Breaking Down EZGO Technologies Ltd. (EZGO) Financial Health: Key Insights for Investors

You're looking at EZGO Technologies Ltd. (EZGO) right now and the numbers are sending a mixed, but ultimately urgent, signal. While the company reported trailing twelve-month (TTM) revenue of around $20.90 million through March 2025, showing some top-line activity, the core financial health is defintely under severe pressure. The clearest, most recent action tells the real story: the board approved a 1-for-25 reverse stock split, effective this November 2025, purely to maintain their Nasdaq listing. That is a survival tactic, not a growth strategy, and you need to look past the revenue line because the profitability metrics are concerning, with a net margin of -20.91% and a TTM Earnings Per Share (EPS) of -$1.44 confirming ongoing losses. Plus, the Altman Z-Score sits at a grim -0.08, putting EZGO squarely in the financial distress zone, so we need to figure out if the recent improvement in gross margin to 10.2% in the first half of 2025 is a genuine inflection point or just a temporary blip in a challenging micro-cap environment.

Revenue Analysis

You need to understand where EZGO Technologies Ltd. (EZGO) is actually making its money, especially as the company navigates a clear strategic pivot. The direct takeaway is that while the company saw strong growth in its last reported fiscal year, the near-term trend is showing significant contraction, driven by a sharp decline in its core e-mobility sales.

For the trailing twelve months (TTM) ending March 31, 2025, EZGO's total revenue was approximately $20.90 million, reflecting an 18.98% year-over-year growth for that period. However, the more recent quarterly data shows a severe headwind: revenue for the second quarter of 2025 was $3.28 million, marking a substantial year-over-year decline of -23.44%. That's a serious deceleration you can't ignore.

Breakdown of Primary Revenue Sources

EZGO is a short-distance transportation solutions provider, primarily operating in China. Its revenue streams are centered on three main segments, but their contributions have shifted dramatically, as seen in the fiscal year 2024 data:

• Battery Packs and Cells: This segment is the new revenue engine.
• E-Bicycle Sales: The traditional core business is shrinking fast.
• Electronic Control Systems and Intelligent Robots: A small, volatile segment.

The company is defintely leaning into the lithium-ion battery business, which now provides the bulk of the top line. This is a critical factor for your valuation models.

Here's the quick math: Battery pack sales alone grew by nearly 98% to hit $16.3 million in the fiscal year 2024, driving the overall annual revenue of $21.1 million. This surge was enough to offset the significant revenue declines in the other two segments. The electronic control system sales, for example, accounted for only about 6.6% of total revenue in fiscal 2024.

Shifting Revenue Dynamics and Risks

The biggest change is the strategic shift. EZGO is moving away from being a primary e-bicycle seller and becoming a battery pack supplier. The e-bicycle segment's 32.2% revenue drop was partly due to market challenges, including the impact of the Nanjing EV Charging Station fire incident, which hurt consumer confidence in e-mobility products. Plus, the intelligent robot segment revenue fell by 40.2% because key clients were upgrading their facilities and didn't place new orders. This tells you the revenue is now highly concentrated and dependent on the battery market's strength.

What this estimate hides is the risk of reliance on a single, high-growth segment. If the battery pack market slows or competition intensifies, the company lacks a strong secondary revenue stream to pick up the slack, especially with the traditional e-bicycle business struggling. You can read more about the long-term plan here: Mission Statement, Vision, & Core Values of EZGO Technologies Ltd. (EZGO).

Your next step should be to model the battery pack segment's growth trajectory for the rest of 2025 and stress-test the overall revenue figure against a 10% slowdown in that specific area. Finance should start gathering competitive pricing data for lithium-ion battery packs in the Chinese market by next week.

Profitability Metrics

You're looking at EZGO Technologies Ltd. (EZGO) because you see the long-term potential in the light electric vehicle (LEV) and battery market, but honestly, the company's current profitability picture is a major near-term risk. EZGO is struggling to translate its revenue-which is growing-into actual profit.

