Nuvve Holding posts Q3 revenue decline to $1.6 million, anticipates improvements in cash burn and operational efficiency moving forward.

Gregory - (00:00:00)

In general, our subsidiary base structure is working well, bringing more accountability across the organization. Fundraising is underway and Nuvve Holding will be in a position to share more about our capitalization plan soon. NASDAQ gave us until December 31st to fix our bid price and shareholder equity deficiencies, and we are very confident we'll be able to address these deficiencies following that timeline and we have already received a shareholder approval for the reverse stock split. Some updates on our Crypto strategy Now Though we have not announced a full scale move into the crypto space, we still could see the convergence of energy, artificial intelligence and crypto at the core of our platform deployment. We had announced a potential purchase of a hive token. We still have not purchased such acquisition as we are still analyzing our best opportunity for integration of the blockchain into our platform. Indeed, multiple parameters have to be considered, including technical, economic, regulatory and operational, especially cybersecurity and smart contract capabilities. Looking closer into the quarter, the hardware revenue is more in line with our expectation and we see a potential strong Q4, but for that I will let David take you through the details of our financials. David.

David - (00:01:26)

Thanks Gregory. I will start with a recap of third quarter 2025 results. In the third quarter we generated total revenues of 1.6 million compared to 1.9 million in the third quarter of 2024. The decrease was primarily driven by lower service revenues due to the absence of management fees earned related to the Fresno EV Infrastructure project versus the same period last year. Similarly, year to date, through September 30, 2025, total revenues were 2.8 million, which compares to 3.5 million for the prior year period. The year over year decrease in revenues is also driven by lower service revenues due to the absence of management fees earned related to the Fresno EV infrastructure project this year versus last year, margins on products, services and Grant revenues were 52% for the third quarter of 2025 compared to 52.1% for the year ago period. Year to date margins through September 30, 2025 were 46.8% compared with 42% for the year ago period. Our gross margins year to date have increased 480 basis points due to higher profitability on our service revenues. As a reminder, margins can be lumpy from quarter to quarter depending on the mix. DC charger gross margins at standard pricing generally range from 15% to 25%, while AC charger gross margins are approximately 50%, but in $ terms are a small fraction of the revenue of the DC charger grid service revenue margins are generally 30% while software and engineering service margins are as high as 100%. Operating costs excluding cost of sales was 5.9 million for the third quarter of 2025 compared to 15 million for the second quarter of 2025 and 2.8 million for the third quarter of 2024. Operating costs were elevated last quarter due to non recurring grants of 8.2 million paid to consultants. We engaged to support our digital asset strategy. Cash operating expenses excluding cost of sales, stock compensation, depreciation amortization expense was 5.4 million in the third quarter of 2025 versus 5.7 million in the second quarter of 2025 versus 2.2 million in the third quarter of 2024. This represents an increase of 3.2 million in expenses over the same quarter last year. Other income was 0.4 million in the third quarter of 2025 compared to 0.2 million in the third quarter of 2024. Both periods benefited from non cash gains from the change in the fair value of warrants or debt offset by interest expense. Net loss attributed to Nuvve Holding stockholders increased in the third quarter of 2025 to 4.5 million from a net loss of 1.6 million in Q3 of 2024. The increase was primarily a result of higher operating expenses previously mentioned. Now turning to our balance sheet, we had approximately 0.9 million in cash as of September 30, 2025 excluding 0.3 million in restricted cash, which represents a decrease of 0.8 million from last quarter. The decrease was a result of 3.4 million used in operating activities and the repayment of debt of 2.3 million offset by proceeds from common stock offerings. Turning to the quarter, inventories were flat at 4.3 million at September 30th, 2025 compared to the second quarter of 2025. During the quarter, accounts receivable increased by 0.8 million to 1.1 million at September 30th, 2025 Compared to the second quarter of 2025 due to higher shipments of DC chargers this quarter compared with last quarter. Accounts payable at the end of the third quarter of 2025 was 2.9 million, an increase of 1.5 million compared to the second quarter of 2025 of 1.4 million. Accrued expenses at the end of the third quarter of 2025 was 5.7 million, an increase of 0.1 million compared to the 2nd quarter of 2025 of 5.6 million. Now turning to our megawatts under management and estimated future grid service revenues. As a reminder, megawatts under management is a metric we use to quantify the aggregated amount of electrical capacity from the deployment of our V1G and V2G chargers, which are primarily deployed in the electric school bus market in the US and in light duty fleet deployments in Europe. In addition to stationary battery. Currently, these chargers and batteries are located throughout the United States and Europe. Megawatts under management in the third quarter increased 3.1% over the second quarter of 2025 to 26.4 megawatts from 25.6 megawatts and and a 9.6% decrease compared to the third quarter of 2024. In terms of its composition, 0.2 megawatts were from stationary batteries and 26.4 megawatts were from EV chargers. The year over year decline is primarily related to the decommissioning of batteries under management due to site requirements. Megawatts under management from EV chargers increased to 25.4 in the third quarter of 2025, an increase of 0.7 over the first quarter of 2025. We continue to expect further growth in our megawatts under management in 2025 as we continue to commission our backlog of customer orders we have earned. In addition to new business, we anticipate winning, which we have visibility to in our pipeline for both EV chargers and stationary batteries. Now, turning to our backlog, on September 30th our hardware and service backlog decreased to 19 million, a decrease of 0.1 million from 19.1 million reported at June 30th, 2025. As we look out to the next several quarters, we expect to see more developments on our New Mexico contract and projects we are working on in Japan. We also anticipate improvements in our cash burn resulting from the benefits of lower operating costs compared with last year. That concludes my portion of the prepared remarks. Gregory, back to you to conclude.

Gregory - (00:08:52)

Thank you David. In summary, we are very excited about our direction towards stationary storage. We expect a few more wins in the next few weeks and we'll share them as they become available and those agreements are signed and finalized. These battery deployments will come in addition to the charging station business that David just described. Thank you very much for listening to us today.

OPERATOR - (00:09:18)

We will now begin the Question and Answer session. To ask a question, you may press Star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. At this time, we will pause momentarily to assemble our roster. Again, if you have a question, please press star and then one. Questions. Showing no questions. This will conclude our question and answer session. I would like to hand the conference back over to Gregory Polanze for any closing remarks.

Gregory Polanze - (00:10:35)

I would like to thank everybody who was listening to us today, and we are looking forward to sharing more with you about our progress over the next few weeks. Thank you very much. Bye. Bye.

OPERATOR - (00:10:46)

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.