Executive Summary

Q1 2025 revenue rose 91.7% sequentially to $3.61M, materially above the company’s prior guidance of ~50% sequential growth vs Q4 2024; gross margin expanded to 14.9% (+961 bps YoY). Adjusted net loss averaged ~$0.333M/month vs prior guidance of ~$0.400M/month (beat) .
Operational execution improved: 24 units shipped (+118% q/q) with mix downshifting ASP to ~$151K (from $171K in Q4), OpEx -21% YoY, and field inventory reduced to <60 boats; inventory turns improved from ~4.5x to ~5.0x YoY .
Liquidity: $4.91M cash and $9.18M working capital at 3/31; $4.31M NC facility held for sale expected to strengthen cash within 12 months; subsequent dealer floorplan repurchase obligation expected at ~$.546M creates near-term cash use .
Strategic catalysts: launch of the 22’ BayCat, rollout of a new interactive website (3D/AR configurator), and acquisition of BoatsForSale.com/YachtsForSale.com to bolster digital lead-gen and dealer support .

What Went Well and What Went Wrong

What Went Well
- Beat own sequential revenue guidance: “generated $3.6 million in revenue, a 91.7% sequential increase … well ahead of the 50% growth we guided previously.” (CFO) .
- Margin and cost discipline: gross margin 14.9% (+961 bps YoY) and OpEx -21% YoY; “staying disciplined with operating costs” (CEO) .
- Channel health improving: “field inventory … reduced to under 60 boats” and “added six new dealer locations” (CEO) .
What Went Wrong
- Demand still below prior-year levels: revenue -32% YoY; 24 units vs 32 a year ago; ASP down on smaller-boat mix (fewer 40’ deliveries) .
- Ongoing losses and going-concern risk: net loss $(1.61)M; management cites substantial doubt about going concern pending execution/funding plans .
- Potential near-term cash pressure: expected ~$0.546M repurchase of dealer inventory under a floorplan agreement (subsequent event) .

Financial Results

Income statement – YoY comparison

Metric	Q1 2024	Q1 2025
Revenue ($)	$5,276,343	$3,612,291
Gross Profit ($)	$277,313	$537,114
Gross Margin (%)	5.3%	14.9%
Operating Expenses ($)	$2,820,520	$2,216,208
Loss from Operations ($)	$(2,543,207)	$(1,679,094)
Net Loss ($)	$(2,335,195)	$(1,610,240)
Diluted EPS ($)	$(1.77)	$(1.08)

Sequential revenue trend

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($)	$2.9M	$1.9M	$3,612,291

Balance sheet/working capital (selected)

Metric	Dec 31, 2024	Mar 31, 2025
Cash & Cash Equivalents ($)	$7,491,123	$4,910,267
Working Capital ($)	$6,671,151	$9,179,586
Assets Held for Sale ($)	—	$4,306,896

KPIs (operations and liquidity)

KPI	Q1 2025
Units Shipped (#)	24
ASP ($/unit)	~$151,000
Gross Margin (%)	14.9%
Adjusted Net Loss ($)	$(997,522) (3 mo)
Adjusted Net Loss per Month ($)	~$333,000
OpEx YoY Change (%)	(21%)
Field Inventory (units)	<60
New Dealers Added (locations)	6
Inventory Turns (YoY)	~5.0 (↑ ~0.5 turn YoY)
Cash & Equivalents ($)	$4,910,267
Expected Floorplan Repurchase ($)	~$546,000 (subsequent)

Segment reporting: As of Q4 2024 the company reports as a single segment (design/manufacture/marketing of power boats) .

Non-GAAP: Adjusted Net Loss excludes D&A, SBC, certain development costs and loss on sale of property; Q1 2025 reconciliation to $(997,522) provided in 8‑K exhibit .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance/Actual	Change
Sequential Revenue Growth vs Q4 2024	Q1 2025	~+50% (Q4 call)	+91.7% actual	Beat
Adjusted Net Loss per Month ($)	Q1 2025	~$400K/month	~$333K/month actual	Beat
Revenue Direction	Q2 2025	—	Expect continued sequential growth (qualitative)	Positive tone
Margin Direction	2025	—	Focus on further margin expansion; 14.9% achieved in Q1	Improving tone
Liquidity	12-mo outlook	—	Expect more favorable cash profile with capex largely behind; plan asset sale	Positive tone, execution needed

