Cenntro 2025 Q3 Earnings 51.7% EPS Improvement, 25.2% Smaller Net Loss

Cenntro (CENN) reported fiscal 2025 Q3 results on Nov 12th, 2025, marking a 72.2% revenue decline to $4.50 million from $16.18 million in 2024 Q3. Despite the sharp contraction, the company reduced its net loss by 25.2% to $-6.72 million, with EPS improving to $-0.14 from $-0.29. The performance highlights ongoing operational challenges but underscores progress in curbing losses.

Revenue

Cenntro’s total revenue for Q3 2025 fell sharply to $4.50 million, driven by a 72.2% year-over-year decline. Vehicle sales remained the core contributor at $4.19 million, while spare-part and other sales totaled $311,426 and $72,503, respectively. The segment breakdown reflects a significant shift in demand dynamics, with vehicle sales retaining the majority of revenue despite the overall downturn.

Earnings/Net Income

The company narrowed its net loss to $-6.72 million in Q3 2025, a 25.2% reduction from $-8.98 million in the prior-year period. Earnings per share also improved by 51.7%, with a loss of $-0.14 per share compared to $-0.29. While these results indicate progress in cost management, the persistent net loss of $-6.72 million highlights the need for further operational efficiency and revenue diversification to achieve profitability.

Price Action

Cenntro’s stock price continued its downward trend, falling 0.52% on the latest trading day, 8.65% for the week, and 23.52% month-to-date. The prolonged decline underscores investor skepticism amid the company’s sustained losses and lackluster performance.

Post-Earnings Price Action Review

The strategy of purchasing Cenntro shares on the date of its revenue raise announcement and holding for 30 days has underperformed the market over the past three years, with a cumulative return of -77.88%. This poor performance suggests that the market has not recognized the company’s growth potential or remains concerned about its long-term viability. The 30-day holding period failed to mitigate losses, indicating structural challenges that persist beyond short-term market reactions. The stark underperformance relative to the market further emphasizes the risks associated with this investment approach.

CEO Commentary

Cenntro’s CEO acknowledged the significant revenue contraction but emphasized progress in reducing losses, attributing the 25.2% improvement to cost optimization initiatives. Strategic priorities include refocusing on high-margin vehicle sales, streamlining operations, and exploring new markets to diversify revenue streams. The leadership team remains cautiously optimistic, though they recognize the need for sustained profitability to rebuild investor confidence.

Guidance

The company expects to maintain its current cost-reduction measures while prioritizing operational efficiency. While no specific financial targets were outlined, management aims to stabilize revenue streams and reduce net losses by Q1 2026.

Additional News

Cenntro’s recent 10-Q filing revealed a strategic shift in its European operations, including the discontinuation of direct sales models in favor of a centralized dealership system. This restructuring has led to the classification of three subsidiaries as discontinued operations, signaling a pivot toward North America and Asia. The company also plans to expand its regional distribution network in Europe by partnering with established distributors, reducing reliance on in-house operations. These moves underscore Cenntro’s focus on scalable growth and operational flexibility in key markets.