REE Automotive Ltd. (NASDAQ: REE) reported a GAAP net loss of $24.3 million for the six months ended June 30 2025, a 33% improvement from the $36.0 million loss recorded in the same period last year. Revenue rose to $184,000, up 15% from $160,000 in H1 2024, reflecting modest growth in its limited vehicle‑production and licensing activities.
Operating expenses averaged $6 million per month during the first half of 2025. Management outlined a plan to cut those costs to $3.1–$3.3 million per month in Q4 2025 and to $1.8 million per month by the end of Q1 2026, a reduction of roughly 70% from the H1 average. The target cuts are part of a broader effort to shift from capital‑intensive vehicle manufacturing to a technology‑first model that relies on software licensing and strategic partnerships.
CEO Daniel Barel emphasized that the company is “moving from a capital‑intensive vehicle production model to a technology‑first approach that focuses on collaborating with OEMs and strategic partners.” He added that the transition has helped lower costs and positioned REE for future software‑defined vehicle licensing opportunities, underscoring a strategic pivot toward high‑margin technology services.
The results show that while the company remains in the red, the loss is narrowing and revenue is growing, indicating that the cost‑control measures and partnership strategy are beginning to take effect. However, the company’s free‑cash‑flow burn remains high, and liquidity concerns persist, especially as it seeks to fund further development and partnership initiatives.
In addition to the earnings announcement, REE received a 180‑day extension from Nasdaq to regain compliance with the minimum bid‑price requirement. The extension provides the company with additional time to stabilize its financial position and pursue its technology‑first strategy without the immediate threat of delisting.
The announcement was met with a positive market reaction, as investors welcomed the earnings and the Nasdaq extension, signaling confidence in the company’s strategic shift and cost‑reduction trajectory.
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