Eos Energy Enterprises Reports Third Quarter 2026 Revenue of $82.7 Million, Up 171% Year Over Year, with Gross Margin Improving 58 Percentage Points
Eos Energy Enterprises, Inc. (EOSE) filed an SEC Form 8-K — Results of Operations and Financial Condition. Eos Energy Enterprises Reports Third Quarter 2026 Revenue of $82.7 Million, Up 171% Year Over Year, with Gross Margin Improving 58 Percentage Points • Delivered record revenue of $82.7 million through deliveries to 10 projects • Gross margin improved 58 percentage points and adju
How this was made
The 30-second read
Why it matters
The earnings release delivers fresh financial data and guidance, which will likely cause a short‑term price adjustment as investors digest the lower‑half outlook despite strong quarterly performance.
Market read
Eos' earnings and guidance are the primary drivers of market reaction; broader sector impact is limited.
What to watch
Potential upside from the new DOE loan advance and the Google data‑center contract may not be fully priced in yet.
Eos Energy Enterprises Reports Third Quarter 2026 Revenue of $82.7 Million, Up 171% Year Over Year, with Gross Margin Improving 58 Percentage Points
Record revenue growth, sequential gross-margin and adjusted EBITDA-margin improvement, and a $344.1 million cash balance were offset by negative 53% gross margin, a $63.8 million adjusted EBITDA loss, and a manufacturing consolidation expected to temporarily affect fourth-quarter capacity and shipment timing.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 revenueGAAP | $14.28M | – | – |
| Q3 2026 revenue - related partyGAAP | $68.45M | – | – |
| Q3 2026 total revenueGAAP | $82.7M | 20% | 171% |
| Q3 2026 cost of goods soldGAAP | $126.9M | – | – |
| Q3 2026 gross profit (loss)GAAP | −$44.20M | – | – |
| Q3 2026 gross profit (loss) marginGAAP | (53)% | improving 18 percentage points | improving 58 percentage points |
| Q3 2026 total operating expensesGAAP | $35.12M | – | – |
| Q3 2026 research and development expensesGAAP | $10.91M | – | – |
| Q3 2026 selling, general and administrative expensesGAAP | $23.82M | – | – |
| Q3 2026 operating income (loss)GAAP | −$79.32M | – | – |
| Q3 2026 income (loss) before income taxesGAAP | $126.5M | – | – |
| Q3 2026 income tax expenseGAAP | $1.46M | – | – |
| Q3 2026 net income (loss) attributable to shareholdersGAAP | $125.0M | – | – |
| Q3 2026 net income (loss) applicable to common stockGAAP | $360.7M | – | – |
| Q3 2026 basic income (loss) per share attributable to common shareholdersGAAP | $ 0.64 | – | – |
| Q3 2026 diluted income (loss) per share attributable to common shareholdersGAAP | $ (0.17) | – | – |
| Q3 2026 adjusted gross profit (loss)non-GAAP | −$36.77M | improving $6.1 million | – |
| Q3 2026 adjusted gross profit (loss) marginnon-GAAP | (44)% | – | – |
| Q3 2026 adjusted EBITDA (loss)non-GAAP | −$63.82M | – | – |
| Q3 2026 adjusted EBITDA (loss) marginnon-GAAP | (77)% | improving 27 percentage points | improving 96 percentage points |
| Nine months ended September 30, 2026 total revenueGAAP | $208.5M | – | – |
| Nine months ended September 30, 2026 revenue - related partyGAAP | $123.5M | – | – |
| Nine months ended September 30, 2026 gross profit (loss)GAAP | −$137.4M | – | – |
| Nine months ended September 30, 2026 gross profit (loss) marginGAAP | (66)% | – | – |
| Nine months ended September 30, 2026 operating income (loss)GAAP | −$242.4M | – | – |
| Nine months ended September 30, 2026 net income (loss) attributable to shareholdersGAAP | $358.2M | – | – |
| Nine months ended September 30, 2026 adjusted EBITDA (loss)non-GAAP | −$203.2M | – | – |
| Nine months ended September 30, 2026 adjusted EBITDA (loss) marginnon-GAAP | (97)% | – | – |
| Backlog as of September 30, 2026other | $765M | down 5% from prior quarter | up 19% year over year |
| Commercial opportunity pipeline as of September 30, 2026other | $24.9B | – | – |
| Cumulative energy discharged from Eos technologyother | 6.9 GWh | up nearly 400 MWh sequentially | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full-year 2026 outlook
- Revenuelower half of its $300 million to $350 million range
- NoteUpon completion, Thorn Hill is expected to have approximately 4 GWh of annual nameplate capacity across two production lines.
