Elauwit Connection, Inc. Delivers 29 Percent Increase in Contracted Units, Larger Sales Pipeline in First Quarter 2026
Rhea-AI Summary
Elauwit Connection (NASDAQ: ELWT) reported Q1 2026 revenue of $4.4 million, down 19% year-over-year, with a net loss of $2.2 million. Gross profit was $0.8 million and operating expenses were $3.0 million.
Contracted units rose 29%, billed units 115%, and backlog reached $38.1 million. The new sales team has secured ~40 verbal awards totaling over 11,000 units. Cash was $3.5 million and total debt $1.9 million as of March 31, 2026.
Positive
- Contracted units up 29.4% year-over-year to 36,720
- Activated units more than doubled to 24,530, up 110.1% year-over-year
- Billed units up 114.8% year-over-year to 20,059
- Backlog increased to $38.1 million from $15.6 million year-over-year
- Approximately 40 verbal awards in 2026 covering 11,000+ units
- Recurring service revenue supported by growing managed services and NaaS billed units
Negative
- Total revenue declined 19% year-over-year to $4.4 million
- Gross profit decreased to $0.8 million from $1.3 million
- Operating expenses rose to $3.0 million from $1.6 million
- Net loss widened to $2.2 million from $0.4 million year-over-year
- Adjusted EBITDA loss was $2.2 million, versus a $0.4 million loss
- Total debt of $1.9 million, including $1.2 million related party debt
News Market Reaction – ELWT
In the May 14 session, ELWT declined 3.96%, reflecting a moderate negative market reaction. Argus tracked a trough of -20.3% from its starting point during tracking. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 11 | Earnings date notice | Neutral | -1.3% | Announced timing of Q1 2026 results and conference call logistics. |
| Apr 08 | Partnership expansion | Positive | +1.3% | Expanded Cambium Networks-based connectivity across 4,500+ units in new communities. |
| Apr 01 | CFO appointment | Positive | +8.8% | Named a new CFO with capital markets background following the IPO. |
| Mar 31 | Full-year results | Positive | +0.3% | Reported 154% 2025 revenue growth and large increases in key unit metrics. |
| Mar 26 | Industry outreach | Positive | -0.3% | Outlined 2026 events program to expand industry presence and owner engagement. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent news has mostly been growth- and execution-focused, with share price reactions generally modest and tending to move in the same direction as the news tone, except for a slight pullback on an events-focused release.
Over the last few months, Elauwit highlighted accelerated growth and positioning. On Mar 31, it reported 154% full-year 2025 revenue growth and strong increases in contracted, activated, and billed units. Subsequent releases covered a 2026 events program, a new CFO effective Apr 2, 2026, and an expanded construction connectivity partnership spanning 4,500+ units. An May 11 notice set today’s Q1 2026 earnings date. Today’s report fits this trajectory by updating quarterly revenue, unit metrics, and backlog.
Key Terms
network-as-a service ("NaaS") technical
enterprise resource planning technical
Form 10-Q regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Billed Units Increase
New Sales Team Driving Expanded Sales Opportunities, ~40 Verbal Awards to Date in 2026
Columbia, South Carolina--(Newsfile Corp. - May 14, 2026) - Elauwit Connection, Inc. (NASDAQ: ELWT) ("Elauwit," the "Company," "we," or "our"), a national managed services provider of turnkey broadband and property-wide WiFi networks serving multifamily, student housing, and senior living communities, today reported financial results for the first quarter ended March 31, 2026.
Said Dan McDonough, Executive Chairman, "Elauwit is delivering on its 2026 growth plans as we ramp our sales team, drive recurring service revenue and execute on our sales pipeline to bring new properties to our platform. Our new sales organization, established in the first quarter, has secured verbal awards on approximately 40 new properties already this year, representing more than 11,000 units across 14 different ownership groups, plus a robust pipeline of additional opportunities with these ownership groups and others. We believe it is increasingly clear that property owners are choosing Elauwit to secure increased revenue, higher valuations, and happier tenants by bundling our service into their property offering.
"Our success from these wins comes in two stages. First, for our managed services contracts, which remain the bulk of our deployments, we secure upfront construction revenue and margin from the installation project. Second, because we activate new customer units under both our managed services and network-as-a service ("NaaS") models into billing over the first year of our multi-year services agreements, every new project will create predictable revenue growth over its first 12 months post installation, followed by multiple years of steady, long-lived recurring service revenue streams.
"Underlying our sales and onboarding success, we are also investing in new enterprise resource planning and inventory platforms to drive even greater visibility and cost control in our business as we scale. We believe these tools, combined with rigorous focus on process optimization and an expanded field network of subcontractors supporting new property installations position Elauwit even better for continued growth with property owners across the country.
