Wallbox's Q2 2025 Earnings Call: Unpacking Contradictions in Quasar 2, Margins, and Partnerships

Quasar 2 offtake and partnerships, product mix and margin expectations, Generac relationship and progress, product mix and revenue expectations, and Generac relationship and product integration are the key contradictions discussed in Wallbox's latest 2025Q2 earnings call.



Revenue and Market Performance:
- Wallbox reported revenue of EUR 38.3 million for Q2 2025, within the guided range of EUR 37 million to EUR 39 million, up 2% quarter-over-quarter but down 22% from a record Q2 last year.
- The revenue decrease was primarily due to weak performance in Europe, particularly in countries with strong EV market growth, such as Spain and Italy.

Gross Margin and Operational Efficiency:
- Wallbox's gross margin was 37.8% in Q2 2025, within the guided range of 37% to 39%, remaining stable due to a similar revenue mix.
- The company's efforts in operational efficiency, including reducing inventory and reviewing Bill of Material costs, are expected to improve gross margin in the future.

Operating Expenses and Cash Cost Reduction:
- Labor costs and operating expenses declined by 3% compared to the previous quarter and 25% from the same period last year.
- The significant year-over-year improvement of 35% in cash costs, excluding non-cash items, reflects the company's focus on controlling expenses while maintaining market growth.

DC Sales and Market Strategy:
- DC sales remained flat at EUR 4.2 million or 11% of sales, similar to the previous quarter, despite a record Q2 last year.
- The stabilization in DC sales is attributed to wallbox's strategic focus on strong partnerships and increased backlog, setting the stage for future growth in this segment.