Lobo Technologies H1FY26 Results: Net loss narrows 58% YoY to $1.1 million
- Lobo Technologies reported a $1.1 million net loss for H1FY26, narrowing 58% YoY from $2.6 million
- Total revenue rose 20.6% to $14.6 million, driven by EV sales and new AI infrastructure services
- Gross margin contracted 290 bps to 13.2% as cost of revenues grew faster than top-line sales
- Operating expenses fell 17.9% to $2.5 million due to reduced general and administrative costs
*this image is generated using AI for illustrative purposes only.
Lobo Technologies Ltd. (NASDAQ: LOBO) reported a $1.1 million net loss for the first half of fiscal year 2026, a significant improvement from the $2.6 million loss recorded in the same period last year.
The electric mobility manufacturer achieved this reduction in losses despite a contraction in gross profit margins, driven by disciplined cost management and revenue growth from its core vehicle business and new AI infrastructure services.
Financial Performance Overview
Total revenues rose 20.6% year-over-year to $14.6 million, up from $12.1 million in H1FY25. This growth was primarily fueled by an 8.2% increase in electric vehicles and accessories sales, which generated $13.1 million. The company also recorded $1.5 million in revenue from its newly launched AI infrastructure services segment.
| Metric | H1FY26 | H1FY25 | Change |
|---|---|---|---|
| Revenue | $14.6 million | $12.1 million | +20.6% |
| Gross Profit | $1.9 million | $1.9 million | Flat |
| Gross Margin | 13.2% | 16.1% | -290 bps |
| Operating Expenses | $2.5 million | $3.1 million | -17.9% |
| Net Loss | $1.1 million | $2.6 million | -58.4% |
Segment-Wise Revenue Breakdown
Revenue dynamics varied significantly across product lines:
- Two-wheeled e-bicycles grew 21.71% to $8.1 million.
- Four-wheeled electric off-highway shuttles surged 143.51% to $0.9 million.
- Parts and accessories revenue jumped 345.36% to $1.0 million.
- Three-wheeled electric vehicles declined 29.22% to $2.2 million.
- Battery sales fell 46.75% to $0.9 million.
Cost of revenues increased 24.8% to $12.7 million, reflecting higher sales volumes and $1.3 million in costs associated with the new AI business. Consequently, gross profit remained flat at $1.9 million, while the gross profit margin contracted from 16.1% to 13.2%.
Operating Efficiency and Cash Flow
Total operating expenses decreased 17.9% to $2.5 million. General and administrative expenses dropped sharply from $1.7 million to $0.8 million due to lower professional service fees. Research and development spending rose to $1.3 million from $1.1 million, supporting investments in AI infrastructure platforms.
Cash and cash equivalents stood at $1.0 million as of June 30, 2026, up slightly from $0.9 million at the end of FY25. Net cash used in operating activities widened to $3.7 million from $1.2 million in the prior period, offset by $4.3 million in financing activities, including proceeds from share issuances and short-term loans.
What the Numbers Show
The divergence between top-line growth and margin compression highlights a shift in product mix. While total revenue grew 20.6%, gross profit did not increase, indicating that the new revenue streams—particularly the AI services and lower-margin battery segments—carry thinner profitability profiles than the core e-bicycle business. However, the 17.9% cut in operating expenses successfully insulated the bottom line, turning what could have been a wider loss into a meaningful narrowing of the net deficit.
How sustainable is the 17.9% reduction in operating expenses, and what specific operational changes will maintain this efficiency in H2FY26?
What is the projected timeline for the new AI infrastructure services segment to achieve positive gross margins given its current cost structure?
Will Lobo Technologies need to raise additional capital to support R&D investments and cover the widening negative operating cash flow of $3.7 million?
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