- NoteThe full line is expected to resume production near the end of the first quarter of 2027.
What drove it
- Revenue was driven by a 216% increase in cube shipments year over year and 23% growth sequentially.
- Gross-margin improvement was driven by lower material costs, increased production volumes, and lower conversion costs.
- Shipments increased 23% sequentially, driven by higher utilization at Thorn Hill and continued productivity gains at Turtle Creek.
- Line 2 contributed 17% of total battery output, up from approximately 1% in the second quarter, and delivered approximately 20% higher battery output per shift than Line 1.
- The Company booked six orders from four new customers and two existing customers during the quarter.
- A previously announced $100 million purchase order converted under an existing capacity reservation agreement and did not contribute to quarter-over-quarter backlog growth.
- Eos announced an agreement with MN8 Energy and Google to deliver 10 MW/100 MWh of Z3™ zinc-based LDES in West Virginia.
Concerns
- Q3 gross margin remained negative 53%, and Q3 gross loss was $44.2 million.
- Q3 adjusted EBITDA loss was $63.8 million and adjusted EBITDA margin was negative 77%.
- Q3 operating loss was $ 79,321 (In thousands).
- Nine-month net cash used in operating activities was $ (261,591) (In thousands).
- The Company accelerated manufacturing consolidation into Thorn Hill, which is expected to temporarily impact production capacity and the timing of certain shipments.
- Line 1 disassembly at Turtle Creek began in late October, and the full line is expected to resume production near the end of the first quarter of 2027.
- Backlog was down 5% from prior quarter.
What to watch
- The production-capacity and customer-shipment effects of the Thorn Hill consolidation during the fourth quarter.
- The timing of Line 1 recommissioning near the end of the first quarter of 2027.
- Progress toward a lower-cost, single-site manufacturing footprint and associated operating efficiencies in 2027.
- Conversion of the $765 million backlog and $24.9 billion commercial opportunity pipeline into revenue.
- Whether the Company delivers full-year 2026 revenue in the lower half of its $300 million to $350 million range.
- Further gross-margin and adjusted EBITDA-margin improvement as production volume and manufacturing efficiency advance.
Balance sheet and cash flow
- Cash and cash equivalents were $ 271,162 (In thousands) as of September 30, 2026, compared with $ 567,992 (In thousands) as of December 31, 2025.
- Total cash, including restricted cash, was $344.1 million as of September 30, 2026.
- Total assets were $ 1,068,485 (In thousands) as of September 30, 2026, compared with $ 885,197 (In thousands) as of December 31, 2025.
- Total liabilities were $ 1,064,751 (In thousands) as of September 30, 2026, compared with $ 1,762,517 (In thousands) as of December 31, 2025.
- Mezzanine equity - preferred stock was $ 463,746 (In thousands) as of September 30, 2026, compared with $ 1,361,542 (In thousands) as of December 31, 2025.
- Total shareholders' deficit was $ (460,012) (In thousands) as of September 30, 2026, compared with $ (2,238,862) (In thousands) as of December 31, 2025.
- Nine-month net cash used in operating activities was $ (261,591) (In thousands), compared with $ (160,926) (In thousands).
- Nine-month net cash used in investing activities was $ (218,955) (In thousands), compared with $ (29,716) (In thousands).
- Nine-month net cash provided by financing activities was $ 200,065 (In thousands), compared with $ 214,079 (In thousands).
- Cash, cash equivalents and restricted cash at September 30, 2026 was $ 344,085 (In thousands), compared with $ 126,799 (In thousands).
- The Company received $87 million first advance under the second tranche of the U.S. Department of Energy loan.
Analysis
Eos reported record third-quarter revenue of $82.7 million, up 171% year over year and 20% sequentially, through deliveries to 10 projects. Management attributed the growth to a 216% year-over-year increase in cube shipments and 23% sequential shipment growth. Revenue included $ 68,447 (In thousands) of related-party revenue. The company ended the quarter with $765 million of backlog representing 3.2 GWh and a $24.9 billion commercial opportunity pipeline, although backlog was down 5% from the prior quarter as shipments converted into record quarterly revenue.
