Executive Summary

Q1 2023 revenue was $57.7M with 2,396 retail units; Adjusted GPU reached $1,777, a 71% sequential improvement versus Q4 2022, while Adjusted EBITDA loss was $24.0M and cash was $68M .
The company met its previously issued Q1 guidance ranges: revenue ($56–$58M), Adjusted GPU ($1,600–$1,800), and Adjusted EBITDA loss ($24–$26M); ending cash was slightly below the ~$70M guide at $68M. Bold indicates guided metrics met: revenue, Adjusted GPU, Adjusted EBITDA loss .
Management began a strategic alternatives review (potential sale of businesses, investment/partnerships, marketplace funding) and indicated no timetable or interim updates; this is a key narrative catalyst .
Post-quarter, the company elected to utilize a 30-day grace period and defer the $3.56M interest payment on its 4.75% Convertible Senior Notes due 2026 while exploring restructuring options—an incremental risk to liquidity and capital structure .
Wall Street consensus (S&P Global) for Q1 2023 was unavailable via our data connection; estimate comparisons are not provided (S&P Global mapping missing for SFTGQ).

What Went Well and What Went Wrong

What Went Well

Sequential unit economics improvement: Adjusted GPU rose to $1,777, up 71% vs Q4 2022, reflecting better omni-channel execution and attachment of financing/protection products. “Our team has shown improvement…as evidenced by the sequential improvement of total adjusted GPU to $1,777” — CEO Jeff Clementz .
Cost discipline progressing: Adjusted SG&A was $28.3M in Q1, reflecting actions around facility closures and severance/retention costs excluded in Adjusted SG&A .
Guidance delivery: Q1 results fell within revenue ($56–$58M), Adjusted GPU ($1,600–$1,800), and Adjusted EBITDA loss ($24–$26M) ranges issued on March 28 .

What Went Wrong

Demand/volume compression: Retail units fell 64% YoY to 2,396 and total revenue declined 74% YoY, driven by lower ASPs and fewer units .
Profitability still deeply negative: Net loss was $48.1M (83% of revenue) and EBITDA margin was -41.7%, reflecting lower gross profit and restructuring-related costs (including facility closures and impairments) .
Liquidity and balance sheet strain: Cash decreased to $58.8M cash and $67.7M including restricted cash; long-term debt remained ~$163.9M; five days later the company elected to utilize the grace period and not pay interest on its 2026 notes .

Financial Results

Consolidated Financials (Income Statement and Profitability)

Metric	Q3 2022	Q4 2022	Q1 2023
Revenue ($USD Millions)	$161.9	$65.6	$57.7
Gross Profit ($USD Millions)	$0.4	$2.3	$3.5
Adjusted Gross Profit ($USD Millions)	$9.3	$2.6	$4.3
Net Income (Loss) ($USD Millions)	$(75.8)	$13.0	$(48.1)
EPS (Basic/Diluted, $)	$(0.92)	$1.26/$1.25	$(2.84)
Adjusted EBITDA ($USD Millions)	$(30.0)	$(25.5)	$(24.0)
EBITDA Margin (%)	(18.5)%	(38.9)%	(41.7)%

Segment/Revenue Breakdown

Revenue Component	Q3 2022	Q4 2022	Q1 2023
Retail revenue, net ($USD Millions)	$119.9	$57.6	$51.0
Other revenue, net ($USD Millions)	$5.9	$3.2	$1.9
Wholesale vehicle revenue ($USD Millions)	$36.1	$4.8	$4.7
Total revenue ($USD Millions)	$161.9	$65.6	$57.7

KPIs and Unit Economics

KPI	Q3 2022	Q4 2022	Q1 2023
Retail units	4,855	2,520	2,396
Wholesale units	1,854	354	344
Total units sold	6,709	2,874	2,740
Retail ASP ($)	$24,692	$22,849	$21,298
Wholesale ASP ($)	$19,479	$13,528	$13,779
Total GPU ($/retail unit)	$84	$895	$1,477
Adjusted GPU ($/retail unit)	$1,925	$1,041	$1,777
Avg. monthly unique visitors	765,145	531,592	543,911
Average days to sale	76	80	78
Retail vehicles available for sale (period-end)	1,895	1,476	1,650

Guidance Changes

Metric	Period	Previous Guidance (3/28/23)	Current Guidance (Q1 2023)	Change
Revenue ($M)	Q1 2023	$56–$58	No update provided in Q1; actual $57.7	N/A
Adjusted GPU ($/unit)	Q1 2023	$1,600–$1,800	No update provided in Q1; actual $1,777	N/A
Adjusted EBITDA ($M)	Q1 2023	$(24)–$(26)	No update provided in Q1; actual $(24.0)	N/A
Ending Cash ($M)	Q1 2023	~$70	No update provided in Q1; actual total cash, cash equivalents, and restricted cash $67.7	N/A
Adjusted SG&A (annualized, $M)	FY 2023	$85–$95 (year-end annualized)	No update provided in Q1	N/A

Notes: Q1 guidance was issued with Q4 results; management did not issue incremental Q1/FY updates in the May 11 release and indicated it would not discuss results during the strategic review absent further need .

