Revenue growth reached 107.9% in 2024Q2, yet the company continues to struggle with profitability, evidenced by a deeply negative gross margin of -37.2%.
| 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 | - | - | - | - | - | - |
Liquidity and insolvency risk
According to recent financial disclosures, Carbon Revolution achieved a 107.9% revenue growth rate in 2024Q2, signaling strong demand for its carbon fiber wheel technology despite the company's inability to translate this top-line expansion into positive gross margins or sustainable operational profitability at this stage.
The rapid revenue acceleration suggests that the company is successfully securing and fulfilling OEM program contracts, which is a critical validation of its technical value proposition. However, investors should monitor whether this growth is primarily driven by low-margin tooling services or high-volume wheel production, as the current trajectory remains decoupled from manufacturing efficiency.
As reported in the latest quarterly filings, the company maintains a deeply negative gross margin of -37.2%, indicating that the variable costs of manufacturing carbon fiber wheels currently exceed the revenue generated per unit, a trend that warrants significant caution regarding the underlying business model.
The persistent negative gross margin suggests that the automated Mega-line has yet to achieve the necessary economies of scale or yield improvements required to reach cost parity with traditional wheel manufacturing. This structural deficit implies that every additional unit sold currently increases the company's total cash burn, rather than contributing to overhead absorption.
Based on the provided income statement data, operating losses reached $16.5 million in 2024Q2, demonstrating that the company's fixed cost base is scaling alongside revenue, thereby preventing any meaningful improvement in operating leverage or progress toward a break-even point for the core business.
The lack of operating leverage indicates that the company's SG&A and R&D expenditures are not yet being offset by gross profit, which remains negative. This suggests that the firm is currently trapped in a high-cost cycle where operational growth requires proportional increases in spending, limiting the potential for near-term margin expansion.
With only $3.7 million in cash reserves and quarterly operating losses exceeding $16 million, the company's financial position appears highly precarious, suggesting that the current growth trajectory may be unsustainable without immediate and potentially dilutive external financing to bridge the significant funding gap.
Short-sellers would likely focus on the widening gap between revenue growth and the company's inability to control production costs, which threatens to exhaust liquidity before the technology reaches commercial maturity. The reliance on external capital to fund ongoing operations creates a binary risk profile where the company's survival is contingent on market sentiment rather than operational self-sufficiency.
Quick answers to the most common questions about buying CREVW stock.
For fiscal year 2024, Carbon Revolution Public Limited Company Warrant (CREVW) reported total revenue of $71.5M. This represents a 165.9% increase compared to $26.9M in 2020.
Carbon Revolution Public Limited Company Warrant (CREVW) reported a net loss of $221.1M for the fiscal year ending 2024.
Carbon Revolution Public Limited Company Warrant (CREVW) 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 Company Warrant (CREVW) 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.