ClearOne, Inc. reported its financial results for the first quarter ended March 31, 2025, showing a significant deterioration in its financial performance. GAAP revenue for Q1 2025 was $2.313 million, a 36% decrease year-over-year from $3.622 million in Q1 2024, and a 21.8% sequential decrease from Q4 2024. The company's gross profit plummeted by 89% year-over-year to $0.121 million, resulting in a gross profit margin of only 5%.
The net loss for the quarter widened to $2.834 million, or $0.11 per diluted share, compared to a net loss of $1.898 million, or $0.08 per diluted share, in Q1 2024. Cash and cash equivalents decreased to $1.0 million as of March 31, 2025, down from $1.4 million at December 31, 2024. This critically low cash balance led to insufficient funds to maintain an uninterrupted flow of inventory from contract manufacturers and suppliers.
Management attributed the revenue and gross profit declines primarily to the cumulative impact of past production shortages and cash flow constraints that affected inventory sourcing and order fulfillment. Despite these challenges, ClearOne introduced five new products in Q1 2025, with the BMA 360DX winning a 'Best of Show' award at ISE 2025. The company also secured a $1 million investment in February 2025, which allowed it to restart some product inventory purchases.
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