Acorn Reports Q1 Revenue of $2.2M with Steady Growth in High Margin, Recurring Remote Monitoring and Control Revenue; Investor Call Today at 11am ET

Rhea-AI Summary

Acorn Energy (Nasdaq: ACFN) reported Q1 2026 revenue of $2.227M, down 28.1% from Q1 2025, driven by a 55.7% decline in hardware revenue to $810,000 and an 11.7% rise in monitoring revenue to $1.417M. Gross margin improved to 80.2% (+510 bps). Q1 net loss was $(77,000) or $(0.03) per share. Cash totaled $4.257M at March 31, 2026; company held deferred revenue of $2.934M. Investor call scheduled May 7, 2026 at 11:00 AM ET.

Positive

• Monitoring revenue +11.7% to $1.417M in Q1’26
• Gross margin improved +510 bps to 80.2% in Q1’26
• Deferred revenue of $2.934M provides recurring backlog

Negative

• Total revenue -28.1% to $2.227M year-over-year
• Hardware revenue -55.7% to $810K due to completed contract
• Net loss of $(77K) versus net income $464K in Q1’25

News Market Reaction – ACFN

-13.39% 2.2x vol

8 alerts

-13.39% Session close to close

-6.9% Trough in 6 hr 21 min

$45.12M Market Cap

2.2x Rel. Volume

In the May 7 session, ACFN declined 13.39%, reflecting a significant negative market reaction. Argus tracked a trough of -6.9% from its starting point during tracking. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility. Trading volume was elevated at 2.2x the daily average, suggesting increased selling activity.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -13.4% in the session following this news. A negative reaction despite monitoring ...

Analysis

The stock dropped -13.4% in the session following this news. A negative reaction despite monitoring growth would fit prior episodes where fundamentals and price diverged, such as the -15.65% move after 2025 results. The Q1’26 update combines an 11.7% rise in monitoring revenue with a 28.1% decline in total revenue and a swing to a $(77,000) loss. Sustained sentiment could depend on comfort with hardware variability and progress in the Infrastructure Solutions segment.

Key Figures

Total revenue Q1’26: $2,227,000 Monitoring revenue Q1’26: $1,417,000 Hardware revenue Q1’26: $810,000 +5 more

8 metrics

Total revenue Q1’26 $2,227,000 Versus $3,098,000 in Q1’25 (-28.1%)

Monitoring revenue Q1’26 $1,417,000 Grew 11.7% year-over-year

Hardware revenue Q1’26 $810,000 Down 55.7% year-over-year

Gross margin Q1’26 80.2% Versus 75.1% in Q1’25 (+510 bps)

Net (loss) income Q1’26 $(77,000) Compared to $464,000 net income in Q1’25

EPS Q1’26 $(0.03) Versus $0.19 per share in Q1’25

Cash balance $4,257,000 Cash at March 31, 2026

Operating cash flow Q1’26 $53,000 Cash generated from operating activities in Q1’26

Historical Context

4 past events · Latest: May 01 (Neutral)

Pattern 4 events

Date	Event	Sentiment	24h Move	Catalyst
May 01	Earnings call notice	Neutral	+0.5%	Announcement of timing and access details for upcoming Q1 2026 earnings call.
Mar 05	Full-year results	Positive	-15.7%	Reported 2025 revenue growth, higher monitoring revenue and improved gross margin versus 2024.
Feb 26	Earnings call notice	Neutral	+13.4%	Scheduling and access details for Q4 and full-year 2025 earnings call.
Jan 05	Strategic partnership	Positive	+26.6%	Exclusive North American AIO Systems partnership expanding infrastructure monitoring offerings and markets.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings fundamentals previously showed margin and monitoring strength, yet one major positive update saw a sharp negative reaction, while strategic partnership news drew a strong positive move.

Recent Company History

Recent news for Acorn has centered on earnings communications and the AIO Systems partnership. A Mar 5, 2026 results release highlighted higher 2025 revenue and monitoring growth but was followed by a -15.65% move. Call announcements on Feb 26 and May 1 drew moderate price changes. The Jan 5 partnership expansion produced a strong +26.61% reaction, underscoring investor focus on strategic growth initiatives alongside core monitoring performance.

