Revenue was $60.6 million, down 48% YoY from $116.5 million, driven by a 48.8% drop in sales volume to 274 MWh (from 536 MWh) (CFO, prepared).
Gross profit was $19.2 million; gross margin 31.6% vs. 36.9% in Q1 2025, pressured by lower fixed cost absorption, raw material/energy price increases, and tariff costs (CFO).
GAAP net profit of $48.2 million; adjusted net loss of $14.6 million (vs. adjusted net profit of $19.3M in Q1 2025) after noncash warrant/convertible loan fair value changes of $63.8M and $1M stock-based compensation (CFO).
Adjusted EBITDA was negative $5.5 million vs. positive $28.5 million in prior year period (CFO).
Operating expenses: $27.1 million, down 7.1% YoY; R&D up 6.8% to $0.6M; G&A down 8.3%; selling & marketing down 21.4% (CFO).
Cash used in operating activities: $22.8 million (vs. $7.2M generated in Q1 2025); CapEx $2.8 million (Phase 3.2 and existing facilities) (CFO).
Total cash, cash equivalents & restricted cash: $174 million at quarter end; net cash increase of $4.8 million after financing activities of $29.3M (CFO).
Regional revenue: Europe 71% of quarterly revenue (vs. 52% in prior year); APAC declined 66% YoY; U.S. decline due to largest customer pulling forward deliveries into 2025 (CFO).
Phase 3.2 expansion: trial production complete on electrode section; assembly/formation equipment undergoing material-based commissioning; expects SOP in 2026, adding up to 2 GWh of annual capacity (CEO, CFO).
Global operational capacity: ~4 GWh from primary Huzhou lines (48Ah, 53.5Ah, 55Ah, 120Ah), Phase 3.1 (serial production), and Phase 3.2 (ramp-up); legacy lines for lower volumes; Clarksville pack assembly line established; German facility produces VA modules (CEO, Q&A excerpt).
Official guidance: No explicit forward revenue or margin guidance given; management expects “normalized delivery schedule and steady ramp-up” in second half of 2026; Q1 dip described as “temporary” (CEO, prepared).
Management Quotes
“Our first quarter revenue was $60.6 million, reflecting a unique set of challenges, which created a year-over-year dip that we believe to be temporary.” — CEO
“We expect some continued pressure from the Phase 3.2 ramp-up costs and the current raw material price increases, but aim to maintain a strong margin profile.” — CEO
“KAF is not just a battery system. It is a potential total solution to electrify a market that included nearly 0.5 million conventional school buses in the U.S.” — CEO
“Even with these reduced sales volumes in the quarter, our margin position held strong, demonstrating the value of our technology.” — CFO
“We are focused on capitalizing on the electric mobility applications, including our 290Ah packs and the KAF powertrain and the new capacity from Huzhou Phase 3.2 to offset these regional headwinds.” — CEO