Second quarter 2026
Filed Aug 19, 2026Beam Global Reports Second Quarter 2026 Operating Results 174% Revenue Increase, 31 Percentage Points GM Improvement Over First Quarter 2026
Revenue increased 174% sequentially and 21% year-over-year to $8.6 million, while GAAP operating expenses declined to $4.5 million from $5.9 million. However, gross margin fell year-over-year to 17.8% from 20.3%, the company remained unprofitable with a $3.1 million net loss, and first-half results included a $1.6 million increase in the provision for credit losses related to a single customer balance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $8.6 million | 174% | increase of $1.5 million, or 21% |
| Cost of revenuesGAAP | $7,035 (in thousands) | – | – |
| Gross profitGAAP | $1.5 million | – | – |
| Gross marginGAAP | 17.8% | 31 percentage points improvement over first quarter 2026 | – |
| Adjusted gross margin excluding non-cash depreciation and amortizationnon-GAAP | 26.2% | – | – |
| Non-GAAP gross profitnon-GAAP | $2,243 (in thousands) | – | – |
| Operating expensesGAAP | $4.5 million | – | – |
| Non-GAAP operating expensesnon-GAAP | $4,172 (in thousands) | – | – |
| Loss from operationsGAAP | $(2,996) (in thousands) | – | – |
| Net lossGAAP | $3.1 million | – | – |
| Net loss per share, basic/dilutedGAAP | $(0.14) per share | – | – |
| Weighted average shares outstanding, basic/dilutedGAAP | 21,893 (in thousands) | – | – |
| Non-GAAP net loss before taxnon-GAAP | $(2,013) (in thousands) | – | – |
| Total comprehensive lossGAAP | $(3,330) (in thousands) | – | – |
| Six-month revenueGAAP | $11,690 (in thousands) | – | – |
| Six-month gross profitGAAP | $1,113 (in thousands) | – | – |
| Six-month gross marginGAAP | 9.5% | – | – |
| Six-month operating expensesGAAP | $10,819 (in thousands) | – | – |
| Six-month net lossGAAP | $(9,935) (in thousands) | – | – |
| Six-month net loss per share, basic/dilutedGAAP | $(0.47) per share | – | – |
| Six-month non-GAAP net loss before taxnon-GAAP | $(5,699) (in thousands) | – | – |
What drove it
- European operations generated approximately half of revenue and contributed significantly to the 174% quarter-over-quarter revenue growth, according to the CEO.
- Non-government commercial customers represented 62% of quarterly revenue and state and local government customers represented 38%, compared with 66% and 32%, respectively, a year earlier.
- Sales outside the United States represented 47% of quarterly revenue and 48% of first-half 2026 revenue, compared with 37% a year earlier.
- Backlog was $5.4 million as of June 30, 2026.
- The company received more than $0.5 million in drone and autonomous robotics battery orders within a single week.
- Cost-reduction measures included relocating manufacturing operations to Yuma, Arizona, with approximately $2.7 million in rent savings over the lease term.
- The company stated that margins should improve as sales volumes return and reduce fixed-overhead allocations per unit sale, and as ongoing cost-reduction initiatives take effect.
Concerns
- GAAP gross margin was 17.8%, below 20.3% a year earlier, while adjusted non-GAAP gross margin was 26.2%, below 29.6% a year earlier.
- The company reported a GAAP net loss of $3.1 million and a non-GAAP net loss before tax of $2.013 million.
- First-half 2026 operating expenses included a $1.6 million increase in the provision for credit losses relating to a single customer balance.
- Accounts receivable allowance for credit losses was $2,779 (in thousands) as of June 30, 2026, compared with $939 (in thousands) as of December 31, 2025.
- First-half revenue was $11,690 (in thousands), compared with $13,399 (in thousands) a year earlier, and first-half GAAP gross margin was 9.5%, compared with 14.4%.
- The CEO stated that the company believes it is creating significant pent-up demand in the Middle East contingent on disruption in that region coming to an end.
What to watch
- Conversion of the $5.4 million backlog into revenue.
- Whether higher sales volume improves gross margin by lowering fixed-overhead allocation per unit sale.
- Collection progress and potential new revenue opportunities associated with the single customer balance subject to the credit-loss provision.
- Revenue contribution from European operations, which represented approximately half of revenue according to the CEO.
- Expansion of advanced battery applications in drones, military systems, AI-driven robotics, industrial applications, wildfire detection technologies, and AI data centers.