Key Terms

bps, iot, deferred revenue

3 terms

bps financial

"Gross margin ... 75.1 % | | +510 | bps"

bps stands for "basis points," a unit equal to one hundredth of a percentage point (0.01%). Investors and analysts use bps to describe small changes in interest rates, yields, fees, or margins without confusing decimals — for example, a 50 bps move means a 0.50% change. Using bps makes it easier to compare and communicate tiny but meaningful shifts that can significantly affect bond prices, loan costs, or investment returns.

iot technical

"exclusive North American rights to a comprehensive IoT monitoring solutions suite"

The Internet of Things (IoT) describes a network of everyday devices—such as appliances, vehicles, and equipment—that are connected to the internet and can share data automatically. For investors, IoT represents a growing trend that can drive efficiency and innovation across many industries, potentially creating new opportunities for growth and value. Its expansion influences how companies operate and compete in a digitally connected world.

deferred revenue financial

"Excluding deferred revenue of $2,934,000 and deferred cost of goods sold"

Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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WILMINGTON, Del., May 07, 2026 (GLOBE NEWSWIRE) -- Acorn Energy, Inc. (Nasdaq: ACFN), a provider of remote monitoring and control solutions for generators, gas pipelines and other critical infrastructure assets, announced results for its first quarter ended March 31, 2026 (Q1'26). Acorn will hold an investor call today at 11am ET (details below).

Summary Financial Results (1)
($ in 000s except per share data)		Q1'26				Q1'25			% Change
Monitoring revenue	$	1,417			$	1,269			+11.7	%
Hardware revenue	$	810			$	1,829			-55.7	%
Total revenue	$	2,227			$	3,098			-28.1	%
Gross margin		80.2	%			75.1	%		+510	bps
Net (loss) income to stockholders	$	(77	)		$	464			nm
Net (loss) income per basic and diluted share	$	(0.03	)		$	0.19			nm

(1) All of Acorn's revenue is derived from its 99%-owned operating subsidiary, OmniMetrix™, LLC.

CEO Commentary

Jan Loeb, Acorn’s CEO, said, “Q1’26 results reflect continued growth in our installed base of monitored endpoints – the core value driver of our business––offset by a decrease in hardware revenue largely due to our material cellphone provider contract, which contributed hardware revenue of $876,000 in Q1’25 vs. $93,000 in Q1’26. Given our size, large enterprise deployments are likely to create material variability in our quarterly hardware revenue comparisons, while contributing to our growing base of high-margin, recurring, monitoring revenue.

“Reflecting the increase in monitoring revenue as a percentage of total revenue, Q1’26 gross margin improved to 80.2% from 75.1% in Q1’25.

“Turning to our growth drivers, we continue to pursue both residential and enterprise deployments of our monitoring solutions and remain optimistic regarding our growth potential as customers take action to protect their homes and businesses against sudden power outages. We are also advancing our new Infrastructure Solutions segment pursuant to our technology partnership with AIO Systems, through which we secured exclusive North American rights to a comprehensive IoT monitoring solutions suite for telecommunications towers, energy sites and data centers. This solution suite addresses a much broader range of functions and capabilities and as such we expect revenue from an average site to be 5-6x that of our current average sale. Accordingly, we see significant potential as infrastructure operators seek to modernize and harden their monitoring scope and capabilities.

“We are advancing our program to launch these products in the U.S., fine-tuning product features and alerts, and developing customer materials and sales and training collateral. We’ve also gone live with two full telecom tower sites for use in customer demonstrations. We are still working out final hardware and services pricing models so it’s still too early to project margins in this segment. Nonetheless, the AIO partnership significantly expands both our scope of capabilities as well as our addressable markets. We are confident there is no better existing suite of monitoring solutions. Therefore, we feel this segment has the potential to transform our company.

“The Infrastructure Solutions opportunity, combined with expected growth in our existing Power Generation segment, has us well-positioned with a high-margin, capital-light business model.

“We remain focused on our objective of achieving three-to-five year average revenue growth of 20% or more. In addition to our pursuit of larger commercial and industrial customer opportunities, we continue to work toward potential strategic relationships with power generator manufacturers and other OEMs. We also remain active in our pursuit of strategic M&A opportunities aligned with our business model and with the potential to be meaningfully accretive to our earnings. Q1 is typically our lowest-revenue quarter so we expect stronger performance as we progress through the year, though we do expect that hardware revenue comparisons in Q2’26 will again be below Q2’25 due to the impact of the material cell phone provider contract in Q2’25.”

Financial Review
Q1’26 revenue decreased 28.1% to $2,227,000 versus $3,098,000 in Q1’25, primarily due to a $1,019,000 (55.7%) decrease in hardware revenue, as the prior-year period included significant hardware shipments under the material cellphone provider contract. Although hardware deliveries under the contract are now largely complete, we did receive an additional $93,000 of hardware revenue and $167,000 of monitoring revenue from the contract in Q1’26. Total monitoring revenue, which is amortized over the service period (typically one year), grew 11.7% to $1,417,000 in Q1’26, reflecting continued growth in our monitored endpoints.

Q1’26 gross profit was $1,785,000, reflecting a gross margin of 80.2%, compared to gross profit of $2,326,000 and a gross margin of 75.1% in Q1’25. The gross margin improvement was driven by a higher proportion of monitoring revenue, which carries a 94% gross margin, and lower hardware revenue from the material contract.

