Key Points
We maintain BUY and lower our price target to $2.00 using 19.6 million pro forma basic shares. Twin Vee closed an equity raise on March 24, 2026, selling 6,491,900 shares at $0.384 per share for roughly $2.5 million of gross proceeds, bringing the pro forma basic count to 19,585,199 shares. Our price target reflects the fact that the added capital improves liquidity while operations continue to recover.
Capitalization Reset The share count reflects 8,620,299 shares outstanding after the February 2026 financing, plus 4,473,000 shares sold in the March 17, 2026 closing, plus 6,491,900 shares sold in the March 24, 2026 closing. The company also has a $100 million universal shelf registration, which remains financing flexibility but also overhang. The Marion note receivable, with staged payments through 2027, remains relevant to equity value.
Operating Recovery The operating business improved in 2025. Revenue increased 3% to $14.8 million, boat deliveries rose to 93 from 87, gross profit turned positive at $1.26 million, gross margin improved to 8.5% from -5.2%, and operating expenses fell 27% to $10.0 million. Twin Vee moved from negative gross economics back to positive gross economics through lower manufacturing cost, better labor leverage, and improved absorption. That repair remains the foundation of the recovery case.
Business Model and Operations The business model remains cleaner than in the prior cycle. Forza has been folded back into the parent, and the company is now centered on the legacy Twin Vee catamaran line, Bahama Boat Works, and Wizz Banger. The Fort Pierce footprint totals roughly 100,000 square feet on 7.5 acres. Twin Vee announced delivery of the first 35-foot Bahama under its ownership on March 25, 2026 and added Nautical Ventures as its exclusive Broward County dealer. Those developments improve execution credibility, though they do not yet change the earnings base materially.
Financial Risk Liquidity and listing risk remain the central issues. The company disclosed substantial doubt about its ability to continue as a going concern, ended 2025 with just over $1.6 million of cash and restricted cash, and used $6.88 million of cash in operating activities during the year. On April 2, 2026, Nasdaq notified Twin Vee that it no longer satisfied the $1.00 minimum bid requirement and was not eligible for the standard cure period because of its prior reverse split. The company plans to request a hearing, which would stay delisting action pending review, but there is no assurance of success. Channel risk also remains real, as the earlier Northpoint repurchase episode showed.
Summary
We continue to rate the shares BUY because the market is heavily discounting dilution, funding risk, and listing uncertainty while giving limited credit to a business that has restored positive gross profit, cleaned up channel inventory, broadened its lineup, and shown early Bahama execution. We assign no material base-case value to Black Line Defense and only de minimis value to Wizz Banger. The case rests on the core boat business, measured Bahama contribution, pro forma liquidity improvement, and Marion note value. On 19.6 million pro forma basic shares, that still supports a $2.00 target for investors prepared to underwrite high execution risk and explicit Nasdaq overhang.
Rating, Price and Target
Symbol VEEE
Rating Buy
Price $0.25
Price Target (Prev.) $2.00 ($8.00)
Market Data
Market Cap (M) $5.0
Shares Outstanding (M) 19.6
Average Daily Volume (000s) 6.5
Float (M) 16.7
Total Debt (M) $0.5
Net Cash/Debt ($M) $7.6
Dividend NM
General: Pro forma cash is approximately $8.2M, based on $1.43M of 12/31/25 cash and cash equivalents, plus $2.54M of net proceeds from the February 2026 offering, approximately $1.7M of gross proceeds from the March 17, 2026 closing, and approximately $2.5M of gross proceeds from the March 24, 2026 closing, before related March offering fees and expenses. Pro forma debt is approximately $0.54M ($0.50M EIDL plus $0.04M of current and noncurrent finance lease liabilities), implying pro forma net cash of approximately $7.6M. Debt excludes approximately $0.30M of motor floorplan balances, which are classified in accounts payable.
FYE Dec 2024A 2025A 2026E
EPS1 (13.96)↓ (4.37) (0.42)
Previous 0.36 - -
Revenue (M) ($) 14.4↓ 14.8 15.0
Previous 58.0 - -
1The capitalization bridge now resolves to 19,585,199 pro forma basic shares. The first component is 8,620,299 shares outstanding after the February 2026 financing. The second component is the March 17, 2026 closing of 4,473,000 shares at $0.38 per share. The third component is the March 24, 2026 closing of 6,491,900 shares at $0.384 per share, which generated approximately $2.5 million of gross proceeds before fees and expenses. On a basic basis, those transactions bring the current share count used in this report to 19.6 million.
Company Description
Twin Vee PowerCats Co. is a Fort Pierce, Floridabased boat manufacturer with approximately 30 years of operating history. The company designs, builds, and sells recreational and fishing boats under the Twin Vee and Bahama Boat Works brands. Twin Vee’s lineup is centered on catamaran sport boats known for stability, fuel efficiency, and smoothriding hull designs across fishing, cruising, and general recreational use cases. Bahama Boat Works extends the portfolio into premium offshore fishing vessels with an emphasis on craftsmanship and heritage positioning. Together, the brands give Twin Vee exposure to both broader recreational marine demand and higher-end offshore segments today.