"Based on our expanded sales efforts, we believe it is increasingly clear that the industry is coming to know Elauwit's win-win-win scenario: a better connectivity experience for residents, improved revenue share and value to property owners, and profitable growth for Elauwit. With a
Financial and Operating Highlights (unaudited)
| Three Months Ended | ||||||
| (in $ millions) | March 31, 2026 | March 31, 2025 | ||||
| Revenues | $ | 4.4 | $ | 5.4 | ||
| Gross Profit | $ | 0.8 | $ | 1.3 | ||
| Operating Expenses | $ | 3.0 | $ | 1.6 | ||
| Net Loss | $ | (2.2 | ) | $ | (0.4 | ) |
| Adjusted EBITDA (Non-GAAP)1 | $ | (2.2 | ) | $ | (0.4 | ) |
| 3/31/25 | 3/31/26 | Change | |
| Contracted Units: waiting to be built or in the process of installation along with units we currently serve | 28,375 | 36,720 | + |
| Activated Units: fully installed and on, but may not be fully billing yet due to onboarding | 11,674 | 24,530 | + |
| Billed Units: fully generating revenue under our managed services or NaaS contracts | 9,339 | 20,059 | + |
- Total revenue decreased
19% year-over-year, reflecting the timing of certain client construction and installation project revenues, which are periodic and variable in nature. - Billed units increased more than
114% year over year, driving increased recurring service revenue under long-lived managed service and NaaS revenues. - Elauwit fully launched its comprehensive sales team and marketing programs during the first quarter of 2026.
- The new sales team has rapidly expanded bidding activity with properties across the continental U.S., delivering verbal awards with 14 different ownership groups for 40 additional properties accounting for more than 11,000 units across 16 states plus the District of Columbia.
- Backlog as of March 31, 2026 was
$38.1 million , compared to$15.6 million as of March 31, 2025. Backlog is comprised of new properties contracted for planned installation and the value of recurring services revenue on activated or billed units.
Balance Sheet
As of March 31, 2026:
- Cash and cash equivalents totaled
$3.5 million . - Accounts receivable were
$3.2 million , and inventories were$1.0 million . - Deferred revenue was
$3.8 million . - Related party debt at March 31, 2026 was
$1.2 million , and total debt was$1.9 million .
Conference Call
Elauwit's management will host a live webcast conference call today at 8:00 a.m. Eastern Time to discuss the financial results and provide business updates on the Company's strategic plans. To access the live webcast, conference call information, and other materials, please visit Elauwit's investor relations website at http://investors.elauwit.com/. Please connect at least 10 minutes prior to the live webcast to ensure adequate time for any software download that may be needed to access the webcast. For those wishing to join by telephone only, please dial +1-412-345-1653.
A webcast replay of the call will be available following the call on Elauwit's investor relations website.
Quarterly Report on Form 10-Q ("Form 10-Q")
Elauwit anticipates filing its Form 10-Q for the first quarter 2026 within the next couple of business days, which will be available at https://investors.elauwit.com. This press release should be read in conjunction with the Form 10-Q and the related Notes to Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in that Form 10-Q.
About Elauwit
Elauwit is a publicly traded connectivity MSP dedicated to rental communities, including multifamily properties, student housing, and senior living. Elauwit designs, builds, and operates managed networks, backed by a service model that treats property teams and residents like a relationship, not an account number.
With dependable connections, exceptional resident support, and no-upfront-cost options, Elauwit helps owners deliver premium connectivity as a competitive advantage, supporting new revenue, resident retention and increased asset value.
For more information, visit www.elauwit.com.
Non-GAAP Financial Measures
In addition to net loss, which is a U.S. GAAP measure, Elauwit presents adjusted EBITDA, which is a non-GAAP measure. Management believes the presentation of adjusted EBITDA, reflecting non-GAAP adjustments, provides important supplemental information to investors and other users of its financial statements in evaluating the operating results of the Company. In particular, by excluding expenses that are not directly related to its operating performance, Elauwit is able to present a view of its underlying business that the management team uses to analyze its historical performance and plan for its future performance. Adjusted EBITDA is a key metric used by management and the Board of Directors to assess the Company's financial and operating performance. This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for net loss determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Key Performance Indicators
Elauwit uses the following key performance metrics to analyze and measure the Company's financial performance and results of operations: recurring service revenue, contracted units, activated units, billed units and backlog. The Company's recurring service revenue, contracted units, activated units, billed units and backlog are not necessarily comparable to similarly titled measures reported by other companies.
Elauwit defines recurring service revenue as the monthly recurring service revenue initiated by network activation under our long-term service agreements. Management believes that the Company's ability to retain and expand revenue from existing customers is an indicator of the long-term value of its customer relationships and potential future business opportunities.
Elauwit defines contracted units as the total number of individual units waiting to be built or in the process of being installed across the properties using its networks. Management believes this metric is useful to investors because it illustrates the total number of units the Company will serve once the construction process is complete.
Elauwit defines activated units as the total number of individual units that are fully installed and on, but not yet necessarily collecting full recurring service revenue due to onboarding process, across the properties using its networks. Management believes this metric is useful for investors because it illustrates the total number of individual units the Company will collect revenue on once the onboarding process is complete, and can be tracked over time to show the reach of its networks.
