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Date
Thursday, August 14, 2025, at 5 p.m. ET
Call participants
Chief Executive Officer — Gregory Poilasne
Chief Financial Officer — David Robson
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Risks
Revenue decline— Chief Financial Officer David Robson reported, "we generated total revenues of $300,000 for fiscal Q2 2025 (period ended June 30, 2025), compared to $800,000 in 2024," citing lower charger hardware sales in the current period.
Net loss expansion— Net loss attributable to common stockholders (GAAP) increased to $13.4 million in 2025 from $4.2 million in 2024, primarily due to one-time expenses.
Decommissioning stationary batteries— Megawatts under management in the second quarter decreased 19.5% to 25.6 megawatts from 31.8 megawatts, driven by the decommissioning of 2.5 megawatts in California and 4.4 megawatts in Japan in fiscal Q2 2025, linked to end of battery life and discontinued partner arrangements.
Bad debt write-off— The company wrote off $900,000 in accounts receivable related to the Fresno infrastructure project in fiscal Q2 2025 due to uncertainty in customer payment timing.
Takeaways
Gross margin-- Product, service, and grant revenue margin rose to 60.6% in fiscal Q2 2025 from 24.9% in fiscal Q2 2024, due to a higher mix of service revenues.
Order intake-- By the end of May 2025, orders matched the prior full-year total of $2.2 million, with deliveries scheduled for the rest of the year and early 2026.
Operating costs-- Excluding one-time noncash items, operating costs were $5.9 million for fiscal Q2 2025, a decline of $100,000 from the same period last year.
Cash operating expenses-- The $400,000 increase over the same period last year primarily relates to incremental operating expenses associated with the Fermata business, which was acquired in April.
Backlog-- Hardware and service backlog at quarter-end was $19.1 million as of June 30, 2025. It fell by $600,000 in fiscal Q2 2025, primarily due to deployments and contract value reductions.
Capital raised-- The company raised $6.9 million in gross proceeds in fiscal Q2 2025 through debt and equity, with an additional $5.5 million in growth proceeds raised in July 2025, after the quarter ended.
Warrants issuance-- 11 million warrants were issued at an average exercise price of approximately $1.25, resulting in an $8.2 million noncash stock compensation expense linked to digital asset subsidiary growth in fiscal Q2 2025.
New Mexico project-- The company referenced the execution of a framework contract potentially exceeding $400 million in CapEx deployment for state-related EV infrastructure over the next four years.
Private investment-- Private capital was secured for the Nuvve Japan and Nuvve New Mexico entities, with each opening up to 20% equity for investor participation.
Fermata acquisition-- Fermata Energy LLC assets were acquired and integration with the company’s GIVe platform is underway, which was financed via convertible notes.
Summary
Nuvve(NVVE 3.11%) finalized restructuring of its energy business and emphasized a strategic shift placing the company at the intersection of energy, artificial intelligence, and cryptocurrency. Management highlighted a transition to funding most growth at the subsidiary level—primarily through private raises in Japan and Europe—rather than at the public-company level, targeting a structurally lower cost of capital. The company added a digital asset management subsidiary, led by James Altucher, with recent activity including the acquisition of HIBE token and use of warrants to fuel the initiative. Major operational steps included integration of Fermata Energy assets and new battery aggregation projects in Japan, as well as launch activities for the high-value New Mexico EV infrastructure contract. The balance sheet reflected a net cash increase from capital raises, despite significant noncash expenses as of fiscal Q2 2025, and narrowed overall operating costs after excluding these one-time items.
Chief Executive Officer Gregory Poilasne said, "energy powers AI and crypto, AI enhances energy and crypto, and crypto transforms the energy market," underscoring management’s thematic investment focus.
The Fresno infrastructure project’s bad debt reserve entirely offset the related customer balance because of unresolved lending issues.
Nuvve CTO, Nuvve Japan, and Nuvve Europe were each positioned for further private placements to drive regional growth and help accelerate profitability in their respective segments.
Chief Financial Officer David Robson described grid service revenue, DC and AC charger margins, and software/engineering revenue streams as key to ongoing margin performance variability.
