Name: SHIFT TECHNOLOGIES, INC. Q3 2022 Earnings Call
Start: 2025-11-20 10:07:16.888796+00

Executive Summary

Revenue fell to $161.9M, down 10% y/y and sharply lower vs Q2 ($223.7M) and Q1 ($219.6M), as Shift executed its restructuring and liquidated inventory through wholesale channels .
GAAP gross profit collapsed to $0.4M; total GPU fell to $84, but Adjusted GPU held up at $1,925, reflecting mix and non-GAAP adjustments during the transition .
Net loss widened to $75.8M (EPS -$0.92) vs Q2 (-$0.64) and Q1 (-$0.70); Adjusted EBITDA loss improved sequentially to -$30.0M (from -$36.9M) with margin -18.5% .
Guidance reduced: FY22 revenue to $665–$675M (from $690–$710M), Q4 revenue $60–$70M; company emphasized focus on unit economics and SG&A reduction as catalysts .

What Went Well and What Went Wrong

Adjusted GPU remained resilient at $1,925 despite macro headwinds and lower ASP vehicles, underpinning unit economics improvement .
SG&A dropped to $49.8M (30.8% of revenue) vs Q2 $58.7M (26.3%) and y/y $57.9M (32.2%), reflecting early restructuring benefits .
Management executed the revised business plan: “a period of transition as we executed upon our revised business plan, which focuses on growing unit economics and driving SG&A costs lower,” said CEO Jeff Clementz .

Gross profit and GPU deteriorated: GAAP GPU fell to $84 vs $1,729 in Q2 and $1,655 in Q1, driven by inventory liquidation and wholesale losses .
Wholesale gross loss rose to -$8.0M, with wholesale loss per unit -$1,655 due to liquidation of higher-priced vehicles through wholesale .
Liquidity/going concern: 10-Q disclosed substantial doubt about ability to continue as a going concern; Nasdaq deficiency letter received Oct 4, 2022, raising listing risk .

Metric	Q1 2022	Q2 2022	Q3 2022
Revenue ($USD Millions)	$219.6	$223.7	$161.9
Gross Profit ($USD Millions)	$10.8	$11.9	$0.4
Net Loss ($USD Millions)	$(57.0)	$(52.2)	$(75.8)
EPS (Basic & Diluted, $)	$(0.70)	$(0.64)	$(0.92)
Adjusted EBITDA Loss ($USD Millions)	N/A	$(36.9)	$(30.0)
Adjusted EBITDA Margin (%)	N/A	(16.5)%	(18.5)%
Total Gross Profit per Unit ($)	$1,607	$1,729	$84
Adjusted Gross Profit per Unit ($)	N/A	$1,821	$1,925

Year-over-Year Q3 comparison:

Metric	Q3 2021	Q3 2022
Revenue ($USD Millions)	$179.8	$161.9
Gross Profit ($USD Millions)	$13.0	$0.4
EPS (Basic & Diluted, $)	$(0.48)	$(0.92)
Total Gross Profit per Unit ($)	$1,997	$84
Adjusted Gross Profit per Unit ($)	$2,056	$1,925

Segment breakdown (Q3 2022):

KPIs

KPI	Q1 2022	Q2 2022	Q3 2022
Ecommerce Units Sold	6,714	6,872	4,855
Wholesale Units Sold	1,975	1,161	1,854
Ecommerce ASP ($)	$27,269	$28,373	$24,692
Wholesale ASP ($)	$14,069	$16,823	$19,479
Total GPU ($)	$1,607	$1,729	$84
Adjusted GPU ($)	N/A	$1,821	$1,925
Avg Monthly Unique Visitors	822,856	833,320	765,145
Average Days to Sale	56	63	76
Ecommerce Vehicles Available	5,464	5,359	1,895

