Guerrilla RF, Inc. posted third‑quarter 2025 revenue of $6.3 million, a 39% year‑over‑year increase that was driven by a 130% jump in automotive sales to $2.4 million and a 50% rise in catalog revenue to $3.2 million. The growth in these high‑margin segments offset a decline in wireless‑infrastructure shipments, underscoring the company’s shift toward more profitable product lines.
The company’s margin profile improved markedly. Contribution margin fell 50 basis points to 76.7% from 77.2% in the prior quarter, a modest compression attributed to the heavier mix of automotive products, which carry slightly lower contribution rates. Gross profit margin expanded 220 basis points to 67.5% of revenue, reflecting stronger pricing power in the catalog segment and cost efficiencies in manufacturing. The combination of a higher‑margin mix and disciplined cost control drove the margin gains.
Operating expenses dropped 20% year‑over‑year to $4.4 million, with reductions of 21% in R&D, 12% in sales and marketing, and 28% in general & administrative costs. The expense cuts narrowed the operating loss to $0.2 million from $2.6 million in the same period last year, a turnaround that signals the company’s progress toward a sustainable operating model.
Cash‑flow metrics marked a turning point. The quarter generated $0.8 million in positive operating cash flow, the first positive figure of the year, and the balance sheet ended with $4.0 million in cash. Net cash used in operating activities fell to $2.5 million from $3.3 million, reflecting tighter working‑capital management and stronger cash generation.
Management highlighted the significance of these results. CEO Ryan Pratt said, “Strong growth in our automotive and catalog business propelled our revenues to record levels in the third quarter 2025. We believe the revenue growth and cost containment efforts we have in place provide a pathway to profitability in the near term.” CFO Mike John‑Williams added, “Delivering positive cash from operating activities this quarter underscores the progress we’ve made toward financial self‑sufficiency. Our balance sheet is stable.” The company’s focus on high‑margin segments and disciplined cost control positions it for continued improvement in profitability.
No analyst consensus estimates were available for this quarter, and the company did not provide forward guidance in the filing. The results, however, demonstrate a clear trajectory toward profitability and reinforce confidence in Guerrilla RF’s strategic shift toward automotive and catalog markets.
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