Tue, May 20, 8:29 PM (29 days ago)
**Massimo Group (MAMO) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $14.9 million, down 50.6% from $30.2 million in Q1 2024 due to economic contraction, reduced consumer spending, and tariff impacts. - **Gross Profit:** $4.2 million, a 59.6% decrease from $10.5 million in Q1 2024, with a gross margin of 28.4%. - **Net Loss:** $2.1 million, compared to a net income of $3.2 million in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $3.3 million, an increase of $2.7 million from Q1 2024. **Operating Metrics:** - **Revenue by Type:** UTVs, ATVs, and e-bikes revenue decreased by 46.2%, while Pontoon Boats revenue dropped by 64.7%. - **Operating Expenses:** Selling expenses decreased by 15.4%, while general and administrative expenses increased by 2.7%. - **Interest Expense:** Decreased by 99.2% due to no bank loans in Q1 2025. **Trends and Uncertainties:** - **Economic Factors:** High inflation, interest rates, and geopolitical uncertainties negatively impacted sales. - **Tariffs:** Increased tariffs on Chinese imports affected cost structures and consumer spending. - **Legal Proceedings:** Ongoing litigation with Nebula and Zhejiang may impact financials. - **Future Operations:** The company plans to focus on cost management, operational efficiency, and exploring new revenue streams. **Future Outlook:** - **Capital Management:** The company aims to preserve operational capacity, provide stakeholder benefits, and ensure adequate returns on investment. - **Liquidity:** Positive working capital of $15.5 million, with plans to raise additional capital if needed. - **Capital Expenditure:** Minimal capital expenditure, focusing on leasing fixed assets and equipment. **Risks and Challenges:** - **Competition:** Intense competition in the Powersports Vehicles and Boat Industry. - **Supply Chain:** Dependence on third-party suppliers and potential disruptions. - **Economic Uncertainty:** Volatile market conditions and geopolitical risks. **Conclusion:** Massimo Group faced significant challenges in Q1 2025, with revenue and profit declines driven by economic factors and tariffs. The company is focusing on cost management and strategic initiatives to navigate uncertainties and position itself for future growth.