Key Takeaways
- CEA Industries reported Q1 2025 revenue of $713K, up from $235K in Q1 2024.
- Net loss widened to $1.1 million, driven by acquisition-related expenses.
- Gross profit turned positive at $39K, compared to a $154K loss in the year-ago quarter.
- The company ended Q1 2025 with $8.7 million in cash and no debt.
- Progress continues on the acquisition of Fat Panda, expected to support entry into the high-growth vape industry.
CEA Industries Posts Q1 2025 Results and Highlights Strategic Shift
CEA Industries Inc. (NASDAQ: CEAD, CEADW), a provider of solutions for the controlled environment agriculture (CEA) sector, announced financial results for the first quarter ended March 31, 2025. The company reported continued revenue growth and margin improvement, while reiterating its strategic focus on cost control and the pending acquisition of Fat Panda.
“We continue to uphold our lean operating model, emphasizing disciplined expense management and capital preservation as we support our pending acquisition,” said Tony McDonald, Chairman and CEO of CEA Industries.
Financial Summary – Q1 2025
| $ in Thousands | Q1 2025 | Q4 2024 | Q1 2024 |
|---|---|---|---|
| Revenue | $713 | $417 | $235 |
| Gross Profit / (Loss) | $39 | $(175) | $(154) |
| Operating Expenses | $1,113 | $850 | $769 |
| Net Income / (Loss) | $(1,069) | $(1,019) | $(917) |
| Cash & Equivalents | $8,700 | $9,500* | – |
| Working Capital Change | ↓ $1,000 | – | – |
| Debt | $0 | $0 | $0 |
*As of December 31, 2024
Revenue rose to $713,000, a threefold increase from Q1 2024, supported by higher net bookings and backlog revenue conversion. The company reported a positive gross profit of $39,000, compared to a gross loss of $154,000 in the same period last year.
Operational Metrics and Cost Controls
CEA Industries continues to operate under a cost-conscious framework, focusing on maintaining liquidity and reducing non-core expenditures. The increase in operating expenses to $1.1 million was attributed to acquisition-related costs. Excluding these, the company reduced costs through:
- Headcount reductions
- Suspension of product development
- Lower advertising and marketing spend
Net bookings rose to $1.0 million in Q1 2025 (vs. $0.3 million in Q1 2024), and quarter-end backlog grew to $0.8 million, suggesting improved forward visibility.
Fat Panda Acquisition Positioned as Strategic Milestone
The company reiterated its excitement regarding the pending acquisition of Fat Panda, a vertically integrated vape products business.
“This transaction marks a significant milestone in our transformation strategy,” said McDonald. “Fat Panda’s consistent growth and strong margin profile position us well to drive sustainable value creation.”
Fat Panda offers an extensive retail footprint and in-house production capabilities, which CEA Industries expects to leverage to diversify revenue streams and access the high-growth vape market.
CEA Industries Balance Sheet Overview
As of March 31, 2025, CEA Industries remained debt-free and held $8.7 million in cash and equivalents, down from $9.5 million at year-end 2024. The company reported a $1 million decline in working capital, consistent with its investment in acquisition and operations.
Read the complete financial results here.
