Despite achieving 107.9% revenue growth in 2024Q2, the company continues to struggle with manufacturing efficiency, reporting a persistent -37.2% gross margin.
| Sales/Revenue | 57.63M | 71.46M | 38.26M | 40.34M | 34.94M | 26.88M |
| Revenue Growth % | 222.42% | 86.77% | -5.15% | 15.45% | 29.99% | - |
| Cost of Goods Sold | 80.8M | 182.27M | 55.09M | 57.45M | 49.23M | 34.86M |
| COGS % of Revenue | - | 255.07% | 144% | 142.42% | 140.92% | 129.72% |
| Gross Profit | -23.17M | -110.81M | -16.83M | -17.11M | -14.29M | -7.99M |
| Gross Margin % | -40.21% | -155.07% | -44% | -42.42% | -40.92% | -29.72% |
| Gross Profit Growth % | - | -558.25% | 1.61% | -19.69% | -78.97% | - |
| Operating Expenses | 28.88M | 57.79M | 32.46M | 2.33M | 27M | 69.54M |
| OpEx % of Revenue | - | 80.87% | 84.84% | 5.79% | 77.29% | 258.73% |
| Selling, General & Admin | 15.02M | 19.84M | 16.06M | 14.7M | 16.63M | 9.01M |
| SG&A % of Revenue | - | 27.77% | 41.98% | 36.43% | 47.59% | 33.52% |
| Research & Development | 16.93M | 36.1M | 16.18M | 16.93M | 10.51M | 4.8M |
| R&D % of Revenue | - | 50.52% | 42.29% | 41.98% | 30.09% | 17.88% |
| Other Operating Expenses | 0 | 1.85M | 220K | 272K | 0 | 0 |
| Operating Income | -36.47M | -168.6M | -49.29M | -2.33M | -34.79M | -20.32M |
| Operating Margin % | -63.28% | -235.94% | -128.84% | -5.79% | -99.58% | -75.6% |
| Operating Income Growth % | - | -242.03% | -2012.2% | 93.29% | -71.23% | - |
| EBITDA | -25.31M | -194.97M | -3.38M | 2.5M | -29.93M | -17.12M |
| EBITDA Margin % | -43.91% | -272.84% | -8.85% | 6.2% | -85.68% | -63.69% |
| EBITDA Growth % | -353.86% | -5660.4% | -235.32% | 108.36% | -74.87% | - |
| D&A (Non-Cash Add-back) | 11.16M | 0 | 45.91M | 4.83M | 4.86M | 3.2M |
| EBIT | -33.06M | -194.97M | -75.61M | -46.64M | -34.79M | -20.32M |
| Net Interest Income | 14.33M | -26.87M | -5.44M | -1.3M | -1.62M | 1.18M |
| Interest Income | 14.33M | 202K | 61K | 94K | 84K | 1.18M |
| Interest Expense | 0 | 26.12M | 3.61M | 1.18M | 1.21M | 0 |
| Other Income/Expense | -9.41M | -52.48M | -29.93M | -12.78M | -1.21M | -58.39M |
| Pretax Income | -45.88M | -221.08M | -79.22M | 6.22M | -36M | -78.71M |
| Pretax Margin % | -79.61% | -309.38% | -207.06% | 15.43% | -103.04% | -292.84% |
| Income Tax | -7.42M | 0 | 0 | -4.83M | 0 | 0 |
| Effective Tax Rate % | 16.17% | 0% | 0% | -77.68% | 0% | 0% |
| Net Income | -45.88M | -221.08M | -79.22M | 6.22M | -36M | -78.71M |
| Net Margin % | -79.61% | -309.38% | -207.06% | 15.43% | -103.04% | -292.84% |
| Net Income Growth % | -623.9% | -179.06% | -1372.86% | 117.29% | 54.26% | - |
| Net Income (Continuing) | -36.06M | -221.08M | -79.22M | -47.82M | -36M | -78.71M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -18.72 | 0.00 | -3.80 | 0.23 | -2.32 | -7.85 |
| EPS Growth % | -5773.46% | 100% | -1752.17% | 109.91% | 70.45% | - |
| EPS (Basic) | - | 0.00 | -3.80 | 0.23 | -2.32 | -7.87 |
| Diluted Shares Outstanding | 2.45M | 0 | 20.85M | 26.64M | 15.55M | 10.03M |
| Basic Shares Outstanding | 2.45M | 0 | 20.85M | 26.64M | 15.55M | 10M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Existential liquidity and solvency
According to recent financial disclosures, CREV achieved a 107.9% revenue growth rate in 2024Q2, yet this rapid top-line expansion appears disconnected from the company's ability to achieve manufacturing efficiency, as the cost of goods sold continues to outpace revenue generation on a per-unit basis.
While the triple-digit growth suggests successful penetration into high-performance automotive platforms, the lack of corresponding margin improvement implies that the current revenue model is not yet self-sustaining. Investors should monitor whether this growth is driven by sustainable volume increases or if it reflects lumpy, non-recurring engineering fees that mask underlying demand volatility.
As reported in quarterly filings, the company maintains a gross margin of -37.2%, indicating that the direct costs of production significantly exceed the revenue generated, a trend that has persisted throughout the recent periods of increased manufacturing activity and automated line deployment.
This deep structural deficit suggests that the company has yet to reach the critical mass required to amortize its high fixed-cost manufacturing base. The inability to achieve positive contribution margins warrants further investigation into whether the current resin transfer molding process is fundamentally capable of reaching cost parity with traditional automotive wheel manufacturing.
Based on the income statement data, operating losses have widened to $16.5M in 2024Q2, demonstrating that the company's operating expenses are scaling in tandem with, or faster than, its revenue, rather than providing the expected operating leverage typical of a maturing industrial manufacturer.
The widening gap between revenue growth and operating income suggests that the company is currently trapped in a high-burn phase where every incremental dollar of revenue requires disproportionate increases in overhead and production support. This trend implies that the business model may require a fundamental shift in cost structure before it can approach operational break-even.
Financial statements reveal a precarious liquidity position with a $3.7M cash balance, which, when contrasted against the $16.5M quarterly operating loss, suggests that the company faces an immediate and existential risk of insolvency without significant external capital intervention or a rapid strategic pivot.
Short-sellers would likely focus on the disconnect between the company's technological achievements and its inability to bridge the liquidity gap. The reliance on external financing in a high-rate environment may lead to severe shareholder dilution, potentially rendering the current equity value disconnected from the underlying operational reality.
Quick answers to the most common questions about buying CREV stock.
For fiscal year 2024, Carbon Revolution Public Limited Ordinary Shares (CREV) reported total revenue of $71.5M. This represents a 165.9% increase compared to $26.9M in 2020.
Carbon Revolution Public Limited Ordinary Shares (CREV) reported a net loss of $221.1M for the fiscal year ending 2024.
Carbon Revolution Public Limited Ordinary Shares (CREV) reported an operating income of $-168.6M, resulting in an operating profit margin of -235.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Carbon Revolution Public Limited Ordinary Shares (CREV) generated $-110.8M in gross profit for the year, representing a gross profit margin of -155.1%. This demonstrates the company's core pricing power and production efficiency.