Nuvve outlines decentralized energy, AI, and crypto strategy while targeting $400M New Mexico CapEx opportunity

Earnings Call Insights: Nuvve Holding Corp. (NVVE) Q2 2025

MANAGEMENT VIEW

* Gregory Poilasne, CEO, stated that the company has finalized structural changes, positioning Nuvve "at a very strategic intersection between energy, artificial intelligence and crypto." He described the synergistic potential: "Energy powers AI and crypto. Energy is foundational to both AI and cryptocurrency as both require massive computing infrastructure... Crypto enables energy markets innovation, blockchain can tokenize energy assets, e.g., solar panels, carbon credits, enabling peer-to-peer energy trading and smart contracts on blockchain can automate energy transactions."
* The CEO reported the establishment of subsidiaries Nuvve Japan, Nuvve Europe, and Nuvve CPO (charge point operator business in the U.S.), with both Japan and Europe subsidiaries raising private capital and targeting a 20% equity share for investors to drive toward profitability.
* On the New Mexico contract, Poilasne noted, "This project represents a potential opportunity greater than $400 million of CapEx deployment over the next 4 years... we have established a special company in the state of New Mexico named Nuvve New Mexico, led by Ted Smith, our former COO and now CEO of Nuvve New Mexico."
* The company acquired the assets of Fermata Energy LLC to integrate with Nuvve's GIVe platform, aiming for efficiency and new services by year-end. The acquisition was financed through private convertible notes.
* Nuvve launched a digital asset management subsidiary, Nuvve-DigitalAssets, led by James Altucher and announced an initial purchase of Hype Token.
* Poilasne highlighted a low hardware revenue quarter due to transitioning the main 60-kilowatt product to a new vendor, expecting Q3 to recover. He stated, "At the end of May, we had received the same amount of orders that we had received all last year, which was about $2.2 million."
* In Japan, the company decommissioned 4.4 MW of stationary batteries and shifted focus to battery aggregation for commercial and governmental customers, announcing a project with Matsuda Town in Kanagawa Prefecture.
* CFO David G. Robson reported, "In the second quarter, we generated total revenues of $0.3 million compared to $0.8 million in the second quarter of 2024. The decrease in revenues was a result of lower charger hardware sales this quarter versus the same period last year."
* Robson also stated, "Margins on products, services and grant revenues were 16.6% for the second quarter 2025 compared to 24.9% for the year ago period."

OUTLOOK

* Management expects Q3 hardware revenues to recover as the main product transition completes, with "very strong improvements in terms of commissioning efficiency and overall product reliability."
* Both Nuvve Japan and Nuvve Europe are raising private capital and targeting profitability, with updates expected as platform rollouts progress and battery aggregation projects advance.
* The company anticipates more developments on the New Mexico contract and ongoing negotiations for battery aggregation in Japan to benefit future backlog and revenue pipeline.
* Robson shared, "We expect cash operating expenses, excluding cost of sales for the next several quarters to be similar to what we experienced in Q2 of 2025."

FINANCIAL RESULTS

* Nuvve reported $0.3 million in total revenues for the quarter, with hardware sales affected by timing of EPA funding and migration to new models.
* Year-to-date revenues through June 30, 2025 were $1.2 million compared to $1.6 million for the same period last year.
* Operating costs, excluding cost of sales, reached $15 million for the quarter, impacted by a one-time $8.2 million noncash stock compensation expense related to the digital asset strategy and a $0.9 million bad debt write-off. Excluding these, expenses were $5.9 million, down $0.1 million year-over-year.
* Net loss attributable to Nuvve common stockholders increased to $13.4 million from $4.2 million in Q2 2024, primarily due to one-time items.
* Cash as of June 30, 2025 was $1.8 million, up $0.6 million from March 31, 2024, due to capital raises and additional borrowings.
* Megawatts under management decreased 19.5% sequentially to 25.6 MW, with declines from decommissioned stationary batteries in California and Japan.
* Backlog as of June 30 stood at $19.1 million, down $0.6 million from March 31, 2025.

Q&A

* There were no analyst questions during the call.

SENTIMENT ANALYSIS

* Analyst sentiment cannot be assessed as there were no questions or commentary during the call.
* Management's tone during prepared remarks was confident regarding strategic positioning but acknowledged "revenues were soft" and emphasized, "we successfully finished the restructuring of our energy business and integrated our recent acquisition at Fermata."
* Compared to the previous quarter, management maintained a forward-looking and transformation-focused tone with increased emphasis on the intersection of energy, AI, and crypto.

QUARTER-OVER-QUARTER COMPARISON

* Management increased focus on integrating AI and crypto into the energy strategy, expanding on the structural changes first discussed last quarter.
* Guidance language stayed consistent, but management highlighted the completion of restructuring and new digital asset initiatives.
* Revenue declined from $0.9 million in Q1 to $0.3 million in Q2, with a significant increase in one-time expenses related to digital asset strategy and bad debt write-off, impacting net loss.
* Megawatts under management dropped from 31.8 MW to 25.6 MW, mainly due to decommissioning in California and Japan.
* Analysts' engagement decreased, with no participation in the Q2 call versus a brief Q&A in Q1.
* Management's confidence in the transformation remained, with a stronger narrative on leveraging AI, crypto, and decentralized infrastructure.

RISKS AND CONCERNS

* Management cited "timing of EPA funding awards and our migration to new charging station models" as reasons for reduced hardware sales.
* The company decommissioned stationary batteries in California and Japan, with future revenue generation from those assets deemed limited under existing agreements.
* A $0.9 million bad debt write-off occurred related to the Fresno infrastructure project, as the customer is still securing lender financing and payment timing is uncertain.
* The capital-intensive nature of the business is managed by raising private funds at the subsidiary level to lower the cost of capital, especially in Japan and Europe.

FINAL TAKEAWAY

Nuvve's leadership underscored the company's transformation, emphasizing its new strategic position at the intersection of energy, AI, and crypto. Despite a decline in quarterly revenue and megawatts under management, management highlighted progress in subsidiary development, private capital raises, and acquisition integration. The $400 million New Mexico opportunity and evolving digital asset initiatives represent major forward-looking drivers, with management expressing confidence in Nuvve's ability to capitalize on emerging trends in decentralized, intelligent energy infrastructure.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/nvve/earnings/transcripts]

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