GreenPower Motor Company announced that it will retain $6.8 million in deposits that had been collected for the manufacture of its EV Star Cab & Chassis, and it will not deliver the vehicles to the original customers. The company has removed the deposits from its deferred‑revenue balance and eliminated the expected revenue from those contracts, a move that will be reflected in the quarter ending December 31, 2025.
The decision reduces GreenPower’s short‑term revenue and cash‑flow projections, but it also strengthens the balance sheet by converting a liability into equity. Management explained that the $6.8 million in deferred revenue will be removed, increasing shareholders’ equity and lowering total liabilities. The company’s CEO, Fraser Atkinson, said the move “strengthens our balance sheet” and that the chassis will be used to produce the all‑electric Type A Nano BEAST school bus, which should accelerate revenue recognition and improve operating cash flow.
The repurposing reflects a strategic shift toward the growing electric‑school‑bus market. GreenPower’s West Virginia plant is ramping up output to one BEAST per week, with a target of two per week by April, and the company is consolidating its California operations to improve efficiency. The company has also secured an $18 million financing facility and issued Series A convertible preferred shares to shore up liquidity amid recurring losses and an accumulated deficit that has raised going‑concern concerns.
Prior quarter data illustrate the magnitude of the impact. In Q2 2025 GreenPower reported revenue of $2.49 million versus $5.35 million a year earlier, and a net loss of $3.59 million. Q3 2025 revenue rose to $7.22 million, a 13.9% year‑over‑year decline, while gross profit margin improved to 14.6% from 10.2% in the prior year, driven by higher mix in the school‑bus segment and cost controls. The deposit retention will reduce the deferred‑revenue balance that had been contributing to the company’s reported revenue, thereby tightening short‑term earnings but positioning the firm for a more profitable product line.
The event signals both challenges and opportunities. While the cancellation of the EV Star Cab & Chassis orders indicates difficulty in securing new vehicle deliveries, the strategic pivot to the school‑bus segment and the use of existing inventory to accelerate production suggest a focus on higher‑margin, high‑demand products. Management’s guidance remains cautious, but the company’s financing and production ramp indicate confidence in the school‑bus market’s growth potential.
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