Energous (116) Q2 2026 Earnings Report

The call conveyed strong commercial momentum and materially improved revenue and pipeline quality: revenue grew substantially year-over-year (Q2 +217% and six months +368%), TTM revenue exceeded $10M, multiple large-scale customer programs are progressing (notably a ~4,700-location retail rollout at ~90% completion, expanding Fortune 10 international deployments, government POCs), and product advances (PowerBridge Pro+ with FCC certification) are driving demand. Offsetting these positives were near-term margin headwinds driven by one-time U.S. retooling costs, supply chain pressures that increased component costs, continued GAAP losses (~$2.9M in Q2), and remaining revenue concentration risk (five customers = ~74% of revenue). Management positioned the margin issues as transitional, emphasized pipeline quality and shortened sales cycles, and reinforced a strong cash position ($31.2M) and zero product returns since 2024. Overall, the positives around revenue growth, customer deployments, product certification, and pipeline expansion significantly outweigh the temporary operational and margin challenges.

On the call management reiterated guidance that momentum should continue while Q2 margin pressure was temporary, citing Q2 revenue of ~$3.1M and six‑month revenue of ~$6.2M (vs. ~$1.0M and ~$1.3M a year earlier, +217% and +368%), trailing‑12‑month revenue >$10M, six‑month gross profit $1.2M (+176%) with a 19% gross margin, and a long‑term gross‑margin objective of 40%+. They reported Q2 GAAP operating expenses of $3.3M, a Q2 net loss of ~$2.9M (loss per share $0.53) versus prior‑year Q2 loss ~$2.8M (EPS $2.35), cash of $31.2M at quarter‑end (no ATM usage and no planned ATM this year), prepaid contract‑manufacturer expenses of ~$6.3M, and zero product returns since 2024. Operationally, U.S. production upgrades are substantially complete, overseas contract manufacturing should begin limited volume in Q3 and expand in Q4, a price increase took effect July 1, PowerBridge Pro+ received FCC certification in July, and management expects margins to recover through Q3/Q4 into 2027. Commercially they highlighted concentration shifting to five customers accounting for ~74% of Q2 revenue (vs. two customers at ~94% a year ago), a retail rollout targeting ~4,700 U.S. stores that is ~90% complete, expansion from ~50 to ~550 membership warehouses planned next year, a federal program with 2 initial sites and ~15 sites planned this year (potentially up to ~500 sites over 2–3 years), completed QSR POC with potential “thousands” of locations, and a larger, higher‑quality pipeline with enterprise sales cycles compressing to ~6–9 months (from 18–24 months).