Mynd Announces 2025 First Half Results

Highlights Include Introduction of Transformational Modular Technology Infrastructure in H1 2025, Significant Reduction of Debt, Net Loss improvement of 38.7%, and Entry into Definitive Agreement to AcquireAward-Winning Technology for an AI-Based Voice Assistant Solution , /PRNewswire/ -- Mynd.ai, Inc. (the "Company" or "Mynd") (NYSE American: MYND) today announced financial results for the first half of 2025 (H1 2025). H1 2025 Key Financial Milestones: Revenue of $89.3 million compared to $146.9 million for the same period in the prior year, with the decrease primarily driven by declines in customer spending due to budgetary reductions caused by economic uncertainty Net loss from continuing operations of $28.9 million improved by $18.3 million or 38.7% compared to $47.2 million in the same period in the prior year Cash flow from continuing operations decreased by $33.5 million compared to the same period in the prior year, with cash reserves of $29.1 million as of June 30, 2025 Reduced outstanding indebtedness by $7.4 million since year end Management continuing to implement cost saving measures to mitigate effects of education technology market headwinds "Notwithstanding industry-wide softening throughout most of our key geographic markets, customer budget uncertainties, and increased tariffs, we are focused on positioning the Company for future success," said Arthur Giterman, Chief Executive Officer. "The introduction of our next-generation integrated solution, ActivPanel 10® and Promethean ActivSuite® software, is the first step in the transformation of our core offerings designed to enhance cybersecurity, facilitate a seamless "plug and play" experience with customers' existing technology, and lower lifetime cost of ownership. The accelerated product portfolio evolution is further enabled and enhanced by our continued focus on various cost optimization initiatives designed to improve our competitive positioning in the market and facilitate further investments in our business. On the investment front, I'm very excited to highlight our entry into an agreement to acquire an award-winning AI voice assistant technology, which we expect to complete during the third quarter. We believe that this acquisition will allow us to accelerate and evolve our AI-enabled solution roadmap and significantly enhance the interaction of the full ecosystem of software and hardware offerings in a classroom." Forward-Looking Statements This press release contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements reflect Mynd's current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words "believe," "expect," "anticipate," "will," "could," "would," "should," "may," "plan," "estimate," "intend," "predict," "potential," "continue," "optimistic," and the negatives of these words and other similar expressions generally identify forward looking statements. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled "Risk Factors" in Mynd's Annual Report on Form 20-F, filed with the SEC on March 26, 2025, as such factors may be updated from time to time in Mynd's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov and on the Company's website at www.mynd.ai. The Company shall, upon the request of any shareholder or bondholder, furnish a hard copy of Mynd's complete audited financial statements free of charge. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements, including, but not limited to, the Company's brand recognition and market reputation; student enrollment in the Company's teaching facilities; the Company's growth strategies and ability to build long-term relationships with schools and other key market participants; the Company's future business development, results of operations and financial condition; trends and competition in the early childhood education markets in which the Company intends to operate; changes in its revenues and certain cost or expense items; the expected growth of the early childhood education market in the Company's targeted addressable markets; governmental policies relating to the Company's industry, including government funding of education opportunities, the Company's ability to implement cost saving initiatives to mitigate market headwinds and general economic conditions in the markets in which the Company intends to operate. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Mynd's filings with the SEC. While forward-looking statements reflect Mynd's good faith beliefs, they are not guarantees of future performance. Mynd disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. Discussion of non-GAAP Financial Measures We believe that providing the non-GAAP ("Generally Accepted Accounting Principles") information to investors, in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. We further believe that providing this information allows investors not only to better understand our financial performance, but more importantly, to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance. The non-GAAP information included in this press release should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP. We utilize a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of the business, for