EvoAir Holdings Reports $123.1M Revenue, Net Loss of $5.9M for Six Months Ending February 2025

EvoAir Holdings Inc. reported its financial results for the six months ending February 28, 2025, revealing a revenue of $123.1 million, a slight decrease of 7% from $132.5 million in the same period last year. The company experienced a net loss of $5.9 million, compared to a loss of $3.0 million in the prior year. The gross loss improved to $37.1 million, reflecting a 32% reduction from the previous year's gross loss of $54.9 million. The company attributed the revenue decline primarily to decreased sales of its EvoAir™ air-conditioner, offset by growth in its Ionic Nano Copper Zinc solution, an airborne disinfectant product.

In terms of operational metrics, EvoAir's total current assets decreased by 8% to $726.1 million, while current liabilities increased by 41% to $2.4 million, resulting in a working capital deficit of $1.7 million. The company reported cash and cash equivalents of $199,461, a notable increase from $152,985 at the end of the previous fiscal period. The increase in cash was primarily due to improved cash flows from operating activities, which generated $10,691 compared to a cash outflow of $457,609 in the prior year.

Strategically, EvoAir has focused on expanding its product offerings and geographical reach, particularly in the HVAC sector. The company is actively pursuing plans to raise additional funding to support its operations and business expansion, including preparations for an uplisting on the Nasdaq Capital Market. This move is expected to enhance access to capital and strengthen the company's financial position. Additionally, the company has implemented a reverse stock split at a ratio of 1-for-4, effective September 11, 2024, to improve its stock price and meet listing requirements.

EvoAir's operational challenges are reflected in its increased operating expenses, which rose to $5.9 million from $3.0 million year-over-year, largely due to a rise in stock-based compensation. The company is focused on cost management and operational efficiencies to improve profitability. Despite the ongoing losses, management remains optimistic about the long-term prospects of its product lines and is committed to addressing the challenges of scaling operations and achieving economies of scale.

Looking ahead, EvoAir's management has outlined a strategic plan that includes broadening its HVAC product range, penetrating new markets, and diversifying revenue streams across various customer segments. The company aims to enhance its operational efficiencies and capitalize on emerging opportunities in the eco-friendly air-conditioning market, positioning itself for future growth.