The operating model improved materially but remained loss-making. Gross margin was negative 53%, an improvement of 58 percentage points year over year and 18 percentage points sequentially, while adjusted gross margin was negative 44%. The gross loss was $44.2 million. Eos cited lower material costs, increased production volumes, and lower conversion costs as the principal gross-margin drivers. Adjusted EBITDA loss was $63.8 million and adjusted EBITDA margin was negative 77%, improving 96 percentage points year over year and 27 percentage points sequentially.
GAAP net income attributable to shareholders was $125.0 million, but the release stated that this primarily reflected non-cash mark-to-market gains on warrants and debt resulting from changes in the Company's stock price. The condensed statement reports $ 77,746 (In thousands) of change in fair value of warrants, $ 13,222 (In thousands) of change in fair value of derivatives, and $ 129,551 (In thousands) of change in fair value of derivatives - related parties in the quarter. Operating income (loss) remained $ (79,321) (In thousands), highlighting that reported net income did not reflect positive operating profitability.
Manufacturing execution is central to the next period. Thorn Hill had its first full quarter with both battery lines in commercial production. Line 2 reached first-pass yield parity with Line 1 within three months, contributed 17% of total battery output, and delivered approximately 20% higher battery output per shift than Line 1. However, the company began consolidating manufacturing into Thorn Hill in late October, including Line 1 disassembly at Turtle Creek. Management expects the move to temporarily affect production capacity and shipment timing, while targeting lower costs and a single-site footprint with associated operating efficiencies in 2027.
Liquidity included $344.1 million of total cash including restricted cash at September 30, 2026, and the company received a $87 million first advance under the second tranche of the U.S. Department of Energy loan. For the first nine months, net cash used in operating activities was $ (261,591) (In thousands) and net cash used in investing activities was $ (218,955) (In thousands). Eos reaffirmed its full-year revenue outlook in the lower half of its $300 million to $350 million range. The key near-term issue is whether manufacturing consolidation constrains fourth-quarter deliveries while the company continues to improve gross margin and adjusted EBITDA.
Management, verbatim
Our third quarter shows operating model improvement. We delivered our highest quarterly revenue, improved gross margin by 18 points sequentially, and brought Line 2 first-pass yield equal to Line 1 four times faster.
Joe Mastrangelo, Chief Executive Officer of Eos
While the transition to Thorn Hill lowers fourth-quarter capacity, it positions us to reduce cost per cube and improve manufacturing efficiency in future quarters. We remain on track to achieve the lower half of our full-year revenue outlook.
Joe Mastrangelo, Chief Executive Officer of Eos
Not in the filing
stated, not guessed- Prior earnings outlook was not provided, so actual performance versus prior guidance cannot be assessed.
- Quarterly operating cash flow was not reported.
- Free cash flow was not reported.
- Debt balance was not reported in the condensed balance sheet.
- Share repurchases were not reported.
- Dividends were not reported.
- Segment revenue and segment profitability were not reported.
- Full-year 2026 gross-margin, operating-expense, tax-rate, earnings, EPS, or cash-flow guidance was not reported.
- A specific fourth-quarter revenue outlook was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Eos Energy Enterprises is a U.S.‑based provider of zinc‑based long‑duration energy storage systems. The company filed a Form 8‑K with its Q3 results and reaffirmed its full‑year outlook.
Ticker impact
Eos Energy Enterprises reported Q3 2026 revenue of $82.7M, up 171% YoY, and reaffirmed full-year revenue outlook in the lower half of $300M-$350M.
likely pressure as the market prices in the reaffirmed lower‑half revenue outlook
The earnings release provides fresh numbers and guidance; investors will adjust expectations based on the lower‑half outlook despite strong quarterly growth.
Market effects
Improved margins may signal progress for the long‑duration energy storage sector, but the lower‑half revenue guidance tempers sector enthusiasm.
Limited to U.S. investors focused on clean‑energy and battery storage stocks.
Modest; the company is a niche player in the global energy storage market.
Counterpoint
The strong revenue growth and margin improvement could outweigh the lower‑half guidance, offering upside if the market overreacts.
Key entities
- companyEos Energy Enterprises
NASDAQ‑listed provider of zinc‑based LDES systems
- companyGoogle
Customer for a 10 MW/100 MWh zinc‑based storage project in West Virginia