Operating expenses increased 11.2% to $1,914,000 in Q1’26 versus $1,722,000 in Q1’25, due to a $228,000 increase in selling, general and administrative (SG&A) expense, partially offset by a $36,000 decrease in research and development (R&D) expense. The increase in SG&A was primarily driven by $136,000 in higher stock-based compensation expense due to stock option grants issued to officers and directors and $111,000 in higher OmniMetrix SG&A, including additional personnel and technology expenses, partially offset by lower commissions. Lower R&D expense reflected reduced costs following the completion of the new Omni and OmniPro product development.

Lower revenue and higher SG&A, resulted in a Q1’26 net loss attributable to Acorn stockholders of $(77,000), or $(0.03) per basic and diluted share, compared to net income of $464,000, or $0.19 per basic and diluted share, in Q1’25. The Q1’26 loss includes $197,000 of non-cash stock-based compensation expense versus $61,000 in Q1’25. The Company recognized an income tax benefit of $25,000 in Q1’26 versus income tax expense of $154,000 in Q1’25.

Liquidity and Cash Flow
Excluding deferred revenue of $2,934,000 and deferred cost of goods sold of $25,000, which have no impact on future cash flow, net working capital was $6,024,000 at March 31, 2026 versus $6,184,000 at December 31, 2025. This included cash of $4,257,000 at March 31, 2026 versus $4,454,000 at year-end 2025.

In Q1’26, Acorn generated $53,000 of cash from operating activities, used $260,000 for investing activities (including $250,000 for the acquisition of the exclusive distribution and commercialization rights under the AIO Systems technology partnership agreement and $10,000 in other capital items), and received $10,000 from the exercise of stock options, for a net decrease in cash of $197,000.

Investor Call Details

Date / Time:	Thursday, May 7th at 11:00 AM ET
Dial-in Number:	1-800-715-9871 or 1-646-307-1963 (Int'l) Conference ID# 6786386
Replay & Transcript:	Posted on the Investor Relations page of Acorn’s website when available.

About Acorn (www.acornenergy.com) and OmniMetrix^TM (www.omnimetrix.net)
Acorn’s 99%-owned OmniMetrix subsidiary is a pioneer and leader in wireless remote monitoring and control solutions for critical infrastructure including standby generators, cell towers, gas pipelines, data centers, and utility networks. OmniMetrix serves tens of thousands of commercial and residential endpoints, including over 25 Fortune/Global 500 companies in sectors including telecom, manufacturing, healthcare, data centers, retail, public transportation, energy distribution and government facilities, as well as residential customers through generator dealers.

OmniMetrix’s industry-leading, cost-effective solutions make critical systems more reliable and also enable automated “demand response” electric grid support via enrolled backup generators.

Safe Harbor Statement
This press release includes forward-looking statements, which are subject to risks and uncertainties. There are no assurances that Acorn will be successful in growing its business, increasing its revenue, increasing profitability, or maximizing the value of its operating company and other assets. A complete discussion of the risks and uncertainties that may affect Acorn Energy’s business, including the business of its subsidiary, is included in “Risk Factors” in the Company’s most recent Annual Report on Form 10-K as filed by the Company with the Securities and Exchange Commission.

Follow us

X (formerly Twitter):	@Acorn_IR and @OmniMetrix
StockTwits:	@Acorn_Energy

Investor Relations Contacts
Catalyst IR
William Jones, 267-987-2082
David Collins, 212-924-9800
acfn@catalyst-ir.com

ACORN ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE DATA)
		Three months ended March 31,
		2026				2025
Revenue		$	2,227			$	3,098
COGS			442				772
Gross profit			1,785				2,326
Operating expenses:
Research and development (R&D) expenses			255				291
Selling, general and administrative (SG&A) expenses			1,659				1,431
Total operating expenses			1,914				1,722
Operating (loss) income			(129	)			604
Interest income, net			31				24
(Loss) income before income taxes			(98	)			628
(Benefit from) provision for income taxes			(25	)			154
Net (loss) income			(73	)			474
Non-controlling interest share of income			(4	)			(10	)
Net (loss) income attributable to Acorn Energy, Inc. stockholders		$	(77	)		$	464
Basic and diluted net (loss) income per share attributable to Acorn Energy, Inc. stockholders:
Net (loss) income per share attributable to Acorn Energy, Inc. stockholders – basic and diluted		$	(0.03	)		$	0.19
Weighted average number of shares outstanding attributable to Acorn Energy, Inc. stockholders – basic and diluted:
Basic			2,506				2,491
Diluted			2,506				2,498

