Breaking Down GreenPower Motor Company Inc. (GP) Financial Health: Key Insights for Investors

You're looking at GreenPower Motor Company Inc. (GP) and wondering if the electric vehicle (EV) incentive tailwinds are finally translating into sustainable financial health, but honestly, the 2025 fiscal year results show a classic growth-stage tension. The company pulled in $19.8 million in annual revenue and delivered 84 vehicles, which is progress in a tough commercial EV market, but still posted a significant net loss of over $18.3 million. That's the core tension: solid product traction, but the burn rate is real. The most recent move, recognizing $6.8 million in retained customer deposits as revenue in the quarter ending December 31, 2025, is a smart, non-operating way to boost the balance sheet and shareholders' equity by the same amount, but it doesn't fix the underlying operational profitability-it's a one-time financial engineering step. So, before you commit capital, you defintely need to understand how they plan to bridge that $18.3 million loss gap with their current working capital of $8.1 million and their production ramp-up.

Revenue Analysis

You need to know where GreenPower Motor Company Inc. (GP)'s money is coming from, especially after a challenging year. The direct takeaway is this: GreenPower's fiscal year (FY) 2025 revenue was $19.85 million, a significant contraction of nearly half from the prior year, but recent quarters show a sequential growth trend in vehicle deliveries. The revenue base is almost entirely vehicle sales within the U.S. market.

Honestly, the headline number for FY 2025 is a shocker. GreenPower reported annual revenue of $19.85 million for the fiscal year ended March 31, 2025. This represents a massive year-over-year revenue decrease of 49.46% from FY 2024, which is a clear signal of the headwinds from shifting federal electric vehicle (EV) incentives and policy changes. That kind of drop demands a hard look at the core business.

Primary Revenue Streams and Product Mix

The company's revenue is overwhelmingly generated from the manufacture and distribution of all-electric medium and heavy-duty vehicles. In FY 2025, GreenPower delivered a total of 84 vehicles across its product lines. The product mix, which is the real driver of revenue, is split between the school bus and commercial vehicle sectors.

• School Buses: 34 BEAST Type D and two Nano BEAST Type A all-electric school buses.
• Commercial Vehicles: 23 EV Star Cargo and EV Star Cargo Plus vehicles, plus 25 EV Star Passenger Vans.
• Other Revenue: Smaller contributions come from vehicle leases, the sale of parts, and its Truck Body division.

The geographic concentration is extreme, too. Of the FY 2025 revenue, 94.93% was sourced from the United States of America, with the remaining 5.07% from Canada. This heavy reliance on U.S. policy and market dynamics is a key risk factor for investors to keep in mind.

Analyzing the Revenue Trajectory

While the annual figure is down, the quarterly trend within FY 2025 showed sequential improvement, which suggests production and delivery issues started to smooth out after a slow start. Here's the quick math on the quarterly progression:

The Q2 and Q3 results, with growth rates of 78% and 35% respectively, show the company was successfully scaling up deliveries from its West Virginia manufacturing facility, especially for the BEAST school bus. But the Q4 drop-off, which brought the annual total to $19.85 million, indicates the scaling was not linear. This volatility is typical for a manufacturer navigating a new market and consolidating operations, as GreenPower did in California.

Significant Near-Term Revenue Change

A critical, non-recurring event will significantly impact the current quarter's top line. GreenPower Motor Company Inc. will recognize $6.8 million in deferred revenue in the quarter ending December 31, 2025. This isn't from new sales; it's from an agreement to retain customer deposits for previously ordered EV Star Cab & Chassis vehicles that will no longer be delivered. This move reduces the company's total liabilities and strengthens the balance sheet, but it's a one-time boost that won't be repeated.

This is a financial maneuver, not a sales win. The company plans to repurpose those manufactured chassis units to build the all-electric Type A Nano BEAST school buses, aligning with their focus on the school bus sector, which is a major part of their Mission Statement, Vision, & Core Values of GreenPower Motor Company Inc. (GP).

Your action item is to model the current quarter's revenue with and without that $6.8 million one-time gain to get a clear picture of the true underlying sales run-rate. Don't let a balance sheet cleanup obscure the core vehicle sales performance.

