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Acorn Energy
(NASDAQ:ACFN)
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Rating:65Neutral
Price Target:
$20.50
▲(3.90% Upside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by improved financial health (profitability turnaround, strong gross margins, and conservative leverage) but is held back by recent deceleration (declining TTM revenue, compressed operating margins, and weaker free cash flow). Technicals are neutral and valuation is less compelling with a ~30.7 P/E and no dividend yield, while the corporate ownership simplification is a modest positive.
Positive Factors
High-margin profitability
The combination of an approximately 80% gross margin and positive net margin indicates that OmniMetrix’s monitoring activities retain meaningful economic value after direct costs. If maintained, this margin structure can support reinvestment, resilience, and durable earnings generation.
Negative Factors
Revenue contraction
Recent revenue contraction suggests that demand or customer expansion has not kept pace with the company’s prior trajectory. Persistent top-line weakness could limit operating leverage, slow recurring-base growth, and make it harder to sustain current profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
High-margin profitability
The combination of an approximately 80% gross margin and positive net margin indicates that OmniMetrix’s monitoring activities retain meaningful economic value after direct costs. If maintained, this margin structure can support reinvestment, resilience, and durable earnings generation.
Read all positive factors
Acorn Energy (ACFN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$47.76M
Dividend Yield7635.6%
Average Volume (3M)60.53K
Price to Earnings (P/E)31.5
Beta (1Y)0.54
Revenue Growth-27.50%
EPS Growth-78.54%
CountryUS
Employees27
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.62
Shares Outstanding2,509,618
10 Day Avg. Volume85,602
30 Day Avg. Volume60,526
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)4.57
Price to Sales (P/S)3.28
P/FCF Ratio18.32
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Acorn Energy Business Overview & Revenue Model
Company Description
Acorn Energy, Inc., established in 1986 and headquartered in Wilmington, Delaware, specializes in the global development and marketing of wireless remote monitoring and control systems across diverse sectors. Through its subsidiaries, the company'...
How the Company Makes Money
Acorn Energy makes money primarily through OmniMetrix by selling and supporting remote monitoring solutions for backup generators and other critical equipment. Key revenue streams include: (1) recurring monitoring and software/service revenue, whe...
Acorn Energy Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presented a mix of positive operational progress and near-term financial pressure. Positive elements include recurring monitoring revenue growth, a very high monitoring gross margin (94%), gross margin expansion to 80.2%, continued profitability at the OmniMetrix subsidiary ($395k operating income), a meaningful backlog ($3.269M with $2.934M expected in 12 months), a debt-free balance sheet with stable cash, ongoing deployment of next-generation products, and an exclusive AIO partnership with two live demo sites and outsized average sale potential (5x–6x). Negative or cautionary points include a 28.1% year-over-year revenue decline driven by a 55.7% drop in hardware revenue, a small consolidated net loss in Q1 2026 driven by higher noncash stock-based compensation, an 11.2% rise in operating expenses, modest operating cash flow ($53k), near-term uncertainty for IS revenues and potentially long sales cycles, and concentration/timing risk from the large customer contract. Overall, the positive operational momentum and growth initiatives are offset by meaningful near-term revenue and expense pressures, leaving the tone balanced.Positive Updates
Monitoring Revenue Growth and High Margins
Monitoring revenue increased 11.7% year-over-year to $1.417 million in Q1 2026 (a $148,000 increase). Monitoring carried a very high gross margin of 94% in the quarter, reflecting strong recurring, high-margin revenue expansion from the installed base of monitored endpoints.
Negative Updates
Total Revenue Decline
Total revenue for Q1 2026 was $2.227 million, down 28.1% versus $3.098 million in Q1 2025, largely reflecting timing and completion of a material hardware contract.
Read all updates
Q1-2026 Updates
Positive
Negative
Monitoring Revenue Growth and High Margins
Monitoring revenue increased 11.7% year-over-year to $1.417 million in Q1 2026 (a $148,000 increase). Monitoring carried a very high gross margin of 94% in the quarter, reflecting strong recurring, high-margin revenue expansion from the installed base of monitored endpoints.
