Highlights Include Introduction of Transformational Modular Technology Infrastructure in H1 2025,
Significant Reduction of Debt, Net Loss improvement of 38.7%, and Entry into Definitive Agreement to Acquire
Award-Winning Technology for an AI-Based Voice Assistant Solution
SEATTLE, Aug. 27, 2025 /PRNewswire/ -- Mynd.ai, Inc. (the "Company" or "Mynd") (NYSE American: MYND) today announced financial results for the first half of 2025 (H1 2025).
H1 2025 Key Financial Milestones:
-- Revenue of $89.3 million compared to $146.9 million for the same period
in the prior year, with the decrease primarily driven by declines in
customer spending due to budgetary reductions caused by economic
uncertainty
-- Net loss from continuing operations of $28.9 million improved by $18.3
million or 38.7% compared to $47.2 million in the same period in the
prior year
-- Cash flow from continuing operations decreased by $33.5 million compared
to the same period in the prior year, with cash reserves of $29.1 million
as of June 30, 2025
-- Reduced outstanding indebtedness by $7.4 million since year end
-- Management continuing to implement cost saving measures to mitigate
effects of education technology market headwinds
"Notwithstanding industry-wide softening throughout most of our key geographic markets, customer budget uncertainties, and increased tariffs, we are focused on positioning the Company for future success," said Arthur Giterman, Chief Executive Officer. "The introduction of our next-generation integrated solution, ActivPanel 10$(R)$ and Promethean ActivSuite(R) software, is the first step in the transformation of our core offerings designed to enhance cybersecurity, facilitate a seamless "plug and play" experience with customers' existing technology, and lower lifetime cost of ownership.
The accelerated product portfolio evolution is further enabled and enhanced by our continued focus on various cost optimization initiatives designed to improve our competitive positioning in the market and facilitate further investments in our business.
On the investment front, I'm very excited to highlight our entry into an agreement to acquire an award-winning AI voice assistant technology, which we expect to complete during the third quarter. We believe that this acquisition will allow us to accelerate and evolve our AI-enabled solution roadmap and significantly enhance the interaction of the full ecosystem of software and hardware offerings in a classroom."
Forward-Looking Statements
This press release contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements reflect Mynd's current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words "believe," "expect," "anticipate," "will, " "could," "would," "should," "may," "plan," "estimate," "intend," "predict," "potential," "continue," "optimistic," and the negatives of these words and other similar expressions generally identify forward looking statements. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled "Risk Factors" in Mynd's Annual Report on Form 20-F, filed with the SEC on March 26, 2025, as such factors may be updated from time to time in Mynd's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov and on the Company's website at www.mynd.ai. The Company shall, upon the request of any shareholder or bondholder, furnish a hard copy of Mynd's complete audited financial statements free of charge. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements, including, but not limited to, the Company's brand recognition and market reputation; student enrollment in the Company's teaching facilities; the Company's growth strategies and ability to build long-term relationships with schools and other key market participants; the Company's future business development, results of operations and financial condition; trends and competition in the early childhood education markets in which the Company intends to operate; changes in its revenues and certain cost or expense items; the expected growth of the early childhood education market in the Company's targeted addressable markets; governmental policies relating to the Company's industry, including government funding of education opportunities, the Company's ability to implement cost saving initiatives to mitigate market headwinds and general economic conditions in the markets in which the Company intends to operate. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Mynd's filings with the SEC. While forward-looking statements reflect Mynd's good faith beliefs, they are not guarantees of future performance. Mynd disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law.
Discussion of non-GAAP Financial Measures
We believe that providing the non-GAAP ("Generally Accepted Accounting Principles") information to investors, in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. We further believe that providing this information allows investors not only to better understand our financial performance, but more importantly, to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance. The non-GAAP information included in this press release should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP.
We utilize a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of the business, for making operating decisions and for forecasting and planning for future periods. Our annual financial plan is prepared both on a GAAP and non-GAAP basis, and the non-GAAP annual financial plan is approved by our board of directors. Continuous budgeting and forecasting for revenue and expenses are conducted on a consistent non-GAAP basis, in addition to GAAP, and actual results on a non-GAAP basis are assessed against the non-GAAP annual financial plan. In addition, and as a consequence of the importance of these measures in managing the business, we use non-GAAP measures and results in the evaluation process to establish management's compensation. For example, our annual bonus program payments are based in part upon the achievement of consolidated revenue and Adjusted EBITDA targets.
