REE Automotive reported a GAAP net loss of $24.3 million for the six months ended June 30, 2025, a 33% improvement from the $36.0 million loss in the prior-year period. Non-GAAP net loss was $36.5 million, up 8% year-over-year, reflecting the absence of a UK R&D tax credit and grants received in H1 2024. Free cash flow burn increased 31% to $52.5 million, driven primarily by P7 program tooling and inventory costs in Q1. Cash and cash equivalents fell from $72.3 million at December 31, 2024 (inclusive of an $18 million credit facility) to $54.7 million at June 30, 2025, and further to $17.2 million (excluding the credit facility) as of November 30, 2025. Management has flagged ongoing cash burn challenges given these trends.

REE converted a previously announced memorandum of understanding into a binding agreement with a leading technology company to develop an autonomous shuttle using its Zonal Architecture SDV and REEcorner™ platform; the program, pending closing conditions, could generate up to $107 million in revenue over two years. In November 2025, REE signed an MOU with Mitsubishi Fuso Truck and Bus Corporation to evaluate integration of its x-by-wire and zonal SDV technologies on Fuso’s eCanter platform, with potential post-2030 commercial deployment subject to successful trials. Additionally, REE entered an MOU with BorgWarner’s Cascadia Motion to co-develop a next-generation electric drive unit, combining the iM-125 motor-inverter with REEcorner technology under a phased, royalty-bearing distribution plan aimed at global OEM electrification initiatives.

During H1 2025, REE implemented cost-optimization measures, achieving a monthly operating expense average of approximately $6.0 million. The company forecasts reducing this to $3.1–$3.3 million by Q4 2025 and further to $1.8 million per month by the end of Q1 2026—a 70% decrease—through workforce reductions, streamlined processes and other efficiencies. These targets underscore management’s commitment to discipline in pursuit of sustainable cash flow and long-term value creation for shareholders.