making operating decisions and for forecasting and planning for future periods. Our annual financial plan is prepared both on a GAAP and non-GAAP basis, and the non-GAAP annual financial plan is approved by our board of directors. Continuous budgeting and forecasting for revenue and expenses are conducted on a consistent non-GAAP basis, in addition to GAAP, and actual results on a non-GAAP basis are assessed against the non-GAAP annual financial plan. In addition, and as a consequence of the importance of these measures in managing the business, we use non-GAAP measures and results in the evaluation process to establish management's compensation. For example, our annual bonus program payments are based in part upon the achievement of consolidated revenue and Adjusted EBITDA targets. Reconciliations with respect to the Non-GAAP figures included in this press release to such Non-GAAP figure's most comparable GAAP figure are included in the financial tables below. About Mynd.ai, Inc. Seattle-based Mynd is a global leader in interactive technology offering best-in-class hardware and software solutions that help organizations create and deliver dynamic content; simplify and streamline teaching, learning, and communication; and facilitate real-time collaboration. Our award-winning interactive displays and software can be found in more than 1 million learning and training spaces across 126 countries. Our global distribution network of more than 4,000 reseller partners and our dedicated sales and support teams around the world enable us to deliver the highest level of service to our customers. Financial Tables Follow Mynd.ai, Inc.UNAUDITED CONSOLIDATED BALANCE SHEETS(in thousands of U.S. dollars, except share and per share data, or otherwise noted) June 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 29,062 $ 75,317 Accounts receivable, net of allowance for credit losses of $700 and $211,respectively 37,594 30,506 Inventories 28,705 28,638 Prepaid expenses and other current assets 9,419 11,601 Due from related parties 2,809 1,561 Total current assets 107,589 147,623 Non-current assets: Goodwill 44,745 44,130 Property, plant, and equipment, net 13,626 14,595 Intangible assets, net 37,459 39,521 Right-of-use assets 2,899 3,448 Deferred tax assets, net 35 34 Other non-current assets 3,439 3,268 Total non-current assets 102,203 104,996 Total assets 209,792 252,619 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable 36,795 40,485 Accrued expenses and other current liabilities 36,066 45,959 Loans payable, current 7,873 10,931 Contract liabilities 11,767 11,281 Accrued warranties 16,026 15,749 Lease liabilities, current 1,116 1,047 Due to related parties 5,343 4,621 Total current liabilities 114,986 130,073 Non-current liabilities: Loans payable, non-current 58,709 58,077 Loans payable, related parties, non-current — 5,006 Contract liabilities, non-current 18,384 18,581 Lease liabilities, non-current 2,246 2,761 Deferred tax liabilities 9,643 9,756 Total non-current liabilities 88,982 94,181 Total liabilities 203,968 224,254 Shareholders' equity: Ordinary shares par value of $0.001; 990,000,000 shares authorized.458,495,740 shares issued and 456,446,860 shares outstanding as of June 30,2025. 456,477,820 shares issued and 454,958,590 shares outstanding as ofDecember 31, 2024 $10,000,000 shares, $0.001 par value, without designation; none authorized, issued and outstanding as of June 30, 2025 and December 31, 2024 458 456 Treasury shares, at cost, 2,048,880 and 1,519,230 shares, respectively (452) (342) Additional paid-in capital 485,591 479,480 Accumulated other comprehensive income 3,692 3,344 Accumulated deficit (483,465) (454,573) Total Mynd.ai, Inc. shareholders' equity 5,824 28,365 Non-controlling interest — — Total shareholders' equity 5,824 28,365 Total liabilities and shareholders' equity $ 209,792 $ 252,619 Mynd.ai, Inc.UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands of U.S. dollars, except share and per share data, or otherwise noted) Six months ended June 30, 2025 2024 Revenue $ 89,272 $ 146,853 Cost of revenue 69,884 104,745 Gross profit 19,388 42,108 Operating expenses, net: General and administrative 14,928 16,419 Research and development 7,782 13,413 Sales and marketing 21,399 22,199 Transaction-related costs 53 125 Restructuring 4,353 1,218 Total operating expenses 48,515 53,374 Operating loss (29,127) (11,266) Other income (expense): Interest expense (4,913) (5,489) Interest income 637 1,314 Gain on embedded derivative 2,143 9,249 Other income (expense) 2,409 (1,468) Total other income (expense) 276 3,606 Net loss from continuing operations, before income taxes (28,851) (7,660) Income tax expense (41) (39,496) Net loss from continuing operations (28,892) (47,156) Loss from discontinued operations, net of tax — (654) Net loss (28,892) (47,810) Net loss from continuing operations attributable to non-controlling interest — — Net loss from discontinued operations attributable to non-controlling interests — (70) Net loss attributable to non-controlling interests — (70) Net loss attributable to ordinary shareholders of Mynd.ai, Inc. from continuingoperations (28,892) (47,156) Net loss attributable to ordinary shareholders of