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Dealer network & field inventory	Dealers overstocked; rightsizing, reduced shipments	Backlog improving; cautious ramp	Added 6 dealers; field inventory cut to <60 boats	Improving
Production/mix & ASP	Larger-boat mix; volumes down	Revenues fell to $1.9M; capex for efficiency	24 units; ASP ~$151K (more 22–24’), +118% units q/q	Mixed: units up, ASP down
Margins/cost controls	Cost cuts; negative margins at low volumes	Expect lower capex 2025	GM 14.9% (+961 bps YoY); OpEx -21% YoY	Improving
Digital initiatives	—	Investing in dealer/retail-facing technologies	New interactive site (3D/AR); acquired BoatsForSale.com/YachtsForSale.com	Accelerating
Macro: rates/tariffs	Need sustained rate cuts; challenging environment	Cautious optimism	Monitoring new tariffs; possible headwinds (motors/electronics)	Mixed
Strategy/portfolio	Consolidating Forza; NC facility listed for sale	Forza merger done; facility sale targeted	$4.31M NC asset held for sale; exit of e-boat dev	Portfolio simplified

Management Commentary

“We are pleased to report a strong start to 2025, with top-line growth and margin expansion that outpaced expectations.” (CEO) .
“We shipped 24 units… a 118% sequential increase… average sale price $151,000… gross margins improved to 14.9%… Operating expenses were down 21% year-over-year.” (CFO) .
“Our field inventory… has significantly improved… reduced to under 60 boats in our entire dealer network.” (CEO) .
“While tariffs could present incremental headwinds… particularly in… motors and electronics, we believe our proactive supply chain strategy and commitment to cost control will enable us to navigate any near-term volatility.” (CFO) .

Q&A Highlights

No analyst Q&A was conducted; the operator opened a Q&A queue, but the call concluded without questions. Management reiterated focus on sequential growth, margin expansion, and digital initiatives in prepared remarks .

Estimates Context

S&P Global (Capital IQ) consensus for Q1 2025 EPS and revenue was not available; no estimate count data returned. Results are therefore compared against company guidance rather than Street consensus (values retrieved from S&P Global; consensus unavailable at time of analysis).*

Metric	Q1 2025 Actual	S&P Global Consensus	Delta
Revenue ($)	$3,612,291	N/A*	—
EPS (Diluted, $)	$(1.08)	N/A*	—

*Values retrieved from S&P Global.

Key Takeaways for Investors

Positive inflection on sequential revenue with a significant beat vs company guidance (+91.7% vs ~+50%), and GM recovery to 14.9% provide evidence of improving throughput and cost control .
Mix shift to smaller boats tempered ASP, but unit volume ramp (+118% q/q) and OpEx discipline (-21% YoY) narrowed losses; adjusted net loss/month ran ~$333K vs ~$400K guided (beat) .
Channel conditions are healthier (field inventory <60) and dealer footprint is expanding (six new locations), setting up for continued sequential growth into Q2 (qualitative) .
Liquidity is adequate near-term with $4.91M cash and $9.18M working capital, but watch for cash uses from the expected ~$0.546M floorplan repurchase and execution on the ~$4.31M asset sale to reinforce liquidity .
Strategic digital push (BoatsForSale.com/YachtsForSale.com) and a new configurator/AR website can enhance lead-gen and dealer economics, potentially supporting volumes as macro stabilizes .
Risk monitor: going-concern language persists; tariff risk to motors/electronics; execution on asset sale and continued cost discipline remain critical to sustain the margin/volume improvement trajectory .

Additional Context (Other Q1 2025 Press Releases)

Twin Vee entered into an agreement to acquire BoatsForSale.com and YachtsForSale.com (third-largest U.S. online boat marketplace), aiming to enhance digital lead generation and offer a lower-cost listing alternative for dealers and private sellers .

Appendix: Source Documents

Q1 2025 8‑K with press release and financial tables .
Q1 2025 10‑Q (financial statements, MD&A, liquidity, risks) .
Q1 2025 earnings call transcript (prepared remarks; no Q&A) .
Q4 2024 and Q3 2024 earnings call transcripts for sequential/YoY trend context .
Nasdaq compliance regained (subsequent event) .

Twin Vee PowerCats, Co. (VEEE)·Q1 2025 Earnings Summary