Guerrilla RF Reports 52% Revenue Growth, Improved Cash Position, and Restructured Debt for Nine Months Ended September 30, 2024

Guerrilla RF, Inc. reported significant financial developments for the nine months ended September 30, 2024, reflecting a robust increase in revenue and improvements in cash position, despite ongoing net losses. Total revenue for the period reached $15.7 million, a 52% increase from $10.4 million in the same period of 2023. This growth was primarily driven by a $4.0 million rise in wireless infrastructure product shipments and a doubling of international customer demand, which increased to $3.0 million.

Product revenue for the third quarter of 2024 was $4.5 million, up 34% from $3.4 million in Q3 2023. Gross profit for the same quarter improved to $2.95 million, representing a gross profit margin of 65.3%, compared to 55.7% in the prior year. The company’s operating loss for Q3 2024 was $2.6 million, an improvement from a loss of $3.7 million in Q3 2023. However, the net loss for the third quarter increased to $7.2 million from $4.5 million year-over-year, attributed to a $1.5 million loss on debt extinguishment and a $2.6 million change in the fair value of warrant liabilities.

As of September 30, 2024, Guerrilla RF's total assets rose to $28.2 million from $19.0 million at the end of 2023, with cash significantly improving to $11.3 million compared to $781,318 previously. Total current liabilities decreased to $11.3 million from $17.3 million, while the accumulated deficit increased to $55.4 million from $43.0 million.

Strategically, the company made notable moves, including the acquisition of Gallium Semiconductor's portfolio for $0.4 million, enhancing its product offerings in GaN power amplifiers. Additionally, Guerrilla RF raised approximately $21.6 million through a private placement of preferred stock in August 2024, which bolstered its liquidity. The company also restructured its debt, reducing the outstanding principal on its Salem Loan Facility from $12 million to $4.5 million, extending the maturity date to December 2028, and lowering the interest rate.

Despite these positive developments, the company continues to face challenges, including a reliance on a major customer, Richardson RFPD, which accounted for 78% of product revenue in the nine months ended September 30, 2024. The company’s operational expenses remained consistent, with research and development costs decreasing, while sales and marketing expenses increased. Overall, Guerrilla RF's financial performance reflects a mix of growth and ongoing challenges as it navigates the semiconductor market.