Lucid Group (LCID) Financials

Lucid Group (NASDAQ: LCID) continues to experience significant financial challenges as reflected in the recent financial statements spanning from Q3 2022 through Q2 2025. Here is a detailed summary of the key trends and financial metrics over the last few years:

• Cash & Equivalents have generally increased over time, reaching approximately $1.8 billion at the end of Q2 2025 compared to around $900 million in early 2023, indicating improved liquidity.
• The company maintains significant investments in short-term and long-term instruments, which provide some financial flexibility.
• Issuance of debt in recent quarters, particularly in 2025, has supplied Lucid with additional capital, increasing debt by over $1 billion in Q2 2025, potentially to support growth initiatives or operations.
• Depreciation expense steadily increased over the years, consistent with growth in property, plant, and equipment, reflecting continued investment in production capacity.
• Research & Development expenses remain high, around $270 million in Q2 2025, demonstrating a commitment to product innovation but also contributing to ongoing losses.
• Operating revenue, though increasing from around $137 million in Q3 2023 to $259 million in Q2 2025, remains significantly lower than operating costs, leading to continued negative gross profit in these periods.
• Gross profit is consistently negative, with increasing operating cost of revenue considerably exceeding revenues, for example, $531 million in costs vs. $259 million revenue in Q2 2025.
• Net loss remains substantial and persistent, with Q2 2025's consolidated net loss reported at approximately -$539 million and continued net losses throughout previous quarters, indicating ongoing operational challenges.
• Negative operating cash flow for six consecutive quarters, reaching -$830 million in Q2 2025, signifies that core business operations have not yet generated positive cash flow.
• Total liabilities have increased from about $3.6 billion in early 2023 to nearly $4.6 billion by Q2 2025, leading to a relatively thin equity base (approximately $2.4 billion at Q2 2025), which may raise concerns on balance sheet leverage and solvency.

Summary: Lucid Group's financials show some positive cash buffers and investments, but the company continues to face challenges in terms of profitability and cash flow generation. Persistent net losses and negative gross margins are chief concerns as the business scales. The increase in debt financing and capital expenditures highlights an aggressive growth posture but also increases financial risk. Retail investors should closely monitor Lucid’s path to profitability and cash flow breakeven in upcoming quarters, alongside its ability to manage leverage and operating costs.