Sono Group N.V. Reports €26,000 Revenue in Q1 2025, Faces Operating Loss of €1.8 Million

Sono Group N.V. reported its financial results for the first quarter of 2025, revealing a revenue of €26,000, a notable increase from zero revenue in the same period last year. The company recorded a gross margin of €6,000, with a cost of sales amounting to €20,000. Despite this revenue generation, Sono Group faced an operating loss of €1.8 million, a significant decline from the previous year's operating income of €61.3 million, which was bolstered by a one-time gain from the reconsolidation of its subsidiary, Sono Motors GmbH.

The company's financial position showed a decrease in total assets, which fell to €2.53 million from €3.05 million at the end of 2024. Current assets also declined, primarily due to a reduction in cash reserves, which decreased to €801,000 from €1.35 million. On the liabilities side, total liabilities decreased to €16.38 million from €25.73 million, largely due to a reduction in convertible notes payable, which dropped from €24.04 million to €15.31 million. The accumulated deficit improved slightly to €312.59 million from €321.43 million.

Strategically, Sono Group has pivoted its business model to focus exclusively on retrofitting and integrating solar technology into third-party vehicles, having terminated its Sion passenger car program in early 2023. This shift has led to a restructuring process, including the exit from self-administration proceedings in February 2024. The company is now concentrating on expanding its partnerships with original equipment manufacturers (OEMs) to drive adoption of its solar solutions. As of March 31, 2025, Sono Group had a cash balance of €801,000 and is relying on external financing, including commitments from Yorkville, to support its operations through the first quarter of 2026.

Operationally, the company reported an increase in research and development expenses, which rose to €440,000 from €221,000 year-over-year, reflecting ongoing efforts to enhance its solar technology. Selling and distribution expenses also increased significantly to €240,000 from €53,000, indicating a ramp-up in marketing and sales activities. The company’s employee headcount remains stable, with no significant changes reported in staffing levels.

Looking ahead, Sono Group anticipates continued operating losses as it invests in scaling its operations and expanding its product offerings. The company has expressed substantial doubt about its ability to continue as a going concern, contingent on securing additional funding and customer contracts. Management is actively exploring various financing options to support its growth strategy, emphasizing the importance of achieving operational milestones and maintaining investor confidence in the coming months.