investors.gauzy.com
Gauzy Ltd. Announces First Quarter 2025 Results
May 13, 2025
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Strong Demand and Backlog Growth Continued into 2025
Launches Serial Production for GM’s Cadillac Celestiq SPD Rooftop
Expands Gross Margins, Highlighting the Benefits of Scale and Operational Improvements
Reaffirms 2025 Guidance of Healthy Double-Digit Revenue Growth and First Ever Full-Year of Positive Adjusted EBITDA
Signs $10 Million Debt Financing with the Third Largest Israeli Bank Toward Previously Disclosed Plan to Raise $20 Million of Debt
TEL-AVIV, Israel and NEW YORK, May 13, 2025 (GLOBE NEWSWIRE) -- Gauzy Ltd. (Nasdaq: GAUZ) (“Gauzy” or the “Company”), a global leader of vision and light control technologies, today announced financial results for the first quarter ended March 31, 2025.
First Quarter 2025 Highlights (Compared to First Quarter 2024)
- Revenues of $22.4 million, compared to $24.7 million
- Gross margin of 25.6%, compared to 25.1%
- Net loss of $10.8 million compared to a net loss of $13.2 million
- Non-GAAP Adjusted net loss of $9.1 million compared to an adjusted net loss of $10.0 million
- Adjusted EBITDA of ($5.5) million compared to ($4.8) million
- Purchase order backlog of $35.7 million at quarter end
- Total available liquidity of $36.2 million, including cash of $1.2 million and $35.0 million undrawn credit facility at quarter end
- Eyal Peso, Gauzy Co-Founder and Chief Executive Officer, commented, “Demand for our products remains strong with our multi-year contracted backlog continuing to build and quarter end backlog purchase orders up $5 million since the start of the year. We're particularly encouraged by new commitments and collaborations with industry leading customers and partners such as Air France and Daimler. Our solid start to 2025 revenues was temporarily upended by brief disruptions from tariff and operational uncertainty many of our customers encountered towards the end of the quarter. We have worked diligently with customers since that time to align on production timetables and firm up our delivery schedule for the coming quarters. Several existing customers have recently surpassed their minimum commitments and there have been no material order changes or cancellations.”
Peso continued, “We remain committed to driving profitable growth as demonstrated by a modest improvement in gross margin during a dynamic period. First quarter Adjusted EBITDA largely reflects our decision to preserve operational overhead to support a swift resurgence with our customers. We are encouraged by the strong start to the second quarter. We look forward to that momentum accelerating into the second half of the year.”
Peso concluded, “We are pleased to move forward with a strengthened financial position bolstered by a new debt facility under more favorable terms. To date, tariffs have had a minimal impact on our input costs owing to the Free Trade Agreement between Israel and the US and our strategically located global operations, including a state-of-the-art production facility in Florida already serving all of our divisions. We are reaffirming our 2025 guidance for both revenues and profitability. The resilience of our business and our team's ability to execute in any market condition makes us excited for what the rest of the year has in store for Gauzy."
Top Business Milestones and Accomplishments Since Last Earnings Release
- Announced selection by Air France Gauzy’s Technology for its new La Première First-Class suites on Boeing 777 models
- Began scaling shipments for the Cadillac Celestiq EV serial production model with four zone SPD sunroof, marking the continuation of business with GM
- Unveiled 11,000 square feet smart glass projection display in façade of MSC’s new Miami terminal, the largest cruise ship terminal in the world
- Announced Gauzy’s smart glass technologies implemented in ~75% of glazing in the Mercedes-Benz Vision V show car, unveiled at Auto Shanghai 2025
- Gauzy partnered with Hotlineglass-USA to produce pre-fabricated smart glass stacks, streamlining processing and lamination for Tier 1s and increasing accessibility to OEMs
- Ford Truck’s F-Max featuring Gauzy’s AI-based ADAS has officially entered series production and will be delivered to end customers as part of Ford's commercial vehicle offering
- Gauzy PDLC smart glass installed into Singapore’s Changi Airport
- Awarded sizable research and development grant from the German Ministry of Education and Development
- Gauzy is pleased to announce, that of the previously reported credit facility of $20MM it planned to close post IPO, it has signed a $10 million facility with Mizrahi Bank, Israel’s third largest bank, under significantly improved terms, reflecting the Company’s strengthened financial position and enhanced credibility as a publicly traded company
“This new facility is a clear reflection of confidence in Gauzy’s financial discipline and long-term growth strategy,” added Meir Peleg, Gauzy’s Chief Financial Officer. “By securing significantly improved terms, we’re optimizing our capital structure while reducing financing costs, enabling us to reinvest more in innovation and global expansion.”
