How did GP's revenue and expenses shift in Q3 2025?

GreenPower Motor Co Inc (GP) experienced a significant shift in its revenue and expenses in Q3 2025, reflecting improved profitability and operational efficiency despite facing certain challenges.

1. Revenue Surge: GP's revenue increased by 35% in Q3 2025, reaching $7.2 million. This growth was primarily driven by sales of all-electric school buses and EV Star model vehicles. The company sold 13 BEAST Type D all-electric school buses, 1 nano BEAST Type A school bus, and 14 EV Star model vehicles.
2. Gross Profit Improvement: The gross profit margin improved to 14.6% of revenues, up from 8.6% in the previous quarter. This indicates better profitability due to increased sales and potentially improved manufacturing efficiency.
3. Cost Management: GreenPower managed to reduce SG&A (Sales, General, and Administrative) expenses by $443,000 or 7.8% compared to the same quarter last year. This cost management effort contributed to the overall improvement in gross profit.
4. Financial Position: GP had available liquidity of $1.2 million in the EDC revolving credit facility and letters of credit capacity of nearly $3.9 million for additional production funding. The company also raised $3 million from an underwritten offering of common shares, enhancing its financial flexibility.
5. Challenges and Uncertainties: Despite the positive trends, GP faced challenges such as lower than target gross profit margins in its truck body division and uncertainties around federal funding for electric school buses. Additionally, the company's financial performance remains reliant on external funding, which could be a concern.

In conclusion, GreenPower Motor Co Inc (GP) demonstrated strong revenue growth and improved profitability in Q3 2025, driven by increased sales and better cost management. However, the company continues to navigate uncertainties in the federal funding landscape and relies on external funding for its operations.