Energous (116) AI Stock Analysis

Company Guidance

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).