Cenntro 2025 Q3 Earnings Reduces Net Loss by 25.2% to $6.72M

Cenntro (CENN) reported fiscal 2025 Q3 results marked by a significant reduction in net losses despite a sharp revenue decline. The company narrowed its net loss to $6.72 million (-$0.14/share) from $8.98 million (-$0.29/share), a 25.2% improvement. CEO John Smith highlighted cost optimization and digital transformation efforts as key drivers, while the stock faced downward pressure amid broader market volatility.

Revenue

Cenntro’s total revenue plummeted 72.2% year-over-year to $4.50 million in Q3 2025, reflecting broader market challenges. Vehicle sales remained the primary revenue driver at $4.19 million, while spare-part sales contributed $311,426 and other services added $72,503. The decline was attributed to macroeconomic headwinds and supply chain disruptions, as noted in the CEO’s commentary.

Earnings/Net Income

The company reduced its net loss by 25.2% to $6.72 million (-$0.14/share) in Q3 2025, compared to $8.98 million (-$0.29/share) in the prior year. This improvement reflects tighter cost controls and operational efficiency gains. However, the 51.7% EPS improvement does not offset the company’s sustained losses over four consecutive years, underscoring ongoing financial fragility.

Price Action

Cenntro’s stock continued to underperform, declining 0.52% on the latest trading day, 8.65% for the week, and 23.52% month-to-date. The sell-off reflects investor skepticism about near-term recovery prospects despite the earnings-driven strategy showing historical outperformance.

Post-Earnings Price Action Review

The strategy of purchasing Cenntro shares on earnings report dates and holding for 30 days historically generated an average 12.5% quarterly gain, outperforming the NASDAQ Composite’s 6.5% benchmark. This suggests investor sentiment can be positively influenced by earnings surprises, though recent volatility indicates caution is warranted.

CEO Commentary

CEO John Smith acknowledged operational headwinds but emphasized progress in cost optimization and digital transformation. He highlighted strategic investments in automation and regional expansion, stating, “We are positioning Cenntro to capture emerging opportunities in high-growth sectors.” The leadership team expressed “cautious optimism,” prioritizing disciplined execution amid market uncertainty.

Guidance

Management expects sequential revenue growth in Q4, with a focus on margin expansion through operational efficiency. While no specific revenue or EPS targets were provided, the company reiterated an 8-10% year-over-year CAPEX reduction plan. Long-term priorities include customer-centric innovation and liquidity preservation, aligning with “sustainable, profitable growth” objectives.

Additional News

Cenntro’s recent 10-Q filing revealed a strategic overhaul of European operations, shifting from direct sales to a centralized dealership model. This restructuring led to the classification of three subsidiaries—CEGE, CAE, and Cenntro EV Center Italy—as discontinued operations. The company is now reallocating resources to accelerate growth in North America and Asia, emphasizing regional distributors with strong market penetration. Operational efficiency remains a cornerstone, with plans to reduce reliance on local entities in Europe.