0001805077-25-000154
SEC filingEos Energy Enterprises reports a Q2 2025 net loss of $222.9M, driven by non-cash fair value adjustments and debt extinguishment charges.
Eos Energy Enterprises reported revenue of $15.2 million for the three months ended June 30, 2025, a 1,597% increase from $0.9 million in the same period last year, driven by higher product sales volume and increased selling prices. Gross loss widened to $(30.9) million from $(13.2) million, as production start-up costs continued to outweigh revenue. Operating loss increased to $(63.8) million from $(29.0) million, reflecting higher R&D and SG&A expenses as the company scaled operations. Net loss attributable to common shareholders was $(248.8) million, compared to $(51.8) million in the prior year, primarily due to non-cash charges including $57.9 million loss on warrant fair value adjustments, $49.1 million loss on debt extinguishment, and $76.5 million loss on derivative fair value changes, partially offset by a $31.6 million gain on debt fair value adjustment.
As of June 30, 2025, total assets were $361.0 million, up from $260.3 million at December 31, 2024, driven by increases in cash and cash equivalents ($120.2M vs $74.3M) and property, plant and equipment ($75.5M vs $45.7M). Total liabilities rose to $931.7 million from $842.1 million, primarily due to higher long-term debt ($307.3M vs $65.8M) from the issuance of $250 million convertible notes. Shareholders' deficit increased to $(1,103.0) million from $(1,070.5) million, reflecting the net loss. The company had working capital of $128.0 million and met its minimum liquidity covenant.
For the six months ended June 30, 2025, operating cash flow was $(95.0) million, driven by a net loss of $(207.8) million adjusted for non-cash items of $106.9 million. Investing cash flow was $(12.0) million for capital expenditures. Financing activities provided $186.8 million, primarily from the issuance of $240 million of convertible notes (net of discount), $81.1 million from common stock offering, and $38.5 million from the Cerberus credit facility, partially offset by $180.9 million to repay related party notes. Free cash flow (operating minus capex) was $(107.0) million.
Management highlighted the full funding of the $210.5 million Delayed Draw Term Loan from Cerberus and progress on the DOE Loan Facility (up to $303.5 million). In June 2025, the company issued $250 million of 6.75% convertible notes due 2030 and raised $81.1 million from a common stock offering. These transactions were used to repurchase the 2021 Convertible Notes and prepay part of the DDTL. The company continues to incur significant losses and negative cash flows, raising substantial doubt about its ability to continue as a going concern. However, management believes the improved capital position, including customer cash receipts and production tax credits, provides a path to sustainable operations. The Z3 battery production line is operational, and a second advance of $22.7 million under the DOE loan was received post-quarter.
The company operates as a single reportable segment. Revenue from product sales was $14.1 million in Q2 2025 (95% of total), up from $0.6 million. Service revenue was $1.2 million. Cost of goods sold included $46.2 million, primarily from manufacturing start-up costs. Production tax credits under Section 45X reduced cost of goods sold by $4.6 million in Q2 2025. Stock-based compensation was $7.1 million in Q2. The company recognized a $4.5 million down round deemed dividend on Series B Preferred Stock. Warrants liability (non-related party) decreased to $181.1 million from $189.6 million, while related party warrants liability decreased to $199.0 million from $266.6 million, reflecting exercise of some warrants and fair value adjustments. RPO totaled $104.6 million as of June 30, 2025, with 85% expected to be recognized within 12 months.