As of the trailing twelve months (TTM) ended March 31, 2025, EZGO's key profitability margins are deep in the red. The company is losing money on both its core operations and its bottom line. Here's the quick math on the TTM data, based on revenue of approximately $20.9 million:

• Gross Profit Margin: Approximately 7.5% (Calculated from $1.57 million Gross Profit).
• Operating Profit Margin: A significant loss at -16.66%.
• Net Profit Margin: A loss of -20.91%.

The operating and net margins tell you the company is not just covering its cost of goods sold (COGS), but its sales, general, and administrative (SG&A) expenses and other costs are eating up a massive portion of revenue. That's a serious burn rate.

Profitability Trends and Operational Efficiency

The trend in profitability shows a company fighting to stabilize its cost structure after a period of extreme volatility. EZGO's Gross Margin for the full Fiscal Year 2024 (FY2024) was 7.1%, a slight dip from 7.2% in FY2023, but a recovery from a low of 1.63% in 2021. The TTM Gross Margin of 7.5% suggests a slight recent improvement, but it is still razor-thin.

The major headwind is operational efficiency (or the lack thereof). In FY2024, the net loss ballooned to $8.1 million, an 11.4% increase from the prior year, primarily due to an increase in the impairment of long-term equity investment. The TTM Net Margin of -20.91% is an improvement from the FY2024 Net Profit Margin of -33.33%, but it still means EZGO lost about 21 cents for every dollar of revenue.

The bright spot is the strategic shift to higher-margin products. The electronic control system segment, a component of their business, had a high gross profit margin of 47.3% in FY2024. The problem is this segment accounted for only 6.6% of their total revenue. The company needs to defintely scale that higher-margin business line fast.

EZGO's Margins Versus the Industry

When you stack EZGO up against the competition, the gap is clear. For a company in the e-bicycle space, a typical industry net profit margin is around 10%. For the broader automotive supplier industry, which is a closer proxy for EZGO's battery pack sales, the global average EBIT (Earnings Before Interest and Taxes, or Operating) Margin in 2024 was about 4.7%, with Chinese suppliers averaging 5.7%.

Here's the stark contrast:

EZGO's margins are significantly below even the more challenged players in the electric vehicle ecosystem. For instance, while some pure EV brands like Zeekr had a negative operating margin of -8.5% in 2024, EZGO's -16.66% is nearly twice as bad. This comparison highlights a deep-seated issue with EZGO's cost structure and pricing power.

If you want to dive deeper into the full picture, check out the main analysis at Breaking Down EZGO Technologies Ltd. (EZGO) Financial Health: Key Insights for Investors. Your next step should be to model the impact of a 10% increase in the high-margin electronic control system sales on the overall Gross Margin for the next two quarters.

Debt vs. Equity Structure

You need to know how EZGO Technologies Ltd. (EZGO) is funding its operations, and the quick answer is this: the company relies heavily on equity and maintains a very low debt profile, which is generally a sign of financial conservatism but also reflects its current growth stage and market position. However, a closer look at their capital structure reveals a critical reliance on equity, coupled with recent actions that signal financial distress.

The company's Debt-to-Equity (D/E) ratio, a key measure of financial leverage, sits at approximately 0.20 as of the most recent data in 2025. This is exceptionally low, especially when compared to the industry average for 'Auto Manufacturers,' which is around 0.85 as of November 2025. This low ratio means that for every dollar of shareholder equity, EZGO is only using about 20 cents of debt to finance its assets. This suggests a low risk of default from a pure leverage standpoint.

Here's the quick math on their low leverage:

• EZGO's D/E Ratio: 0.20
• Auto Manufacturers Industry Average: 0.85
• Interpretation: EZGO uses 76% less debt relative to equity than the industry average.

What this low debt level hides is a capital structure under pressure, which is evident in their recent equity actions. While the balance between debt financing and equity funding leans heavily toward equity, the company is not in a strong financial position. The most significant capital event in late 2025 was not a debt issuance, but a 1-for-25 reverse share split effective November 21, 2025. This move was explicitly intended to increase the market price per share to meet the Nasdaq's minimum bid price requirement of $1.00, a clear signal of market distress and a crucial action to maintain its public listing.

