second quarter 2026
Filed Aug 11, 2026Hyliion reported second-quarter 2026 revenue of $4.9 million, increased full-year 2026 revenue guidance to approximately $15 million, and ended the quarter with $132.4 million in cash and short- and long-term investments.
Revenue increased to $4.9 million from $1.5 million and the company raised its full-year revenue outlook, supported by Navy research and development services. Hyliion remained loss-making, reporting a $13.9 million net loss and $0.4 million gross profit, while commercial delivery and broader KARNO commercialization remain future execution objectives.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $4,944 (in thousands) | – | up more than threefold |
| Research and development services revenueGAAP | $4,944 (in thousands) | – | – |
| Cost of revenuesGAAP | $4,578 (in thousands) | – | – |
| Gross profitGAAP | $366 (in thousands) | – | – |
| Research and development expenseGAAP | $9,495 (in thousands) | – | down 6% year-over-year |
| Selling, general and administrative expenseGAAP | $6,427 (in thousands) | – | up approximately 8% year over year |
| Exit and termination (benefits) costsGAAP | $(258) (in thousands) | – | – |
| Total operating expensesGAAP | $15,664 (in thousands) | – | approximately flat with the second quarter of 2025 |
| Loss from operationsGAAP | $(15,298) (in thousands) | – | – |
| Interest incomeGAAP | $1,370 (in thousands) | – | – |
| Net lossGAAP | $(13,928) (in thousands) | – | – |
| Net loss per share, basic and dilutedGAAP | $(0.08) | – | – |
| Weighted-average shares outstanding, basic and dilutedGAAP | 178,441,616 | – | – |
| Six-month total revenuesGAAP | $7,776 (in thousands) | – | – |
| Six-month cost of revenuesGAAP | $7,200 (in thousands) | – | – |
| Six-month gross profitGAAP | $576 (in thousands) | – | – |
| Six-month research and development expenseGAAP | $17,165 (in thousands) | – | – |
| Six-month selling, general and administrative expenseGAAP | $12,608 (in thousands) | – | – |
| Six-month exit and termination (benefits) costsGAAP | $(672) (in thousands) | – | – |
| Six-month total operating expensesGAAP | $29,101 (in thousands) | – | down 18% year-over-year |
| Six-month loss from operationsGAAP | $(28,525) (in thousands) | – | – |
| Six-month interest incomeGAAP | $2,860 (in thousands) | – | – |
| Six-month net lossGAAP | $(25,665) (in thousands) | – | a 16% improvement |
| Six-month net loss per share, basic and dilutedGAAP | $(0.14) | – | – |
| Six-month weighted-average shares outstanding, basic and dilutedGAAP | 178,057,282 | – | – |
| Second-quarter net cash spendingother | $6.9 million | – | – |
| Six-month net cash used in operating activitiesGAAP | $(19,816) (in thousands) | – | – |
| Capital spending year to dateother | $2.1 million | – | – |
| Purchase of property and equipmentGAAP | $(2,086) (in thousands) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Research and development servicesThe increase primarily reflects accelerated work under the Company's contracts with the Office of Naval Research, including production of components for the 800-kilowatt Power Module. | $4,944 (in thousands) | – | – |
full year 2026 outlook
- Revenueapproximately $15 million
- NoteExpect to complete an equipment financing transaction during 2026, with anticipated proceeds of $10 million to $15 million.
- NoteNet cash use of $30 million to $35 million during 2026.
- NoteYear end cash and investments balance of $115 million to $120 million.
- NoteOn track to complete the approximately 10 early adopter units in 2026.
- NoteThe 800-kilowatt KARNO Power Module being developed for the USX-1 Defiant vessel is currently in assembly, with completion expected in 2026.
- NoteCommercialization of the 200 kW KARNO Power Module is now expected in 2027.
What drove it
- Hyliion was awarded a $41.7 million contract with the U.S. Navy to deliver two multi-megawatt KARNO systems, one rated above 2 megawatts and the other rated above 3 megawatts.
- The company expects work under the Navy program to occur primarily in 2027 and 2028.
- Hyliion executed non-binding letters of intent representing approximately 750 KARNO Cores, more than half of which are with data center providers.
- The company demonstrated multi-KARNO Power Module operation as a single scalable power unit during the quarter.
- Hyliion reported additive manufacturing improvements with potential to increase printer speed and manufacturing throughput by up to 3x, depending on the component.
- Hyliion estimates approximately $1.5 million of manufacturing capital investment can support one megawatt of annual production capacity, representing approximately $2.5 million to $3.0 million of annual revenue at current product pricing.
Concerns
- Hyliion reported a second-quarter net loss of $13.9 million and a six-month net loss of $25.7 million.
- Second-quarter gross profit was $0.4 million on revenue of $4.9 million.
- The company stated that its manufacturing capital investment and annual revenue estimates remain subject to further testing and validation.
- Letters of intent are non-binding.
