Loading...
01/11 07:56
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary and Q&A highlight strong revenue growth expectations, market expansion, and operational readiness. The company is addressing supply chain challenges and has a strategic plan for revenue visibility. While there are concerns about NASDAQ compliance and communication, the focus on immediate value opportunities and international interest in their platform are positive indicators. The potential for a new partnership and strong guidance further support a positive sentiment.
Revenue $1.9 million for Q3 2025, down $0.1 million sequentially, but up $1.6 million year-over-year. The year-over-year increase is attributed to strategic decisions to defer work in cooperation with customers.
Operating Expenses $7.8 million for Q3 2025, up $1.9 million year-over-year, but down $0.6 million sequentially. The year-over-year increase is due to higher operational costs, while the sequential decrease reflects cost management efforts.
G&A Costs $2.9 million for Q3 2025, a $0.1 million increase year-over-year, but a $1.4 million decrease sequentially. The sequential decrease is due to nonrecurring transaction costs related to the SeaTrepid acquisition in the first half of 2025.
Net Loss $6.6 million for Q3 2025, a $24.5 million increase year-over-year, but a $0.8 million decrease sequentially. The year-over-year increase is due to gains in fair value of convertible debentures reported in Q3 2024, while the sequential decrease reflects improved financial performance.
Adjusted Net Loss $6.7 million for Q3 2025, compared to $6.4 million in Q3 2024 and $7.4 million in Q2 2025. The year-over-year increase is minor, while the sequential improvement reflects better cost management.
Cash $5.5 million at the end of Q3 2025, up from $2.7 million in Q2 2025. The increase is driven by funding received through an at-the-market offering and debt-to-equity conversions by lenders.
Aquanaut system: Achieved a milestone by successfully operating at a depth of 2,300 meters in the Gulf of America, demonstrating operational advancement and industry differentiation.
Nauticus ToolKITT: Expanded its application to third-party ROVs, completing pool and open water testing, and performing commercial operations, validating its scalability and flexibility.
Manipulator system: Progressed in design and began parts and tooling procurement for next-generation manipulators.
Deep sea mining sector: Announced a $250 million equity facility to pursue opportunities in this sector, leveraging autonomous capabilities for safe and cost-efficient operations.
Customer base expansion: Observed growth in customer base with positive feedback, and increased interest from commercial and government sectors.
Cost reduction in testing: Identified a lake for testing Aquanaut capabilities at significantly lower costs compared to offshore testing.
Debt conversion and funding: Converted a portion of outstanding debt into equity and raised funds through an at-the-market offering, strengthening financial position.
Shift to autonomy: Focused on reducing offshore personnel through autonomous surface and subsea vehicles, aligning with safety, sustainability, and cost priorities.
Software licensing and partnerships: Opened new opportunities for software licensing and partnerships through successful deployment of Nauticus ToolKITT on third-party ROVs.
Revenue shortfall in Q3: The company experienced a slight revenue shortfall in Q3 compared to Q2 due to a strategic decision to defer work in cooperation with customers. This decision, while aimed at long-term benefits, impacted near-term financial performance.
Operating expenses and net loss: Operating expenses for the quarter were $7.8 million, and the net loss was $6.6 million. While there was a sequential decrease in net loss, the company still faces financial challenges, including a $24.5 million increase in net loss compared to Q3 2024.
Supply chain risks: Global trade turbulence poses risks to procurement and logistics efforts. The company has identified high-risk, long-lead components and is working to secure critical spare parts, but these challenges could disrupt project timelines.
Customer project delays: Some 2025 project work has been deferred to 2026, which could delay revenue realization and impact financial performance in the short term.
NASDAQ listing concerns: The company is taking measures to maintain its NASDAQ listing, including raising funds and converting debt to equity. However, the need for these actions highlights financial vulnerabilities.
Testing and operational costs: Testing offshore is expensive, and while the company is using a lake for cost-effective testing, this approach may have limitations compared to real-world offshore conditions.
Future Revenue and Contracts: The company deferred near-term revenue in Q3 2025 to enhance vehicle capabilities for deepwater workflows, positioning for longer-term contracts in 2026. Some 2025 project work has been pushed into 2026, with continued client enthusiasm and commitment.
Technology Development and Testing: The company completed its deepest subsea test to date, operating the Aquanaut system at 2,300 meters depth. Testing is ongoing in a cost-effective lake environment, focusing on autonomous mooring line and riser inspections for commercial implementation in 2026. A launch system design for shore-based operations is under development to reduce costs.
Market Expansion and Customer Engagement: The 2026 pipeline is filling with stronger demand signals and deeper strategic alignment with partners. The company is expanding into adjacent markets and accelerating commercial adoption of its autonomous subsea solutions.
Software and Product Enhancements: The Nauticus ToolKITT operating system has been successfully integrated into third-party ROVs, opening opportunities for software licensing and partnerships. The system's flexibility and scalability are expected to drive recurring software revenue in 2026.
Engineering and Supply Chain Management: The company is enhancing the Aquanaut's efficiency and reliability for ultra-deepwater environments. Proactive measures are being taken to secure critical spare parts ahead of the 2026 offshore season to ensure operational readiness.
Investor Engagement: An Investor Day is planned for early 2026 in Stuart, Florida, to showcase the company's technology and operations.
The selected topic was not discussed during the call.
The earnings call summary and Q&A highlight strong revenue growth expectations, market expansion, and operational readiness. The company is addressing supply chain challenges and has a strategic plan for revenue visibility. While there are concerns about NASDAQ compliance and communication, the focus on immediate value opportunities and international interest in their platform are positive indicators. The potential for a new partnership and strong guidance further support a positive sentiment.
The earnings call presents a mixed picture: strong service revenue growth and strategic alliances are positive, but significant challenges remain. The company's cash position has weakened due to acquisitions, and there are delays in technology readiness and supply chain disruptions. Although optimistic guidance for 2025 exists, the Q&A reveals cautious analyst sentiment due to unresolved financial and operational uncertainties. The lack of clear guidance and current financial strain offset the potential positives, leading to a neutral outlook for the stock price in the short term.
The earnings call presents a mixed picture. While technological advancements and reduced net losses are positive, the company faces significant risks, including regulatory issues, competitive pressures, and integration challenges. The lack of shareholder returns and flat operating expenses further dampen sentiment. The Q&A reveals cautious optimism about revenue targets, but management's reluctance to provide clear guidance on key partnerships adds uncertainty. Overall, the neutral sentiment reflects a balance between positive developments and persistent challenges, suggesting limited stock price movement in the short term.
The earnings call highlights strong financial performance with a 25% revenue increase and improved margins. The transition to a commercial revenue-generating company, along with upcoming contract announcements, suggests growth potential. The Q&A reveals confidence in 2025 revenue surpassing $16 million and competitive advantages in manipulators. Despite some uncertainties, overall sentiment is positive, driven by improved financials and market expansion. However, the lack of a share buyback program and some risks related to new initiatives keep the sentiment from being strongly positive.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
