0001493152-26-009206
SEC filingGreenwave Technology Solutions reported Q3 2025 revenues of $12.7M, a 49% increase from $8.5M in Q3 2024, driven by growth in both metal recycling and hauling services. However, gross profit declined slightly to $3.5M from $3.5M due to margin compression, while operating loss widened to -$4.9M from -$4.4M as operating expenses increased to $8.4M. Net loss available to common stockholders was -$5.3M, a 10% increase from -$4.8M in the prior year quarter. The company ended the period with $1.5M in cash, a working capital deficit of -$13.7M, and an accumulated deficit of -$514.2M, raising substantial doubt about its ability to continue as a going concern. The company regained compliance with Nasdaq's minimum bid price requirement in September 2025 but faces ongoing challenges with timely SEC filings.
Greenwave Technology Solutions reported mixed Q3 2025 results with revenue growth but deteriorating profitability. Revenue increased 49% year-over-year to $12.7M from $8.5M in Q3 2024, driven by expansion in both metal recycling and hauling operations. However, gross profit declined slightly to $3.5M from $3.5M as cost of revenues increased disproportionately. Operating loss widened to -$4.9M from -$4.4M due to higher operating expenses, particularly payroll and related expenses which increased to $3.1M from $2.3M. Net loss available to common stockholders was -$5.3M, a 10% increase from -$4.8M in the prior year quarter. The company's financial position remains challenging with a working capital deficit of -$13.7M and accumulated deficit of -$514.2M.
Revenue growth was driven by both major operating segments. Scrap Metal Recycling revenue increased 73% year-over-year to $9.0M in Q3 2025, representing approximately 71% of total revenue. Hauling revenue grew 12% to $3.7M, accounting for 29% of total revenue. The Other segment, primarily comprising rental income, declined 67% to $0.01M. Customer concentration remains significant, with five customers accounting for approximately 61% of Q3 2025 revenues. The company operates primarily in Virginia and northeastern North Carolina markets, with recent expansion into Cleveland, Ohio. Revenue growth was attributed to increased metal prices and expanded hauling operations.
Gross margin declined significantly to 27.6% in Q3 2025 from 41.7% in Q3 2024, reflecting margin compression in both metal recycling and hauling operations. Cost of revenues increased 85% to $9.2M, outpacing revenue growth of 49%. Operating expenses increased 5% to $8.4M, with payroll and related expenses rising 36% to $3.1M due to expanded operations. Depreciation and amortization expense increased 12% to $2.2M. Hauling and equipment maintenance costs increased 16% to $2.1M. These factors contributed to an operating margin of -38.8%, deteriorating from -52.2% in the prior year quarter.
The company's liquidity position remains precarious. Cash declined to $1.5M at September 30, 2025 from $2.6M at December 31, 2024. Net cash used in operating activities was -$14.8M for the period, while net cash provided by financing activities was $5.8M, primarily from equity issuances. Total assets were $59.9M, with property and equipment net of $37.5M representing the largest component. Total liabilities were $27.2M, including current liabilities of $20.7M. Stockholders' equity was $32.7M, though accumulated deficit stands at -$514.2M. The company has substantial debt obligations, including non-convertible notes payable of $6.2M and related party notes of $5.4M.
The company faces significant challenges, including substantial doubt about its ability to continue as a going concern. Management cites the need for additional financing, which may involve equity dilution or restrictive debt covenants. The company regained compliance with Nasdaq's minimum bid price requirement in September 2025 after effecting a 1-for-110 reverse stock split. However, the company continues to face Nasdaq listing deficiencies related to delayed SEC filings, with deadlines extended to March 6, 2026 for the Q3 2025 10-Q. Key risk factors include scrap metal price volatility, compliance with environmental regulations, and dependence on key customers. The company aims to open facilities with rail or port access to expand market reach.