Operating Expense Components

KPIs

Notes:

• Q2 margin improvement driven by lower hardware mix and higher engineering services; management stopped accruing management fees for the Fresno project in Q2 .
• Q2 SG&A includes $8.19M noncash fair value for warrants issued to consultants for crypto strategy; bad-debt expense of ~$1.2M largely related to Fresno .

Guidance Changes

Management did not provide quantitative guidance ranges; commentary emphasized normalization of hardware deliveries in Q3, steady cash opex, and upcoming project updates in NM and Japan .

Earnings Call Themes & Trends

Management Commentary

• “This has been a transition quarter. Nuvve is now strategically positioned at the intersection between Energy, Artificial Intelligence and Crypto… we successfully integrated our recent acquisition of Fermata into the Nuvve organization.” — Gregory Poilasne, CEO .
• “Hardware revenue was extremely low as we transitioned our main 60 kilowatts product… We expect Q3 to be back on track.” — Gregory Poilasne .
• “Operating costs, excluding cost of sales, was $15M… Excluding [noncash warrants expense of $8.2M] and [~$0.9M bad-debt]… current period expenses were $5.9M, a decline of $0.1M over last year.” — David Robson, CFO .
• “Megawatts under management… decreased to 25.6 MW… due to decommissioning… We continue to expect further growth… as we commission backlog and win new business.” — David Robson .

Q&A Highlights

• The call had no Q&A portion; the operator indicated there were no questions .
• Management reiterated expectations for Q3 hardware normalization and stable cash opex, and highlighted upcoming updates on New Mexico and Japan battery aggregation .

Estimates Context

• S&P Global consensus estimates for Q2 2025 EPS and revenue were unavailable; the estimates dataset contained actuals only, with no consensus entries. Values retrieved from S&P Global.*

Key Takeaways for Investors

• Q2 was an inflection in mix rather than scale: margin rates improved materially (60.6%) on engineering-heavy mix, but absolute gross profit remains small against opex; opex normalization excluding one-time items suggests underlying cash expense discipline .
• Noncash crypto-related warrants expense ($8.19M) and Fresno bad-debt reserve (~$1.2M) drove headline losses; look for clarity on Fresno collections and one-time expense cadence before extrapolating Q2 loss run-rate .
• Near-term catalyst: Q3 hardware delivery normalization and backlog conversion; management indicated orders in May equaled all of last year (~$2.2M), with deliveries spanning late 2025 and early 2026 .
• Strategic optionality: New Mexico framework (potential >$400M CapEx over four years) and Japan battery aggregation (Matsuda Town pilot) can replenish backlog and MW managed; watch for contracting milestones and financing structures (Jefferies partnership) .
• Liquidity runway improved with $6.9M Q2 raises and $5.5M in July; S-3 shelf provides flexibility; monitor borrowings and interest expense ($0.71M Q2) as rates and leverage affect P&L .
• Narrative shift toward energy/AI/crypto may open new monetization paths but introduces execution and regulatory risks; investors should assess tangible revenue from digital assets vs. dilution and noncash charges .
• With Street estimates unavailable, trading setups hinge on company-specific milestones (Q3 deliveries, NM/Japan updates) rather than beat/miss dynamics; price sensitivity likely to headline wins or setbacks in project timelines and financing. Values retrieved from S&P Global.*