Metric	Period	Previous Guidance (Q2 2022)	Current Guidance (Q3 2022)	Change
Revenue ($USD Millions)	Q4 2022	$270–$290 (Second Half total)	$60–$70 (Q4)	Lower granularity; Q4 level indicates reduced run-rate
Adjusted GPU ($)	Q4 2022	$1,500–$1,700 (Second Half)	$1,800–$1,900	Raised
Adjusted EBITDA Loss ($USD Millions)	Q4 2022	$(50)–$(55) (Second Half)	$(20)–$(25)	Improved (less negative)
Revenue ($USD Millions)	FY 2022	$690–$710	$665–$675	Lowered
Ecommerce Units (Units)	FY 2022	21,000–24,000	Not provided	Withdrawn
Adjusted GPU ($)	FY 2022	$1,600–$1,700	$1,700–$1,800	Raised
Adjusted EBITDA Loss ($USD Millions)	FY 2022	$(133)–$(138)	$(133)–$(138)	Maintained

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3 2022)	Trend
Restructuring & Online Checkout Focus	Announced “new business plan” to transact most sales via profitable online checkout; hub closures; test-drive elimination	Management reiterated transition and focus on unit economics and SG&A reduction ; call discussed execution of plan	Execution progressing
Inventory Mix (Value Vehicles)	Shift to favor Value vehicles (older/ higher mileage) to optimize economics	Continued optimization of mix; Adjusted GPU maintained despite lower ASP	Ongoing
Liquidity & Going Concern	Noted negative cash flows; ATM capacity; going concern language appears in Q1	Q3 10-Q reaffirms substantial doubt; received Nasdaq deficiency letter (subsequent event)	Risk elevated
Wholesale Channel Use	Q1/Q2 wholesale ASP up; modest GP/loss	Heavy wholesale liquidation drove large gross losses (-$8.0M; -$1,655 per unit)	Deteriorating
CarLotz Merger	Announced Aug 9; expected to be fully funded to profitability post-combination	Progress toward closing; related shareholder litigation disclosures noted	Pending close

“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.” — Jeff Clementz, CEO .
“Sold 4,855 ecommerce units and achieved $161.9 million in revenue; Achieved strong Adjusted gross profit per unit of $1,925, despite macroeconomic headwinds and lower ASP vehicles.” — Press release highlights .
Conference call covered restructuring execution and outlook (CEO/CFO prepared remarks and Q&A) .

Guidance details and drivers: Management discussed Q4 revenue outlook ($60–$70M), Adjusted GPU ($1,800–$1,900), and Adjusted EBITDA loss ($20–$25M) tied to the transition to online-centric fulfillment .
Restructuring impact: Clarified timeline, hub closures, and cost actions; emphasized SG&A trajectory and unit economics improvements .
Liquidity/listing status: Addressed going concern considerations and Nasdaq bid-price deficiency letter implications .
CarLotz merger: Timing and expected synergies, including liquidity add and operational overlap .

Wall Street consensus from S&P Global was unavailable for this ticker due to missing mapping; therefore, a formal comparison to S&P Global consensus for Q3 2022 revenue/EPS/EBITDA could not be provided. Values retrieved from S&P Global were unavailable for SFTGQ mapping.

Adjusted GPU resilience ($1,925) suggests the new mix and online checkout focus can sustain unit economics even as ASP declines; monitor whether Q4 guidance ($1,800–$1,900) is achieved .
Wholesale liquidation materially hurt gross profit; watch the pace of inventory normalization and reduced reliance on wholesale to restore GAAP GPU .
SG&A trajectory is improving; sustained reductions are critical for reaching EBITDA breakeven, with Q4 Adjusted EBITDA loss guided to $(20)–$(25)M .
Liquidity remains a key risk (going concern language) and listing risk (Nasdaq deficiency); track capital raises (ATM), merger closing, and any reverse split actions .
Guidance reset: FY22 revenue lowered to $665–$675M; Q4 revenue implies a smaller footprint near-term; upside depends on execution of Project Focus and marketplace initiatives .
CarLotz merger could bolster liquidity and footprint; assess synergy realization and integration risks amid ongoing shareholder actions .
Stock narrative likely driven by evidence of unit economics improvement (Adjusted GPU, SG&A), stabilization of gross profit, and resolution of listing/liquidity overhangs .

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