- Execution of the Yuma manufacturing relocation and the stated approximately $2.7 million in rent savings over the lease term.
Balance sheet and cash flow
- Cash was $1,025 (in thousands) as of June 30, 2026, compared with $969 (in thousands) as of December 31, 2025.
- Accounts receivable, net of allowance for credit losses of $2,779 and $939, was $6,741 (in thousands) as of June 30, 2026, compared with $8,236 (in thousands) as of December 31, 2025.
- Inventory, net was $8,259 (in thousands), compared with $9,766 (in thousands) as of December 31, 2025.
- Total current assets were $17,679 (in thousands), total assets were $38,159 (in thousands), total liabilities were $17,903 (in thousands), and total stockholders' equity was $20,256 (in thousands) as of June 30, 2026.
- The company reported no debt and a $100 million unused line of credit. The balance sheet also reported note payable of $70 (in thousands) current and $95 (in thousands) noncurrent as of June 30, 2026.
- Operating cash flow and free cash flow were not reported.
Analysis
Beam Global delivered a sharp sequential revenue rebound in the second quarter, with revenue of $8.6 million, up 174% from $3.1 million in the first quarter of 2026 and up 21% from $7.1 million a year earlier. Management attributed a significant portion of the sequential expansion to European operations, which the CEO said generated approximately half of revenue. International sales accounted for 47% of quarterly revenue, up from 37% a year earlier, while non-government commercial customers represented 62% of revenue and state and local governments represented 38%.
Profitability improved in dollar terms but remained under pressure on margin. GAAP gross profit was $1.5 million versus $1.4 million a year earlier, while GAAP gross margin declined to 17.8% from 20.3%. Adjusted non-GAAP gross margin, excluding non-cash depreciation and amortization, was 26.2%, also below 29.6% a year earlier. The company reported $0.7 million of non-cash charges in cost of revenues in both periods, including $0.5 million of depreciation and $0.2 million of amortization of intangible assets from the All-Cell acquisition. Management identified higher sales volumes and cost reductions as the path to improved margins.
Cost control was a meaningful offset to the lower margin. GAAP operating expenses were $4.5 million, down from $5.9 million a year earlier, though the prior-year figure included a $1.4 million stock grant and the company described expenses excluding that item as essentially flat year-over-year. The company reported a $3.1 million net loss, or $(0.14) per share, versus a $4.3 million loss, or $(0.28) per share, a year earlier. Non-GAAP net loss before tax was $(2.013) million compared with $(1.797) million. First-half operating expenses included a $1.6 million increase in the provision for credit losses associated with a single customer balance, partially offset by reductions in salaries and benefits, facilities, and other general and administrative costs.
Liquidity disclosures showed $1,025 (in thousands) of cash at June 30, 2026, $5.4 million of backlog, and a stated $100 million unused line of credit. The company also stated it had no debt, while its balance sheet listed current and noncurrent notes payable of $70 (in thousands) and $95 (in thousands), respectively. Manufacturing operations were relocated to Yuma, Arizona, with approximately $2.7 million in stated rent savings over the lease term. No forward financial guidance was issued, leaving backlog conversion, margin recovery, receivables collection, and the effect of European and newer battery-market activity as the principal reported items to monitor.
Management, verbatim
Beam Global's intellectual property and product portfolio is demonstrably a platform for our expansion into the most vibrant and relevant industries of today.
Desmond Wheatley, CEO of Beam Global
Our European operations are now generating approximately half of our revenues and have contributed significantly to the 174% quarter-over-quarter growth that we've just delivered.
Desmond Wheatley, CEO of Beam Global
While doing all of this, we remain laser focused on financial discipline, reducing our operating expenses by almost half a million dollars in the first half of this year.
Desmond Wheatley, CEO of Beam Global
Not in the filing
stated, not guessed- Forward financial guidance for revenue, gross margin, operating expenses, tax rate, earnings, cash flow, or capital expenditures was not provided.
- Previous-quarter outlook was not provided.
- Segment revenue and segment profitability were not provided.
- Operating cash flow was not provided.
- Free cash flow was not provided.
- Share repurchases and dividend information were not provided.
- GAAP operating income was not reported because the company reported loss from operations.
- Non-GAAP EPS was not provided.
- A non-GAAP net-loss figure after tax was not provided. The filing reported non-GAAP net loss before tax.
AlphAI analysis generated 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 cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.