Expion360 (XPON) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales were $2.0 million, down 32% year-over-year but up 30% sequentially from Q1 2026, with a net loss of $1.3 million, a slight improvement from the prior year.

• Gross margin improved to 32.4% from 20.8% due to discontinuing low-margin accessories, favorable product mix, and disciplined pricing.

• Operating expenses remained high, with selling, general, and administrative costs exceeding net sales for the six-month period.

• Expanded OEM relationship with Forest River to include two additional motorized RV brands.

• Regained compliance with Nasdaq minimum bid price requirement after a 1-for-12 reverse stock split.

Financial highlights

• Q2 2026 net sales: $2.0 million (down 32% YoY); first half 2026 net sales: $3.6 million (down 29% YoY).

• Q2 2026 gross profit: $0.7 million (up 6% YoY); gross margin: 32.4% (up from 20.8% YoY).

• First half 2026 gross profit: $1.05 million (down 6% YoY); gross margin: 29.3% (up from 22.3% YoY).

• Q2 2026 net loss: $1.3 million (improved from $1.4 million YoY); first half net loss: $3.0 million (widened from $2.5 million YoY).

• Cash and cash equivalents as of June 30, 2026: $1.5 million; working capital: $4.4 million; stockholders' equity: $4.8 million.

Outlook and guidance

• Management expects continued operating losses and negative cash flows, with additional funding required to meet obligations and support growth.

• On track to launch next-generation lithium battery in H2 2026, featuring VHC internal heating, SmartTalk Bluetooth, and CANBus.

• Focus remains on converting expanded OEM relationships into revenue growth and sustaining margin improvements.

• Management expects normalization of customer demand and inventory levels.