Nuvve Holding Corp Aktie

Good day, and welcome to the Nuvve Holding Corporation Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. On today's call are Gregory Poilasne, Chief Executive Officer; and David Robson, Chief Financial Officer of Nuvve. Earlier today, Nuvve issued a press release announcing its Q2 '26. Following prepared remarks, we will open up the call for questions. Before we begin, I would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Nuvve's best current judgment, they are subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking projections. These risk factors are discussed in Nuvve's filings with the SEC and in the earnings release issued today, which are available on our website. Nuvve undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances. With that, I would like to turn the call over to Gregory Poilasne, Chief Executive Officer of Nuvve. Gregory?

Thank you, and good afternoon to everyone here today. Welcome to our second quarter 2026 results call. Let me start with the subject that is on everyone's mind. On July 22, we received the termination from NASDAQ Hearing Panel and trading in our common stock was suspended on NASDAQ at the open of July 24. Our stock began trading on the OTC Pink market that same day. And since August 10, we have been trading on the OTCQB tier under the symbol NVVE. I want to be direct on this. We understand NASDAQ's decision. We did not meet the continued listing standard on filing on billing price and on stockholders' equity. And though we have picked these issues but too late, the panel applied its roles. There is nothing more to say about it. What I do want to say is this, we are working very hard to return to a senior market whether NASDAQ or NYSE, as fast as responsibly can. We are not treating this as a long-term project. We are treating this as an immediate priority, and we are working to a time line measured in months.

That means executing on our business, rebuilding the balance sheet and staying current on our filings as we are moving on all 3. In the meantime, the business continues and the pipeline in front of us is the most exciting it has been. Turning to the quarter. Total revenue was up 268% year-over-year. For the first 6 months, revenue was up 110% compared to the same period last year. Revenue this quarter was still driven mostly by the delivery of charging stations supporting our V2G's core bus business. That business remains real. It remains a source of cash, and it continues to give us deployed assets under management. Net loss was down 46% compared to the same quarter last year. Backlog as of June 30 was $5.3 million. I will not spend more time on the numbers. David will cover the financials and details in a few minutes.

I want to spend the rest of my time on stationary batteries because this is the core of the business Nuvve is now driving. We are focused on 3 geographies. The first one is Japan. Japan is contributing meaningfully to our revenue in the first half of the year, including technical service revenues tied to grid interconnection agreement delivered by our Japanese subsidiary. Japan is a market where the opportunity set keeps expanding and where we are actively securing battery interconnection capacity. We view interconnection capacity as one of the scarcest and most valuable asset in this industry, and we are building a position there. The second is Europe, where we continue to work with our partner, Omnia. I want to thank our shareholders for their vote in favor of the transaction at the special meeting.

That vote gives us a framework to move forward and upon completion of the agreed milestone, Omnia will become a significant shareholder of Nuvve. We welcome them, and we are aligned with them on where this goes. The European opportunity is very exciting. And I want to be clear about how we are approaching it because it's a change from how we have talked about it before. In Europe, we are planning for the batteries to go on new these balance sheets. These will be assets we plan to own that we control, that we optimize on our own platform and where we capture the full energy revenue rather than service fees on somebody else assets. This is a more capital-intensive path, and we are taking it deliberately. Europe is where the market structure, the revenue stocks and the financing environment support ownership and owning these assets is what builds the base of hard assets and recurring cash flow under this company.

Our partnership with Omnia is what makes this possible, projects, local execution and capital alongside our platform. Connected to that, I want to point out that we have launched our monthly forecasting newsletter. The first 2 additions are out covering the Nordics, Austria and Switzerland. We'll keep on expanding the geographic reach across Europe, and we will soon launch a Japan Edition as well. That newsletter is not a marketing size. It is the visible surface of something bigger. It is built on the long work we have been doing on the AI-based forecasting combined with the skill set we brought in through camera. It supports a new product and service offering that we'll be announcing shortly. I'm not going to get ahead of that announcement today, but I would encourage you to read the newslater because they show you the quality of the work and the needs.

