Aeva Technologies 2025 Q3 Earnings Profitability Surges 387.5% Amid Revenue Growth

Aeva Technologies (AEVA) delivered a mixed Q3 2025 earnings report, with revenue exceeding expectations but non-GAAP EPS falling slightly short. The company reported a net income turnaround of 387.5% year-over-year, driven by a significant gain on the settlement of share subscription liability.

Revenue

Aeva’s total revenue surged 59.1% year-over-year to $3.58 million, driven by robust demand in North America, which accounted for 86% of total revenue. EMEA and APAC regions contributed 9% and 5% respectively, reflecting expanding international traction. The company attributed the growth to increased unit shipments and non-recurring engineering revenue, particularly from Daimler Truck collaborations.

Earnings/Net Income

The company returned to profitability with net income of $107.5 million, a staggering 387.5% positive swing from a $37.4 million loss in the prior-year period. This was primarily due to a gain on the settlement of share subscription liability and favorable fair value adjustments. Earnings per share (EPS) soared to $1.86, reversing a $0.70 loss in 2024 Q3—a 365.7% improvement. This turnaround marked a critical milestone after six consecutive years of quarterly losses.

Post-Earnings Price Action Review

Following the earnings release, Aeva’s stock exhibited mixed short-term performance: a 6.27% intraday gain contrasted with a 20.07% decline over the subsequent week and an 18.27% drop month-to-date. However, historical data suggests a strategic edge for investors. Buying shares on the day of Aeva’s revenue announcement and holding for 30 days yielded a cumulative 77.3% return over three years, outpacing the SPY ETF’s 18.4% return. This strategy underscores the company’s potential for growth post-earnings updates.

CEO Commentary

Soroush Salehian, Aeva’s CEO, highlighted progress in key markets, including a completed development program with a top-10 global OEM and late-stage negotiations for a production award. He emphasized the company’s expanded precision sensing capabilities, such as the EVE 1V motion sensor, and the $100 million investment from Apollo Global Management as catalysts for scaling. “We are well-positioned to capitalize on the growing demand for 4D LiDAR technology in automotive and industrial applications,” Salehian stated.

Guidance

The company did not provide explicit forward-looking revenue or EPS guidance for Q4 2025. However, management reiterated plans to invest in R&D and manufacturing capacity to meet anticipated demand, while acknowledging near-term operating losses as part of its growth strategy.

Additional News

1. Apollo Investment: Aeva secured a $100 million convertible note investment from Apollo Global Management, boosting pro forma liquidity to $270 million. This funding supports commercialization efforts and production scaling.

2. Executive Sales: CEO Soroush Salehian sold 39,702 shares, while CTO Mina Rezk sold $360,930 worth of shares, raising questions about insider confidence.

3. Strategic Partnerships: The company advanced late-stage talks with a top-10 automaker for a series production award and launched the EVE 1V motion sensor, expanding its industrial automation footprint.