In terms of debt specifics, detailed dollar amounts for the most recent 2025 short-term and long-term debt are not publicly highlighted, but the low D/E ratio confirms that debt is a minor component of their total capital. The total debt as of September 30, 2024, was approximately S$18.96 million (Singapore Dollars). The focus is clearly on managing the existing equity base and market valuation, not on new debt issuances or refinancing, as no major credit ratings or new debt actions have been reported in 2025. They are managing survival, not expansion via debt. You can find more comprehensive analysis on this topic in Breaking Down EZGO Technologies Ltd. (EZGO) Financial Health: Key Insights for Investors.

To be fair, a low D/E ratio is defintely a good thing for solvency, but when a company is forced to execute a reverse split, the low leverage is a side effect of its inability to raise capital through either debt or a healthy equity market, not a strategic choice of strength.

Liquidity and Solvency

You need to know if EZGO Technologies Ltd. (EZGO) can cover its short-term bills, and honestly, the picture is mixed. While the company's current ratio looks fine, the quick ratio and cash flow trends point to a definite liquidity crunch that you cannot ignore. This isn't a long-term solvency issue yet, but it's a near-term cash management problem.

The company's liquidity position, which is its ability to meet short-term obligations, is measured by two key ratios. The Current Ratio (Current Assets divided by Current Liabilities) for EZGO is 2.18. This means for every dollar of current liability, the company has $2.18 in current assets to cover it. That's a strong number, typically indicating adequate short-term financial health.

However, the Quick Ratio (or Acid-Test Ratio), which strips out inventory and pre-paid expenses-assets that are harder to turn into cash quickly-is only 0.64. A quick ratio below 1.0 is a warning sign. It tells you that without selling off inventory, EZGO does not have enough immediate, highly liquid assets to pay its current liabilities. This is a crucial distinction: the company is reliant on moving its product to stay liquid.

Here's the quick math on working capital (Current Assets minus Current Liabilities). Based on the Fiscal Year 2024 data (ended September 30, 2024), EZGO had Total Current Assets of approximately $41.4 million. Using the current ratio of 2.18, that puts Current Liabilities at roughly $18.99 million. This leaves a positive Working Capital of approximately $22.41 million. Still, a big chunk of that working capital is tied up in inventory, which is why the Quick Ratio is so low.

The Cash Flow Statement overview further highlights the liquidity pressure. For Fiscal Year 2024, the company's cash flow trends show a significant cash burn across core activities, forcing reliance on external funding.

• Operating Cash Flow: A negative $10.31 million. This is the most important number: the core business is not generating enough cash to fund itself.
• Investing Cash Flow: A negative $11.24 million. This outflow is expected for a growing company, reflecting capital expenditures like property, plant, and equipment, but it adds to the overall cash drain.
• Financing Cash Flow: A positive $8.63 million. This inflow, largely from debt or equity issuance, is what kept the company afloat. They are funding operations and investments by raising capital.

The main liquidity concern is the net cash burn from operations, which is the definition of an unsustainable business model in the long run. The company's cash and cash equivalents dropped sharply to $3.5 million as of September 30, 2024, a massive decrease from the prior year. Plus, the Altman Z-Score, a predictor of bankruptcy risk, is a deeply concerning -0.08 as of November 2025, putting the company squarely in the distress zone. You defintely need to watch this closely. For a deeper dive into who is betting on EZGO despite these risks, check out Exploring EZGO Technologies Ltd. (EZGO) Investor Profile: Who's Buying and Why?

Valuation Analysis

You want to know if EZGO Technologies Ltd. (EZGO) is a bargain or a trap. The direct takeaway is that while the company's valuation metrics appear incredibly low, suggesting it is undervalued on paper, the underlying financial distress and ongoing losses paint a much riskier picture.

As a seasoned analyst, I see a classic deep-value trap signal here. The stock's valuation ratios are near historical lows, but this is a function of the business losing money, not a temporary market mispricing. The company is actively fighting to maintain its Nasdaq listing, which is a major red flag for investors.

