Stoneridge's Q3 Loss Widens Amidst Revenue Decline

TL;DR

**SRI's deepening losses and revenue slide mean this stock is a hard pass for now; avoid until they show a clear path to profitability.**

AI Summary

STONERIDGE INC (SRI) reported a net loss of $9.371 million for the three months ended September 30, 2025, an increase from the $7.070 million net loss in the same period of 2024. For the nine months ended September 30, 2025, the net loss widened significantly to $25.926 million, compared to a $10.410 million net loss in the prior year. Net sales decreased to $210.267 million for the three-month period in 2025 from $213.831 million in 2024, and fell to $656.109 million for the nine-month period from $690.047 million. Operating loss for the three months ended September 30, 2025, was $3.279 million, a deterioration from an operating income of $0.315 million in 2024, and the nine-month operating loss was $9.105 million, down from an operating income of $4.053 million. Cash and cash equivalents decreased by $17.844 million to $53.988 million at September 30, 2025, from $71.832 million at December 31, 2024. The company saw a positive foreign currency translation adjustment of $25.985 million for the nine months ended September 30, 2025, partially offsetting the net loss.

Why It Matters

Stoneridge's widening net losses and declining sales for both the quarter and year-to-date signal significant headwinds for investors, potentially impacting stock performance and future dividends. The competitive automotive market, coupled with increased operating expenses and interest costs, suggests a challenging environment for SRI to regain profitability. Employees might face pressure from cost-cutting measures, while customers could see impacts on product development if R&D spending continues to decrease. The broader market for automotive components will watch how SRI navigates these challenges, especially given the ongoing supply chain and economic uncertainties.

Risk Assessment

Risk Level: high — The company reported a net loss of $9.371 million for the three months ended September 30, 2025, and a $25.926 million net loss for the nine months, significantly worse than the prior year periods. Net sales declined by $3.564 million for the quarter and $33.938 million year-to-date, indicating a shrinking top line alongside increasing losses, which points to substantial operational and financial risk.

Analyst Insight

Investors should exercise extreme caution and consider divesting or avoiding STONERIDGE INC (SRI) shares given the consistent net losses and declining revenue. Monitor future filings for concrete evidence of revenue growth, improved operating margins, and a clear strategy to return to profitability before considering any investment.

Financial Highlights

debt To Equity

0.79

revenue

$656.109M

operating Margin

-1.4%

total Assets

$632.079M

total Debt

$171.141M

net Income

$-25.926M

eps

-$0.93

gross Margin

22.0%

cash Position

$53.988M

revenue Growth

-4.9%

Key Numbers

• $25.926M — Net Loss (9 months) (Increased from $10.410M in 2024, indicating worsening profitability.)
• $656.109M — Net Sales (9 months) (Decreased from $690.047M in 2024, showing a decline in top-line revenue.)
• $9.105M — Operating Loss (9 months) (Deteriorated from an operating income of $4.053M in 2024, highlighting operational challenges.)
• $53.988M — Cash and Cash Equivalents (Decreased by $17.844M from December 31, 2024, impacting liquidity.)
• $0.93 — Basic Loss Per Share (9 months) (Worsened from $0.38 in 2024, reflecting increased losses per share for investors.)
• $170.194M — Revolving Credit Facility (Decreased from $201.577M at December 31, 2024, reducing short-term debt.)
• $10.102M — Interest Expense, net (9 months) (Slightly decreased from $11.039M in 2024, but remains a significant cost.)
• $25.985M — Foreign Currency Translation (9 months) (Positive adjustment, partially offsetting net loss.)

Key Players & Entities

• STONERIDGE INC (company) — registrant
• SEC (regulator) — Securities and Exchange Commission
• $9.371 million (dollar_amount) — net loss for three months ended September 30, 2025
• $25.926 million (dollar_amount) — net loss for nine months ended September 30, 2025
• $210.267 million (dollar_amount) — net sales for three months ended September 30, 2025
• $656.109 million (dollar_amount) — net sales for nine months ended September 30, 2025
• $53.988 million (dollar_amount) — cash and cash equivalents at September 30, 2025
• $17.844 million (dollar_amount) — decrease in cash and cash equivalents
• FASB (regulator) — Financial Accounting Standards Board
• Control Devices (company) — Stoneridge's reportable segment

