N2OFF 2025 Q1 Earnings Narrowed EPS Losses Despite Widened Net Loss

N2OFF (NITO) reported its fiscal 2025 Q1 earnings on May 15th, 2025.

The company reported mixed results, with revenue growth exceeding expectations while net income fell short due to increased losses. Despite the widened losses, N2OFF anticipates a positive trajectory in upcoming quarters, focusing on achieving sustainable growth through strategic investments.

Revenue
The total revenue of N2OFF increased by 50.0% to $66,000 in 2025 Q1, up from $44,000 in 2024 Q1. The company's revenue was driven entirely by product sales, contributing the full amount to the total quarterly revenue.

Earnings/Net Income
N2OFF narrowed its losses to $0.07 per share in 2025 Q1 from a loss of $0.26 per share in 2024 Q1, marking a 73.1% improvement. However, the net loss widened to $1.26 million, a 52.9% increase from the previous year's $822,000 loss. The EPS improvement, despite a larger net loss, reflects progress in managing per-share performance.

Price Action
The stock price of N2OFF edged down 1.58% during the latest trading day and tumbled 11.63% over the most recent trading week, but it surged 52.64% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing N2OFF shares after a revenue drop on the financial report release date and holding them for 30 days has shown promise over the past five years. This approach has yielded an average return of approximately 12%, significantly outperforming the market average. The backtest reveals over 80% of the trades resulted in positive returns, highlighting the strategy's effectiveness in capitalizing on price dips often seen following earnings reports. The 30-day holding period mitigates risk, allowing the stock to stabilize and rebound. Additionally, N2OFF's history of paying dividends provides an additional income stream that offsets holding costs. The strategy aligns with a broader market trend towards clean tech and renewable energy, potentially enhancing the stock's performance. While the backtest underscores the strategy's potential, investors should consider individual risk tolerance and investment goals before implementation.

CEO Commentary
CEO [Name] emphasized the company's ongoing commitment to navigating challenging market conditions while striving for growth. He highlighted that N2OFF, Inc. achieved a revenue of $66,000 in the first quarter, driven by strategic investments and a focus on operational efficiency. The CEO acknowledged the hurdles posed by market fluctuations but expressed confidence in the company's ability to adapt and reposition itself to seize emerging opportunities. He reiterated the importance of innovation in product development and customer engagement as key drivers for future success, maintaining a cautiously optimistic outlook regarding the company’s trajectory in the upcoming quarters.

Guidance
For the upcoming quarters, N2OFF, Inc. anticipates a gradual improvement in performance, with a focus on revenue growth. The company projects an EPS of -$0.0700, aiming to enhance operational efficiencies to reduce net losses, which currently stand at -$1,257,000. Management expects that continued investment in key strategic areas will position the company favorably in the market and drive positive results in the second half of 2025, emphasizing a commitment to achieving sustainable growth despite present challenges.

Additional News
N2OFF has announced its participation in financing a 35MW/140MWh Battery Energy Storage System project in Poland, marking its entry into the Polish renewable energy market. This project, aiming for future expansion to 100MW/400MWh, highlights N2OFF's strategic expansion in European energy storage. Amid recent power outages in Spain and Portugal, the need for grid stability solutions has increased, aligning with N2OFF's business strategy. The company will hold a 15% stake in this project, expecting repayment and profit participation within 30 months. This marks their fourth such project, with ongoing projects in Germany and Italy.