Industry glossary
V2G (Vehicle-to-Grid): Technology enabling bidirectional power flow between electric vehicles and the grid for storage and sale of unused energy.
V2X: Broader term than V2G, encompassing all bidirectional charging that includes grid, building, and device integration.
Grid services: Monetizable services provided to electric grids, such as balancing supply and demand or frequency regulation, often leveraging distributed energy assets.
Drop ship: Shipping product directly from a manufacturer or vendor to the end customer, bypassing company-owned inventory.
Full Conference Call Transcript
Gregory Poilasne: Thank you, and good afternoon to everyone here today. Welcome to our Q2 2025 results call. In line with Q1, this quarter has allowed us to finalize the structural changes we decided to implement late last year. These structural changes are now allowing us to position Nuvve Holding Corp. at a very strategic intersection between energy, artificial intelligence, and crypto. Here are a few reasons. Energy powers AI and crypto. Energy is foundational to both AI and cryptocurrency, as both require massive computing infrastructure. AI optimizes energy and crypto operations. In energy, AI is used to predict demand, optimize grid efficiency, and integrate renewables. And in crypto, AI can optimize mining efficiency, detect fraud, and enhance trading strategies.
AI models can manage when to run mining rigs or data centers based on real-time energy pricing or availability, reducing costs and emissions. Crypto enables energy markets innovation. Blockchain can tokenize energy assets, e.g., solar panels, carbon credits, enabling peer-to-peer energy trading, and smart contracts on blockchain can automate energy transactions. Decentralized AI and energy incentives. Crypto tokens can incentivize data sharing or AI model training, and crypto-powered grids can reward users for sharing excess renewable energy while AI can ensure secure and efficient distribution of such decentralized networks. In summary, energy powers AI and crypto, AI enhances energy and crypto, and crypto transforms the energy market.
This describes perfectly our roadmap where the triangular relationship is enabling a future of decentralized, intelligent, and sustainable digital infrastructure. Let's look closer at our implementation starting with our energy business. As shared earlier, we have established multiple subsidiaries including Nuvve Japan, Nuvve Europe, and our charge point operator business in the United States supporting our EV driver clients around the country. This unit is called Nuvve CTO. Both Nuvve Japan and Nuvve Europe are in the process of raising private capital in order to support their development in their respective geographies with a strong focus on stationary storage deployment.
We are targeting to share about 20% of equity from each company in order to bring enough capital to drive these entities to profitability and share the reward with our co-investors. I am happy to report that Nuvve Japan has received its first private investment and I hope to report soon great progress in our platform rollout for battery management in Japan. In Q1, I had shared with you that we have been awarded a very critical contract with the state of New Mexico. This framework agreement allows us to provide proposals to any governmental EV deployment either with school districts, municipalities, or state organizations without going through an RFP process.
These infrastructure deployments, including charging stations, solar, storage, and microgrid implementation, will be financed for the state of New Mexico by our partner, Jefferies. As a reminder, this project represents a potential opportunity greater than $400 million of CapEx deployment over the next four years. In order to successfully support this opportunity, we have established a special company in the state of New Mexico named Nuvve New Mexico led by Ted Smith, our former COO and now CEO of Nuvve New Mexico. We have also decided to open the capital of Nuvve New Mexico LLC for up to 20% of its equity to local investors. I am happy to report that Nuvve New Mexico has also received several private investments.
Please stay tuned as we will be able to share more soon about the first major projects in New Mexico. During Q2, we have also opportunistically acquired the asset of Fermata Energy LLC, a V2X-focused company. We have made the decision in order to integrate both the Nuvve platform named GIVe with the Fermata platform as they were very complementary. The integration is well underway, and we expect to see efficiencies and more advanced services by the end of the year. The capital needed to bring the Fermata 2.0 LLC to profitability would also be carried through a fundraising at the private company level.
The cost of the acquisition of Fermata Energy assets was financed through a private raise through convertible notes. In summary, structuring of our energy business is now established in a way where capital needed for its growth will most likely come from private raises at the subsidiary level rather than fundraising at the public company level, giving us access to a lower cost of capital, especially when raising money in Japan and Europe. In late April, Nuvve Holding Corp. also announced the creation of a new subsidiary in order to address digital asset management business, Nuvve Digital Assets. In order to lead our digital asset strategy, we have brought onboard James Altucher, a cryptocurrency specialist.
