ECD Automotive Design, Inc. (NASDAQ: ECDA) Q2 2025 Earnings call | 08/21/2025

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AI Summary

Company: ECD Automotive Design, a bespoke luxury vehicle restorer.
Quarter: Q2 2025 (Ended June 30, 2025)
Call Date: August 21, 2025

Key Financial Highlights:

Record Revenue: Achieved highest-ever quarterly revenue of $7 million, a $0.5 million increase from Q2 2024.
Profitability Challenges: Gross profit was $1.4 million (20% margin), down from the prior year due to higher shipping and customs costs. The company reported a net loss of $4.3 million, driven by increased operating expenses and interest costs.
Liquidity: Cash stood at $0.6 million as of June 30, 2025.

Operational & Strategic Business Updates:

New Mustang Program: Successfully delivered their first in-house custom Ford Mustang ("Project Ghost"), which won a "Best of Class" award. This expands their product line beyond British classics into American muscle cars, diversifying revenue without significant new capital expenditure.
Retail Expansion: Their "stores within a store" retail locations in West Palm Beach and Nantucket are performing well, acting as hubs for sales, brand building, and community engagement in wealthy markets.
Cost-Reduction Initiatives: Implemented targeted cost savings, refined inventory management, and negotiated a 12-month grace period on debt service to create a leaner operating model and preserve cash.
Bitcoin & Crypto Strategy: Secured a $500 million equity facility earmarked for strategic Bitcoin accumulation as a primary reserve asset and for growth initiatives. They are also promoting crypto payments by offering a $21,000 credit to the first 21 customers who pay with Bitcoin.

Corporate & Financial Developments:

Leadership Change: Victoria Hay is the new CFO. Former CFO Ben Piggott moved to a new role focusing on corporate development, M&A, and the Bitcoin strategy.
NASDAQ Delisting Notice: Received a notice for non-compliance with listing requirements on August 6th. Management stated they had already engaged advisors to address this and are taking proactive steps to regain compliance.
Balance Sheet Improvements: Took steps to strengthen the balance sheet, including converting $12 million of debt into preferred stock and raising an additional $1.7 million in equity to reduce leverage and improve the shareholder deficit position.

About this video

ECD Automotive Design reported record second quarter 2025 revenue of $7.0 million, up from $6.45 million in the same period last year, driven by increased build revenue and expansion of product offerings, including the launch of the Project Ghost Mustang in partnership with Roush Performance. Gross profit was $1.4 million, down from $2.1 million year over year, primarily due to tariffs, shipping, and customs cost increases. The company recorded a net loss of $4.3 million compared to $2.0 million in Q2 2024, reflecting margin compression and higher general & administrative and interest expenses. Operating expenses increased to $4.0 million. Adjusted EBITDA was negative $1.5 million, declining by $1.5 million year over year. ECD announced a $500 million equity facility aimed at accumulating Bitcoin as its primary reserve asset and funding future growth initiatives including crypto payment promotions. The company also established successful seasonal pop-up retail locations and appointed Victoria Hay as Chief Financial Officer to strengthen accounting and internal controls. Management remains confident in ECD's unique market position as the only US-based producer of one-of-a-kind classic luxury restomods within a scaled manufacturing line, anticipating continued growth driven by bespoke demand and manufacturing efficiencies. About Inside Ticker: Inside Ticker delivers timely, in-depth financial news and earnings analysis to empower investors with actionable insights on global companies across sectors. For comprehensive video analysis and real-time updates, visit https://www.insideticker.com/. HashTags: #ECDautomotive #ECDA #Q22025 #Earnings #FinancialResults #RevenueGrowth #NetLoss #GrossProfit #OperatingExpenses #Bitcoin #Crypto #Mustang #LuxuryCars #Manufacturing #Restomods #ProductExpansion #Finance #InsideTicker

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