Peleg continued, “Importantly, this financing was signed without any minimum return obligations. It also features interest rates around 30% lower than the Company’s pre-IPO loan facility. These highly favorable terms highlight Gauzy’s strengthened financial position and enhanced market standing as a public company.”
First Quarter 2025 Results
Revenues for the first quarter of $22.4 million compared to $24.7 million in the prior year quarter. The modest decline was primarily driven by Aeronautics and Architecture, which more than offset improvements in Safety Tech and Automotive.
Gross profit for the first quarter of $5.7 million compared to $6.2 million in the prior year quarter. Gross margin for the first quarter was 25.6% compared to 25.1% in the prior year quarter, as lower cost of revenue more than offset the decline in revenues.
Total operating expenses for the first quarter were $14.4 million, compared to $15.8 million in the prior year quarter, as lower research and development, general and administrative, and sales & marketing costs more than offset higher depreciation and amortization.
Net loss for the first quarter of $10.8 million compared to $13.2 million in the prior year quarter, mainly due to a decrease in total operating expenses and interest expense.
Non-GAAP Adjusted net loss for the first quarter of $9.1 million compared to $10.0 million in the prior year quarter, with the improvement primarily attributable to the improvement in GAAP net loss.
Non-GAAP Adjusted EBITDA for the first quarter was ($5.5) million compared to ($4.8) million in the prior year quarter, mainly due to the same factors outlined above for gross profit and operating expenses.
First Quarter 2025 Segment Performance
Safety-Tech Division Results
Safety-Tech revenue of $10.8 million in the first quarter increased 1.5% compared to $10.7 million in the prior year quarter mainly from the timing of deliveries relative to full-year purchase orders. Gross profit of $2.1 million in the first quarter increased 55.7% compared to $1.4 million in the prior year quarter. Gross margin of 19.7% in the first quarter compared to 12.8% in the prior year period, primarily attributable to higher revenues and operational leverage.
Aeronautics Division Results
Aeronautics revenue of $7.6 million in the first quarter decreased 24.6% as compared to $10.1 million in the prior year quarter. Gross profit of $2.6 million in the first quarter decreased 42.1% as compared to $4.5 million in the prior year quarter. Gross margin of 33.9% in the first quarter compared to 44.1% in the prior year period. The decrease in revenue and gross margin was due to a shift in the timing of certain deliveries, which are not expected to impact full year deliveries.
Architecture Division Results
Architecture revenue of $2.4 million in the first quarter decreased 8.2% compared to $2.6 million in the prior year quarter. Gross profit of $0.8 million in the first quarter was essentially flat compared to $0.8 million in the prior year quarter. Gross margin of 32.1% in the first quarter compared to 28.9% in the prior year period, driven primarily by benefit of scale and operational efficiencies.
Automotive Division Results
Automotive revenue was $1.5 million in the first quarter, and increase of 14.2% compared to $1.3 million in the prior year quarter. Gross profit of $0.2 million in the first quarter compared to a gross loss of $0.4 million in the prior year quarter. Gross margin of 16.1% in the first quarter compared to (29.5%) in the prior year period. The increase in revenue reflects additional serial production programs now in place with existing OEM projects expanding Gauzy’s technology into multiple vehicle platforms.
Balance Sheet, Liquidity and Cash Flow
As of March 31, 2025, the Company had total liquidity of $36.2 million, including $1.2 million of cash and cash equivalents and $35.0 million of available capacity under its undrawn credit line. At quarter-end total debt was $37.3 million, including $12.5 million of short-term receivable financings. As mentioned above, subsequent to quarter end, the Company signed a $10 million facility with Mizrahi Bank, Israel’s third largest bank, further enhancing liquidity.
As of March 31, 2025 the Company had basic and diluted ordinary shares outstanding of 18,733,937.
Guidance
The Company is reaffirming its expectations for full year 2025. The Company expects full year revenue to be in the range of $130 million to $140 million, representing more than 30% growth at the midpoint compared to 2024. Based on the benefit of scale, favorable operating leverage and strong recurring revenue base, the Company expects Adjusted EBITDA to be positive for the full year 2025.
Conference Call and Webcast:
Gauzy will host a conference call and webcast to discuss its results for the first quarter ended March 31, 2025 and other information related to its business at 8:30 a.m. Eastern Daylight Time on Tuesday, May 13, 2025. The webcast of the conference call can be accessed on the "Investors" section of Gauzy’s website at www.investors.gauzy.com. For those unable to access the website, the conference call will be accessible domestically and internationally, by dialing (800) 717-1738 or (646) 307-1865, respectively. Upon dialing in, please request to be connected to the Gauzy earnings conference call. To access the replay of the call, dial (844) 512-2921 (Domestic) or (412) 317-6671 (International) and enter the passcode 1130970.
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