James is also part of our board of directors. We have recently announced our initial purchase of HIBE token which is still underway, though we are reviewing our energy strategy in real-time in order to support the vision described earlier. Looking closer into the quarter, the hardware revenue was extremely low, as we transition our main 60-kilowatt product from an on-hand inventory to drop ship from our new vendor, which requires about twenty weeks between order and delivery. We expect Q3 to be back on track. The initial rollout shows some very strong improvement in terms of commissioning efficiency and overall product reliability.
From a number perspective, at the end of May, we had received the same amount of orders that we had received all last year, which was about $2.2 million. These orders will be delivered in the remaining of the year and in early 2026. In Japan, we decommissioned 4.4 megawatts of stationary batteries. We elected to not continue the management of stationary batteries connected to our platform in partnership with our local partner, Toyota Tsusho.
We have managed these batteries for several years, but given the expected future revenue generation was limited, under our existing agreement, we decided instead to focus our effort in driving new business development effort in Japan with a focus on battery aggregation services for commercial and governmental customers throughout the country. Earlier this week, we announced one of the first of several projects we are working on, with Matsuda Town in Kanagawa Prefecture, where we will use our proprietary platform to provide battery aggregation services to enhance the region's disaster preparedness and resilience.
We are extremely excited about the battery business in Japan which is also going to open its doors in 2026 to battery aggregation, Nuvve Holding Corp.'s core skill set. Financially, we raised $6.9 million in gross proceeds through debt and equity to support our growth initiatives and operations. In July 2025, we raised an additional $5.5 million in growth proceeds through a registered private offering. We have also filed a $300 million check registration to support our digital asset strategy, mostly as we issued 11 million warrants of Nuvve Holding Corp.'s common stock and recorded an associated $8.2 million noncash stock compensation expense to support the growth of our digital asset subsidiary, Nuvve Digital Asset.
These warrants have an average exercise price of approximately $1.25. And now I will let David take you through the detail of our financials. David?
David Robson: Thanks, Gregory. I will start with a recap of second quarter 2025 results. In the second quarter, we generated total revenues of $300,000 compared to $800,000 in 2024. The decrease in revenues was a result of lower charger hardware sales this quarter versus the same period last year. Hardware sales were impacted by the timing of EPA funding awards, and our migration to new charging station models. Total revenues year to date through 06/30/2025 were $1.2 million compared to $1.6 million for the same period last year. Margins on products, services, and grant revenues were 60.6% for the second quarter 2025 compared to 24.9% for the year-ago period.
Year to date margins through 06/30/2025 were 44.4% compared with 29.7% for the year-ago period. The increase in margins was primarily due to a higher mix of service revenues compared with last year. 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 dollar 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, were $15 million for 2025, compared to $6 million for 2025, and $6 million for 2024. Excluding a one-time noncash expense of $8.2 million associated with the issuance of warrants related to our new cryptocurrency strategy and a noncash write-off of bad debt expense related to the Fresno infrastructure project of $900,000, the current period expenses were $5.9 million, a decline of $100,000 over the same period last year. We reserved for the entire outstanding receivable balance on the Fresno EV infrastructure project, as the customer is still working to secure lender financing for the project, so the timing of the payment is uncertain.
Cash operating expenses, excluding cost of sales, stock compensation, depreciation and amortization expense, and one-time expenses mentioned previously, were $5.7 million in the second quarter 2025, versus $5.3 million in 2025, versus $5.4 million in 2024. The increase of $400,000 in expense over the same period last year primarily relates to incremental operating expenses associated with the Fermata business which we acquired in April. Other income was $1.2 million in 2025, compared to $1.8 million in 2024. Both periods benefited from noncash gains from the change in the fair value of warrants or debt offset by higher interest expense of $700,000 in the current period.
