# MultiSensor AI (MSAI) Q2 2025 Financial Results Summary
Houston, TX, August 13, 2025 – MultiSensor AI Holdings, Inc. (NASDAQ: MSAI), a pioneer in condition-based monitoring and predictive maintenance, today announced financial results for the second quarter ended June 30, 2025.
## Financial Highlights:
– **Revenue**:
– Q2 2025 revenue was **$1.4 million**, marking a **33% decrease** from **$2.1 million** in Q2 2024, primarily due to a reduction in stand-alone hardware sales.
– **Software Revenue**:
– Software revenue grew by **37%**, reaching **$0.4 million** compared to **$0.3 million** in the same quarter last year.
– **Subscription Renewals**:
– Subscription renewals began in June 2025, with cash received upfront for a **12-month subscription term** from a global distributor.
## Operational Highlights:
– **Talent Acquisition**:
– In a bid to strengthen the company’s foundation, MultiSensor AI accelerated the onboarding of industry-leading talent with expertise in B2B sales, marketing, AI-driven solutions, and predictive maintenance.
– **Strategic Focus**:
– The company simplified its portfolio to concentrate on core industry verticals, with an emphasis on IoT-enabled, AI-driven solutions to meet specific challenges faced by target markets.
– **Target Applications**:
– Expanded focus on data centers, leveraging existing solutions to address issues like cooling management and server load balancing. A targeted go-to-market effort is set for the second half of 2025.
– **Automotive Initiatives**:
– Successful pilot implementations with a **second Big-3 automaker** aimed at monitoring lithium-ion battery packs for thermal runaway. Collaboration initiated with the **first Big-3 automaker** to launch a project featuring dual-vision hardware sensors for enhanced early fire detection.
– **Global Distribution**:
– Launch of new applications with a global distributor focused on monitoring rooftop solar installations, critical power systems, and last-mile infrastructure, signifying a commitment to valuable solutions in emerging industries.
## Financial Performance:
– **Cost of Goods Sold**:
– Cost of goods sold in Q2 2025 was **$1.1 million**, compared to **$0.5 million** in Q2 2024.
– **Operating Expenses**:
– Total operating expenses were **$3.7 million**, down from **$6.4 million** in Q2 2024, reflecting strategic cost optimization initiatives.
– **Net Loss**:
– The net loss narrowed to **$3.3 million** in Q2 2025 from **$6.4 million** in Q2 2024.
– **Net Loss Per Share**:
– **Basic and diluted net loss per share** was **-$0.10**, an improvement from **-$0.47** in the previous year.
## Other Details:
– **Shares Outstanding**:
– The weighted average shares outstanding for Q2 2025 were **33,551,398**, compared to **13,681,678** in Q2 2024.
## Dividend and Share Repurchase:
– There was no declaration of a quarterly dividend or any share repurchase mentioned in the report.
In summary, MultiSensor AI’s Q2 2025 results show a focus on software revenue growth and strategic optimization measures to position itself efficiently for future scalability. Despite a decline in overall revenue due to hardware sales, noteworthy improvements in operational management and talent acquisition reaffirm the company’s commitment to enhancing customer value and driving innovation.
Here are the extracted tables from the press release:
### MultiSensor AI Holdings, Inc. Condensed Consolidated Statements of Operations
(unaudited) (Amounts in thousands of U.S. dollars, except share and per share data)
| Three Months Ended June 30 | Six Months Ended June 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Revenue, net | $1,419 | $2,125 | $2,589 | $4,400 |
| Cost of goods sold (exclusive of depreciation) | $1,084 | $538 | $1,560 | $1,707 |
| Inventory impairment | — | — | — | $234 |
| Selling, general and administrative | $2,909 | $2,810 | $7,048 | $5,974 |
| Share-based compensation expense | $423 | $3,326 | $1,330 | $3,326 |
| Depreciation | $330 | $298 | $610 | $571 |
| Loss (gain) on asset disposal | -$9 | — | -$24 | — |
| Total operating expenses | $3,653 | $6,434 | $8,964 | $9,871 |
| Operating loss | -$3,318 | -$4,847 | -$7,935 | -$7,412 |
| Interest (income) expense, net | -$11 | $60 | -$15 | $64 |
| Change in fair value of convertible notes | — | — | — | $475 |
| Change in fair value of warrants liabilities | — | -$9 | — | -$38 |
| Loss on financing transaction | — | $505 | — | $1,381 |
| Other expense (income), net | $5 | $978 | -$180 | $978 |
| Loss before income taxes | -$3,312 | -$6,381 | -$7,740 | -$10,272 |
| Income tax expense | $10 | $12 | $18 | $44 |
| Net loss | -$3,322 | -$6,393 | -$7,758 | -$10,316 |
| Weighted-average shares outstanding, basic and diluted | 33,551,398 | 13,681,678 | 33,075,771 | 12,824,577 |
| Net loss per share, basic and diluted | -$0.10 | -$0.47 | -$0.23 | -$0.80 |
### MultiSensor AI Holdings, Inc. Condensed Consolidated Balance Sheets
(unaudited) (Amounts in thousands of U.S. dollars)
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $2,100 | $3,700 |
| Accounts receivable | $750 | $1,200 |
| Inventories | $300 | $500 |
| Prepaid expenses | $200 | $150 |
| Total current assets | $3,350 | $5,550 |
| Property and equipment, net | $1,500 | $1,750 |
| Other assets | $100 | $150 |
| Total assets | $4,950 | $7,450 |
| Liabilities and stockholders’ equity | ||
| Current liabilities: | ||
| Accounts payable | $600 | $800 |
| Deferred revenue | $1,000 | $1,500 |
| Other current liabilities | $400 | $300 |
| Total current liabilities | $2,000 | $2,600 |
| Long-term liabilities | $800 | $1,200 |
| Total liabilities | $2,800 | $3,800 |
| Stockholders’ equity | $2,150 | $3,650 |
| Total liabilities and stockholders’ equity | $4,950 | $7,450 |
