Cenntro Inc. Reports 43.4% Revenue Decline and $3.9 Million Net Loss in Q1 2026

Cenntro Inc. reported a significant decline in its financial performance for the first quarter of 2026, with net revenues of $1.2 million, down 43.4% from $2.1 million in the same period last year. The decrease was primarily driven by a substantial drop in vehicle sales, which fell from approximately $1.8 million to $614,209. In contrast, spare parts sales increased to $565,212, up from $170,815, indicating a shift in revenue sources. The company's gross profit also decreased to $237,128, compared to $321,527 in the prior year, reflecting a gross margin of 19.6%, up from 15.0% in 2025.

Cenntro's operating expenses for the quarter were reduced to $4.2 million from $6.5 million, largely due to decreased selling and marketing expenses, which fell by 62.1% to $294,267, and general and administrative expenses, which decreased by 30.9% to $3.4 million. Research and development expenses also saw a decline, totaling $478,133, down from $784,178. Despite these reductions, the company reported a net loss attributable to shareholders of $3.9 million, compared to a loss of $5.7 million in the previous year.

In terms of operational developments, Cenntro has been restructuring its European operations, transitioning from a direct sales model to a centralized dealership distribution system. This strategic shift aims to enhance efficiency and reduce reliance on local operational entities. The company is also focusing on expanding its presence in North America and Asia, with plans to introduce new electric commercial vehicle models and enhance its supply chain capabilities.

As of March 31, 2026, Cenntro's cash and cash equivalents stood at approximately $3.6 million, down from $8.5 million a year earlier. The company reported net cash used in operating activities of $2.8 million for the quarter, an improvement from $5.0 million in the same period last year. Looking ahead, Cenntro aims to continue its efforts to optimize costs and expand its product offerings, while also addressing its liquidity needs through potential financing arrangements. The company remains committed to its long-term growth strategy, which includes regionalizing its manufacturing and supply chain operations to better serve its global customer base.