The third geography is the United States and specifically New Mexico. New Mexico is our sandbox. It is where we showcase what a full Nuvve deployment looks like. We have already announced several battery projects there, including Kip Carseland Secoo. Beyond batteries, we are advancing microgrid work and coadeployments in the same state. That combination, stationary storage, microgrids and B2G fleet, all managed on 1 platform is exactly the model that we underplate elsewhere.

So to summarize, we are trading on the OTCQB today. We understand how we got here, and we are not going to pretend otherwise. But the pipeline in front of this company is stronger than it has been at any point in our history. Our cost base is meaningfully lower than a year ago and 3 core geographies are all moving forward. We'll be sharing more with you about our path back to a senior market and about how our new product in the near future. This is an immediate priority for us, not a long-term one. With that, I will turn the call over to David to walk you through the financial details. David?

Thanks, Gregory. I will start with a recap of second quarter 2026 results. In the second quarter, we generated total revenues of $1.23 million compared to $0.33 million in the second quarter of 2025. The increase was primarily driven by increases in product revenue due to higher customer sales orders and shipments and increased grant revenues. Margins on products, services and grant revenues were 2.6% for the second quarter of 2026, and compared to 26.1% for the year ago period. Margin was negatively impacted quarter-over-quarter primarily by a $1.2 million write-down of certain costs related to the Troy project, along with a higher mix of hardware charging station sales and higher replacement warranty costs of certain DC chargers.

Excluding grant revenues, margins on products and service revenues decreased to a negative 14.5% for the second quarter of 2026 compared to 11.6% in the year-ago period. As a reminder, margins can be lumpy from quarter-to-quarter depending on the mix. DC charger gross margins at standard pricing generally range from 15% to 25%, while AC charger gross margins are approximately 50%, but in dollar terms are a small fraction of the revenue of the DC charger. Grid service revenue margins are generally 30%, while software and engineering service margins are as high as 100%. Operating costs, excluding cost of sales, was $7.5 million for the second quarter of 2026 compared to $6.5 million for the first quarter of 2026 and $15 million for the second quarter of 2025.

Expenses increased over last quarter due to higher public company and legal expenses. Expenses declined over the year ago period due to prior year nonrecurring expenses of $8.2 million or warrants issued for the cryptocurrency strategy consulting services and bad debt expense of $1 million related to unpaid management fees for the Fresno EV infrastructure project, offset by higher public company fees and legal expenses in the current quarter. Cash operating expenses, excluding cost of sales, stock compensation, depreciation and amortization expense and other onetime costs was $7.3 million in the second quarter of 2026, and versus $6 million in the first quarter of 2026 versus $5.7 million in the second quarter of 2025.

This represents an increase of $1.6 million in expenses over the same quarter last year. Other income was $0.2 million in the second quarter of 2026 compared to $1.2 million of other income in the second quarter of 2025. The current period was impacted by lower noncash gains from the change in the fair value of warrants and debt offset by interest expense while prior period higher noncash gains from the change in the fair value of convertible debt and warrants, partially offset by interest expense from borrowings. Net loss attributed to Nuvve common stockholders decreased in the second quarter of 2026 to $7 million from a net loss of $13.4 million in the second quarter of 2025. The decrease in net loss was primarily a result of lower operating losses partially offset by higher nonoperating income.

Now turning to our balance sheet. We had approximately $0.5 million in cash as of June 30, 2026, excluding $0.3 million in restricted cash which represents a $1.4 million decrease from March 31, 2026. The decrease was a result of $3.6 million used in operating activities, $0.3 million for the purchase of Charging Station 6 assets, primarily offset by capital raised through the issuance of common stock and preferred stock and the exercise of warrants totaling $1.2 million and borrowings of debt totaling $1.4 million. Inventories decreased during the quarter to $0.6 million at June 30, 2026, compared to $0.8 million at March 31, 2026.

During the quarter, accounts receivable decreased to $0.7 million at June 30, 2026 compared to $1.3 million at March 31, 2026. Accounts payable at the end of the second quarter of 2026 was $4.4 million representing a decrease of $0.4 million compared to the first quarter of 2026 of $4.7 million. Accrued expenses at the end of the second quarter of 2026 was $5 million, an increase of $2.8 million compared to the first quarter of 2026 of $2.1 million.

