Greenpower Motor 2025 Q4 Earnings Net Loss Narrows by 38.2%

Greenpower Motor (GP) reported its fiscal 2025 Q4 earnings on Jul 31st, 2025. The company's overall performance missed expectations, primarily due to a 15.9% decline in revenue compared to the previous year. Despite narrowing its net loss by 38.2%, the market reacted negatively to the earnings report. Looking ahead, Greenpower maintains its guidance for continued revenue growth, with operational improvements and enhanced production capacity anticipated in the upcoming quarters. The company remains committed to cost management and strategic expansion.

Revenue

The total revenue of Greenpower Motor decreased by 15.9% to $4.28 million in 2025 Q4, down from $5.09 million in 2024 Q4.

Earnings/Net Income

Greenpower Motor's EPS rose 19.5% to $0.56 in 2025 Q4 from $0.47 in 2024 Q4, marking continued earnings growth. Meanwhile, the company successfully narrowed its net loss to $-3.83 million in 2025 Q4, reducing losses by 38.2% compared to the $-6.21 million net loss reported in 2024 Q4. The company's EPS improvement signals positive momentum despite ongoing financial challenges.

Post-Earnings Price Action Review

The strategy of purchasing Greenpower Motor (GP) shares following a revenue decline on the earnings release date and holding them for 30 days has historically resulted in significant losses. Over the last three years, this approach has yielded a return of -97.69%, considerably underperforming the benchmark by 173.39%. The strategy's Sharpe ratio stands at -0.59, indicating considerable risk, while experiencing no maximum drawdown, suggesting persistent volatility. This trend highlights the volatility and risk associated with investing in Greenpower Motor during periods of financial downturns, as the company's share price has been highly susceptible to market fluctuations.

CEO Commentary

GreenPower Motor Company’s CEO highlighted strong business performance, reporting a 35% revenue increase to $7.2 million, driven by heightened demand for electric school buses and operational efficiencies. The CEO acknowledged challenges in the truck body division and rising headcount costs but emphasized strategic priorities, including the consolidation of California operations to enhance management oversight and reduce expenses. The leadership outlook remains optimistic, citing supportive market trends and ongoing efforts to improve manufacturing throughput in West Virginia, which are expected to bolster production capacity and profitability.

Guidance

For Q1 2026, GreenPower Motor anticipates continued revenue growth and operational improvements. The company aims to deliver consistent production increases, projecting a weekly output of one BEAST bus, ramping up to two units by April. Financially, the CEO conveyed a commitment to maintaining cost management, with a focus on improving gross profit margins and sustaining supportive financial structures, including credit facilities and shareholder backing.

Additional News

GreenPower Motor Company recently secured a $500,000 term loan from insiders, featuring a 12% annual interest rate and equity components, highlighting potential cash flow challenges. The company intends to use the proceeds for production costs, supplier payments, payroll, and working capital. Additionally, GreenPower announced the consolidation of its California operations into a single facility in Riverside, aimed at reducing costs and increasing efficiency. A recent delay in annual filings led to a cease trade order from the British Columbia Securities Commission, further complicating GreenPower’s financial position.