Profitability Metrics

You're looking for a clear picture of GreenPower Motor Company Inc. (GP)'s core financial health, and honestly, the numbers show a company still deep in the capital-intensive scale-up phase. The direct takeaway is that while the Gross Profit Margin is positive-a crucial hurdle for any manufacturer-the company's overall profitability is heavily constrained by high operating expenses (OpEx), resulting in significant net losses. You need to focus on the gross margin trend to gauge manufacturing efficiency, but be a realist: net profitability is a long way off.

Here's the quick math on GreenPower Motor Company Inc.'s performance for the fiscal year (FY) ended March 31, 2025, compared to the industry benchmark for Auto Manufacturers:

The gross profit margin of 11.08% for FY 2025 (calculated from $2.2 million Gross Profit on $19.85 million Revenue) is below the broader Auto Manufacturers industry average of 18.1%, which tells you the cost of goods sold (COGS) is still too high relative to the selling price. This is common for electric vehicle (EV) manufacturers that haven't hit full economies of scale (cost savings from mass production). For perspective, profitable EV leaders like Tesla and BYD operate with operating margins around 7.2% and 6.4%, respectively. GreenPower Motor Company Inc.'s negative -90.28% operating margin (an operating loss of -$17.92 million) shows the massive drag from selling, general, and administrative (SG&A) expenses and R&D as they build out their infrastructure and sales network.

Operational Efficiency and Margin Trends

The trend in profitability is volatile, which is typical for a growth-stage company in a new industry. GreenPower Motor Company Inc. has historically struggled to maintain a consistent gross margin, which is the first line of defense against losses. The Last Twelve Months (LTM) Net Income Margin is a staggering (105.0%) as of November 2025, which is significantly worse than the Auto - Manufacturers industry median of (61.3%). This is the cost of building a national manufacturing and distribution footprint.

Still, there are glimmers of improvement in operational efficiency:

• The third quarter of FY 2025 saw a higher gross margin of 14.6%.
• Management is consolidating California operations into a single facility to reduce overhead and increase efficiency. That's a smart, tangible move.
• The company is focused on scaling production at its West Virginia facility, which should, in theory, improve gross profits over time.

What this estimate hides is the impact of recent, non-recurring financial maneuvers. Just this November 2025, GreenPower Motor Company Inc. announced it would recognize $6.8 million in deferred revenue from retained customer deposits in the current quarter, which is expected to support margin expansion and improve operating cash flow, but this isn't a repeatable sales event. It's a balance sheet clean-up that gives them a temporary boost, defintely not a sustainable operational change.

For a deeper dive into who is betting on this turnaround, you should check out Exploring GreenPower Motor Company Inc. (GP) Investor Profile: Who's Buying and Why?

Action: Finance should model the expected operating margin impact of the California consolidation and the West Virginia production ramp-up, excluding the $6.8 million one-time revenue recognition, to get a true view of core operational improvement by the end of Q4 FY 2026.

Debt vs. Equity Structure

You're looking at GreenPower Motor Company Inc. (GP)'s balance sheet to understand how the company funds its ambitious electric vehicle (EV) growth. The direct takeaway is that GreenPower Motor Company Inc. (GP) operates with a highly leveraged structure, evidenced by its negative shareholder equity and a reliance on both debt and new equity-like financing to sustain operations.

As of November 2025, GreenPower Motor Company Inc. (GP)'s total debt is approximately $21.2 million. This figure is a blend of current and non-current obligations, including a term loan facility and loans from related parties. For context, as of the fiscal year end on March 31, 2025, the company reported a current portion of its term loan facility at $2,267,897 and current loans payable to related parties at $816,326. This means roughly $3.08 million of the total debt is due in the near term, which is a significant liquidity consideration given the negative cash flow.

The company's financial leverage (the use of borrowed money to finance assets) is reflected in its Debt-to-Equity (D/E) ratio. For the fiscal year ending March 31, 2025, GreenPower Motor Company Inc. (GP) reported a D/E ratio of -12.41. This highly negative number is a direct result of the company's accumulated deficit, which has led to negative shareholder equity. A negative D/E ratio is a major red flag, indicating that total liabilities exceed total assets-a far more serious position than simply having a high debt load.

To put this in perspective, the average D/E ratio for the broader Auto Manufacturers industry is a manageable 0.92 as of November 2025. GreenPower Motor Company Inc. (GP)'s position is clearly an outlier, underscoring the high-risk nature of investing in early-stage, capital-intensive EV manufacturers. Honestly, this is a clear sign that the company is in a constant battle for liquidity.

