Forward Industries 2025 Q3 Earnings Sharp Loss Widening Amid Revenue Drop

Forward Industries reported its fiscal 2025 Q3 earnings on August 15, 2025, delivering results that significantly missed expectations. The company’s total revenue declined by 50.5%, and its net loss widened by over 112%. CEO John Mercer acknowledged underperformance, pointing to macroeconomic challenges and restructuring efforts. No earnings guidance was issued, with the company focusing on long-term recovery.

Revenue
Forward Industries’ total revenue dropped to $2.49 million in Q3 2025, a sharp 50.5% decline from $5.04 million in the same period the prior year. The company experienced broad-based weakness in its operations, with no clear rebound in core business lines. The significant drop reflects ongoing challenges in market demand and internal strategic adjustments.

Earnings/Net Income
The company’s losses deepened significantly, with a net loss of $850,022 in Q3 2025, a 112.7% increase compared to the $399,585 loss in Q3 2024. On a per-share basis, the loss widened to $0.77 from $0.36, representing a 113.9% increase in negative earnings. This deteriorating performance indicates a challenging operational environment, with the company struggling to contain costs and generate revenue.

The earnings per share performance was clearly negative and significantly worse than expected.

Price Action
Despite the poor earnings, Forward Industries' stock price saw a strong short-term rally, surging 58.32% month-to-date as of the report date. The stock gained 14.53% during the latest trading day and 7.48% during the most recent full week. However, this sharp post-earnings rebound has not translated into sustained investor confidence.

Post-Earnings Price Action Review
The 30-day buy-and-hold strategy initiated after the earnings report underperformed dramatically, with a return of -60.77% compared to a 46.48% benchmark return. This resulted in an excess return of -107.24%. Over a three-year period, the strategy posted a CAGR of -27.57%, indicating a consistent loss of value. The Sharpe ratio of -0.33 and volatility of 83.19% underscore the strategy’s poor risk-adjusted returns and high exposure to market swings. The lack of any drawdown during the 30-day period suggests limited risk management, compounding the strategy’s underperformance.

CEO Commentary
During the earnings call, CEO John Mercer outlined the company’s struggles, noting the impact of macroeconomic conditions and ongoing restructuring efforts. He emphasized the need for disciplined cost management and investment in technology and talent to enhance long-term competitiveness. Despite the disappointing results, Mercer expressed cautious optimism about the company’s future, contingent on the success of these initiatives and the stabilization of market conditions.

Guidance
The company did not provide specific revenue or EPS guidance for future quarters but expressed a general expectation of improved performance as strategic initiatives gain momentum and market demand stabilizes. Forward Industries is focusing on cost optimization and revenue diversification to drive a return to profitability.

Additional News
On August 15, 2025, Punch Newspapers reported several key events in Nigeria. Roche and NHIA significantly reduced the cost of cancer drugs by 80% for UPTH insured patients, offering much-needed relief to those affected. Meanwhile, a group petitioned the federal government to remove Igboho from the list of wanted persons. In political news, the APC rejected a Canadian court’s judgment labeling it a terrorist organization. Additionally, Tinubu’s wife launched a program empowering 500 women in Ekiti with N25 million in grants.