REE Automotive (REE) Q4 2025 earnings summary

Executive summary

• Shifted to a software-led business model, pausing production and reducing workforce by 40% to cut costs.

• Engaged with industry leaders and began evaluating strategic alternatives to maximize shareholder value.

• Engaged TD Securities as financial advisor for strategic review.

Financial highlights

• GAAP net loss decreased by 50% year-over-year to $55.8 million for 2025, driven by non-cash income from warrant remeasurement and cost reductions.

• Non-GAAP net loss decreased by 18% year-over-year to $57.7 million, mainly due to cost-reduction initiatives.

• Free cash flow burn improved by 2% year-over-year to $75.0 million.

• Cash and cash equivalents fell to $14.2 million at year-end 2025, and further to $4.9 million by May 2026.

Outlook and guidance

• Continues to evaluate further operational cost reductions and strategic alternatives to preserve liquidity and maximize shareholder value.