LeddarTech Holdings Inc. (LDTC) Q2 2025 Earnings Call Transcript
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Overview
The earnings call highlighted positive developments such as partnerships with major companies and a growing sales pipeline. However, financial challenges persist, with a significant net loss and high debt levels. The Q&A did not provide clarity on management's responses, leaving uncertainties. Despite strong revenue growth, the financial health concerns and capital requirements balance out the positives, leading to a neutral stock price prediction over the next two weeks.
Key Financial Performance
Revenue $239,000, up 96% from $122,000 in the year-ago quarter. The increase was primarily due to revenue derived from nonrecurring engineering (NRE) services and paid proof-of-concept projects with LeddarVision customers.
EBITDA Loss $8.4 million loss, improved from a $14 million loss in Q2 2024. The lower loss was primarily due to reduced stock-based compensation and financing-related expenses, partially offset by higher R&D expenses.
Adjusted EBITDA Loss of $12 million, compared to a loss of $8.7 million in the year-ago quarter. The higher loss was primarily attributable to increased R&D expenses as the company is no longer capitalizing a substantial portion of R&D.
Net Loss from Continuing Operations $16 million loss, compared to a $17 million loss in Q2 2024. The decreased net loss was primarily due to lower stock-based compensation and financing expenses, offset by higher R&D expenses.
Cash $9.2 million at the end of the quarter.
Debt $105 million in short- and long-term debt.
Shares Sold Approximately 600,000 shares sold, raising approximately $1.5 million.
Weighted Average Share Count 37.6 million shares.
Operating Highlights
LeddarVision: LeddarVision is a high-performance AI-powered multimodal sensor fusion and perception software platform that processes raw data from cameras, radar, and LiDAR, enabling superior accuracy and robustness in challenging driving conditions.
LeddarSim: LeddarSim is a multimodal simulation solution that reduces the cost and time for training and validating ADAS and AD systems, allowing developers to simulate a wide variety of operational design domains with significantly less real-world data.
Sales Pipeline Growth: The sales pipeline has grown substantially, representing over $2 billion in potential lifetime revenue, reflecting strong market demand for the platform.
Partnerships: Partnerships with Texas Instruments and Arm are accelerating business development, with Texas Instruments providing $10 million in prepaid royalties.
Operational Efficiency: The software-first strategy has reduced sensor count and system cost while improving performance, achieving high-resolution 360-degree perception on lower-cost edge processors.
Cost Reduction: LeddarSim can achieve the same performance as traditional methods with 1/10 of the road data, reducing costs by nearly 90%.
Design Win: Secured a significant design win with a major commercial trucking OEM, marking a transition from validation to commercialization.
Financial Strategy: Engaged a financial adviser to explore options for refinancing and recapitalizing to strengthen the balance sheet.
Risk or Challenges
Financial Risks: The company reported a net loss from continuing operations of $16 million for Q2 2025, indicating ongoing financial challenges. The company has $105 million in short- and long-term debt, which raises concerns about its financial stability.
Regulatory Risks: The company is subject to various regulatory requirements in the automotive and technology sectors, which could impact its operations and product development.
Market Competition: LeddarTech operates in a highly competitive market for ADAS and autonomous driving technologies, facing pressures from established players and new entrants.
Supply Chain Challenges: The company may face supply chain challenges that could affect the availability of components necessary for its technology, particularly as it scales production.
Capital Requirements: The company is actively seeking to secure additional capital to strengthen its balance sheet, indicating potential liquidity risks.
R&D Expenses: Increased R&D expenses, as the company is no longer capitalizing a substantial portion of R&D, could strain financial resources.
Customer Adoption: The success of LeddarTech's products, such as LeddarSim and LeddarVision, depends on customer adoption in a rapidly evolving market, which poses a risk to projected revenues.
Guidance & Outlook
LeddarVision: LeddarTech is delivering an advanced AI-based perception software for ADAS and autonomous driving, enabling superior accuracy and robustness.
Design Win: Secured a significant design win with a major commercial trucking OEM for integration into the 2028 model year.
Sales Pipeline: Sales pipeline has grown to over $2 billion in potential lifetime revenue.
Partnerships: Strategic partnerships with Texas Instruments, Arm, Black Sesame, and NVIDIA are accelerating business development and customer engagements.
LeddarSim: Introduced LeddarSim, a multimodal simulation solution that reduces data collection costs by nearly 90% and opens a new SaaS revenue opportunity.
Revenue Expectations: Revenue for Q2 2025 was $239,000, up 96% from the previous year.
EBITDA Loss: EBITDA loss for Q2 2025 was $8.4 million, an improvement from $14 million in Q2 2024.
Net Loss: Net loss for Q2 2025 was $16 million, compared to $17 million in Q2 2024.
Financial Outlook: Focus on securing capital, executing design-in activities for OEMs, and progressing the commercial pipeline for additional design wins.
Shareholder Return Plan
Shares Sold: Approximately 600,000 shares were sold on the standby equity purchase agreement, raising approximately $1.5 million.
Key Q&A
Earnings Word Cloud
LDTC Report
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