Hyliion Posts Q2 Revenue Miss and Lowers 2025 Forecast, Delays Commercial Launch to 2026

Hyliion reported Q2 2025 revenue of $1.5 million, missing analyst estimates, driven by R&D services for the US Navy. The company halved its 2025 revenue forecast to $5-10 million and delayed full product commercialization to 2026 due to technical and production challenges. Net loss widened to $13.4 million from $10.9 million YoY.

Hyliion Holdings, Inc. (NYSE American: HYLN), a developer of modular power plant technology, reported its financial results for the second quarter ended June 30, 2025. The company's Q2 2025 revenue totaled $1.5 million, primarily driven by research and development services for the U.S. Navy. This figure missed analyst estimates, with revenue down from $1.5 million in the same period last year. The company also halved its 2025 revenue forecast to $5-10 million, citing technical and production challenges that have delayed full product commercialization to 2026. Net loss widened to $13.4 million from $10.9 million year-over-year (YoY).

Key highlights from the quarter include the successful delivery of the second Early Adopter KARNO unit to the U.S. Navy and the nearing completion of two additional KARNO Power Modules. The company also signed a $1 billion memorandum of understanding (MOU) with Alkhorayef Industries to deploy KARNO Power Modules in Saudi Arabia, representing a significant step toward international expansion. Additionally, Hyliion was awarded a Phase II SBIR contract valued at up to $1.5 million to advance its multi-megawatt KARNO system development.

The company's transition of linear electric motor (LEM) production in-house and the resolution of the regen depowdering challenge have improved throughput and supported the 2025 deployment targets. However, these advancements have not yet translated into commercial revenue, contributing to the company's financial struggles.

Hyliion's cash and investments at quarter-end totaled $185.3 million, with cash use in the second quarter amounting to $13.5 million, including $4.3 million for capital expenditures. The company expects full-year 2025 cash outlays of approximately $65 million, reflecting tariff-related cost impacts, R&D acceleration, and additional capital expenditures for expanding additive printing capacity.

The company's 2025 revenue guidance has been adjusted to $5-10 million from $10-15 million, with a 2025 year-end cash and investment balance of approximately $155 million and positive gross margins from R&D services. Hyliion aims to achieve breakeven gross margins on a cash basis by the end of 2026, supported by increasing production volume and improved pricing and manufacturing costs.

Reference(s):
[1] https://finance.yahoo.com/news/hyliion-holdings-reports-second-quarter-203000088.html