Reconciliations with respect to the Non-GAAP figures included in this press release to such Non-GAAP figure's most comparable GAAP figure are included in the financial tables below.
About Mynd.ai, Inc.
Seattle-based Mynd is a global leader in interactive technology offering best-in-class hardware and software solutions that help organizations create and deliver dynamic content; simplify and streamline teaching, learning, and communication; and facilitate real-time collaboration. Our award-winning interactive displays and software can be found in more than 1 million learning and training spaces across 126 countries. Our global distribution network of more than 4,000 reseller partners and our dedicated sales and support teams around the world enable us to deliver the highest level of service to our customers.
Financial Tables Follow
Mynd.ai, Inc. UNAUDITED CONSOLIDATED BALANCE SHEETS (in thousands of U.S.
dollars, except share and per share data, or otherwise noted)
June 30, 2025 December 31, 2024
---------------------------- ----------------------------
ASSETS
Current assets:
Cash and cash
equivalents $ 29,062 $ 75,317
Accounts
receivable, net of
allowance for
credit losses of
$700 and $211,
respectively 37,594 30,506
Inventories 28,705 28,638
Prepaid expenses
and other current
assets 9,419 11,601
Due from related
parties 2,809 1,561
---------------------------- ----------------------------
Total current assets 107,589 147,623
Non-current assets:
Goodwill 44,745 44,130
Property, plant,
and equipment,
net 13,626 14,595
Intangible assets,
net 37,459 39,521
Right-of-use assets 2,899 3,448
Deferred tax
assets, net 35 34
Other non-current
assets 3,439 3,268
---------------------------- ----------------------------
Total non-current
assets 102,203 104,996
Total assets 209,792 252,619
---------------------------- ----------------------------
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Current
liabilities:
Accounts payable 36,795 40,485
Accrued expenses
and other current
liabilities 36,066 45,959
Loans payable,
current 7,873 10,931
Contract
liabilities 11,767 11,281
Accrued warranties 16,026 15,749
Lease liabilities,
current 1,116 1,047
Due to related
parties 5,343 4,621
---------------------------- ----------------------------
Total current
liabilities 114,986 130,073
Non-current
liabilities:
Loans payable,
non-current 58,709 58,077
Loans payable,
related parties,
non-current -- 5,006
Contract
liabilities,
non-current 18,384 18,581
Lease liabilities,
non-current 2,246 2,761
Deferred tax
liabilities 9,643 9,756
---------------------------- ----------------------------
Total non-current
liabilities 88,982 94,181
Total liabilities 203,968 224,254
---------------------------- ----------------------------
Shareholders'
equity:
Ordinary shares par
value of $0.001;
990,000,000 shares
authorized.
458,495,740 shares
issued and
456,446,860 shares
outstanding as of
June 30, 2025.
456,477,820 shares
issued and
454,958,590 shares
outstanding as of
December 31, 2024
$10,000,000 shares,
$0.001 par value,
without
designation; none
authorized, issued
and outstanding as
of June 30, 2025
and December 31,
2024 458 456
Treasury shares, at
cost, 2,048,880
and 1,519,230
shares,
respectively (452) (342)
Additional paid-in
capital 485,591 479,480
Accumulated other
comprehensive
income 3,692 3,344
Accumulated deficit (483,465) (454,573)
---------------------------- ----------------------------
Total Mynd.ai, Inc.
shareholders'
equity 5,824 28,365
Non-controlling
interest -- --
Total shareholders'
equity 5,824 28,365
Total liabilities
and shareholders'
equity $ 209,792 $ 252,619
============================ ============================
Mynd.ai, Inc. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands of U.S.