Now turning to our megawatts under management and estimated future grid service revenues. As a reminder, megawatts under management is a metric we use to quantify the aggregated amount of electrical capacity from the deployment of our V1G and B2G chargers which are primarily deployed in the electric school bus market in the U.S. and in light-duty fleet developments in Europe in addition to stationary battery. Currently, these chargers and batteries are located throughout the United States and Europe. Megawatts under management in the second quarter increased 3.1% over the first quarter of 2026 to 29.9 megawatts from 29.0 megawatts and a 16.8% increase compared to the second quarter of 2025.

In terms of its composition, 0.2 megawatts were from stationary batteries, and 29.7 megawatts were from EV chargers. We continue to expect further growth in our megawatts under management in 2026 as we continue to commission our backlog of customer orders we have earned in addition to new business, we anticipate winning, which we have visibility to in our pipeline for both EV chargers and stationery and batteries.

Now turning to backlog on June 30, 2026, our hardware and service backlog increased to $5.3 million, an increase of $0.9 million from $4.4 million reported at March 31, 2026. This increase is related to new contracts with customers that are expected to convert into sales during 2026. As we look out to the next several quarters, we expect to see more developments on our European, Japan and New Mexico projects. We also anticipate improvements in our cash burn resulting from the benefit of lower operating costs compared with last year. This concludes my portion of prepared remarks. Gregory, back to you to conclude.

Thank you, David. I want to close where I started. The listing venue changed, the business did not. Our revenue is growing, our cost base is lower and the 3 markets we are focused on Japan, Europe and New Mexico are all moving forward at the same time. Batteries are what this company is now about and owning and operating them is what will build real value here. That is where energy goes every day. So our shareholders who have stayed with us through this period. Thank you. We know what we owe you, and we intend to deliver it. Expect to hear more from us soon. Thank you very much.

[Operator Instructions] Showing no questions. This will conclude our question-and-answer session as well as conference call. Thank you all for attending today's presentation. You may now disconnect.

Good evening, and welcome to the Nuvve Holding Corporation Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. On today's call are Gregory Poilasne, Chief Executive Officer; and David Robson, Chief Financial Officer of Nuvve. Earlier today, Nuvve issued a press release announcing its Q4 '25 and FY '25. Following prepared remarks, we will open up the call for questions.

Before we begin, I would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Nuvve's best current judgment, they are subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking projections. These risk factors are discussed in Nuvve's filings with the SEC and in the earnings release issued today, which are available on our website. Nuvve undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances.

With that, I would like to turn the call over to Gregory Poilasne, Chief Executive Officer of Nuvve. Gregory?

Thank you, and good afternoon to everyone here today. Welcome to our Q4 '25 and Full Year '25 Results Call. 2025 has been a transition year where we have been pivoting from vehicle-to-grid deployments to stationary storage. Stationary battery were not new to Nuvve. We have been managing batteries for a few years in the U.S., for example, at the University of California, San Diego and in Japan with our partner at the time, Toyota Tsusho.

Nuvve's platform has been designed to manage batteries from the ground up, either on wheels or stationary with the benefits of aggregation, second by second control and advanced stacking services, including behind-the-meter energy cost optimization, distribution grid support and ancillary services. We also started to integrate artificial intelligence-based functionalities 3 years ago with a focus on forecasting for battery usage and market values. Nuvve has now moved on into a full end-to-end AI-based product development cycle and is currently integrating AI-based project management, sales support and finance functionalities in order to scale our business while we are reducing our cost base.

Though we are not stopping our current activities in school bus and fleets, all the market signals we are receiving are confirming that our pivot towards stationary battery deployments is the right path. In Europe, we have recently announced a partnership with OMNIA Global, a Zug Switzerland-based family office. The partnership with OMNIA is really a meeting of the minds as OMNIA has developed a 1 gigawatt plus battery pipeline across multiple countries in Europe that will be deployed over the next 24 months.

The purpose of the partnership is to deploy batteries across Europe, batteries that will be owned by Nuvve. We have already announced 3 projects, a 50-megawatt 75-megawatt hour project in Sweden, a 40-megawatt 80-megawatt hour project in Austria, and a 60-megawatt 120-megawatt hour project in Romania. Different process are underway in order for Nuvve to ultimately own these batteries. The combination of these 3 battery projects represents 150 megawatts. Compensation for such battery projects can vary between $250,000 per megawatt per year to more than $500,000 per megawatt per year. This is an extremely exciting opportunity with tremendous upside for Nuvve and our shareholders.

