Guerrilla RF, a leading provider of state-of-the-art RF and microwave semiconductors, has announced second quarter 2025 financial results. Revenue was $5.4 million, down 12% from $6.1 million in Q2 2024, primarily due to a significant wireless infrastructure design win that generated revenue of $1.7 million in the prior year period that did not recur in 2025. Strength in automotive (+39.5% to $2.7 million) and catalog (+6.0% to $2.3 million) added $0.9 million and partially offset the decline in wireless infrastructure.
“We are pleased with the resiliency of our automotive and catalog markets in the face of continued macroeconomic headwinds, including elevated interest rates and tariff uncertainty. Our strong product backlog and encouraging business outlook for the second half of the year causes us to remain optimistic about the rest of 2025,” said Founder and CEO Ryan Pratt.
Second Quarter 2025 Highlights
Contribution margin improved 100 basis points to 75.4%, reflecting improved product mix and margins through recent pricing actions (60 basis points) and recognition of a non-recurring engineering opportunity which carried minimal cost (40 basis points).
Gross profit margin was 64.9%, down 40 basis points year over year, reflecting lower revenue leverage. Overhead costs were essentially flat in absolute dollars but rose to 10.5% of revenue from 9.1% in Q2 2024 due to the lower top line.
The Company recorded an operating loss of $1.4 million compared to $1.2 million in Q2 2024. The increased loss was primarily a result of lower revenue for the quarter compared to the year ago period.
Operating Expense Discipline and Cost Reduction
Operating expenses were $4.8 million, an improvement of $0.4 million, or 7%, versus $5.2 million in Q2 2024, reflecting the benefits of ongoing cost reduction measures, including headcount actions and tighter equipment and discretionary spending.
By function, R&D costs decreased 10%, Sales and Marketing decreased 6% and General and Administrative costs were unchanged year over year.
These actions have reduced the Company’s cash expense base and simplified the operating model, with the impact evident in lower absolute operating expense despite continued investment in core programs.
“We have been executing targeted reductions across the organization, including headcount, and are beginning to see the reductions on payroll and operating expenses as we continue towards resetting our spending baseline. In this uncertain environment we are focusing on what we can control,” said CFO Mike John-Williams.
The Company ended the quarter with $4.8 million in cash.
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