XCHG Reported H1 2025 Revenue Of $12.5M Vs $20.1M YoY, EPS Loss Of $(0.00), Taps Joel Adalberto Gallo As CFO

Benzinga
2025/09/23

Financial Highlights for the First Six Months of 2025(in USD millions, except for per ordinary share data and percentage)

For the Six Months Ended
June 30,
20242025  
Revenues20.112.5   
Gross profit9.86.4   
Gross margin48.7%51.3% 
Operating loss(0.004)(7.4) 
Net loss(0.2)(7.3) 
Adjusted1 net loss(0.05)(4.6) 
Net loss attributable to ordinary shareholders(1.0)(7.3) 
Loss per ordinary share-basic and diluted(0.001)- 
Loss per Class A and Class B ordinary share–Basic and diluted-(0.003) 

___________________________________1 See "Use of Non-GAAP Financial Measures" and "Unaudited Reconciliation of GAAP and Non-GAAP Results" included in this release for further details.

  • Revenues were US$12.5 million for the first six months of 2025, representing a decrease of 38.2% from US$20.1 million for the same period of 2024. Product revenues were US$12.1 million for the first six months of 2025, representing a decrease of 39.4% from US$19.9 million for the same period of 2024. The year-over-year decrease was mainly due to external policy dynamics, including trade policy turbulence and evolving renewable energy regulations. These factors led certain customers to temporarily delay procurement decisions, contributing to a softer order volume in the first half of 2025. Service revenues were US$0.4 million for the first six months of 2025, representing an increase of 87.5% from US$0.2 million for the same period of 2024. The year-over-year increase was mainly due to the increase in maintenance services revenue.
  • Cost of revenues was US$6.1 million for the first six months of 2025, representing a decrease of 41.3% from US$10.3 million for the same period of 2024. The year-over-year decrease was largely in line with the decrease in revenue.
  • Gross margin was 51.3% for the first six months of 2025, compared with 48.7% for the same period of 2024. Gross margins have remained stable between the first six months of 2025 and 2024.
  • Selling and marketing expenses were US$5.2 million for the first six months of 2025, representing an increase of 18.4% from US$4.4 million for the same period of 2024. The year-over-year increase was mainly due to the increase in expenses for product promotion.
  • Research and development expenses were US$4.1 million for the first six months of 2025, representing an increase of 88.6% from US$2.2 million for the same period of 2024. The year-over-year increase was mainly due to the increase in new product research and development costs.
  • General and administrative expenses were US$4.6 million for the first six months of 2025, representing an increase of 39.7% from US$3.3 million for the same period of 2024. The year-over-year increase was mainly due to increases in share-based compensation for certain employees and non-employee consultants of the Group, which partially net-off by the increasing gain on foreign currency exchange.
  • Operating loss was US$7.4 million for the first six months of 2025, compared with US$0.004 million for the same period of 2024.
  • Net loss was US$7.3 million for the first six months of 2025, compared with US$0.2 million for the same period of 2024. Excluding share-based compensation, changes in fair value of financial instruments and gain on extinguishment of convertible debt, adjusted net loss was US$4.6 million for the first six months of 2025, compared with US$0.05 million for the same period of 2024.
  • Net loss attributable to ordinary shareholders was US$7.3 million for the first six months of 2025, compared with US$1.0 million for the same period of 2024.
  • Basic and diluted loss per Class A and Class B ordinary share was US$0.003 for the first six months of 2025, compared with basic and diluted loss per ordinary share of US$0.001 for the same period of 2024.
  • Cash and cash equivalents were US$16.3 million as of June 30, 2025, compared with US$26.8 million as of December 31, 2024.

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