Here's the quick math on the key valuation metrics, based on trailing twelve months (TTM) data closest to November 2025:

• Price-to-Earnings (P/E) Ratio: The P/E ratio is effectively negative, reported as approximately -0.18. This is because EZGO Technologies Ltd. reported a non-GAAP Earnings per Share (EPS) of -$1.44 for the trailing twelve months. A negative P/E means the company is losing money, so the ratio is not meaningful for a traditional valuation comparison.
• Price-to-Book (P/B) Ratio: This is exceptionally low, sitting around 0.01 to 0.02 as of November 2025. This ratio suggests the stock is trading for just a fraction of its book value (assets minus liabilities), which could indicate the stock is severely undervalued. What this estimate hides is the market's skepticism about the true, recoverable value of those assets.
• Enterprise Value-to-EBITDA (EV/EBITDA): This metric is generally Not Meaningful (N/M) or 'n/a' because the company's profitability metrics, including its operating margin of -16.66%, result in a negative EBITDA. The Enterprise Value (EV) is approximately $11.78 million, but the lack of positive earnings makes this ratio unusable for comparison.

The low P/B ratio is defintely a siren call for value investors, but remember the Altman Z-Score is in the distress zone, indicating a high risk of financial instability. You have to consider the risk of asset write-downs or bankruptcy, which would make that book value evaporate.

Stock Price Volatility and Analyst View

The stock price trend over the last year tells a story of extreme volatility and steep decline. As of November 20, 2025, the stock price was around $0.0760 per share. Over the last 52 weeks, the price has plummeted by over -90.74%. The 52-week high was $1.18, with the low hitting $0.0566, illustrating massive downside risk.

To be fair, the company announced a 1-for-25 reverse share split, effective November 21, 2025, to boost its price above the Nasdaq minimum requirement. This move is a necessary action to stay listed, but it doesn't fundamentally change the business's financial health. It simply reduces the number of outstanding shares from over 21.7 million to approximately 868,029.

Analyst consensus is cautious. One Wall Street analyst has a consensus rating of Sell for EZGO Technologies Ltd., while an AI Analyst rates the stock as Neutral. One recent analyst price target was $0.50 (likely pre-split), which is a significant premium to the current price but still a fraction of the 52-week high.

Regarding dividends, EZGO Technologies Ltd. does not currently pay a dividend, so the dividend yield and payout ratios are N/A. This is typical for a growth-focused company, or in this case, a company focused on conserving cash amidst significant losses.

For a deeper dive into who is still buying this stock, you should read Exploring EZGO Technologies Ltd. (EZGO) Investor Profile: Who's Buying and Why?

Your clear action is to treat EZGO Technologies Ltd. as a highly speculative micro-cap stock. If you are not comfortable with +100% daily volatility and the risk of delisting, you should avoid it. If you are already holding, Finance should draft a 13-week cash view by Friday to understand the runway before another capital raise.

Risk Factors

You're looking at EZGO Technologies Ltd. (EZGO) and seeing a company in the high-growth, short-distance electric vehicle market, but honestly, you need to be a trend-aware realist here. The immediate takeaway is that the company faces severe financial distress and a critical operational challenge to simply maintain its public listing.

The risks are not just theoretical; they are showing up in the financials and corporate actions right now. The most pressing risk is the operational and financial health of the business, which is signaling deep trouble. Here's the quick math: EZGO's trailing twelve months (TTM) Revenue, as of March 31, 2025, was only about $20.9 million, and the TTM Net Loss was -$4.37 million. That's a net margin of -20.91%, which is simply unsustainable. Plus, cash reserves dropped by a massive 79.8% to $3.5 million in the fiscal year 2024, a serious liquidity concern.

• Liquidity and Solvency: The Altman Z-Score is at -0.08, which is deep in the distress zone, suggesting a high risk of bankruptcy.
• Operational Inefficiency: The Piotroski F-Score of 1 confirms poor business operations and weak financial strength.
• Accounting Red Flags: A Beneish M-Score of -1.75 is a significant warning sign, indicating potential financial manipulation.

This is not a growth stock; it's a turnaround story with a very high failure rate.

