Nauticus Robotics, Inc. Q3 FY2025 earnings call

• Nauticus is moving beyond early stage development into scalable commercial deployment, with progress in field operations, technical milestones, and customer response.
• Completed deepest subsea test to 2,300 meters in the Gulf of America, demonstrating operational advancement.
• Nauticus ToolKITT operating system installed and tested in the field, with successful integration into existing ROV fleet and expansion to third-party ROVs.
• Customer base continued to grow, with positive feedback on ROV systems and growing interest from commercial and government sectors.
• Engineering team made progress on manipulator system design and addressed supply chain risks through proactive procurement measures.

Revenue for the third quarter was $1.9 million, down $0.1 million sequentially but up $1.6 million from Q3 2024. Operating expenses were $7.8 million, up $1.9 million from Q3 2024 but down $0.6 million sequentially. Net loss for the quarter was $6.6 million, a $0.8 million decrease sequentially but a $24.5 million increase from Q3 2024. Cash at the end of Q3 2025 was $5.5 million, driven by funding from an at-the-market offering. Revenue shortfall in Q3 was a strategic decision to defer work in cooperation with customers.

• 2026 pipeline beginning to fill with encouraging early signs.
• Planning an Investor Day in Florida for early 2026 to showcase technology.
• Considering acquiring existing vehicles to scale operations quickly instead of waiting for new Aquanaut builds.
• Focus on using the $250 million equity facility for accretive, cash flow-generating opportunities immediately.

• Supply chain turbulence posing risk to procurement and logistics efforts.
• Potential dilution from equity offerings and impact on stock price.
• NASDAQ compliance risks related to market cap and shareholder equity if not managed properly.

Q: How should we think about the enhanced margin potential for software-only retrofits compared to full stack newbuild vehicle sales?

A: Gross margins on software are in the 80-plus percent range, with a clear go-to-market strategy for retrofitting ROVs.

Q: Are there plans to accelerate scaling by acquiring existing vehicles?

A: Yes, looking into acquiring untethered vehicles that may not be as capable but allow quick market entry.

Q: What's the current state of supply chain and tariff risks?

A: Supply chain management is challenging with international suppliers, but parts are on order and proactive measures taken.

Q: Any unexpected bottlenecks in SeaTrepid acquisition integration?

A: Not enough equipment, but focus on autonomy and tetherless systems, with strong sales team from SeaTrepid.

Q: Customer type for deepsea rare earth exploration?

A: Focus on inspection and observation, with potential private contracts and international interest.

Q: Time line for deep sea mining commercialization?

A: Primary focus on immediate customer opportunities in 2026, with exploration of ocean minerals as a secondary focus.

Q: Plan to cure NASDAQ compliance issues related to market cap?

A: Focus on increasing shareholder equity through lender conversions, with an Investor Day to improve visibility.

Q: Concerns about stock price and protection for current investors?

A: Focus on executing and delivering results to drive share price up, with disciplined use of equity facility to benefit all shareholders.