Here's the quick math on recent financing activity, which shows how GreenPower Motor Company Inc. (GP) is balancing its funding mix:

• Equity Funding: Secured up to $18 million in Series A Convertible Preferred Shares in November 2025, with an initial tranche of $1,179,000 already issued. This dilutive, equity-like financing is crucial for working capital.
• Balance Sheet Improvement: Announced on November 20, 2025, an agreement to retain $6.8 million in customer deposits, which will reduce liabilities and increase shareholders' equity by the same amount in the current quarter. This is a non-cash boost to the balance sheet.
• Recent Debt: Closed a $200,000 tranche of a secured term loan in June 2025, carrying a high interest rate of 12%.

The company is actively trying to strengthen its balance sheet through preferred equity issuance and non-operational gains, rather than relying solely on traditional debt. This strategy of using convertible preferred shares is a common way for growth companies with limited access to low-cost debt to raise capital, but it introduces the risk of future share dilution (when the conversion happens, it increases the number of outstanding shares). Your next step should be to review the terms of the Series A Convertible Preferred Shares to fully grasp the potential dilution risk. For a deeper dive into the company's overall financial health, you can check out Breaking Down GreenPower Motor Company Inc. (GP) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You need to know how GreenPower Motor Company Inc. (GP) can cover its short-term debts, and honestly, the picture is tight. The company's liquidity position, while technically above the critical 1.0 mark for the current ratio, is heavily reliant on inventory, and the near-term cash position is a serious concern that management is actively trying to fix.

The core of a company's short-term financial health is its ability to pay obligations due within the next year, which we measure with the Current and Quick Ratios (or acid-test ratio). For the fiscal year ended March 31, 2025, GreenPower Motor Company Inc. (GP) reported a Current Ratio of 1.41. This ratio means they had $1.41 in current assets for every dollar of current liabilities. That's a decent buffer, but the Quick Ratio tells a more realistic story.

The Quick Ratio, which strips out less-liquid assets like inventory, was a very low 0.05 for the same fiscal year. This is the key takeaway: without selling its vehicles (inventory of $25.6 million as of March 31, 2025), the company had virtually no liquid assets to meet its immediate obligations. This kind of gap between the two ratios is typical for a manufacturer, but the low Quick Ratio signals a high dependence on inventory turnover to generate cash.

Working capital-current assets minus current liabilities-has been trending down, which is a red flag. It fell from $13.9 million at the end of Q1 fiscal 2025 to $8.1 million by the end of the full fiscal year on March 31, 2025. The lower working capital levels seen in the current year compared to the prior year were a result of both higher current liabilities and a reduction in current assets.

Here's the quick math on their liquidity position as of the end of fiscal year 2025:

The cash flow statements for GreenPower Motor Company Inc. (GP) show a consistent need for external financing. For the fiscal year 2025, the Operating Cash Flow was negative, at -$5.99 million. This means the core business is burning cash, not generating it. Investing Cash Flow was a minor outflow of -$0.08 million, mostly for capital expenditures.

The financing cash flow is what keeps the lights on. In October 2024, the company raised gross proceeds of $3 million from an underwritten offering, plus an additional $2.3 million from a unit offering. More recently, the company secured a new financing package in November 2025, issuing up to $18 million in Series A Convertible Preferred Shares. This is a necessary, but dilutive, action to shore up the balance sheet.

The most pressing liquidity concern is the extremely low cash balance of only $511 thousand as of September 30, 2025. This is not enough to run a manufacturing business for long. Plus, the company failed to meet a key debt covenant-the minimum Fixed Charge Coverage Ratio-on its $5.9 million line of credit, which matures on November 30, 2025. This is an imminent debt crisis. To address this, management is taking defintely aggressive steps, which include:

• Securing up to $18 million in preferred share financing.
• Recognizing $6.8 million in deferred revenue in the current quarter by retaining customer deposits, which reduces total liabilities and strengthens the balance sheet.

These actions are critical to avoiding a default and maintaining operations, but they underscore the material uncertainty about the company's ability to continue as a going concern without successful future financing efforts and vehicle sales. For a deeper dive into who is betting on GreenPower's turnaround, check out Exploring GreenPower Motor Company Inc. (GP) Investor Profile: Who's Buying and Why?

