Envirotech Vehicles Reports $5.1 Million Net Loss in Q2 2025 Amid Rising Costs

Envirotech Vehicles, Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $5.1 million, a significant increase from the $755,092 loss recorded in the same period last year. For the six months ending June 30, 2025, the company reported a net loss of $19.2 million, compared to a loss of $5.3 million for the first half of 2024. Revenue for the second quarter reached $1.05 million, up from $812,770 in the prior year, while total revenue for the first half of 2025 was $1.64 million, slightly higher than the $1.62 million reported for the same period in 2024.

The company's financial performance was impacted by a substantial increase in costs, particularly in the cost of sales, which surged to $2.5 million for the second quarter, compared to $608,947 in the previous year. This increase was attributed to higher material costs and additional inventory write-downs. Additionally, operating expenses rose significantly, with general and administrative expenses reaching $2.75 million for the quarter, up from $1.47 million in the prior year, driven by increased legal, accounting, and operational costs.

Strategically, Envirotech has expanded its business operations by entering the medical supplies and drone segments, which contributed to its revenue growth. The company also executed a 1-for-10 reverse stock split on August 6, 2025, aimed at regaining compliance with Nasdaq's minimum bid price requirement. The reverse split was part of a broader strategy to stabilize the company's stock price and improve its market position.

Operationally, Envirotech's electric vehicle segment faced challenges, with net sales of electric vehicles resulting in a negative revenue figure of $25,237 due to credits issued for operational issues. In contrast, the medical supplies segment generated $1.07 million in revenue, primarily from sales to a related party. The company reported a significant reliance on a limited number of customers, with one customer accounting for 100% of the medical supplies revenue in the quarter.

Looking ahead, Envirotech remains focused on expanding its product offerings and enhancing its manufacturing capabilities. The company plans to invest in research and development to improve its zero-emission electric vehicles and is exploring leasing options to mitigate the impact of government subsidy fluctuations on sales. However, the company acknowledges that its future performance will depend on various factors, including market conditions, customer financing options, and the successful execution of its business strategy.