# VIVO earnings call intelligence LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/VIVO) · [Earnings tab](https://www.lopjlb.com/stock/VIVO?tab=earnings) Updated: 2026-09-07T01:05:24 Quarters analyzed: 4 ## Cross-quarter narrative Across four earnings calls VIVO’s financial picture shifted from a modest revenue decline in FY21 driven by Australian lockdowns to a deeper 23% drop in H1 2023 as project timing, FX weakness and weather‑related losses compounded pressures. Gross margins slipped from a modest improvement in FY21 to persistent erosion from FX volatility, supply‑chain bottlenecks and cost overruns. Cash balances fell to a low of $1.3 M in FY22 before modestly rebounding to $3.2 M in H1 2023, reflecting tighter financing and reliance on bridge funding. Demand for EV conversion kits remained a bright spot, with over 10,000 commitments and new geographic orders, while the crypto‑mining exposure introduced in 2022 was later down‑played, suggesting a strategic retreat. Operational risks evolved: COVID‑related disruptions recurred early, supply‑chain and semiconductor constraints persisted, and new weather‑related and skill‑shortage challenges emerged in 2023. The company continued to deliver on several partnership milestones but saw several projects slip or become at‑risk, highlighting execution volatility amid a shifting macro environment. ## Latest CallCard · Q2 VivoPower’s H1 2023 saw 23% revenue drop driven by project timing, FX and weather‑related losses, but management highlighted progress on EUV23, Tembo kit orders and new partnerships while noting weather and skill‑shortage risks. **Guidance:** vague — The call did not provide explicit forward‑looking guidance; management expressed confidence but gave no quantitative targets. **Tone:** mgmt 0.5 · Q&A pressure 0 · divergence 0.5 Prepared remarks emphasized strategic progress, confidence in EUV23 testing, expanded kit order book and successful financing. ### Demand visibility Growing demand reflected in >10,000 EV kit commitments and new orders from Canada, South Africa and the UK. Order book for Tembo kits increased to over 10,000 units; first material EUV23 conversion kit order received from a Canadian partner; deliveries scheduled for GHH in South Africa and Jankel in the UK. ### Margins / costs Margins pressured by revenue decline and a $3.6 million weather‑driven loss on the Edenvale solar project. Gross profit fell to a negative $3.6 million, with GP margin dropping to –42% (‑1% after adjusting for Edenvale). Adjusted EBITDA loss improved to –$3.9 million, but operating loss widened due to FX and reduced revenue. ### Capital allocation Cash bolstered to $3.2 million and deployed to Tembo scale‑up, bridge financing and talent hiring. Cash increased from $1.3 million to $3.2 million; bridge financing secured from shareholder AWN and a $2 million private investment from Emirates were earmarked for Tembo engineering, assembly and delivery. ### Milestones - **Edenvale solar project** [at_risk]: Weather‑related rainfall caused $3.6 million overruns; project expected to close end‑Feb 2023. - **EUV23 next‑generation vehicle** [on_track]: First version available on time in Dec; >400 km trouble‑free testing completed. - **Tembo conversion kits** [on_track]: Shipping started; order book >10,000 kits; production ramp‑up underway. - **Kenshaw electrical business** [on_track]: Secured 3‑year agreement with Glencore for maintenance and motor sales in NSW. - **Caret Solar tax‑application pivot** [new]: Interest re‑emerged following Bitcoin price rebound and US Inflation Reduction Act tax credit restoration. - **Non‑core divestiture (JA, Martin Electrical)** [delivered]: Completed divestiture as part of strategic focus. - **Bridge financing from AWN** [delivered]: Loan term extended to 1 Apr 2025, improving balance‑sheet flexibility. - **Emirates private investment** [delivered]: $2 million committed directly to Tembo growth. ### Fears / risks - **Weather / Climate Change**: Higher‑than‑forecast rainfall at Edenvale led to cost overruns and project delays. - **Foreign Exchange**: Revenue impacted by a weaker Australian dollar versus the US dollar. - **Skill Shortages**: Limited talent availability constrained new project acquisition. - **Project Timing**: Revenue decline attributed to timing of project execution, with fewer projects in the period. - **Market Demand Volatility**: Caret Solar strategy affected by Bitcoin market correction and fluctuating tax‑credit incentives. - **Funding Dependence**: Reliance on shareholder bridge financing and private investment to fund Tembo growth. - **Regulatory Changes**: Potential impact from US Inflation Reduction Act tax credit adjustments on solar projects. - **Operational Execution**: Need to finalize third‑party component suppliers for EUV23 production ramp‑up. ### Key quotes > “Our revenue declined due to project timing and a decline in the Australian dollar versus the U.S. dollar foreign exchange rate.” > “This was due to climate change-related higher-than-forecast rainfall, leading to damage of project works and delays in execution.” > “The first version of the EUV23 is on track with regards to testing. We've already covered more than 400 kilometers trouble-free with the vehicle in difficult terrain.” ## Quarter one-liners - **2023 Q2:** VivoPower’s H1 2023 saw 23% revenue drop driven by project timing, FX and weather‑related losses, but management highlighted progress on EUV23, Tembo kit orders and new partnerships while noting weather and skill‑shortage risks. - **2022 Q4:** VivoPower saw revenue fall to $37.6M in FY22 amid COVID lockdowns, FX headwinds and a $1.9M Bluegrass solar cost overrun, but highlights a positive EV kit outlook, Toyota partnership and expanding global footprint. - **2022 Q2:** VivoPower reports 11% revenue decline due to Australian COVID lockdowns, but cites strategic progress, new facilities, battery upgrades and a shift toward diversified blockchain‑powered data centre assets. - **2021 Q4:** VivoPower FY21 revenue fell 16% to $40.4M due to Australian lockdowns; Tembo acquisition added $1.4M revenue and transformational EV conversion pipeline; gross margin improved to 15.6%; EBITDA loss $1.4M from growth investments; balance sheet strengthened via $32M equity raise, debt cut $9M, cash $8 ## Theme arcs - **Revenue trajectory** (deteriorating): Revenue fell from $40.4M in FY21 to $37.6M FY22 and then a 23% H1 2023 drop. - **Gross margin pressure** (deteriorating): Margins eroded due to FX, supply‑chain costs and cost overruns. - **Cash position** (improving): Cash bottomed at $1.3M FY22 then rose to $3.2M H1 2023 as bridge financing was secured. - **EV kit demand** (improving): Commitments exceeded 10,000 units with new orders from Canada, South Africa and the UK. - **Crypto mining exposure** (resolved): Initial focus in 2022 Q2 was down‑played in later calls, indicating reduced reliance. - **Supply‑chain constraints** (deteriorating): Repeated mentions of logistics bottlenecks, semiconductor shortages and border closures. - **Foreign exchange volatility** (deteriorating): FX headwinds repeatedly cited as eroding revenue and widening losses. - **Weather and skill‑shortage risks** (new): First appearance in 2023 Q2 with rainfall damage at Edenvale and talent scarcity limiting project intake. ## Guidance path 2021 Q4:vague → 2022 Q2:vague → 2022 Q4:vague → 2023 Q2:vague --- Research context only. Not personalized investment advice. API: `GET /bff/api/bigfive/earnings-intel/VIVO`