Valuation Analysis

When assessing GreenPower Motor Company Inc. (GP), the traditional valuation metrics immediately flag it as a high-risk, high-growth play, which is common in the electric vehicle (EV) manufacturing space. You cannot simply rely on a Price-to-Earnings (P/E) ratio because the company is not profitable yet. For the last twelve months (LTM) of fiscal year 2025, the P/E ratio was approximately (5.3x), meaning the company had negative earnings per share. This is a clear sign of a company in an investment and scaling phase, not a mature, cash-generating one.

Since earnings are negative, we pivot to Enterprise Value-to-Sales (EV/Sales) as a more useful metric. GreenPower Motor Company Inc.'s EV/Sales ratio sits at approximately 1.60. To be fair, this is a relatively low multiple for a growth-oriented EV company, suggesting that the market is valuing its revenue stream conservatively, or perhaps that the stock is defintely undervalued relative to its sales base compared to industry peers. The Price-to-Book (P/B) and Enterprise Value-to-EBITDA (EV/EBITDA) ratios are generally reported as 'n/a', reinforcing the challenge of using conventional valuation models for a pre-profit company.

The stock price trend over the last year paints a picture of extreme volatility and significant capital erosion. The stock price has seen a dramatic drop of around -83.10% over the 52 weeks leading up to November 2025. The closing price as of mid-November 2025 was around $1.39. This massive decline reflects market skepticism about the company's path to profitability and its ability to navigate the complex landscape of federal EV incentives, despite the company's efforts to streamline operations and consolidate its California facilities.

Here's the quick math on the valuation and stock performance:

• LTM P/E Ratio: (5.3x) (Indicates net losses)
• EV/Sales Ratio: 1.60 (Suggests conservative revenue valuation)
• 52-Week Stock Price Change: -83.10% (Reflects high risk and market pressure)
• Dividend Yield (FY2025): 0.00% (No dividend payments)

For investors seeking income, GreenPower Motor Company Inc. (GP) is not an option. The company does not currently pay a dividend, meaning its dividend yield and payout ratio for fiscal year 2025 are both 0.00%. This is entirely expected; all available capital is being reinvested into operations, production, and product development to achieve scale and eventually, profit. You should think of this as a pure capital appreciation play, not an income stream.

Analyst sentiment, however, offers a glimmer of optimism, which is where the valuation disparity becomes interesting. Despite the poor stock performance, the analyst consensus leans toward a Buy rating, with one source indicating an 84% Buy Consensus among the analysts covering the stock. The price targets are widely dispersed, which is a common signal of high uncertainty. One analyst projects an average 12-month target of $1.50, while other forecasts suggest an average price of up to $5.164 for 2025. This wide range tells you that the market is split: some see a deep value opportunity after the massive sell-off, while others are simply projecting a continued struggle for the company. The key takeaway is that the street sees a significant potential upside from the current price, but the risk is palpable. To understand who is taking on this risk, you should check out Exploring GreenPower Motor Company Inc. (GP) Investor Profile: Who's Buying and Why?

Risk Factors

You're looking at GreenPower Motor Company Inc. (GP), and honestly, the near-term picture is dominated by a critical liquidity crunch. The company's financial health is under immediate pressure, but they are taking clear, aggressive steps to manage it. Your focus needs to be on their ability to execute the financing and production ramp-up right now.

Here's the quick math on the most urgent risk: GreenPower Motor Company Inc. (GP) ended the quarter on September 30, 2025, with only $511 thousand in cash. This tiny cash cushion is set against a looming deadline: their $5.9 million operating line of credit matures on November 30, 2025. Plus, they are already in technical default, having failed to meet a key financial covenant-the minimum fixed charge coverage ratio of 1.25:1.

• Financial/Liquidity Risk:
  • Immediate debt maturity: $5.9 million due November 30, 2025.
  • Cash position: Only $511 thousand as of September 30, 2025.
  • Total debt: Reported at $21.2 million recently.

What this estimate hides is the reliance on future financing. Management has explicitly disclosed a 'material uncertainty' about its ability to continue as a going concern, which is serious language in financial filings. They are actively pursuing a new financing package to repay that maturing line of credit. You need to see concrete results on that front immediately.

