Gauzy Ltd.'s Q2 2025: Key Contradictions on Revenue Timing, Backlog Expectations, and Liquidity Position

Revenue timing dynamics, backlog and revenue distribution expectations, timing of revenue and distribution, expected Aeronautics revenue run rate, and cash and liquidity position are the key contradictions discussed in Gauzy Ltd.'s latest 2025Q2 earnings call.



Order Backlog and Revenue Outlook:
- Gauzy reported a record backlog of purchase orders to be shipped in 2025, reaching $43 million.
- The company expects the second half of the year to be significantly stronger than the first due to this spike in the backlog.
- The timing of some deliveries shifted from the first half to the second half, affecting Q2 revenues but not altering the full-year outlook.

Strategic Milestones and Market Expansion:
- Gauzy achieved key milestones, including the first customer delivery of General Motors' Cadillacs CELESTIQ, featuring the industry's largest piece of dimmable smart glass.
- The company expanded its presence in the automotive smart glass segment, which is projected to grow from $16 billion in 2024 to over $25 billion by 2028.
- Gauzy also entered the marine sector, securing nine programs and validating demand in the higher-margin segment.

Financial Performance and Guidance:
- Q2 revenues were $20.1 million, with a gross margin of 21.4%, affected by lower top-line revenues across a fixed cost base.
- Despite a negative adjusted EBITDA of $8.7 million, the company remains committed to achieving positive EBITDA for the full year, driven by strong demand and recurring revenue base.

Liquidity and Debt Financing:
- Gauzy ended the quarter with total liquidity of $36.2 million, including $35 million of available capacity under its undrawn credit line.
- The company raised an additional $5 million of debt financing under favorable terms, as part of efforts to strengthen the balance sheet and achieve cash flow positivity.