Canoo Inc.

Canoo reported Q3 2024 revenue of $891,000, its highest quarterly revenue, including higher-margin engineering service revenue. R&D expense excluding stock-based compensation was $18.8 million, down from $21.3 million in the prior-year period, and SG&A excluding stock-based compensation was $19.6 million versus $18.6 million last year. Adjusted EBITDA improved to negative $37.7 million from negative $40.4 million in Q3 2023, and adjusted net loss per share improved to negative $0.54 from negative $0.61 in Q2 2024. The company ended the quarter with $16.1 million of cash, cash equivalents and restricted cash. Management said it raised $28 million in capital this quarter and later secured a $12 million credit facility. For the next quarter, Canoo expects cash outflow of $30 million to $40 million due to site consolidation; no revenue or EPS guidance was provided.

Tony Aquila framed the quarter around industry-wide volatility, capital constraints, and a strategic reset toward commercial, government and fleet customers. He said Canoo is flattening the organization, consolidating facilities, and taking aggressive cost actions, including furloughs, to align operations with available capital. He also emphasized that the company is moving away from consumer vehicles and focusing on profitable, lower-volume fleet and government opportunities in the U.S. and abroad, including the U.K.

Kunal Bhalla highlighted the quarter as Canoo's highest revenue quarter at $891,000 and said the company raised $28 million in capital, plus a $12 million credit facility approved by the independent board with AFV Management Advisors LLC, an affiliate of Tony Aquila. Ramesh Murthy said R&D excluding stock-based compensation was $18.8 million and SG&A excluding stock-based compensation was $19.6 million, while adjusted EBITDA improved to negative $37.7 million. He also noted ending cash of $16.1 million, cash used in operations of $26.5 million, investing cash outflow of $2.8 million, and expected near-term cash outflow of $30 million to $40 million from consolidation, alongside annualized savings of $12 million to $14 million from the footprint reduction.

Analysts focused on financing, production timing, and the potential U.K. right-hand-drive and USPS-related opportunities. Management said it is pursuing a mix of capital sources, including an ATM, revolving credit, purchase-order financing, non-dilutive government programs, and sovereign or allied investors, while trying not to raise too much capital at once. On production, Tony Aquila said Canoo is behind plan and tied meaningful volume ramp to capital and supply-chain alignment, though he cited progress including a right-hand-drive vehicle, 15,000-plus delivery miles, and a 12-month working-capital facility. He also confirmed the company received only one government 'letter of encouragement' so far, not a commitment, and that the program is meaningful for Canoo's size.