Cenntro Inc. Reports 49.3% Revenue Decline and Increased Losses in Q3 2025

Cenntro Inc. reported significant financial challenges in its latest 10-Q filing for the third quarter of 2025, revealing a substantial decline in revenue and increased losses compared to the previous fiscal period. For the nine months ended September 30, 2025, the company generated net revenues of $13.1 million, a decrease of approximately 49.3% from $25.9 million in the same period of 2024. The decline was primarily attributed to a drop in vehicle sales and spare-part sales, which fell by $11 million and $1.9 million, respectively. The gross profit for the nine months was approximately $0.4 million, down from $8 million in the prior year, reflecting a gross margin of 3.1% compared to 31.1% in 2024.

In terms of operational metrics, Cenntro's total operating expenses for the nine months ended September 30, 2025, were approximately $21.6 million, down from $29.6 million in the previous year. The company reported a net loss attributable to shareholders of $22.2 million for the nine months, compared to a loss of $27.4 million in the same period of 2024. The reduction in losses was attributed to decreased selling and marketing expenses, which fell by 67.4% to approximately $1.8 million, and a 29.3% reduction in general and administrative expenses to approximately $14.2 million.

Strategically, Cenntro has undergone significant organizational changes, including the restructuring of its European operations. The company has shifted from a subsidiary-based direct sales model to a centralized dealership distribution system, aiming to enhance efficiency and reduce operational costs. This strategic pivot is expected to allow Cenntro to focus on its core markets in North America and Asia, where it plans to continue rolling out new electric commercial vehicle (ECV) models.

As of September 30, 2025, Cenntro's cash and cash equivalents stood at approximately $4.4 million, a decrease from $12.5 million at the end of 2024. The company reported net cash used in operating activities of approximately $10.8 million for the nine months ended September 30, 2025, compared to $12.9 million in the prior year. Looking ahead, Cenntro aims to improve its cash flow through operational efficiencies and increased inventory turnover, while also planning to expand its manufacturing and supply chain capabilities in North America and Europe.

Cenntro's management remains cautious about the future, acknowledging that actual results may vary significantly due to various factors, including market conditions and operational execution. The company is focused on enhancing its product offerings and expanding its market presence, particularly with the anticipated launch of new ECV models in 2026. However, the ongoing challenges in revenue generation and operational restructuring will require careful management to ensure financial stability and growth.