Net loss attributable to Nuvve Holding Corp. common stockholders increased in 2025 to $13.4 million from a net loss of $4.2 million in 2024. The increase was primarily a result of the previously mentioned one-time expenses. Now turning to our balance sheet. We had approximately $1.8 million in cash, as of 06/30/2025, excluding $300,000 in restricted cash, which represents an increase of $600,000 from 03/31/2024. The increase was a result of capital raised through the issuance of common stock and the exercise of warrants of $1.2 million and an increase in borrowings of $5 million offset by $5.4 million used in operating activities and $400,000 used in investing activities to acquire Fermata.
During the quarter, inventories increased by $100,000 to $4.3 million at 06/30/2025, compared to 2025. The increase in inventory relates to inventory acquired with the Fermata acquisition this past April. During the quarter, accounts receivables declined by $1.1 million to $300,000 at 06/30/2025 due to collections of customer balances and the write-off of accounts receivable related to the ongoing project with Fresno. Accounts payable at the end of 2025 was $1.4 million, a decrease of $800,000 compared to 2025 of $2.2 million. Accrued expenses at the end of 2025 were $5.3 million, an increase of $500,000 compared to 2025 of $4.8 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 electrical school bus market in the US, and in light-duty fleet deployments in Europe, in addition to stationary batteries. Currently, these chargers and batteries are located throughout the United States, Europe, and Japan. Megawatts under management in the second quarter decreased 19.5% over 2025, to 25.6 megawatts from 31.8 megawatts, and a 5.5% decrease compared to 2024. In terms of its composition, 0.2 megawatts were from stationary batteries, and 25.4 megawatts were from EV chargers.
The decline this quarter relates to the decommissioning of 2.5 megawatts of stationary batteries in California and 4.4 megawatts of stationary batteries in Japan. The stationary batteries we manage in California were decommissioned as they reached the end of their useful life. Our customer intends to replace these batteries in the future and we are working closely with this customer to provide our battery aggregation services once their new batteries are installed. In Japan, we elected to not continue the management of two stationary batteries connected to our platform in partnership with Toyota Tsusho, that we had managed for several years.
Given the expected future revenue generation was limited under our existing agreement, instead, we have focused our efforts on driving new business development efforts in Japan, with a focus on battery aggregation services for commercial and governmental customers throughout the country. Earlier this week, we announced one of the first of several projects we are working on, with Matsuda Town, in Kanagawa Prefecture, where we will use our proprietary platform to provide battery aggregation services to enhance the region's disaster preparedness and resilience. Megawatts under management from EV chargers increased to $25.4 million in the second quarter 2024, an increase of 0.7 megawatts over 2025.
We continue to expect further growth in our megawatts under management in 2025 as we continue to commission our backlog from customer orders we have earned. In addition to new business, we anticipate winning which has visibility in our pipeline for both EV chargers and stationary batteries. Now turning to backlog. On June 30, our hardware and service backlog decreased to $19.1 million, a decrease of $600,000 from $19.7 million reported at 03/31/2025. The decrease relates to deployments of existing backlog this quarter in addition to the reduction in value during the quarter of certain existing contracts with customers that we expect to install later this year.
As we look out to the next several quarters, we expect to share more developments on our New Mexico contract and battery aggregation projects we are currently negotiating in Japan that will benefit future backlog and our revenue pipeline. From an operating sense perspective, we expect cash operating expenses, excluding cost of sales, for the next several quarters to be similar to what we experienced in Q2 of 2025. This concludes my portion of prepared remarks. Gregory, back to you to conclude.
Gregory Poilasne: In summary, we feel that Nuvve Holding Corp. is now strategically positioned at the intersection between energy, artificial intelligence, and crypto. While revenues were soft, we successfully finished restructuring our energy business and integrated our recent acquisition of Fermata into the Nuvve Holding Corp. organization. We also continued our focus on our digital asset strategy. We believe we are in a strong position to lead in the energy management transition occurring worldwide and we are ready to capitalize on opportunities across the cryptocurrency and blockchain economy, all supported by our AI efforts started a few years ago. Thank you.
Operator: There are no questions at this time. I'll now hand the conference back to Gregory for any closing remarks. Thank you for listening in today.
Gregory Poilasne: We are looking forward to sharing more with our progress, especially in New Mexico and in Japan over the next few weeks. Thank you. That does conclude our conference for today.
Operator: Thank you for participating. You may now disconnect.