In Japan, following the termination of our partnership with Toyota Tsusho, we have then started our own entity, Nuvve Japan. The Japanese market is a less mature market, and therefore, we are pursuing different business models. We recently announced the sale of a 2-megawatt 8-megawatt hour battery for $3.35 million battery in Niigata Prefecture. We have already received a little less than $1 million as a down payment while we are targeting a battery delivery by November 2026.

More recently, we have also announced that Nuvve Japan had been selected as the aggregator platform for another 2-megawatt battery projects. Outside of selling and managing batteries, other business models in Japan also include tolling, which is basically a rental agreement with a battery owner, receiving a fixed income on these assets while our advanced platform can generate high return with the battery. Our pipeline of opportunities in Japan has a similar size to our European project pipeline, but over a slightly longer period of time, about 36 to 48 months.

Finally, we have similar battery opportunities in the United States, such as Kit Carson in New Mexico, driven by a New Mexico subsidiary. The U.S.-based battery projects don't seem to be moving as fast as projects in Europe and Japan. The exposure of these geographies to the conflict in Iran is making this project even more valuable. This effort to pivot the company started more than a year ago and is now on the verge of paying off. The future of Nuvve in the stationary battery space looks bright. Our partnership with OMNIA Global is absolutely transformative. Our team in Japan is doing an extraordinary job developing the business, and we are looking forward to sharing more with you on our progress very soon with a tight focus on battery deployment and reducing our operating costs.

Now I will let David take you through the financial details of the quarter and the year. David?

Thanks, Gregory. I will start with a recap of fourth quarter 2025 results. In the fourth quarter, we generated total revenues of $1.93 million compared to $1.79 million in the fourth quarter of 2024. The increase was primarily driven by higher product sales and increased grant revenues, partially offset by lower service revenues due to the absence of management fees earned related to the Fresno EV infrastructure project versus the same period last year.

Total revenues year-to-date through December 31, 2025, were $4.79 million, which compares to $5.29 million for the prior year period. The year-over-year decrease in revenues was driven by lower service revenues due to the absence of management fees earned related to the Fresno EV infrastructure project this year versus last year, partially offset by higher product revenues and grant revenues.

Margins on products, services and grant revenues were 24.2% for the fourth quarter of 2025 compared to 15.8% for the year ago period. Year-to-date margins through December 31, 2025, were 39.1% compared with 33.1% for the year ago period. Margin was positively impacted quarter-over-quarter by a higher mix of grant revenues and improved pricing on product revenues this quarter compared with last year. Excluding grant revenues, margins on product and service revenues increased to 16% for the fourth quarter of 2025 compared to 11.5% in the year ago period. Year-to-date margins, excluding grant revenues through December 31, 2025, was 31% compared to 27.5% in the year ago period.

As a reminder, margins can be lumpy from quarter-to-quarter depending on the mix. DC charger gross margins at standard pricing generally range from 15% to 25%, while AC charger gross margins are approximately 50%, but in dollar terms are a small fraction of the revenue of the DC charger. Grid service revenue margins are generally 30%, while software and engineering service margins are as high as 100%.

During the fourth quarter of 2025, we determined that certain 125-kilowatt V2G DC Chargers held in inventory and purchased from our former third-party supplier were not conforming to our commercial product reliability standards, and they would no longer be offered for sale domestically. Given the commercial reliability issues of those DC chargers, we recognized a total inventory impairment charge of $3.47 million, reducing the carrying value of those inventories to zero. This inventory impairment loss is presented as a separate line item in the consolidated statements of operations due to its significance.

Operating costs, excluding cost of sales and inventory impairment was $3.7 million for the fourth quarter of 2025 compared to $5.9 million for the third quarter of 2025 and $5.9 million for the fourth quarter of 2024. The decline in operating costs during the quarter was primarily driven by lower payroll expenses. Cash operating expenses, excluding cost of sales, inventory impairment, stock compensation and depreciation and amortization was $2 million in the fourth quarter of 2025 versus $5.4 million in the third quarter of 2025 versus $5.2 million in the fourth quarter of 2024. This represents a decrease of $3.4 million in expenses over the same quarter last year.

