Energous Q2 Earnings Call Highlights

Revenue surged: Energous reported second-quarter revenue of approximately $3.1 million, up 217% year over year, while first-half revenue reached $6.2 million and exceeded full-year 2025 revenue. The company surpassed $10 million in trailing 12-month revenue. Margins faced temporary pressure: Manufacturing transition costs, component shortages and reliance on higher-cost suppliers reduced gross margin to 19% in the first half. Energous expects improvement in the second half following production upgrades, overseas manufacturing expansion and a July price increase. Commercial opportunities expanded: Retail, enterprise, government, restaurant and grocery deployments continued progressing, while FCC certification of the PowerBridge Pro+ opened additional second-half revenue opportunities. Energous ended the quarter with $31.2 million in cash and said it does not plan to raise equity this year.

Energous NASDAQ: WATT reported second-quarter revenue of approximately $3.1 million, up 217% from the prior-year period, as the wireless power company expanded enterprise deployments and progressed proof-of-concept programs across retail, logistics, food service and government markets. For the first six months of 2026, revenue reached approximately $6.2 million, compared with $1.3 million a year earlier. Chief Executive Officer and Chief Financial Officer Mallorie Burak said first-half revenue exceeded the company’s full-year 2025 revenue of $5.6 million and helped Energous surpass $10 million in trailing 12-month revenue.

However, second-quarter gross margin was affected by manufacturing transition costs, component sourcing challenges and the company’s decision to prioritize deliveries to strategic customers. Burak said those pressures were temporary and that Energous expects margins to improve as U.S. production upgrades are completed, overseas manufacturing ramps and component availability normalizes.

For the first half, gross profit rose 176% year over year to $1.2 million, while gross margin was 19%. Burak said second-quarter margins were below recent levels because the company needed to rely on U.S.-based production while its overseas contract manufacturer was unable to retool in time to produce volume during the quarter. The U.S. manufacturer incurred one-time costs to retool and upgrade production lines, according to Burak. Energous also faced higher component costs after supply disruptions led it to use alternative suppliers to meet customer delivery schedules. Burak cited an “AI-driven vacuum effect” in which limited global supplies of some components were directed toward hyperscalers.

“All of the PO backlog that we had from our strategic customers was fully delivered in Q2,” Burak said during the question-and-answer session. She said supply chain conditions did not prevent the company from delivering products, but increased the cost of sourcing components on time. Energous implemented a price increase across its product lines effective July 1. Burak said the pricing action, production normalization and higher revenue scale support the company’s expectations for margin recovery in the third and fourth quarters. Energous continues to target gross margins above 40% over the longer term.

Second-quarter GAAP operating expenses totaled $3.3 million, compared with $3.1 million in the year-ago period. The company reported a GAAP net loss of approximately $2.9 million, or $0.53 per basic and diluted share, compared with a net loss of approximately $2.8 million, or $2.35 per share, in the prior-year quarter.