Read all positive updates
Company Guidance
Management's forward-looking guidance emphasized incremental 2026 hardware revenue of $350,000–$500,000 from the large telecom customer (with follow‑on deployments expected to start in Q2 2026), a medium‑term target of ~20% average annual revenue growth over a 3–5 year period, and a capital‑light model that should convert roughly 50% of each incremental revenue dollar from existing businesses into operating income; they expect AIO‑based sales to average about 5×–6× the size of current OmniMetrix sales, do not expect Infrastructure Solutions (IS) revenue in H1 2026, and noted OmniMetrix’s backlog was $3.269 million at quarter‑end with $2.934 million expected to be recognized within 12 months, while also warning that higher noncash stock‑based compensation (50,000 options at a $19.02 grant price vesting over 12 quarters) will impact results through Q3 2028.Acorn Energy Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
78
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.57M | 11.48M | 10.99M | 8.06M | 7.00M | 6.78M |
| Gross Profit | 7.68M | 8.81M | 8.00M | 6.00M | 5.07M | 4.90M |
| EBITDA | 847.00K | 2.10M | 2.13M | 302.00K | -383.00K | 184.00K |
| Net Income | 1.54M | 2.51M | 6.29M | 119.00K | -633.00K | -21.00K |
Balance Sheet | ||||||
| Total Assets | 13.39M | 13.33M | 10.60M | 5.45M | 5.98M | 6.04M |
| Cash, Cash Equivalents and Short-Term Investments | 4.48M | 4.45M | 2.33M | 1.45M | 1.45M | 1.72M |
| Total Debt | 959.00K | 1.04M | 98.00K | 221.00K | 336.00K | 443.00K |
| Total Liabilities | 4.54M | 5.02M | 5.02M | 6.28M | 7.00M | 6.50M |
| Stockholders Equity | 8.77M | 8.25M | 5.54M | -838.00K | -1.02M | -469.00K |
Cash Flow | ||||||
| Free Cash Flow | 1.44M | 2.06M | 849.00K | -4.00K | -261.00K | -192.00K |
| Operating Cash Flow | 1.47M | 2.09M | 905.00K | 72.00K | 31.00K | 132.00K |
| Investing Cash Flow | -275.00K | -33.00K | -56.00K | -78.00K | -308.00K | -324.00K |
| Financing Cash Flow | 33.00K | 71.00K | 28.00K | 5.00K | 5.00K | -149.00K |
Acorn Energy Technical Analysis
Neutral
19.73
Price Trends
18.90
Positive
18.11
Positive
17.85
Positive
Market Momentum
0.12
Positive
48.13
Neutral
34.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACFN, the sentiment is Neutral. The current price of 19.73 is above the 20-day moving average (MA) of 19.35, above the 50-day MA of 18.90, and above the 200-day MA of 17.85, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 48.13 is Neutral, neither overbought nor oversold. The STOCH value of 34.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ACFN.
Acorn Energy Risk Analysis
Acorn Energy disclosed 21 risk factors in its most recent earnings report. Acorn Energy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Acorn Energy Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $78.90M | 35.27 | 10.54% | ― | 4.04% | 44.65% | |
65 Neutral | $47.76M | 31.49 | 18.95% | 7635.60% | -27.50% | -78.54% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $15.46M | 1.83 | 34.15% | ― | -21.65% | ― | |
44 Neutral | $76.32M | -3.27 | -78.20% | ― | -78.30% | -4.48% | |
41 Neutral | $14.46M | -5.98 | -168.53% | ― | -46.47% | -26.00% |
* Technology Sector Average
ACFN
Acorn Energy
19.50
-9.70
-33.22%
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Acorn Energy Corporate Events
Business Operations and StrategyM&A Transactions
Acorn Energy Gains Full Ownership of OmniMetrix Subsidiary
Positive
Aug 18, 2026
On August 17, 2026, Acorn Energy entered into an agreement with former OmniMetrix CEO Walter Czarnecki to exchange his 100 shares of Series A preferred stock in OMX Holdings, Inc., representing 1% of OMX’s outstanding shares, for 25,096 newl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.