FAQ

Risk Factors

• Deteriorating Profitability and Cash Position [high — financial]: The company reported a net loss of $9.371 million for Q3 2025, widening from $7.070 million in Q3 2024. The nine-month net loss increased to $25.926 million from $10.410 million. Cash and cash equivalents decreased by $17.844 million to $53.988 million, indicating a strain on liquidity.
• Declining Net Sales [medium — market]: Net sales decreased to $210.267 million for the three months ended September 30, 2025, from $213.831 million in 2024. For the nine-month period, net sales fell to $656.109 million from $690.047 million, suggesting a weakening top-line performance in a competitive market.
• Shift from Operating Income to Operating Loss [high — operational]: The company experienced an operating loss of $3.279 million for the three months ended September 30, 2025, a significant deterioration from an operating income of $0.315 million in the prior year. The nine-month operating loss was $9.105 million, down from an operating income of $4.053 million, pointing to operational inefficiencies or increased costs.
• Increased Selling, General, and Administrative Expenses [medium — financial]: Selling, general, and administrative expenses increased to $96.125 million for the nine months ended September 30, 2025, from $88.832 million in the prior year. This increase, despite declining sales, contributes to the widening operating loss.
• Reliance on Revolving Credit Facility [medium — financial]: The company has a revolving credit facility of $170.194 million outstanding as of September 30, 2025. While this decreased from $201.577 million at December 31, 2024, it still represents a significant source of short-term financing that could be impacted by financial performance.
• Foreign Currency Fluctuations [low — market]: A positive foreign currency translation adjustment of $25.985 million for the nine months ended September 30, 2025, partially offset the net loss. While beneficial in this period, significant currency fluctuations can introduce volatility to earnings.

Industry Context

Stoneridge Inc. operates in the automotive technology and electrical distribution sectors. The automotive industry is undergoing significant transformation driven by electrification, autonomous driving, and connectivity. Companies in this space face intense competition, supply chain complexities, and the need for continuous innovation to adapt to evolving vehicle technologies and consumer demands.

Regulatory Implications

As a global supplier, Stoneridge is subject to various regulations concerning product safety, environmental standards, and trade compliance in the regions it operates. Changes in automotive safety regulations or emissions standards could require significant R&D investment and product redesign, impacting costs and market access.

What Investors Should Do

1. Monitor operational cost controls
2. Assess liquidity and debt management
3. Evaluate revenue generation strategies
4. Analyze the impact of foreign currency

Key Dates

• 2025-09-30: End of Third Quarter 2025 — Reporting period for the 10-Q, showing increased net losses, decreased sales, and reduced cash reserves.
• 2024-09-30: End of Third Quarter 2024 — Prior year comparable period, showing better financial performance with lower net losses and operating income.
• 2024-12-31: End of Fiscal Year 2024 — Balance sheet comparison point, showing a higher cash position and lower outstanding revolving credit facility.

Glossary

Operating (loss) income

Profit or loss generated from a company's core business operations before accounting for interest and taxes. (Shows a deterioration from income to a loss of $9.105 million for the nine months ended September 30, 2025, indicating operational challenges.)

Net sales

The total revenue generated from the sale of goods or services after deducting returns, allowances, and discounts. (Decreased to $656.109 million for the nine months ended September 30, 2025, indicating a decline in top-line performance.)

Cash and cash equivalents

Highly liquid investments that are readily convertible to cash, including currency on hand, bank deposits, and short-term money market instruments. (Decreased by $17.844 million to $53.988 million, impacting the company's immediate liquidity.)

Revolving credit facility

A type of credit line that allows a company to borrow, repay, and re-borrow funds up to a certain limit over a specified period. (Represents a significant source of debt financing, with $170.194 million outstanding as of September 30, 2025.)

Accumulated other comprehensive loss

A component of shareholders' equity that includes unrealized gains and losses on certain investments and foreign currency translation adjustments. (Shows a balance of $(93.455) million, with a positive foreign currency translation adjustment of $25.985 million for the nine months partially offsetting this.)

Basic Loss Per Share

The net loss attributable to each outstanding share of common stock. (Worsened to $(0.93) for the nine months ended September 30, 2025, from $(0.38) in the prior year, reflecting increased losses for shareholders.)

Year-Over-Year Comparison

Compared to the prior year, Stoneridge Inc. has experienced a significant downturn. Net sales for the nine months ended September 30, 2025, decreased by 4.9% to $656.109 million from $690.047 million. Profitability has sharply deteriorated, with the net loss widening from $10.410 million to $25.926 million, and the company moving from an operating income of $4.053 million to an operating loss of $9.105 million. Key risks include the declining sales trend and the worsening operational performance, alongside a reduced cash position.