ACORN ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
		As of March 31, 2026				As of December 31, 2025
			(Unaudited)
ASSETS
Current assets:
Cash		$	4,257			$	4,454
Accounts receivable, net			840				887
Inventory			1,196				1,254
Other current assets			225				267
State income tax receivable			51				21
Deferred cost of goods sold (COGS)			25				70
Total current assets			6,594				6,953
Property and equipment, net			364				383
Intangibles, net			266				17
Right-of-use assets, net			921				963
Other assets			112				119
Deferred tax assets			4,871				4,899
Total assets		$	13,128			$	13,334
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	213			$	306
Accrued expenses			140				171
Deferred revenue			2,934				3,097
Current operating lease liabilities			163				158
Other current liabilities			29				46
State income tax payable			—				18
Total current liabilities			3,479				3,796
Long-term liabilities:
Deferred revenue			335				312
Noncurrent operating lease liabilities			838				884
Other long-term liabilities			27				26
Total liabilities			4,679				5,018
Commitments and contingencies
Equity: Acorn Energy, Inc. stockholders
Common stock - $0.01 par value per share: Authorized - 42,000,000 shares; issued - 2,557,937 at March 31, 2026 and 2,555,717 at December 31, 2025; outstanding - 2,506,846 at March 31, 2026 and 2,504,626 at December 31, 2025			25				25
Additional paid-in capital			103,828				103,621
Accumulated stockholders’ deficit			(92,421	)			(92,344	)
Treasury stock, at cost – 51,091 shares at March 31, 2026 and December 31, 2025			(3,052	)			(3,052	)
Total Acorn Energy, Inc. stockholders’ equity			8,380				8,250
Non-controlling interests			69				66
Total equity			8,449				8,316
Total liabilities and equity		$	13,128			$	13,334

ACORN ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS)
		Three months ended March 31,
		2026				2025
Cash flows provided by operating activities:
Net (loss) income		$	(73	)		$	474
Depreciation and amortization			30				30
Deferred income tax benefit			28				125
Increase (decrease) in the provision for credit losses			1				(1	)
Non-cash lease expense			58				32
Stock-based compensation			197				61
Change in operating assets and liabilities:
Decrease (increase) in accounts receivable			46				(126	)
Decrease (increase) in inventory			58				(484	)
Decrease in deferred COGS			45				135
Decrease in other current assets and other assets			49				17
(Increase) decrease in state income tax receivable			(30	)			10
Decrease in deferred revenue			(140	)			(278	)
Decrease in operating lease liability			(57	)			(37	)
(Decrease) increase in state income tax payable			(18	)			15
(Decrease) increase in accounts payable, accrued expenses, other current liabilities and non-current liabilities			(141	)			298
Net cash provided by operating activities			53				271
Cash flows used in investing activities:
Equipment and trade show booth purchases			(3	)			(6	)
Payment for exclusive distribution and commercialization rights			(250	)			—
Investments in technology			(7	)			—
Net cash used in investing activities			(260	)			(6	)
Cash flows provided by financing activities:
Stock option exercise proceeds			10				—
Net cash provided by financing activities			10				—
Net (decrease) increase in cash			(197	)			265
Cash at the beginning of the period			4,454				2,326
Cash at the end of the period		$	4,257			$	2,591
Supplemental cash flow information:
Cash paid during the year for:
Income taxes		$	—			$	4
Non-cash investing and financing activities:
Accrued preferred dividends to former CEO of OmniMetrix		$	1			$	1

FAQ

What did Acorn Energy (ACFN) report for Q1 2026 revenue and net income?

Acorn reported $2.227M in Q1 2026 revenue and a net loss of $(77,000). According to the company, revenue fell 28.1% year-over-year due to lower hardware shipments while monitoring revenue grew 11.7%.

How did Acorn's monitoring and hardware revenue perform in Q1 2026 for ACFN?

Monitoring revenue rose to $1.417M (+11.7%), while hardware revenue fell to $810K (-55.7%). According to the company, a prior cellphone-provider contract drove the prior-year hardware comparisons.

What drove Acorn's improved gross margin in Q1 2026 (ACFN)?

Gross margin increased to 80.2%, up 510 basis points. According to the company, the improvement was driven by a higher mix of monitoring revenue, which carries substantially higher gross margins than hardware.

What is Acorn's cash and deferred revenue position at March 31, 2026 for ACFN?

Acorn reported cash of $4.257M and deferred revenue of $2.934M at March 31, 2026. According to the company, deferred revenue represents contracted, recurring monitoring service obligations.

Why did Acorn (ACFN) report lower total revenue in Q1 2026?

Total revenue declined 28.1% to $2.227M primarily because hardware shipments under a large cellphone-provider contract were largely complete. According to the company, that prior contract significantly boosted Q1’25 hardware sales.

When is Acorn's investor call for the Q1 2026 results and how can investors join?

The investor call is scheduled for May 7, 2026 at 11:00 AM ET with dial-in numbers provided. According to the company, a replay and transcript will be posted on the investor relations page when available.