Cenntro (CENN) Financials

Cenntro’s second-quarter 2026 results show a sharp sequential revenue rebound, but the company remains unprofitable and dependent on financing to fund operations. Revenue increased to $6.2 million from $1.2 million in the first quarter of 2026 and was broadly comparable with the $6.4 million reported in Q2 2025. However, revenue remains well below the $16.2 million recorded in Q3 2024.

Gross profit improved to $412,820, producing a gross margin of approximately 6.6%, compared with 19.6% in Q1 2026 and a small gross loss in Q2 2025. Operating expenses totaled $7.9 million, including a $2.9 million impairment charge, resulting in an operating loss of $7.5 million. The company reported a consolidated net loss of $10.6 million, or $5.97 per basic share, compared with a $3.9 million loss in Q1 2026.

Cash flow remains a major concern. Cenntro used $2.7 million in operating cash during Q2 2026, following operating cash outflows of $2.8 million in Q1 2026, $1.8 million in Q4 2025 and $1.4 million in Q3 2025. Financing activities provided $3.3 million during the quarter, largely offsetting operating and investing cash needs and producing a $3.3 million increase in cash. This suggests the recent improvement in liquidity was driven primarily by financing rather than internally generated cash.

The balance sheet provides some near-term support, but its composition is important. Cash and equivalents increased to $4.3 million at June 30, 2026, from $3.6 million at March 31, while total current assets were $41.6 million. Inventories and prepaid expenses accounted for approximately $35.7 million of current assets, meaning much of the company’s liquidity is tied up in assets that may take time to convert into cash. Total current liabilities were $25.2 million, implying a current ratio of roughly 1.65.

• Revenue rebounded sequentially: Q2 2026 revenue rose approximately 413% from Q1 2026 to $6.2 million, indicating improved sales activity compared with the unusually weak first quarter.
• Gross profitability returned: Cenntro generated $412,820 of gross profit in Q2 2026 after reporting a $19,000 gross loss in Q2 2025, although the resulting margin remains thin.
• Cash increased during the quarter: Cash and equivalents rose to $4.3 million, while the company reported a $3.3 million net increase in cash and equivalents.
• Current assets exceed current liabilities: The $41.6 million current-asset balance compared with $25.2 million of current liabilities provides some working-capital coverage in the near term.
• Debt levels are moderate relative to total assets: Short-term and long-term debt totaled approximately $6.2 million at quarter-end, but Cenntro also paid $66,206 of cash interest and required new financing to support liquidity.
• Asset balances have changed materially: Total assets declined to $68.4 million in Q2 2026 from $124.4 million in Q2 2025 and $159.8 million in Q3 2024, reflecting a substantially smaller balance sheet and possible restructuring or asset reductions.
• Operating cash flow remains persistently negative: Cenntro has reported operating cash outflows in each of the recent quarters provided, including $2.7 million in Q2 2026, limiting its ability to fund operations without outside capital.
• Losses remain substantial: The Q2 2026 net loss attributable to common shareholders was $10.6 million, and retained earnings stood at a deficit of $406.3 million.
• Operating expenses continue to overwhelm gross profit: Q2 operating expenses of $7.9 million were roughly 19 times gross profit, and the quarter included a $2.9 million impairment charge.
• Liquidity is concentrated in inventory and prepaid expenses: These assets represented most of current assets, while unrestricted cash was only $4.3 million. Continued operating losses could therefore force Cenntro to seek additional debt, equity or other financing.