Forward Industries Reports 50.5% Revenue Decline and $850,000 Net Loss in Latest Quarter

Forward Industries, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company generated revenues of $2.5 million for the three months ended June 30, 2025, a decrease of 50.5% compared to $5.0 million in the same period last year. For the nine months ending June 30, 2025, revenues totaled $10.2 million, down 32.8% from $15.2 million in the prior year. The company also reported a net loss of $850,000 for the quarter and $3.0 million for the nine-month period, compared to losses of $400,000 and $1.3 million, respectively, in the previous year.

The decline in revenue is attributed primarily to the loss of a major customer in December 2024, which significantly impacted the company's operations. Additionally, Forward Industries has undergone strategic shifts, including the discontinuation of its retail distribution segment in July 2023 and the sale of its OEM distribution segment in May 2025. These changes have resulted in a reclassification of these operations as discontinued, affecting overall financial performance. The company has also faced challenges in maintaining customer engagement and project volume, leading to a substantial operating loss of $2.6 million for the quarter.

Operationally, Forward Industries has made efforts to reduce costs, including workforce reductions in January and June 2025. The company reported a decrease in sales and marketing expenses, which fell to $140,000 from $188,000 year-over-year. However, general and administrative expenses increased slightly to $1.8 million, reflecting higher professional fees related to the sale of the OEM division. The company’s gross profit margin turned negative, with a gross loss of $621,000 for the quarter, compared to a gross profit of $1.3 million in the prior year.

As of June 30, 2025, Forward Industries had total assets of $8.3 million, down from $14.8 million a year earlier, and total liabilities of $4.9 million. The company’s accumulated deficit reached $22.6 million. Despite these challenges, Forward Industries has raised capital through the issuance of preferred stock and warrants, generating approximately $970,000 in net proceeds. The company also reported a cash balance of $1.3 million at the end of the quarter, with additional capital raised through an equity line of credit and a registered direct offering in August 2025.

Looking ahead, Forward Industries faces substantial doubt about its ability to continue as a going concern, as indicated by its management. The company plans to continue exploring opportunities for additional capital and strategic partnerships to stabilize its financial position. However, the ongoing uncertainty in market conditions and customer commitments poses significant risks to its future operations and financial health.