Twin Vee PowerCats, Co. (VEEE)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 delivered revenue of $4.76M (+10% YoY) and gross margin of 13.8% (+910 bps YoY), with sequential momentum from Q1; net loss improved to $1.65M and EPS to ($0.87) .
• Operating expenses fell 52% YoY to $2.33M as management exited prior electric R&D, streamlined costs, and improved production efficiency .
• Strategic actions: acquisition of Bahama Boat Works, launch of the new 22’ BayCat, addition of 10 new dealers, and rollout of a 3D online configurator; cash, cash equivalents and restricted cash were $6.18M; working capital rose to ~$10.19M .
• No formal numeric guidance was issued; management reiterated focus on sequential growth, margin expansion, and disciplined cost control; adjusted net loss improved to ~$314k/month in Q2 (from $333k/month in Q1), reflecting operational progress .
• Potential stock catalysts: continued dealer expansion and product launches, execution on Bahama lineup integration, and visible margin trajectory supported by cost actions .

What Went Well and What Went Wrong

• What Went Well

  • “Revenues came in at $4,800,000… 9.9% increase over Q2 of last year… gross margin… 13.8%” demonstrating pricing discipline and operational efficiency .
  • Strategic expansion: acquisition of Bahama Boat Works and launch of the 22’ BayCat; added 10 new dealers to broaden geographic reach .
  • Adjusted net loss improved to $941k for the quarter ($314k/month), driven by lower OpEx and better factory efficiencies .

• What Went Wrong

  • Absolute profitability remains negative: GAAP net loss of $1.65M; gross margin still modest at 13.8% given scale .
  • ASP pressures vs prior year (mix shift away from larger boats): Q2 ASP ~$153k vs ~$187k in Q2 2024; unit sales higher but pricing mix weighed on revenue quality .
  • Industry demand remains challenged; management flagged used-boat pressure and macro headwinds (rates/tariffs), keeping near-term operating leverage constrained .

Financial Results

KPIs and operating data:

Non-GAAP adjustments (Q2 2025):

Guidance Changes

Note: The company did not provide formal numeric guidance ranges for revenue, margins, OpEx, OI&E, or tax rate in Q2 materials; commentary emphasized sequential growth, margin improvement, and disciplined spending .

Earnings Call Themes & Trends

Management Commentary

• “Revenues came in at $4,800,000… 9.9% increase… gross margin of 13.8%… reflecting disciplined execution, improved operational efficiency, greater pricing consistency” — Joseph Visconti, CEO .
• “We shipped a total of 31 units… average sales price of $153,000… operating expenses… down 52% YoY… adjusted net loss totaled $941,000 for the quarter (~$314k/month)” — Michael P. Dickerson, CFO .
• “The Bahama Boat molds, tooling, and required equipment are now physically on-site… expanding the lineup to include 22, 24, 28, and 31 models” — Joseph Visconti .
• “Whizbanger AI powered valuation tool… a CARFAX-like resource for boats… designed to help reduce disputes, expedite sales… increase efficiency” — Joseph Visconti .

Q&A Highlights

• No analyst questions were asked on the Q2 call; the call concluded without a Q&A session .

Estimates Context

• Wall Street consensus (S&P Global): No quarterly consensus EPS or revenue estimates were available for VEEE for Q2 2025; comparison to estimates is not possible at this time.*
• Where S&P Global provided “actuals” only for select metrics (e.g., revenue/EBITDA), there were no forward-looking consensus series for Q2; investors should rely on company-reported figures and sequential trajectory.*

Disclaimer: Values retrieved from S&P Global.

Key Takeaways for Investors

• Margin trajectory is positive (13.8% GM, +910 bps YoY), supported by in-house tooling, cost reductions, and supply-demand alignment; watch durability as volume scales .
• Mix and ASP remain a swing factor: higher units with lower ASP vs prior year (fewer 40’ boats), reinforcing the need to monitor product mix evolution and Bahama integration impact on pricing power .
• Operating discipline is evident: OpEx down 52% YoY, adjusted losses narrowing (~$314k/month in Q2), with working capital and cash supported by asset held for sale and May equity raise .
• Strategic optionality via Bahama brand and BayCat launch could broaden addressable market; execution risk exists in scaling new models and maintaining craftsmanship at cost targets .
• Digital and AI initiatives (3D configurator, WhizBanger/BoatsForSale) can bolster funnel conversion and used-boat engagement amid a robust secondary market; near-term monetization should be tracked .
• Macro watch items: tariffs, rates, and used-boat pressure; management’s America-first sourcing and inventory discipline mitigate risks but can cap near-term operating leverage .
• Near-term trading: momentum trades may key off sequential growth and margin recovery; medium-term thesis hinges on successful Bahama rollout, sustained dealer expansion, and consistent adjusted loss reduction .

Additional Document References

• Q2 2025 8-K earnings press release: revenue, margin, cash, dealer adds; non-GAAP reconciliation .
• Q2 2025 10-Q: detailed P&L, balance sheet, cash flow, segment note, going-concern disclosure, repurchase obligations, risk factors .
• Q2 2025 earnings call transcript: operational themes, unit/ASP, adjusted loss cadence, strategic priorities .
• Bahama Boat Works acquisition 8-K and press release (June 6, 2025): asset purchase terms and brand strategy .
• Prior quarters: Q1 2025 8-K and call; sequential growth beat vs guidance; initial margin expansion .
• Prior-year comps: Q2 2024 8-K (YoY revenue/margin baseline; Forza impairment and consolidation context) .