ECD Automotive Design Reports Q2 2025 Revenue Growth but Increased Net Loss

ECD Automotive Design, Inc. reported its financial results for the second quarter of 2025, revealing a net revenue of $7.0 million, a 9% increase from $6.5 million in the same period last year. However, the company experienced a net loss of $4.3 million for the quarter, compared to a loss of $2.0 million in the prior year. For the first half of 2025, total revenue remained relatively stable at $13.4 million, slightly down from $13.4 million in the first half of 2024. The gross profit for the quarter was $1.4 million, down 32% from $2.1 million in the previous year, primarily due to increased shipping and custom fees.

The company’s operating expenses surged by 55% to $4.0 million in the second quarter, driven largely by a 62% increase in general and administrative expenses, which rose to $3.7 million. This increase was attributed to higher headcount and equity compensation expenses. Additionally, the provision for credit losses was recorded for the first time, amounting to $20,213. Interest expenses also increased significantly, totaling $2.1 million for the quarter, reflecting the impact of additional debt taken on in the previous year.

ECD Automotive Design has made strategic moves to enhance its market position, including the acquisition of assets from BNMC Continuation Cars LLC in April 2024, which has contributed to its product offerings. The company has also expanded its retail presence with new showrooms in West Palm Beach, Florida, and Nantucket, Massachusetts. As of June 30, 2025, the company had 98 employees and reported a working capital deficit of approximately $6.8 million, raising concerns about its liquidity and ability to continue as a going concern.

The company’s balance sheet as of June 30, 2025, showed total assets of $14.4 million, down from $18.2 million at the end of 2024. Current liabilities were reported at $16.1 million, with significant components including accounts payable and accrued expenses. ECD Automotive Design's cash and cash equivalents decreased to $605,305 from $1.5 million at the end of 2024. The company has indicated that it will need to secure additional financing to support its operations and growth plans, which may include raising capital through loans or equity offerings.

Looking ahead, ECD Automotive Design aims to improve its margins by increasing production efficiency and expanding its product line, including the introduction of the Jaguar E-type and the production of Mustangs. The company is also focused on enhancing its supply chain management through its UK operations, which facilitate the procurement of parts and vehicles. However, management has acknowledged the challenges posed by market conditions and the need for ongoing capital to sustain operations and growth.