dollars, except share and per share data, or otherwise noted)
Six months ended June 30,
-----------------------------------------------------------
2025 2024
----------------------------- ----------------------------
Revenue $ 89,272 $ 146,853
Cost of revenue 69,884 104,745
----------------------------- ----------------------------
Gross profit 19,388 42,108
Operating expenses,
net:
General and
administrative 14,928 16,419
Research and
development 7,782 13,413
Sales and marketing 21,399 22,199
Transaction-related
costs 53 125
Restructuring 4,353 1,218
----------------------------- ----------------------------
Total operating
expenses 48,515 53,374
----------------------------- ----------------------------
Operating loss (29,127) (11,266)
Other income
(expense):
Interest expense (4,913) (5,489)
Interest income 637 1,314
Gain on embedded
derivative 2,143 9,249
Other income
(expense) 2,409 (1,468)
----------------------------- ----------------------------
Total other income
(expense) 276 3,606
----------------------------- ----------------------------
Net loss from
continuing
operations, before
income taxes (28,851) (7,660)
Income tax expense (41) (39,496)
----------------------------- ----------------------------
Net loss from
continuing
operations (28,892) (47,156)
Loss from discontinued
operations, net of
tax -- (654)
----------------------------- ----------------------------
Net loss (28,892) (47,810)
----------------------------- ----------------------------
Net loss from
continuing operations
attributable to
non-controlling
interest -- --
Net loss from
discontinued
operations
attributable to
non-controlling
interests -- (70)
----------------------------- ----------------------------
Net loss attributable
to non-controlling
interests -- (70)
----------------------------- ----------------------------
Net loss attributable
to ordinary
shareholders of
Mynd.ai, Inc. from
continuing
operations (28,892) (47,156)
Net loss attributable
to ordinary
shareholders of
Mynd.ai, Inc. from
discontinued
operations -- (584)
----------------------------- ----------------------------
Net loss attributable
to ordinary
shareholders of
Mynd.ai, Inc $ (28,892) $ (47,740)
============================= ============================
Net loss per ordinary
share
From continuing
operations: Basic and
Diluted $ (0.06) $ (0.10)
From discontinued
operations: Basic and
Diluted $ -- $ (0.00)
----------------------------- ----------------------------
Total basic and
diluted $ (0.06) $ (0.10)
============================= ============================
Weighted average
shares outstanding
used in calculating
net loss per share:
Basic and diluted 456,872,902 456,477,820
Mynd.ai. Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands)
Six months ended June 30,
June 30, 2025 June 30, 2024
------------------------ ------------------------
Net loss $ (28,892) $ (47,810)
Other comprehensive
loss, net of tax of
nil:
Change in foreign
currency translation
reserve 256 211
------------------------ ------------------------
Total comprehensive
loss (28,636) (47,599)
Less: comprehensive
loss attributable to
non-controlling
interest -- (70)
------------------------ ------------------------
Comprehensive loss
attributable to
Mynd.ai Inc $ (28,636) $ (47,529)
======================== ========================
Mynd.ai, Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six months ended June 30,
------------------------------------------------------------
2025 2024
----------------------------- -----------------------------
CASH FLOWS
FROM OPERATING
ACTIVITIES:
Net loss $ (28,892) $ (47,810)
Loss from
discontinued
operations,
net of tax -- 654
----------------------------- -----------------------------
Net loss from
continuing
operations (28,892) (47,156)
Adjustments to
reconcile net
loss to net
cash used in
operating
activities:
Depreciation
and
amortization 4,697 2,728
Deferred taxes (113) 39,480
Non-cash lease
expense 766 929
Non-cash
interest
expenses 2,799 2,290
Amortization of
RDEC credit (1,005) (588)
Gain on
embedded
derivative (2,143) (9,249)
Share-based
compensation 1,037 1,131
Changes in
accounts
receivable
provision 479 --
Net realizable
value
adjustments to
inventory 396 --
Other 24 38
Change in
operating
assets and
liabilities:
Accounts
receivable 1,030 (4,185)
Inventories 811 19,547
Prepaid
expenses and
other assets 3,062 1,995
