Q2 2026 Energous Corp Earnings Call Transcript
Key Points
- Revenue surged 217% year-over-year in Q2 2026 to $3.1 million, with a 368% increase in H1, surpassing the full-year 2025 revenue of $5.6 million.
- Customer base diversified significantly, with five customers accounting for 74% of Q2 revenue versus two customers at 94% a year ago.
- Active deployments expanded, including a national retailer's 90% completion of a 4,700-store rollout and a Fortune 10 e-commerce customer expanding to five use cases across multiple international markets.
- Received FCC certification for the PowerBridge ProPlus, enabling integrated gateway data connectivity and simplifying deployment, which is driving strong customer demand.
- Implemented a price increase effective July 1, 2026, which, combined with production normalization, supports expectations for margin recovery in Q3 and Q4.
- Maintained a zero product return record since 2024, underscoring product quality and reliability.
- Cash position of $31.2 million is sufficient to support operations without additional equity financing, with no ATM usage planned this year.
- Gross margin fell to 19% in H1 2026, below recent levels, due to one-time costs from US-based production retooling, supply chain disruptions, and deliberate absorption of higher input costs.
- Supply chain disruptions, partly driven by AI-driven demand from hyperscalers, forced sourcing from alternative suppliers at higher costs, creating temporary margin pressure.
- Overseas contract manufacturer was unable to retool in time for Q2, limiting production to US capacity and incurring additional transition costs.
- The company remains unprofitable, with a GAAP net loss of $2.9 million in Q2 2026, though slightly improved from the prior year.
- Prepaid expenses to contract manufacturers increased to $6.3 million, reflecting significant upfront investments that may strain cash flow if revenue growth slows.
- The AWS partner profile shows a declining or plateauing launch count, which could raise concerns about pipeline momentum, though management attributes this to normal maturation.
- No specific revenue guidance was provided, and the company acknowledged that commercial decisions from advanced-stage partners are still pending, with timing uncertain.
Good day and welcome to Energous Wireless Power Solutions second quarter 2026 financial results conference call. (Operator Instructions) Please note that this event is being recorded. As a reminder, during today's call, the company will make forward-looking statements. These statements are subject to inherent risk and uncertainties, detailed in the company's filings with the Security and Exchange Commission. Actual results may differ materially from those anticipated, except as otherwise required by federal law. Energous disclaims any obligation to publicly release updates or revisions to any forward-looking statements to reflect changes in expectations.
I would now like to turn the conference over to Mallory Burak, Chief Executive Officer and Chief Financial Officer. Ma'am, please go ahead.
Thank you, and thank you, everyone. I would like to first thank you for joining us on our second quarter 2026 earnings call. For those who joined us on the first call in May,
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