BEEM · Beam Global

Gross profit declined 51.7% to $3.5 million, with gross margin contracting to 12.5%. Management attributes this primarily to lower sales volume, which reduced absorption of fixed overhead costs and included non-cash depreciation and amortization impacts—a 2.3 percentage point year-over-year decrease. Fixed manufacturing expenses, less leveraged over fewer units sold, drove per-unit cost pressures. As revenues increase in future periods, the Company expects these fixed overhead costs to spread across more units, potentially lowering production costs and supporting margin recovery.

Operating loss widened dramatically 136.2% to -$27.5 million from -$11.7 million, reflecting the revenue shortfall's outsized impact on the cost structure alongside operating expense pressures. Operating margin stood at -97.5%. Net loss deepened to -$27.0 million or -$1.61 diluted EPS from -$11.3 million or -$0.77, as revenue contraction amplified expense burdens in a high fixed-cost model.

Operationally, Beam Global launched BeamSpot™, receiving its first order within two months and advancing installations. Management highlights material cost synergies in steel and battery cell sourcing, with expectations for continued improvements. Broader EV adoption is anticipated to drive long-term demand for charging infrastructure, positioning the Company to benefit as market growth resumes despite near-term policy disruptions.