Nuvve's Q3 2025 Earnings Call: Contradictions Emerge on Revenue Projections, Operating Costs, Strategic Shifts, and Growth Expectations

Date of Call: None provided

Financials Results

• Revenue: $1.6M in Q3 2025, compared to $1.9M in Q3 2024 (YTD $2.8M vs $3.5M prior year)
• Gross Margin: 52% in Q3 2025, compared to 52.1% in Q3 2024; YTD through Sep 30, 2025: 46.8% vs 42% prior year

Guidance:

• Shift to stationary battery deployments; expect recurring revenue from announced projects starting late 2026 and accelerated revenue growth over the next 18 months.
• Anticipate more battery project opportunities in Europe, Japan and the U.S. (including New Mexico) and growth in megawatts under management in 2025.
• Expect improvements in cash burn from lower operating costs; fundraising underway and plan to address Nasdaq bid price/shareholder equity issues by Dec 31.
• Management expects a potentially strong Q4 for hardware.

Business Commentary:

• Stationary Battery Deployment and Revenue Growth:
• Nuvve announced plans to develop 3 2-megawatt battery projects in Denmark, with a forecasted internal rate of return greater than 25%, potentially generating $2.4 million to $3.6 million annually in recurring revenue.

• This strategic move is expected to accelerate revenue growth over the next 18 months, driven by an increased demand for energy storage solutions due to the growth of the electric system load.

• Capitalization and Financial Health:

• Nuvve reported $0.9 million in cash on its balance sheet, with a decrease of $0.8 million from the previous quarter.

• The decrease was primarily due to $3.4 million used in operating activities and $2.3 million in debt repayment, offset by proceeds from common stock offerings. The company is working on addressing shareholder equity efficiencies and expects to announce more about its capitalization plan soon.

• Operational Efficiency and Cost Management:

• Operating costs, excluding cost of sales, were $5.9 million for the third quarter of 2025, compared to $15 million in the second quarter and $2.8 million in the third quarter of 2024.

• The significant decrease in operating costs is attributed to the restructuring of the organization and the focus on reducing nonrecurring expenses, including grants paid to consultants for digital asset strategy.

• Hardware Revenue and Future Growth:

• Total revenues for the third quarter of 2025 were $1.6 million, compared to $1.9 million in the third quarter of 2024, with a decline primarily driven by lower service revenues due to the absence of management fees related to the Fresno EV infrastructure project.
• Despite the decline, the company anticipates a strong Q4 due to increased hardware revenue, indicating potential growth in future quarters.

Sentiment Analysis:

Overall Tone: Neutral

• "We are very excited about our direction towards stationary storage" and "we are very confident we'll be able to address these efficiencies" contrasted with financials: revenues $1.6M vs $1.9M prior year, net loss $4.5M vs $1.6M, and cash of ~$0.9M as of Sep 30, 2025.

Contradiction Point 1

Revenue Decline and Growth Projections

It involves the company's financial performance and future revenue growth expectations, which are critical items for investors.

N/A - N/A

20251114-2025 Q3: Nuvve holds a significant backlog of projects that are expected to transition to revenue over the next 18 to 24 months. The company expects to accelerate its revenue growth over the next 18 months due to growth in stationary battery projects. - Gregory Poilasne(CEO)

N/A - N/A

2025Q3: Year-to-date through September 30, 2025, total revenues were $2.8 million, compared to $3.5 million in the prior year. - David Robson(CFO)

Contradiction Point 2

Operating Costs and Efficiency

It pertains to operating costs and financial efficiency, which are crucial factors for organizational health and investor confidence.

- N/A

20251114-2025 Q3: Operating costs, excluding cost of sales, were $5.9 million in Q3 2025, compared to $15 million in Q2 2025 and $2.8 million in Q3 2024. - David Robson(CFO)

N/A - N/A

2025Q3: In Q2, we had higher than normal operating expenses related to our restructuring and organizational changes. - Gregory Poilasne(CEO)

Contradiction Point 3

Company Focus and Strategic Direction

It highlights a shift in the company's strategic focus and direction, which could impact investor perceptions and expectations regarding Nuvve's growth and market positioning.

What are management's plans to adjust market expansion strategy in response to slowing growth in Asia-Pacific this quarter? - N/A

20251114-2025 Q3: Nuvve is finalizing its organizational restructuring. The company is now focusing on stationary battery deployment. - Gregory Poilasne(CEO)

N/A - N/A

2025Q2: This quarter has allowed us to finalize structural changes we implemented late last year. These changes position Nuvve at a strategic intersection between energy, artificial intelligence, and crypto. - Gregory Poilasne(CEO)

Contradiction Point 4

Revenue Growth Expectations

It involves changes in financial forecasts, specifically regarding revenue growth expectations, which are critical indicators for investors.

How will management adjust production plans to meet customer orders and maintain margins amid supply chain disruptions in the next quarter? - N/A

20251114-2025 Q3: Nuvve expects to accelerate its revenue growth over the next 18 months due to growth in stationary battery projects. - Gregory Poilasne(CEO)

- N/A

2025Q2: Over the course of this year, we expect to continue to work towards bringing both of these businesses to profitability. - Gregory Poilasne(CEO)

Contradiction Point 5

Revenue and Financial Performance

It involves changes in financial performance, specifically regarding revenue trends, which are critical for investor expectations.

Can you clarify whether the prepared remarks were released ahead of the call? - Not specified

20251114-2025 Q3: Total revenues for the third quarter were $1.6 million, compared to $1.9 million in Q3 2024. The decrease was due to lower service revenues. - David Robson(CFO)

What were the key factors driving the change in prepared remarks? - Not specified

2025Q1: Revenue for the quarter was $3.5 million, down 16% year-over-year. Excluding grant revenues, quarterly revenue would have increased 16% year-over-year. - David Robson(CFO)