Other income was $0.4 million in the fourth quarter of 2025 compared to $0.5 million in the fourth quarter of 2024. Both periods benefited from noncash gains from the change in the fair value of warrants and debt, offset by interest expense. Net loss attributable to Nuvve common stockholders increased in the fourth quarter of 2025 to $6.1 million from a net loss of $5.1 million in the fourth quarter of 2024. The increase in net loss was primarily a result of onetime inventory impairment charge, partially offset by lower operating expenses previously mentioned.

Now turning to our balance sheet. We had approximately $5.5 million in cash as of December 31, 2025, excluding $0.3 million in restricted cash, which represents an increase of $5.1 million from December 2024. The increase during the fourth quarter was primarily the result of capital raised through the issuance of preferred stock and the exercise of warrants totaling $8.1 million, $0.9 million from the sale of its equity investment in DREEV, primarily offset by $4.5 million used in operating activities. Inventories were $0.8 million at December 31, 2025, compared to $4.3 million at the end of the third quarter of 2025. The decline of $3.5 million relates to the $3.47 million impairment charge for 125-kilowatt V2G DC Chargers held in inventory, reducing the carrying value of this inventory to zero. The impaired DC chargers were subsequently transferred to property, plant and equipment at zero carrying value and will be used to support our business development efforts in Taiwan.

During the quarter, accounts receivable was flat at $1.1 million at December 31, 2025, compared to the third quarter of 2025. Accounts payable at the end of the fourth quarter of 2025 was $3.4 million, an increase of $0.5 million compared to the third quarter of 2025 of $2.9 million. Accrued expenses at the end of the fourth quarter of 2025 was $1.8 million, a decrease of $3.8 million compared to the third quarter of 2025 of $5.7 million.

Now turning to our megawatts under management and estimated future grid service revenues. As a reminder, megawatts under management is a metric we use to quantify the aggregate amount of electrical capacity from the deployment of our V1G and V2G chargers, which are primarily deployed in the electric school bus market in the U.S. and in light-duty fleet deployments in Europe in addition to stationary batteries. Currently, these chargers and batteries are located throughout the United States and Europe. Megawatts under management in the fourth quarter increased 7.5% over the third quarter of 2025 to 28.3 megawatts from 26.4 megawatts and decreased 7.6% compared to the fourth quarter of 2024.

In terms of its composition, 0.2 megawatts were from stationary batteries and 28.1 megawatts were from EV chargers. The quarter-over-quarter increase relates to the deployment of DC chargers, while the year-over-year decrease relates to the decommissioning of stationary batteries we managed in California and Japan, offset by the deployment of DC chargers. We continue to expect further growth in our megawatts under management in 2026 as we commission our backlog of customer orders we have earned in addition to new business we anticipate winning, which we have visibility to in our pipeline for both EV chargers and stationary batteries.

Now turning to our backlog. At December 31, 2025, our hardware and service backlog decreased to $3.3 million, a decrease of $15.7 million from $18.3 million reported at December 31, 2024. The decrease primarily relates to the termination of the Fresno EV infrastructure project in early February 2026. As we look out to the next several quarters, we expect to see more developments from our Europe and Japan stationary battery projects. We also anticipate improvements in our cash burn resulting from the benefit of lower operating costs compared with last year.

That concludes my portion of the prepared remarks. Gregory, back to you to conclude.

Thank you, David. We are confident that our pivot towards stationary storage was the right choice. And we know that moving forward, our success is going through battery deployments, especially in Europe and Japan. Expect to hear more about our deployments soon. Thank you.

[Operator Instructions] Showing no questions, this will conclude our question-and-answer session. I would like to turn the conference back over to Gregory Poilasne for any closing remarks.

Thank you for listening to us today, and we're looking forward to sharing more with you in the near future. Bye-bye.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Good morning, and welcome to the Nuvve Holdings Corporation's Third Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

On today's call are Gregory Poilasne, Chief Executive Officer; and David Robson, Chief Financial Officer of Nuvve. Earlier today, Nuvve issued a press release announcing its Q3 '25. Following prepared remarks, we will open up the call for questions.

