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Hyliion Holdings Corp. Reports First Quarter Financial Results

Office environment discussing financial projections and growth strategies.

News Summary

Hyliion Holdings Corp. has announced its financial results for the first quarter of 2025, reporting a revenue of $0.5 million mainly from R&D services. Despite a breakeven gross margin, operating expenses increased to $19.7 million, leading to a net loss of $17.3 million. The company has revised its cash outlay forecast, yet remains optimistic about its revenue projections for the year, driven by sales of KARNO modules and ongoing R&D activities.

Austin, Texas – Hyliion Holdings Corp. (NYSE American: HYLN) has announced its first-quarter financial results for the period ending March 31, 2025, reporting a revenue of $0.5 million. This income primarily stems from research and development services for the Office of Naval Research.

The company’s financial performance showed a breakeven gross margin with a corresponding cost of revenues also totaling $0.5 million. However, Hyliion’s operating expenses rose to $19.7 million, a slight increase from the $19 million reported during the same quarter last year. This uptick in expenses was driven by a notable rise in research and development costs, which increased to $12.2 million from $8.0 million year-over-year.

On the other hand, selling, general, and administrative expenses decreased to $6.1 million from $6.6 million reported in the prior year. Additionally, the company incurred $1.4 million in exit and termination costs related to the winding down of its discontinued powertrain business. The net loss for the first quarter of 2025 amounted to $17.3 million, up from the $15.6 million loss in the first quarter of 2024.

Financial Position and Outlook

As of the end of Q1 2025, Hyliion’s cash and investments stood at approximately $198.8 million. The cash outflows for the quarter reached $20.9 million, which included $7.3 million allocated for capital expenditures, primarily for additive manufacturing equipment.

The company has revised its cash outlay forecast for the year 2025 to about $65 million, reflecting an increase from previous estimates due to various factors such as the acceleration of research and development activities. Despite the increased expenses, Hyliion reaffirmed its revenue guidance for 2025, projecting revenues between $10 million and $15 million, primarily driven by the sales of KARNO modules and ongoing R&D services.

Hyliion anticipates wrapping up 2025 with approximately $155 million in cash and investments. The company has secured over 100 KARNO units under non-binding Letters of Intent (LOIs) across various sectors, including data centers and military applications, indicating strong market interest.

KARNO Generator Platform Development

In April 2025, the KARNO Power Module was publicly launched at the ACT Expo in Anaheim, California. This innovative technology attracts considerable attention due to its fuel-agnostic modular design. The company is currently tackling technical challenges associated with linear electric motor manufacturing and implementing solutions for the depowdering of complex printed parts to enhance the deployment of the KARNO Power Module.

To support future growth, Hyliion is significantly ramping its additive manufacturing capabilities, currently operating over 20 3D metal printers aimed at facilitating production demands for the KARNO modules. The company’s CEO, Thomas Healy, emphasized the strong customer interest in the KARNO module, mentioning that it remains on track for commercialization by the end of 2025.

Conclusion

Hyliion Holdings Corp. faces a challenging financial landscape with rising operational costs and net losses while positioning itself for future growth through product innovation and increased manufacturing capacity. As the company progresses toward the commercialization of its KARNO Power Module, it is focusing on addressing technical challenges and securing additional customer commitments in various sectors.