The most immediate, clear-cut risk is the Nasdaq Delisting threat. The company was already notified of a minimum bid price deficiency. To address this, the board approved a 1-for-25 reverse stock split, effective November 21, 2025, to artificially boost the share price. This is a defensive, last-ditch effort to comply with the Nasdaq minimum bid price requirement of $1.00 per share. If they fail to maintain compliance, the stock will be delisted, which crushes liquidity and investor confidence.

Beyond the immediate financial and listing risks, the external market conditions and internal strategic shifts present a complex picture. EZGO operates in a highly competitive Consumer Cyclical sector, and the stock's beta of 2.21 confirms its high volatility. The core e-bicycle segment is struggling, with revenue declining 32.2% in Fiscal Year 2024. Management is trying to mitigate this by shifting focus to the lithium-ion battery business, which saw a strong 97.9% revenue increase to $16.3 million in FY 2024. This pivot is the company's only clear mitigation strategy, but it's still unproven whether battery sales can offset the losses in their traditional segments and lead to overall profitability.

To fully understand the long-term viability of this new direction, you should review their Mission Statement, Vision, & Core Values of EZGO Technologies Ltd. (EZGO).

Here is a summary of the key financial warning signs you should focus on:

The company is defintely in a high-risk category, and the reverse split is a band-aid on a much deeper wound of unprofitability and liquidity issues.

Growth Opportunities

You need a clear picture of what EZGO Technologies Ltd. (EZGO) is doing to turn around its challenging financial position, and honestly, the near-term story is about survival and strategic pivots, not explosive growth. The company is actively working to stabilize its foundation through key operational and capital structure moves, but the financial metrics still reflect significant distress.

The core growth drivers for EZGO remain centered on the short-distance electric vehicle (EV) market in China, a sector where they are a solutions provider. Their strategy hinges on product differentiation and market expansion within their existing product lines, which include e-bicycles, e-motorcycles, and intelligent robots.

• Product Innovation: Leveraging an Internet of Things (IoT) platform for their two e-bicycle brands, 'EZGO' and 'Cenbird.'
• Market Expansion: The launch of the Cenbird E-Scooter in China in May 2025.
• Regulatory Advantage: Successfully securing the application for the State First-Class E-Motorcycle Manufacturing Qualification in June 2025, which can open doors to higher-tier manufacturing and sales.

Here's the quick math on the recent performance: the company's revenue for the half-year ending March 31, 2025, was $6.57 million, reflecting a solid 27.19% growth for that period. Still, the trailing twelve-month revenue as of March 31, 2025, was only $20.90 million, and the company reported a trailing twelve-month earnings loss of -$4.4 million. What this estimate hides is the longer-term trend: the three-year revenue growth rate is a concerning -54.7%.

To be fair, the market is signaling its skepticism. The company's Price-to-Sales (P/S) ratio sits at a low 0.1x, which is significantly below the industry average, suggesting the market expects this acceptable recent revenue performance to take a dive. This low valuation could be an opportunity if the company executes its turnaround, but for now, it reflects the weak financial performance and challenging valuation.

Since EZGO Technologies Ltd. has not provided enough past data and has insufficient analyst coverage, reliable consensus revenue growth projections and earnings per share (EPS) estimates for the full 2025 fiscal year are not available. This lack of a clear analyst forecast means you have to rely heavily on the company's operational execution. The current trailing twelve-month operating margin is -16.66%, which shows the uphill battle for profitability.

A critical near-term action is the 1-for-25 reverse stock split, which became effective on November 21, 2025. This move is purely strategic, intended to boost the per-share price to meet the Nasdaq minimum bid requirement and maintain the company's listing. Also, on October 1, 2025, EZGO adopted an equity incentive plan, issuing 3,400,000 ordinary shares to the CEO's entity to retain key leadership. These are actions to fix the capital structure and leadership alignment, which are necessary steps before true growth can resume.

For a deeper dive into the company's fundamentals, you should check out the full analysis at Breaking Down EZGO Technologies Ltd. (EZGO) Financial Health: Key Insights for Investors. Your next step should be to monitor the post-split trading volume and any new product announcements to see if the operational initiatives gain traction.