Energous (WATT) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $1.0 million, a 2,020% year-over-year and 184% sequential increase, driven by expanded commercial deployments and enterprise retailer adoption.

• Net loss for Q2 2025 was $2.8 million, a 35% improvement year-over-year and the lowest quarterly net loss in a decade.

• Gross profit turned positive at $0.3 million in Q2 2025, with gross margin improving to 35% from negative in Q2 2024.

• Operating expenses decreased 32% year-over-year, with significant reductions in R&D, sales and marketing, and G&A costs.

• Order backlog reached $4 million as of July 28, 2025, reflecting growing enterprise adoption.

Financial highlights

• Q2 2025 revenue: $1.0 million (Q2 2024: $46,000; Q1 2025: $0.3 million); six-month revenue: $1.3 million (2024: $0.1 million).

• Q2 2025 net loss: $2.8 million (Q2 2024: $4.3 million); non-GAAP net loss: $2.6 million, a 44% improvement.

• Gross margin improved to 35% in Q2 2025 from negative in Q2 2024 and 27% in Q1 2025.

• Operating cash outflow for six months ended June 30, 2025 was $7.5 million, down from $10.8 million in 2024.

• Weighted average shares outstanding increased to 35.6 million in Q2 2025 from 6.5 million in Q2 2024.

Outlook and guidance

• Management expects current cash and access to capital to fund operations for at least the next 12 months, based on operating levels and cost reductions.

• $4 million order backlog expected to ship in 2025, indicating increased market adoption.

• Additional financing may be pursued if market adoption or revenue growth is slower than anticipated.

• Board authorized a reverse stock split (1-for-5 to 1-for-50) to regain Nasdaq compliance if needed.

• Focus remains on enhancing gross margin and supporting global wireless power infrastructure adoption.