The operational risks are tied directly to market conditions and execution. For the quarter ended September 30, 2025, revenue plunged 53.4% year-over-year to just $2.5 million, with vehicle deliveries dropping by half to only 11 units. This indicates a significant slowdown in sales conversion, even with the electric vehicle (EV) market growing. While the gross margin improved to 11.0% for the quarter due to cost cuts and product mix, the overall lack of profitability is a persistent headwind; the projected Earnings Before Tax (EBT) loss for the full Fiscal Year 2025 was around $18.3 million. They are still losing money on every vehicle sold, even with cost reductions that narrowed the operating loss to $(2.9) million for the quarter.

Regulatory and compliance issues add another layer of risk. GreenPower Motor Company Inc. (GP) received a NASDAQ delisting notice because of a shareholders' equity deficiency, which stood at $(8.3) million. They have until January 30, 2026, to fix this. Also, operational stability is threatened by a dispute over a leased facility in West Virginia, which adds major risk to production. To be fair, they are streamlining, having voluntarily delisted from the TSX Venture Exchange to cut compliance costs.

The company's mitigation strategies are clear and action-oriented. They've secured a new financing facility of up to $18 million to specifically boost the production of their all-electric school buses, which are backed by over $50 million in contracted orders. Plus, in a smart move to shore up the balance sheet, they reached an agreement to retain $6.8 million in customer deposits, which will be recognized as revenue in the current quarter ending December 31, 2025, and will increase shareholders' equity. This is a defintely a positive shift in the balance sheet structure.

For a deeper dive into who is betting on GreenPower Motor Company Inc. (GP) despite these risks, check out Exploring GreenPower Motor Company Inc. (GP) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking at GreenPower Motor Company Inc. (GP) and seeing a recent revenue dip, which is a fair concern. The direct takeaway here is that the company is executing a critical pivot: shifting focus from a softening commercial vehicle market to the high-demand, heavily-incentivized school bus sector, which is where the real near-term growth will come from. This strategy is already translating into a significant order backlog and improved liquidity.

The company reported annual revenue for the fiscal year ending March 31, 2025, of just $19.85 million, a substantial -49.46% decrease year-over-year. That steep drop was a clear signal that the previous strategy needed a change. So, the new focus is on converting a record backlog of more than $50 million in contracted school bus orders, primarily for their BEAST and Nano BEAST models. This conversion is the engine for future revenue growth.

Here's the quick math on the strategic shift. To accelerate production and convert that backlog, GreenPower secured a financing facility of up to $18 million in November 2025. Plus, they strengthened the balance sheet by recognizing $6.8 million in deferred revenue in the quarter ending December 31, 2025, from retained customer deposits. That eliminates a liability and increases shareholder equity by the same amount, which is a defintely smart move for a growth company.

• Convert $50M+ school bus backlog.
• Repurpose chassis for Nano BEAST production.
• Recognize $6.8M in deferred revenue.

Product Innovation and Competitive Edge

GreenPower's core competitive advantage is its purpose-built, all-electric platform. Unlike many competitors that convert diesel or gasoline chassis, GreenPower builds their vehicles from the ground up to be electric. This clean-sheet design allows for optimal battery placement, which results in better weight distribution and higher payload capacity-up to 7,000 lbs on their EV Star platform. This is a real differentiator in the medium-duty space.

In the school bus market, which is now their primary focus, GreenPower is uniquely positioned as the only original equipment manufacturer (OEM) to offer both a smaller Class 4 Type A (Nano BEAST) and a larger Class 8 Type D (BEAST) all-electric school bus. This dual-class offering allows them to meet virtually all school district needs, which is crucial for capturing market share, especially with the massive funding from the EPA Clean School Bus Program.

Future Revenue Projections and Earnings Outlook

While the fiscal year 2025 revenue was weak, the strategic initiatives are expected to improve the near-term earnings picture. Analysts are projecting an improvement in earnings per share (EPS) for the next year (FY 2026), moving from an estimated loss of -$0.71 per share to a slightly smaller loss of -$0.66 per share. This is a small step, but it shows a positive trajectory in profitability as the company scales production and improves operating efficiency through facility consolidation and backlog conversion.

The company's strategic initiatives, including the introduction of new Class 4 commercial vehicles like the EV Star Utility Truck in FY 2025 and the consolidation of California operations into one facility, are designed to streamline production and reduce costs. The dual manufacturing footprint in California and West Virginia also supports a nationwide delivery and service model, positioning them to capitalize on state-level mandates and incentives across the country.

For a detailed look at the balance sheet context for these moves, you can read our full analysis: Breaking Down GreenPower Motor Company Inc. (GP) Financial Health: Key Insights for Investors.