Due from
related
parties (857) 97
Accounts
payable (5,075) (6,230)
Accrued
expenses and
other
liabilities (17,545) (7,178)
Accrued
warranties (375) (2,378)
Due to related
parties 445 961
Contract
liabilities (129) 947
Lease
obligations -
operating
leases (681) (920)
----------------------------- -----------------------------
Net cash used
in operating
activities -
continuing
operations (41,269) (7,741)
Net cash
provided by
operating
activities -
discontinued
operations -- 391
----------------------------- -----------------------------
Net cash used
in operating
activities (41,269) (7,350)
----------------------------- -----------------------------
CASH FLOWS
FROM INVESTING
ACTIVITIES:
Acquisition of
property,
plant and
equipment (33) (434)
Internal-use
software
development
costs (1,467) (3,499)
----------------------------- -----------------------------
Net cash used
in investing
activities -
continuing
operations (1,500) (3,933)
Net cash used
in investing
activities -
discontinued
operations -- (650)
----------------------------- -----------------------------
Net cash used
in investing
activities (1,500) (4,583)
----------------------------- -----------------------------
CASH FLOWS
FROM FINANCING
ACTIVITIES:
Repayment of
Revolver (11,000) (16,770)
Proceeds from
Revolver 8,000 6,000
Repayment of
Paycheck
Protection
Program Loan (82) (96)
Share
repurchase (110) --
Taxes withheld
and paid
related to net
share
settlement of
share-based
compensation
awards (49) --
----------------------------- -----------------------------
Net cash used
in financing
activities -
continuing
operations (3,241) (10,866)
Net cash used
in financing
activities -
discontinued
operations -- --
----------------------------- -----------------------------
Net cash used
in financing
activities (3,241) (10,866)
----------------------------- -----------------------------
Net change in
cash and cash
equivalents (46,010) (22,799)
Cash and cash
equivalents,
beginning of
period 75,317 87,804
Exchange rate
effects (245) 493
Cash and cash
equivalents,
end of period $ 29,062 $ 65,498
============================= =============================
Supplemental
disclosure of
non-cash
investing and
financing
activities
transactions:
Continuing
operations:
Forgiveness of
related party
payables $ 5,217 $ --
Lease assets
acquired in
exchange for
lease
liabilities $ -- $ 39
Convertible
notes issued
in exchange
for accrued
PIK interest $ 1,703 $ 1,643
Decrease in
goodwill due
to measurement
period
adjustments
relating to
business
acquisition,
net $ -- $ 1,228
Discontinued
operations:
Lease assets
acquired in
exchange for
lease
liabilities $ -- $ 3,516
Supplemental
disclosure of
cash
transactions:
Cash paid for
interest $ 1,841 $ 2,730
Cash refund,
net of cash
paid for
taxes $ 1,450 $ 967
Mynd.ai. Inc.
SUPPLEMENTAL FINANCIAL INFORMATION
Reconciliation of Net Income to Adjusted EBITDA
(in thousands)
Six months ended June 30,
-------------------------------------------------------------
2025 2024
----------------------------- ------------------------------
(in thousands)
Net loss from
continuing
operations $ (28,892) $ (47,156)
Interest expense 4,913 5,489
Interest income (637) (1,314)
Income tax expense 41 39,496
Depreciation and
amortization 4,697 2,728
Share-based
compensation 1,037 1,131
Gain on embedded
derivative (2,143) (9,249)
Other (income)
expense, net (2,409) 1,468
Transaction-related
costs(1) 53 125
Restructuring
costs(2) 4,353 1,218
Litigation costs and
penalties(3) -- --
----------------------------- ------------------------------
Adjusted EBITDA $ (18,987) $ (6,064)
============================= ==============================
(1) Transaction-related costs are non-recurring costs related to acquisitions
and disposals of businesses, as well as similar corporate- level
transactions.
(2) Refers to employee severance costs, contract termination costs, facility
restructuring, and business restructuring efforts undertaken by management.
(3) Refers to costs incurred to defend against, opportunistically settle, and
establish a reserve for claims associated with litigation, as well as any
related penalties incurred for such litigation. No such costs were incurred in
the six months ended June 30, 2024 or 2025.
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SOURCE Mynd.ai
(END) Dow Jones Newswires
August 27, 2025 08:00 ET (12:00 GMT)