Earnings Call Themes & Trends

Q1 2023 earnings call transcript is not available in our document set; management directed investors to prepared remarks and the live webcast but we could not retrieve the transcript. The table below tracks narrative themes using Q3/Q4 press releases and Q1 8‑K contents.

Topic	Previous Mentions (Q3 2022, Q4 2022)	Current Period (Q1 2023)	Trend
Omnichannel strategy	Transition to omnichannel; restructuring to improve unit economics	Continued execution; sequential Adjusted GPU improvement to $1,777	Improving
Dealer marketplace	Not highlighted	Preparing to launch dealer marketplace in Q3 2023	Emerging initiative
Restructuring/closures	Inventory liquidation losses; facility closures; Downers Grove closure	Ongoing non-GAAP adjustments tied to closures and impairment	Ongoing
Macro/ASP pressure	Lower ASP vehicles; demand softness	Retail ASP down to $21,298; retail units down 64% YoY	Mixed/Pressure
Liquidity	Cash $96.2M at 12/31; debt ~$163.4M	Cash $58.8M at 3/31; total cash+restricted $67.7M; debt ~$163.9M	Deteriorating
Capital structure	No interest issues disclosed	Elected 30-day grace period; deferred 4.75% notes interest payment	Deteriorating
Listing/regulatory	Regained Nasdaq minimum bid price compliance	Strategic alternatives review; limited disclosures pending	Strategic pivot

Management Commentary

“Our team has shown improvement in the execution of our omni-channel strategy as evidenced by the sequential improvement of total adjusted GPU to $1,777 in the first quarter…our tech team is highly focused on preparing to launch the dealer marketplace in the third quarter 2023…[the Board] is evaluating strategic alternatives for the business.” — CEO Jeff Clementz .
“Given market dynamics of the auto industry and capital markets, we adjusted our strategy to prioritize balance sheet health, reduce cash burn, and accelerate our path to profitability…we expect sequential improvement in financial performance each quarter in 2023.” — CEO Jeff Clementz (Q4 release) .
“The third quarter represented a period of transition as we executed upon our revised business plan, which focuses on growing unit economics and driving SG&A costs lower…” — CEO Jeff Clementz (Q3 release) .

Q&A Highlights

Q1 2023 earnings call transcript is not available; we cannot provide Q&A highlights or tone shifts versus prior quarters from a transcript source. The company indicated prepared remarks and a webcast were available, but no transcript was found in our document set .

Estimates Context

S&P Global (Capital IQ) Wall Street consensus for Q1 2023 (EPS, revenue, EBITDA) was unavailable due to a missing CIQ company mapping for SFTGQ. As a result, comparisons to consensus cannot be presented at this time (values unavailable; S&P Global data connection issue).

Implication: With no consensus data, investors should benchmark performance against company-issued guidance and sequential trends (unit economics, Adjusted EBITDA trajectory) .

Key Takeaways for Investors

Unit economics improved meaningfully: Adjusted GPU rose to $1,777, near the top of guidance and up 71% sequentially; this suggests pricing/attach improvements despite lower volumes .
Results met guidance: Revenue ($57.7M) and Adjusted EBITDA loss ($(24.0)M) fell within prior ranges; execution against short-term targets was solid even as volumes fell .
Liquidity remains tight: Cash and restricted cash totaled $67.7M at quarter-end; subsequent interest deferral on 2026 notes highlights balance sheet risk and potential need for restructuring or new capital .
Strategic alternatives are a major overhang/catalyst: Potential asset sales, partnerships, or marketplace funding could reshape the business; management does not plan interim disclosures, increasing binary event risk .
Restructuring costs and non-GAAP adjustments remain material: Adjusted EBITDA and Adjusted SG&A exclude significant closure/severance/impairment items; monitor trajectory of these adjustments to gauge underlying profitability trends .
Volume recovery is critical: Retail units and ASP declined; improving inventory availability (1,650 units) and marketplace launch could help drive traffic and conversion if macro conditions stabilize .
With consensus unavailable, anchor on guidance and sequential momentum: The company demonstrated delivery against near-term targets; however, capital structure actions and strategic review will likely dominate stock direction near-term .

SHIFT TECHNOLOGIES, INC. (SFTGQ)·Q1 2023 Earnings Summary