EFOI · Energy Focus, Inc.

Energy Focus reported first quarter 2026 results with net sales of $0.9 million, a 54.1% increase from $0.6 million in Q1 2025, driven by stronger demand in military maritime market (MMM) products up 52.1% and commercial sales up 56.7%, though partially offset by inflation and pricing adjustments. Sequentially, sales dipped 2.7% from Q4 2025 due to minor fluctuations. Gross profit margin contracted to 23.3% from 31.5% year-over-year, attributed to higher inventory reserves and tariff impacts, but improved from 18.9% in the prior quarter on reduced reserves and warranty costs. Adjusted gross margin was 31.0%, down from 33.8% YoY but stable versus 29.9% prior quarter. Operating loss improved to $0.1 million from $0.3 million YoY and $0.4 million sequentially, reflecting lower operating expenses. Net loss narrowed to $0.1 million or $(0.02) per share from $(0.05) YoY and $(0.06) prior quarter. Adjusted EBITDA loss was $0.1 million, better than $0.3 million YoY. Cash remained at $1.1 million, with $0.1 million operating cash flow supported by receivables collections and related party payables, offset by inventory build. CEO Jay Huang highlighted pursuit of dependability in core markets and expansion via Japan investment in energy storage, ESS, UPS, and microgrids, aiming for revenue diversification, but cautioned on liquidity constraints, need for capital, and execution risks amid global conditions.