Mynd.ai, Inc. from discontinued operations — (584) Net loss attributable to ordinary shareholders of Mynd.ai, Inc $ (28,892) $ (47,740) Net loss per ordinary share From continuing operations: Basic and Diluted $ (0.06) $ (0.10) From discontinued operations: Basic and Diluted $ — $ (0.00) Total basic and diluted $ (0.06) $ (0.10) Weighted average shares outstanding used in calculating net loss per share: Basic and diluted 456,872,902 456,477,820 Mynd.ai. Inc.UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS(in thousands) Six months ended June 30, June 30, 2025 June 30, 2024 Net loss $ (28,892) $ (47,810) Other comprehensive loss, net of tax of nil: Change in foreign currency translation reserve 256 211 Total comprehensive loss (28,636) (47,599) Less: comprehensive loss attributable to non-controlling interest — (70) Comprehensive loss attributable to Mynd.ai Inc $ (28,636) $ (47,529) Mynd.ai, Inc.UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands) Six months ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (28,892) $ (47,810) Loss from discontinued operations, net of tax — 654 Net loss from continuing operations (28,892) (47,156) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 4,697 2,728 Deferred taxes (113) 39,480 Non-cash lease expense 766 929 Non-cash interest expenses 2,799 2,290 Amortization of RDEC credit (1,005) (588) Gain on embedded derivative (2,143) (9,249) Share-based compensation 1,037 1,131 Changes in accounts receivable provision 479 — Net realizable value adjustments to inventory 396 — Other 24 38 Change in operating assets and liabilities: Accounts receivable 1,030 (4,185) Inventories 811 19,547 Prepaid expenses and other assets 3,062 1,995 Due from related parties (857) 97 Accounts payable (5,075) (6,230) Accrued expenses and other liabilities (17,545) (7,178) Accrued warranties (375) (2,378) Due to related parties 445 961 Contract liabilities (129) 947 Lease obligations - operating leases (681) (920) Net cash used in operating activities - continuing operations (41,269) (7,741) Net cash provided by operating activities - discontinued operations — 391 Net cash used in operating activities (41,269) (7,350) CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of property, plant and equipment (33) (434) Internal-use software development costs (1,467) (3,499) Net cash used in investing activities - continuing operations (1,500) (3,933) Net cash used in investing activities - discontinued operations — (650) Net cash used in investing activities (1,500) (4,583) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of Revolver (11,000) (16,770) Proceeds from Revolver 8,000 6,000 Repayment of Paycheck Protection Program Loan (82) (96) Share repurchase (110) — Taxes withheld and paid related to net share settlement of share-based compensation awards (49) — Net cash used in financing activities - continuing operations (3,241) (10,866) Net cash used in financing activities - discontinued operations — — Net cash used in financing activities (3,241) (10,866) Net change in cash and cash equivalents (46,010) (22,799) Cash and cash equivalents, beginning of period 75,317 87,804 Exchange rate effects (245) 493 Cash and cash equivalents, end of period $ 29,062 $ 65,498 Supplemental disclosure of non-cash investing and financing activitiestransactions: Continuing operations: Forgiveness of related party payables $ 5,217 $ — Lease assets acquired in exchange for lease liabilities $ — $ 39 Convertible notes issued in exchange for accrued PIK interest $ 1,703 $ 1,643 Decrease in goodwill due to measurement period adjustments relating tobusiness acquisition, net $ — $ 1,228 Discontinued operations: Lease assets acquired in exchange for lease liabilities $ — $ 3,516 Supplemental disclosure of cash transactions: Cash paid for interest $ 1,841 $ 2,730 Cash refund, net of cash paid for taxes $ 1,450 $ 967 Mynd.ai. Inc.SUPPLEMENTAL FINANCIAL INFORMATIONReconciliation of Net Income to Adjusted EBITDA(in thousands) Six months ended June 30, 2025 2024 (in thousands) Net loss from continuing operations $ (28,892) $ (47,156) Interest expense 4,913 5,489 Interest income (637) (1,314) Income tax expense 41 39,496 Depreciation and amortization 4,697 2,728 Share-based compensation 1,037 1,131 Gain on embedded derivative (2,143) (9,249) Other (income) expense, net (2,409) 1,468 Transaction-related costs(1) 53 125 Restructuring costs(2) 4,353 1,218 Litigation costs and penalties(3) — — Adjusted EBITDA $ (18,987) $ (6,064) (1) Transaction-related costs are non-recurring costs related to acquisitions and disposals of businesses, as well as similar corporate-level transactions. (2) Refers to employee severance costs, contract termination costs, facility restructuring, and business restructuring effortsundertaken by management. (3) Refers to costs incurred to defend against, opportunistically settle, and establish a reserve for claims associated with litigation,as well as any related penalties incurred for such litigation. No such costs were incurred in the six months ended June 30, 2024 or 2025. SOURCE Mynd.ai WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Mynd Announces 2025 First Half Results

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