Nuvve Holding Corp. (NVVE)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 revenue was $1.79M, up 8.6% YoY but down 6.9% QoQ; net loss/share improved YoY to $(5.75) from $(69.80) but worsened QoQ vs $(2.47) on higher operating costs . Products & services margin fell to 11.5% (vs 24.0% YoY) as mix shifted toward lower-margin DC hardware, and management cited competitive pricing to a single large customer; on a total basis including grants, gross margin was 15.8% (vs 29% YoY) .
• Backlog ended Q4 at $18.3M (vs $17.5M in Q3 and $3.9M in FY23), supported by Fresno hub activity; megawatts under management rose to 30.7 MW (up 22% YoY) .
• Strategic catalysts: State of New Mexico statewide price agreement (SWPA) with an estimated ~$400M TAM positioning Nuvve for multi-year EV infrastructure/microgrid work, and the newly launched Battery‑as‑a‑Service (BaaS) offering to build recurring, contract-based revenue with utilities/co‑ops .
• Liquidity remains tight (cash $0.37M plus $0.32M restricted at 12/31/24), partly mitigated by ~$2.6M gross proceeds raised in Q1’25; inventory fell to $4.6M as working capital normalized . Near-term stock reaction likely hinges on backlog conversion (Fresno, NM), evidence of BaaS signings, and further cost controls .

What Went Well and What Went Wrong

What Went Well

• Backlog and pipeline strengthened: Q4 backlog increased to $18.3M (from $17.5M in Q3 and $3.9M at 12/31/23), with management pointing to continued Fresno hub build-out in coming quarters .
• Strategic expansion: Announced BaaS to cooperatives (10–12 year agreements, initial deployments expected late 2025) and highlighted stationary battery aggregation growth, broadening beyond subsidy-exposed school bus cycles .
• Cost discipline YoY: SG&A fell 13.7% YoY to $5.1M and R&D declined 61% YoY to $0.8M in Q4, driven by lower compensation, legal and subcontractor spend; FY operating expenses fell to $22.2M from $33.5M .

Management quote:

• “We began 2025 with over $18 million in customer backlog… [and] the State of New Mexico contract… provides us with strong support for growth in 2025.” — CEO Gregory Poilasne .

What Went Wrong

• Mix and pricing pressure compressed margins: Q4 products/services margin fell to 11.5% (vs 24.0% YoY) and total gross margin (incl. grants) to 15.8% (vs 29% YoY); management cited competitive DC charger pricing to a single large customer .
• Sequential opex uptick: Operating costs ex-COGS rose to $5.9M in Q4 from $2.8M in Q3, pressuring QoQ EPS despite backlog growth; cash opex increased to $5.1M vs $2.2M in Q3 .
• Liquidity remains constrained: Cash was $0.37M (plus $0.32M restricted) at 12/31/24; company raised ~$2.6M gross in Q1’25 via equity/debt and remains reliant on external financing while converting backlog .

Financial Results

Headline P&L vs prior periods

Notes: Q3 total gross margin percentage (incl. grants) not disclosed; product/services margin provided instead .

Revenue mix

Q4 service detail: grid services ~$0.01M, engineering services ~$0.51M (vs $0.05M and $0.39M YoY) .

Operating expenses

Balance sheet and cash flow snapshots

KPIs

Guidance Changes

No explicit quantitative guidance was provided in Q4 for FY2025 (revenue, margins, OpEx, tax, or segments) .

Earnings Call Themes & Trends

Management Commentary

• “I’m not going to try to sugarcoat it, 2024 has been an extremely challenging year… revenue went down compared to last year… delays… across the board.” — CEO Gregory Poilasne .
• “Margins… impacted by competitive pricing pressures on the sale of DC chargers to a single large customer.” — CFO David Robson .
• “We began 2025 with over $18 million in customer backlog… [and] State of New Mexico contract… provides us with strong support for growth in 2025.” — CEO .
• On BaaS: “The BaaS offering generates contracted and potential merchant revenue for Nuvve, while offering our partners strong returns and long-term cost savings.” — CEO .
• On New Mexico: SWPA to deliver turnkey EV charging, V2G/microgrids, corridor stations, and financing; estimated ~$400M TAM for the state’s ZEV plan .

Q&A Highlights

• The available transcripts captured prepared remarks; no substantive Q&A dialog was transcribed in the posted version for analysis .

Estimates Context

• S&P Global consensus for Q4 2024 was unavailable for both EPS and revenue (no consensus values returned). Actual revenue reported: $1.79M (company-reported) .
• Implication: With no published consensus, we cannot classify a beat/miss on top/bottom line; investor focus should center on margin trajectory, backlog conversion, liquidity steps, and contract execution.
• Values retrieved from S&P Global.*

Key Takeaways for Investors

• Backlog and MW growth de-risk near-term topline, but conversion timing remains the swing factor; watch Fresno milestones and first NM project awards by mid‑2025 .
• Margin volatility reflects mix and pricing; sustained shift toward services/software and BaaS should support structurally higher margins, but near-term hardware-heavy quarters can compress GM% .
• Liquidity is tight; the company raised ~$2.6M in Q1’25 but remains dependent on external financing until gross profit dollars ramp from backlog conversion and new contracts .
• Strategic pivot to stationary storage and BaaS broadens TAM and reduces reliance on federal EV subsidies, aligning with grid modernization needs and potential recurring revenue .
• Cost structure improved materially YoY; maintain vigilance on QoQ opex (Q4 uptick) and track FY25 opex run-rate against revenue cadence .
• No FY25 guidance; with no Street consensus, stock likely trades on execution headlines (contract wins, BaaS signings, financing updates) and quarterly mix-driven margins .

Appendix: Additional Details and Cross-Checks

• Mix detail Q4 2024: products $1.18M, grid services ~$0.01M, engineering services ~$0.51M; YoY, grid down and engineering up, reflecting mix shift .
• Cash/working capital: inventories fell $1.1M QoQ to $4.6M; AP decreased $0.3M QoQ to $1.9M; accrued expenses ~$3.4M .
• Non-GAAP: Company did not provide adjusted EPS or adjusted EBITDA; analysis is based on GAAP metrics .

Citations: All figures and statements are sourced from Nuvve’s Q4 2024 8‑K and press release , Q4 call transcript , and related Q3/Q2 materials for trend context . Strategic announcements cited from press releases for BaaS and New Mexico SWPA . S&P Global consensus data was unavailable for Q4 2024; values retrieved from S&P Global.*