- The company expects to begin delivering units to customer sites over the next quarter, and commercialization of the 200 kW KARNO Power Module is now expected in 2027.
- The anticipated additional military contracts, equipment financing transaction, and data-center opportunities are forward-looking and not reported as completed results.
What to watch
- Delivery of the approximately 10 early adopter customer units during 2026.
- Timing and proceeds of the anticipated $10 million to $15 million equipment financing transaction during 2026.
- Additional military contract awards that Hyliion anticipates during 2026.
- Completion of the 800-kilowatt KARNO Power Module for the USX-1 Defiant vessel in 2026.
- Progress toward production scale-up and printer purchases in 2027.
- Commercial deployment of additional 200 kW KARNO Power Modules with commercial customers in 2027.
Balance sheet and cash flow
- Cash and cash equivalents were $13,166 (in thousands) at June 30, 2026, compared with $22,938 (in thousands) at December 31, 2025.
- Short-term investments were $51,011 (in thousands) at June 30, 2026, compared with $69,427 (in thousands) at December 31, 2025.
- Long-term investments were $68,208 (in thousands) at June 30, 2026, compared with $59,994 (in thousands) at December 31, 2025.
- Hyliion ended the second quarter with $132.4 million in cash and short- and long-term investments.
- Total assets were $179,589 (in thousands) at June 30, 2026, compared with $203,559 (in thousands) at December 31, 2025.
- Total liabilities were $10,050 (in thousands) at June 30, 2026, compared with $11,550 (in thousands) at December 31, 2025.
- Net cash used in operating activities was $(19,816) (in thousands) for the six months ended June 30, 2026, compared with $(23,999) (in thousands) for the six months ended June 30, 2025.
- Net cash provided by investing activities was $10,043 (in thousands) for the six months ended June 30, 2026, compared with $30,895 (in thousands) for the six months ended June 30, 2025.
- Net decrease in cash and cash equivalents and restricted cash was $(9,772) (in thousands) for the six months ended June 30, 2026, compared with a net increase of $6,364 (in thousands) for the six months ended June 30, 2025.
Analysis
Second-quarter revenue was $4.9 million, compared with $1.5 million in the second quarter of 2025. The revenue came from research and development services, and Hyliion attributed the increase primarily to accelerated Office of Naval Research work, including components for the 800-kilowatt Power Module. The company also reported $7.8 million of revenue for the first six months of 2026, compared with $2.0 million in the first half of 2025.
The revenue increase did not yet produce profitability. Cost of revenue was $4.6 million and gross profit was $0.4 million in the second quarter. Total operating expenses were $15.7 million, approximately flat with the second quarter of 2025. R&D expense was $9.5 million, down 6% year-over-year as activity shifted toward Navy revenue-generating work, while SG&A expense was $6.4 million, up approximately 8% year over year. Net loss was $13.9 million, compared with $13.4 million in the prior-year quarter.
Cash spending improved. Hyliion reported second-quarter net cash spending of $6.9 million, compared with $13.5 million in the second quarter of 2025, and capital spending year to date was $2.1 million versus $11.6 million in the first half of 2025. Net cash used in operating activities was $19.8 million for the first six months. The company ended the quarter with $132.4 million in cash and short- and long-term investments and expects an equipment financing transaction with anticipated proceeds of $10 million to $15 million during 2026.
The company raised full-year 2026 revenue guidance to approximately $15 million and expects net cash use of $30 million to $35 million, with year-end cash and investments of $115 million to $120 million. Operationally, the $41.7 million Navy contract, multi-module operating demonstration, and additive manufacturing initiatives are central to the scale-up plan. The filing states that commercialization of the 200 kW KARNO Power Module is now expected in 2027, while near-term execution centers on completing approximately 10 early adopter units in 2026 and beginning deliveries to customer sites over the next quarter.
Management, verbatim
This quarter, we signed the largest military contract in our history, increased our revenue outlook by 50%, and achieved additive manufacturing advancements that we believe can improve printer throughput by up to 3x. At the same time, interest from data center customers continues to accelerate, with demand now being discussed at a scale of tens to hundreds of megawatts. We believe the progress we are making positions our KARNO Power Modules to address these increasingly large opportunities.
Thomas Healy, Founder and CEO of Hyliion
Not in the filing
stated, not guessed- GAAP gross margin was not reported.
- Non-GAAP revenue, gross profit, operating income, net income, EPS, and cash flow metrics were not reported.
- Free cash flow was not reported.
- Second-quarter net cash used in operating activities was not reported.
- Prior-quarter comparisons were not reported for the financial metrics.
- Debt balance was not reported.
- Share repurchases and dividends were not reported.
- Full-year 2026 gross margin, operating expense, tax-rate, net-income, EPS, and capital-spending guidance were not reported.
- A previous outlook section was not provided; therefore, no reported results were compared with prior guidance. যদিও the current release references prior outlook figures.
AlphaAI 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.