XPON · Expion360 Inc.

Expion360's first quarter 2026 results reflect a strategic pivot away from low-margin accessory sales, which drove a 24% decline in net sales to $1.6 million. The company also faced headwinds from OEM customers carrying elevated battery inventories built up through year-end, which tempered order volume. Management expects demand to normalize in Q2 2026 as inventories return to standard levels. Gross margin improved to 25% from 24% in the prior year, benefiting from the discontinuation of low-margin items. However, selling, general, and administrative expenses rose 31% to $2.2 million, primarily due to increases in legal and professional fees and salaries, leading to a net loss of $1.8 million compared to $1.2 million in Q1 2025. Despite the loss, the company maintained a solid cash position of $3.1 million, up from $3.0 million at year-end 2025. Looking ahead, Expion360 is focused on growth through new product launches, including three next-generation lithium battery models for the industrial market expected in the second half of 2026, and a strategic partnership for the DASGen Hybrid Energy Storage System targeting construction and industrial job sites. These initiatives aim to diversify revenue streams and expand into adjacent verticals, positioning the company for potential market share gains and improved margins.