Filing Documents

• sri-20250930.htm (10-Q) — 1585KB
• sri-20250930xexx101.htm (EX-10.1) — 59KB
• sri-20250930xexx102.htm (EX-10.2) — 16KB
• sri-20250930xexx311.htm (EX-31.1) — 9KB
• sri-20250930xexx312.htm (EX-31.2) — 9KB
• sri-20250930xexx321.htm (EX-32.1) — 4KB
• sri-20250930xexx322.htm (EX-32.2) — 4KB
• sri-20250930_g1.jpg (GRAPHIC) — 12KB
• 0001043337-25-000125.txt ( ) — 7766KB
• sri-20250930.xsd (EX-101.SCH) — 38KB
• sri-20250930_cal.xml (EX-101.CAL) — 53KB
• sri-20250930_def.xml (EX-101.DEF) — 176KB
• sri-20250930_lab.xml (EX-101.LAB) — 539KB
• sri-20250930_pre.xml (EX-101.PRE) — 368KB
• sri-20250930_htm.xml (XML) — 1447KB

–FINANCIAL INFORMATION

PART I–FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 4 Condensed Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024 5 Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) for the Three and Ni ne Months Ended September 30, 2025 and 2024 6 Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2025 and 2024 7 Condensed Consolidated Statements of Shareholders' Equity (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024 8 Notes to Condensed Consolidated Financial Statements (Unaudited) 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 37 Item 4.

Controls and Procedures

Controls and Procedures 37

–OTHER INFORMATION

PART II–OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 38 Item 1A.

Risk Factors

Risk Factors 38 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 3. Defaults Upon Senior Securities 38 Item 4. Mine Safety Disclosures 38 Item 5. Other Information 38 Item 6. Exhibits 39

Signatures

Signatures 40 2 Table of Contents

Forward-Looking Statements

Forward-Looking Statements Portions of this report on Form 10-Q contain "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this report and may include statements regarding the intent, belief or current expectations of the Company, with respect to, among other things, our (i) future product and facility expansion, (ii) acquisition strategy, (iii) investments and new product development, (iv) growth opportunities related to awarded business and (v) operational expectations. Forward-looking statements may be identified by the words "will," "may," "should," "could," "would," "designed to," "believes," "plans," "projects," "intends," "expects," "estimates," "anticipates," "continue," and similar words and expressions. The forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from those expressed in or implied by these statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among other factors: the ability of our suppliers to supply us with parts and components at competitive prices on a timely basis, including the impact of potential tariffs and trade considerations on their operations and output; fluctuations in the cost and availability of key materials and components (including semiconductors, printed circuit boards, resin, aluminum, steel and copper) and our ability to offset cost increases through negotiated price increases with our customers or other cost reduction actions, as necessary; global economic trends, competition and geopolitical risks, including impacts from ongoing or potential global conflicts and any related sanctions and other measures, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and other countries; tariffs specifically in countries where we have significant direct or in

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements STONERIDGE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) September 30, 2025 December 31, 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 53,988 $ 71,832 Accounts receivable, less reserves of $ 583 and $ 1,060 , respectively 153,072 137,766 Inventories, net 145,449 151,337 Prepaid expenses and other current assets 31,806 26,579 Total current assets 384,315 387,514 Long-term assets: Property, plant and equipment, net 100,477 97,667 Intangible assets, net 40,741 39,677 Goodwill 37,530 33,085 Operating lease right-of-use asset 13,481 10,050 Investments and other long-term assets, net 55,535 53,563 Total long-term assets 247,764 234,042 Total assets $ 632,079 $ 621,556 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of debt $ 947 $ — Accounts payable 101,773 83,478 Accrued expenses and other current liabilities 77,292 66,494 Total current liabilities 180,012 149,972 Long-term liabilities: Revolving credit facility 170,194 201,577 Deferred income taxes 4,939 5,321 Operating lease long-term liability 9,514 6,484 Other long-term liabilities 16,225 12,942 Total long-term liabilities 200,872 226,324 Shareholders' equity: Preferred Shares, without par value, 5,000 shares authorized, none issued — — Common Shares, without par value, 60,000 shares authorized, 28,966 and 28,966 shares issued and 28,018 and 27,695 shares outstanding at September 30, 2025 and December 31, 2024, respectively, with no stated value — — Additional paid-in capital 218,048 225,712 Common Shares held in treasury, 948 and 1,271 shares at September 30, 2025 and December 31, 2024, respectively, at cost ( 27,457 ) ( 38,424 ) Retained earnings 154,059 179,985 Accumulated other comprehensive loss ( 93,455 ) ( 122,013 ) Total shareholders' equity 251,195 245,260 Total liabilities and shareholders' equity $ 632,079 $ 621,556 The accompanying notes are an integral part of these

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View this 10-Q filing on SEC EDGAR