Gauzy Ltd (NASDAQ:GAUZ) Reports Q2 2025 Earnings Miss, Shares Drop 4% in Pre-Market Trading

GAUZY LTD (NASDAQ:GAUZ) reported its second-quarter 2025 financial results, missing analyst estimates on both revenue and earnings per share (EPS). The company posted revenue of $20.1 million, falling short of the consensus estimate of $29.5 million, while its adjusted EPS loss of $0.66 was wider than the anticipated $0.33 loss. The market reaction has been negative, with shares declining approximately 4% in pre-market trading, reflecting investor disappointment.

Key Financial Highlights vs. Estimates

• Revenue: $20.1M (vs. $29.5M estimate) – 31.9% miss
• EPS (Adjusted): -$0.66 (vs. -$0.33 estimate) – Double the expected loss
• Gross Margin: 21.4% (down from 27.0% YoY)
• Net Loss: $10.7M (improved from $23.1M YoY)

The decline in revenue was attributed to timing delays in shipments across multiple segments, though management expects these to normalize in the second half of the year. Gross margins were pressured by lower revenue against a fixed cost base, particularly in the aeronautics division.

Market Reaction & Performance

The stock has struggled in recent weeks, down 11.5% over the past two weeks and flat over the past month. The immediate pre-market drop suggests investors were anticipating better execution, particularly given the company’s record backlog of $42.9 million in purchase orders.

Business Milestones & Outlook

Despite the earnings miss, Gauzy highlighted several strategic developments:

• Automotive Expansion: General Motors began delivering Cadillac CELESTIQ models featuring Gauzy’s SPD smart glass technology.
• New Product Launches: Introduction of prefabricated smart glass stacks to accelerate adoption in automotive OEMs.
• Marine Sector Entry: Secured nine marine contracts, including an installation at the MSC terminal in Miami.
• ADAS Expansion: Smart-Vision ADAS systems now deployed in bus fleets in Manchester (U.K.) and Strasbourg (France).

Management reaffirmed full-year revenue guidance of $130M–$140M, aligning with the analyst consensus of $133M. The company expects positive adjusted EBITDA for 2025, citing improved operating leverage and recurring revenue streams.

Liquidity & Debt Financing

Gauzy bolstered its liquidity with $15M in debt financing from Mizrahi Bank, ending Q2 with $36.2M in total liquidity ($1.2M cash + $35M undrawn credit facility). Total debt stood at $53M, including short-term receivables financing.

Conclusion

While the Q2 results fell short of expectations, Gauzy’s record backlog and strategic expansions suggest potential recovery in H2. Investors will be watching for improved execution and margin stabilization.

For detailed earnings estimates and future projections, view the latest data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.