Veea Inc. Reports $4.3 Million Net Income in Q1 2025, Revenue Declines 15%

Veea Inc. reported its financial results for the first quarter of 2025, revealing a net income of $4.3 million, a significant turnaround from a net loss of $6.5 million in the same period last year. The company’s revenue for the quarter was $14,262, a decrease of 15% from $16,770 in the prior year. The cost of goods sold increased slightly to $12,330, resulting in a gross profit of $1,932, down from $4,786 a year earlier. The operating loss narrowed to $5.8 million from $6.1 million, reflecting a reduction in general and administrative expenses, which fell by 13% to $5.1 million.

In terms of operational developments, Veea has made strategic investments in product development and marketing, with expenses in these areas rising by 129% and 305%, respectively. This increase is attributed to enhanced efforts to refine their VeeaHub® devices and expand market reach. The company also reported a notable change in the fair value of its liabilities, particularly a $10.5 million increase in the fair value of its earn-out share liability, which reflects the company's stock performance and market conditions.

Veea's balance sheet as of March 31, 2025, showed total assets of $20 million, down from $21.1 million at the end of 2024. The company’s liabilities decreased to $31.7 million from $38.1 million, primarily due to a reduction in the earn-out share liability. The stockholders' deficit improved to $11.7 million from $17 million, indicating a positive shift in the company's financial health. As of the reporting date, Veea had 36.5 million shares of common stock outstanding and 11.6 million warrants.

Looking ahead, Veea plans to fund its operations through a combination of equity and debt offerings, including proceeds from its equity line of credit program. The company anticipates cash inflows from expected tax refunds and inventory prepayments, which could total up to $7 million. Despite the ongoing challenges of operating losses and negative cash flows, Veea's management expressed confidence in their ability to secure necessary funding and continue operations over the next twelve months. The recent acquisition of Crowdkeep, Inc. is also expected to enhance Veea's product offerings and market position.