AI Takeaway
Lucid Group reported Q1 FY2026 revenue of $282.5M (+20.2% YoY) but posted a net loss of $1.03B (-180.8% YoY), with negative stockholders' equity of -$351.4M and cash declining 62.2% to $700.4M, raising serious questions about its financial sustainability.
Revenue
$282.46M
++20.17% YoY
EPS (Basic)
$-3.46
-43.57% YoY
Operating Income
$-989.49M
-43.00% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue increased 20.2% YoY to $282.5M in Q1 FY2026 from $235.0M in the prior-year period, reflecting continued ramp-up in vehicle deliveries. However, revenue growth significantly lagged the 28.2% increase in cost of revenue ($594.2M), meaning Lucid is selling more cars but losing more money per vehicle.
Source: Source: 10-Q Income Statement
Cost of revenue of $594.2M far exceeded revenue of $282.5M, implying a gross loss of approximately -$311.7M and a deeply negative gross margin of roughly -110%. This reflects the capital-intensive early-stage manufacturing environment and underutilized factory capacity at Lucid's Arizona plant.
Source: Source: 10-Q Income Statement
R&D expenses rose 33.6% YoY to $335.7M and SG&A expenses surged 43.4% YoY to $304.2M, driving total operating loss to -$989.5M (-43.0% YoY). The acceleration in both R&D and SG&A spending suggests continued heavy investment in next-generation vehicle programs and commercial expansion.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockLucid's stockholders' equity turned deeply negative at -$351.4M (from +$3.18B a year ago), and cash fell to $700.4M while operating cash burn reached -$1.19B in a single quarter. At this burn rate, the company may exhaust its cash within one quarter without additional financing. This creates an existential near-term liquidity risk.
Source: Source: 10-Q Balance Sheet & Cash Flow Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $-3.46 versus the $-2.71 analyst consensus — a -27.8% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $282.46M | $235.05M | +20.17% |
Cost of Revenue | $594.17M | $463.56M | +28.18% |
Operating Income | $-989.49M | $-691.93M | -43.00% |
Net Income | $-1.03B | $-366.17M | -180.84% |
EPS (Basic) | $-3.46 | $-2.41 | -43.57% |
EPS (Diluted) | $-3.46 | $-2.41 | -43.57% |
R&D Expense | $335.67M | $251.25M | +33.60% |
SG&A Expense | $304.18M | $212.18M | +43.36% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $7.48B | $9.22B | -18.82% |
Current Assets | $2.76B | $4.42B | -37.68% |
Total Liabilities | $5.45B | $4.37B | +24.61% |
Current Liabilities | $2.69B | $1.33B | +102.35% |
Stockholders' Equity | $-351.37M | $3.18B | -111.04% |
Cash & Equivalents | $700.36M | $1.85B | -62.24% |
Long-Term Debt | $2.05B | $2B | +2.22% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-1.19B | $-428.61M | -176.63% |
Investing Cash Flow | $875.19M | $614.02M | +42.53% |
Financing Cash Flow | $35.28M | $62.73M | -43.76% |
D&A | $116.4M | $98M | +18.78% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | -350.3% | -294.4% | -55.92% |
Net Margin | -364.1% | — | — |
ROE | 292.7% | — | — |
ROA | -13.7% | — | — |
Current Ratio | $1.023 | — | — |
Debt to Equity | $-15.497 | — | — |
Lucid Group reported a net loss of $1.03B in Q1 FY2026, compared to a net loss of $366.2M in the same quarter last year — a deterioration of 180.8% YoY. The loss was driven by a gross loss of approximately -$311.7M, plus $335.7M in R&D and $304.2M in SG&A expenses.
Lucid's cash and equivalents fell to $700.4M at the end of Q1 FY2026, down 62.2% from $1.85B a year ago, while operating cash burn was -$1.19B in just one quarter. At this burn rate, the company would need to raise additional capital imminently, likely from its majority shareholder, Saudi Arabia's Public Investment Fund.
Yes, Lucid's revenue grew 20.2% YoY to $282.5M in Q1 FY2026 from $235.0M in Q1 FY2025, reflecting higher vehicle deliveries. However, cost of revenue grew faster at 28.2% to $594.2M, meaning the company is losing more money per vehicle even as it sells more cars.
Lucid's financial health is severely strained: stockholders' equity turned negative at -$351.4M (from +$3.18B a year ago), the current ratio is a razor-thin 1.02x, and the company carries $2.05B in long-term debt. The combination of negative equity, rapid cash burn, and doubling of current liabilities (+102.4% YoY) points to acute financial stress.
The key risks evident from Lucid's Q1 FY2026 financial data include: (1) a quarterly cash burn of -$1.19B against only $700.4M in cash, (2) deeply negative gross margins of approximately -110%, and (3) negative stockholders' equity of -$351.4M indicating technical insolvency on a book-value basis. These factors collectively suggest the company is highly dependent on continued external financing to survive.