Before we begin, I would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Nuvve's best current judgment, they are subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking projections. These risk factors are discussed in Nuvve's filings with the SEC and in the earnings release issued today which are available on our website. Nuvve undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances.

With that, I would like to turn the call over to Gregory Poilasne, Chief Executive Officer of Nuvve. Gregory?

Thank you, and good afternoon to everyone here today. Welcome to our Q3 '25 results call. In our last call, I shared with you that we were finalizing the restructuring of the organization. Now that our structure is in place, we have been able to shift our focus to stationary battery deployment. And over the last few days, we have made a few exciting announcements.

First, in Europe and more specifically in Denmark, we are in the process of developing 3 2-megawatt battery projects. These battery projects represent about $10 million of CapEx with the forecasted internal rate of return greater than 25%. Once the development is well underway, we will be working with financing partners interested in investing in the project. Once the installation, interconnection and commissioning are done, which is planned for late 2026, we will start generating recurring revenue for the life of the batteries, most likely 10 to 12 years.

Our experience over the last 9 years has shown potential revenues ranging between $400 and $600 per kilowatt year or potential annual revenue generation of $2.4 million to $3.6 million for the combination of the 3 batteries. These 3 battery projects are also strategically positioned as they are next to different type of fleets, which will convert into electric vehicles over the next few years and for which we will be able to provide optimal energy costs.

Then yesterday, we announced that our Japanese subsidiary has concluded an agreement -- an aggregation agreement targeting existing stationary energy storage in order to manage 2-megawatt battery with an energy capacity of 8.2 megawatt hour installed in Tainai City in Niigata Prefecture with a targeted operation date in the first half of 2026. The expected value on a per kilowatt year basis in Japan is similar or greater than the value in Denmark. The expansion of the use of our platform for stationary batteries is working well and is going to help us accelerate our revenue growth over the next 18 months.

Based on the growth for stationary batteries, we are seeing, we expect the number of battery project opportunities in Europe and Japan to accelerate, and we anticipate the same trend in the United States including territories covered by our Nuvve New Mexico subsidiary. The growth of the load on the electric system due to heat pumps and data centers is going to create a very large pool of energy. Energy storage is the only way we'll be able to keep the cost of energy equitable. We believe Nuvve's platform can provide an optimum return on investment for battery projects, especially when speed and aggregation can bring more value.

In general, our subsidiary-base structure is working well, bringing more accountability across the organization. Fundraising is underway, and we shall be in a position to share more about our capitalization plan soon. NASDAQ gave us until December 31 to fix our bid price and shareholder equity efficiencies. And we are very confident we'll be able to address these efficiencies following that time line, and we have already received a shareholder approval for the reverse stock split.

Some update on our crypto strategy now. Though we have not announced a full-scale move into the crypto space, we still see the convergence of energy, artificial intelligence and crypto at the core of our platform deployment. We had announced a potential purchase of Hype Token. We still have not purchased such acquisitions as we are still analyzing our best opportunity for integration of the blockchain into our platform. Indeed, multiple parameters have to be considered, including technical, economic, regulatory and operational, especially cybersecurity and smart contract capabilities.

Looking closer into the quarter, the hardware revenue is more in line with our expectation, and we see a potential strong Q4. But for that, I will let David take you through the details of our financials. David?

Thanks, Gregory. I will start with a recap of third quarter 2025 results. In the third quarter, we generated total revenues of $1.6 million compared to $1.9 million in the third quarter of 2024. The decrease was primarily driven by lower service revenues due to the absence of management fees earned related to the Fresno EV infrastructure project versus the same period last year. Similarly, year-to-date through September 30, 2025, total revenues were $2.8 million, which compares to $3.5 million for the prior year period. The year-over-year decrease in revenues is also driven by lower service revenues due to the absence of management fees earned related to the Fresno EV infrastructure project this year versus last year.

Margins on products, services and grant revenues were 52% for the third quarter of 2025 compared to 52.1% for the year-ago period. Year-to-date margins through September 30, 2025, were 46.8% compared with 42% for the year ago period. Our gross margins year-to-date have increased 480 basis points due to higher profitability on our service revenues.

