Phoenix Motor Inc. reported significant declines in both revenue and profitability for the third quarter and the first nine months of 2025, according to its latest 10-Q filing. For the three months ending September 30, 2025, the company generated revenues of $2.5 million, a decrease of 47.9% compared to $4.8 million in the same period last year. The nine-month revenue figures showed a more pronounced decline, dropping 63.2% to $9.6 million from $26.2 million in 2024. The company attributed this downturn primarily to cash shortages that have hampered production and the impact of its acquisition of Proterra's transit business unit, which initially boosted sales in the previous year.
The cost of revenues also decreased, totaling $1.8 million for the third quarter of 2025, down from $3.7 million in 2024, and $6.7 million for the nine months, compared to $20.8 million in the prior year. This reduction in costs was linked to the lower sales volume. Despite the drop in revenue, the gross profit margin improved slightly, reaching 26.9% for the third quarter and 30.6% for the nine months, attributed to higher margins on limited sales of transit buses and electric vehicles.
Operationally, Phoenix Motor has faced challenges, including a reduction in its workforce and ongoing supply chain issues that have affected production capabilities. The company reported a net loss of $3.7 million for the third quarter, an improvement from a loss of $5.6 million in the same quarter of 2024. However, the nine-month net loss was $8.4 million, contrasting sharply with a net income of $14.1 million in the previous year, largely due to the prior year's gains from the Proterra acquisition.
In terms of strategic developments, Phoenix Motor completed the acquisition of Proterra's transit business unit in January 2024, which has since allowed the company to expand its product offerings in electric transit buses. As of September 30, 2025, the company has delivered a total of 141 electric vehicles to over 48 customers, marking a significant milestone in its operational history. The company is also focusing on improving liquidity and operational efficiency through various cost-cutting measures and strategic partnerships.
Looking ahead, Phoenix Motor has expressed concerns regarding its ability to continue as a going concern, given its recurring losses and cash flow challenges. The company plans to pursue additional funding through private placements and debt financing while implementing measures to enhance operational efficiency. However, there is no assurance that these strategies will be successful, and the company may need to seek further financing to sustain its operations.
About PHOENIX MOTOR INC.
Phoenix Motor Inc. designs, manufactures, and integrates electric drive systems and light to medium-duty electric vehicles, including commercial trucks, shuttle buses, and transit buses. Serving North American public transit, utility, municipal, and commercial fleets, it leverages proprietary technology, industry experience, and strategic partnerships to deliver cost-effective, zero-emission transportation solutions. The company emphasizes scalable production, regulatory compliance, and innovation to compete in the growing EV market.
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