The chart below shows how GP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GP sees a -1.95% change in stock price 10 days leading up to the earnings, and a -6.32% change 10 days following the report. On the earnings day itself, the stock moves by -0.20%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Quarterly Revenue Surge: 1. Significant Revenue Growth: GreenPower generated revenue of $5.3 million for the quarter, marking a 78% increase compared to the previous quarter.
Strong Demand for Deliveries: 2. Increased Vehicle Deliveries: The company shipped 8 EV Stars to Wash U, with a total of 10 planned deliveries, alongside 9 Type D BEAST all-electric school buses, indicating strong demand and follow-on orders.
Cost Reduction Achievement: 3. Cost Management Success: SG&A costs decreased by $630,000 or 12.1% compared to the same quarter last year, reflecting effective cost management strategies.
Order Pipeline Strength: 4. Strong Order Pipeline: GreenPower has over 300 live orders and qualified leads for all-electric school buses, positioning the company for future growth.
Capital Raise Success: 5. Successful Capital Raise: In October, GreenPower completed an underwritten offering of 3 million common shares, raising gross proceeds of $3 million to support production and development efforts.
Negative
Low Revenue Performance: 1. Low Revenue Generation: GreenPower generated only $5.3 million in revenue for the quarter, which, despite being a 78% increase from the previous quarter, remains significantly low for a company in the EV sector.
Negative Gross Profit Margin: 2. Negative Gross Profit Margin: The company reported a gross profit of approximately $460,000, translating to a gross profit margin of only 8.6%, primarily impacted by negative margins in the Truck Body division due to lower throughput.
Cash Flow Constraints: 3. Limited Liquidity: GreenPower finished the quarter with only $850,000 in available liquidity from its revolving credit facility, indicating potential cash flow constraints for ongoing operations.
External Funding Reliance: 4. Dependence on External Funding: The company continues to rely on the EDC revolving credit facility for funding production, highlighting a lack of self-sustaining cash flow from operations.
Market Position Challenges: 5. Underwhelming Market Position: In the medium and heavy-duty EV market, GreenPower has not encountered any competitors disclosing the sale of tradable credits, suggesting a lack of market traction compared to established players like Tesla.
GreenPower Motor Company Inc. (GP) Q2 2025 Earnings Call Transcript
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