As a reminder, margins can be lumpy from quarter-to-quarter depending on the mix. DC charger gross margins at standard pricing generally range from 15% to 25%, while AC charger gross margins are approximately 50%, but in dollar terms are a small fraction of the revenue of the DC charger. Grid service revenue margins are generally 30% while software and engineering service margins are as high as 100%.

Operating costs, excluding cost of sales, was $5.9 million for the third quarter of 2025 compared to $15 million for the second quarter of 2025 and $2.8 million for the third quarter of 2024. Operating costs were elevated last quarter due to nonrecurring grants of $8.2 million paid to consultants we engaged to support our digital asset strategy. Cash operating expenses, excluding cost of sales, stock compensation, depreciation and amortization expense was $5.4 million in the third quarter of 2025 versus $5.7 million in the second quarter of 2025 versus $2.2 million in the third quarter of 2024. This represents an increase of $3.2 million in expenses over the same quarter last year.

Other income was $0.4 million in the third quarter of 2025 compared to $0.2 million in the third quarter of 2024. Both periods benefited from noncash gains from the change in the fair value of warrants or debt offset by interest expense. Net loss attributed to Nuvve common stockholders increased in the third quarter of 2025 to $4.5 million from a net loss of $1.6 million in Q3 of 2024. The increase was primarily a result of higher operating expenses previously mentioned.

Now turning to our balance sheet. We had approximately $0.9 million in cash as of September 30, 2025, excluding $0.3 million in restricted cash, which represents a decrease of $0.8 million from last quarter. The decrease was a result of $3.4 million used in operating activities and the repayment of debt of $2.3 million, offset by proceeds from common stock offerings.

Turning to the quarter. Inventories were flat at $4.3 million at September 30, 2025 compared to the second quarter of 2025. During the quarter, accounts receivable increased by $0.8 million to $1.1 million at September 30, 2025 compared to the second quarter of 2025 due to higher shipments of DC chargers this quarter compared with last quarter. Accounts payable at the end of the third quarter of 2025 was $2.9 million, an increase of $1.5 million compared to the second quarter of 2025 of $1.4 million. Accrued expenses at the end of the third quarter of 2025 was $5.7 million, an increase of $0.1 million compared to the second quarter of 2025 of $5.6 million.

Now turning to our megawatts under management and estimated future grid service revenues. As a reminder, megawatts under management is a metric we use to quantify the aggregated amount of electrical capacity from the deployment of our V1G and V2G chargers, which are primarily deployed in the electric school bus market in the U.S. and in light-duty fleet deployments in Europe. In addition to stationary battery, currently, these chargers and batteries are located throughout the United States and Europe.

Megawatts under management in the third quarter increased 3.1% over the second quarter of 2025 to 26.4 megawatts from 25.6 megawatts and a 9.6% decrease compared to the third quarter of 2024. In terms of its composition, 0.2 megawatts were from stationary batteries and 26.4 megawatts were from EV chargers. The year-over-year decline is primarily related to the decommissioning of batteries under management due to site requirements. Megawatts under management from EV chargers increased to 25.4 in the third quarter of 2025, an increase of 0.7% over the first quarter of 2025.

We continue to expect further growth in our megawatts under management in 2025 as we continue to commission our backlog of customer orders we have earned. In addition, to new business we anticipate winning which we have visibility to in our pipeline for both EV chargers and stationary batteries.

Now turning to our backlog. On September 30, our hardware and service backlog decreased to $19 million, a decrease of $0.1 million from $19.1 million reported at June 30, 2025.

As we look out to the next several quarters, we expect to see more developments on our New Mexico contract and projects we are working on in Japan. We also anticipate improvements in our cash burn resulting from the benefits of lower operating costs compared with last year.

That concludes my portion of the prepared remarks. Gregory, back to you to conclude.

Thank you, David. In summary, we are very excited about our direction towards stationary storage. We expect a few more wins in the next few weeks and we'll share them as they become available and those agreements are signed and finalized. These battery deployments will come in addition to the charging station business that David just described.

Thank you very much for listening to us today.

[Operator Instructions] Showing no questions. This will conclude our question-and-answer session.

I would like to hand the conference back over to Gregory Poilasne for any closing remarks.

I would like to thank everybody who was listening to us today, and we are looking forward to sharing more with you about our progress over the next few weeks. Thank you very much. Bye-bye.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.