Elauwit defines billed units as the total number of individual units that it is currently collecting revenue on across the properties using its networks. Management believes this metric is useful to investors because it illustrates the total number of individual units the Company collects revenue on and can be tracked over time to show the reach of its networks. Management believes it is more useful to compare total billed units as opposed to total customers or total subscribers because the Company's revenue is more closely tied to the number of units it serves than the total number of customers or subscribers.
Backlog is defined as the aggregate amount of a contract price allocated to remaining performance obligations. Total backlog can include network design and installation performance obligations and internet network services and hardware and internet services performance obligations. Management believes tracking backlog is useful to investors because it illustrates the remaining performance obligations under our contracts and the revenue we expect to recognize in the future.
Forward-Looking Statements
This press release contains forward-looking statements, including with respect to the Company's future financial results, the Company's growth strategies and pipeline, and its performance as a public company. The words "anticipate," "believe," "can," "continue," "future," "opportunity," "potential," "predict," "will," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including market and other conditions and the Company's ability to improve its financial performance and achieve its growth objectives, and other factors set forth in the Company's filings with the SEC, including the Company's annual report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 31, 2026, and subsequent quarterly reports on Form 10-Q. Actual results might differ materially from those explicit or implicit in the forward-looking statements. The Company undertakes no obligation to update any such forward-looking statements after the date hereof to conform to actual results or changes in expectations, except as required by law.
Contacts:
Investor Relations:
Darrow Associates
Matt Kreps, Managing Director
+1-214-597-8200
mkreps@darrowir.com
Media:
Elauwit Connection, Inc.
Katie Hayward, VP Marketing
+1-704-558-3099
sales-pr@elauwit.com
ELAUWIT CONNECTION, INC.
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except share and par value data)
| March 31, 2026 | December 31, 2025 | |||||
| ASSETS | ||||||
| Current Assets | ||||||
| Cash and cash equivalents | $ | 3,534 | $ | 6,154 | ||
| Accounts receivable, net of allowance for credit losses of | 3,190 | 2,407 | ||||
| Inventories | 1,028 | 1,004 | ||||
| Network financing receivable, current | 213 | 213 | ||||
| Prepaid expenses and other current assets | 443 | 550 | ||||
| Total current assets | 8,408 | 10,328 | ||||
| Network financing receivable | 1,025 | 1,078 | ||||
| Lease right-of-use assets, net | 14 | 28 | ||||
| Net investment in lease | 446 | 483 | ||||
| Other non-current assets | 26 | 26 | ||||
| TOTAL ASSETS | $ | 9,919 | $ | 11,943 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current Liabilities | ||||||
| Deferred revenue | $ | 3,811 | $ | 2,886 | ||
| Accounts payable | 1,094 | 1,813 | ||||
| Accrued expenses and other current liabilities | 563 | 495 | ||||
| Operating lease liabilities, current | 14 | 29 | ||||
| Related party debt, current | 778 | 804 | ||||
| Note payable, current | 199 | 196 | ||||
| Total current liabilities | 6,459 | 6,223 | ||||
| Related party debt, net of current | 446 | 506 | ||||
| Note payable, net of current | 442 | 490 | ||||
| Deferred revenue, net of current | 293 | 308 | ||||
| TOTAL LIABILITIES | 7,640 | 7,527 | ||||
| Commitments and contingencies (see Note 13) | ||||||
| STOCKHOLDERS' EQUITY | ||||||
| Preferred stock, | — | — | ||||
| Common stock, | — | — | ||||
| Additional Paid-in Capital | 19,034 | 19,009 | ||||
| Accumulated deficit | (16,755 | ) | (14,593 | ) | ||
| Total stockholders' equity | 2,279 | 4,416 | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 9,919 | $ | 11,943 |
ELAUWIT CONNECTION, INC.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except share and per value data)
| For the three months ended March 31, | ||||||
| 2026 | 2025 | |||||
| Revenues | ||||||
| Revenues | $ | 4,430 | $ | 5,446 | ||
| Cost of revenues | ||||||
| Cost of revenues | 3,603 | 4,187 | ||||
| Gross profit | 827 | 1,259 | ||||
| Operating expenses | ||||||
| General and administrative | 2,884 | 1,606 | ||||
| Sales and marketing | 143 | 22 | ||||
| Total operating expenses | 3,027 | 1,628 | ||||
| Operating loss from operations | (2,200 | ) | (369 | ) | ||
| Other expense, net | ||||||
| Interest income (expense), net | 38 | (73 | ) | |||
| Total other income (expense), net | 38 | (73 | ) | |||
| Loss from operations before income taxes | (2,162 | ) | (442 | ) | ||
| Income tax expense | — | — | ||||
| Net loss | (2,162 | ) | (442 | ) | ||
| Net loss per share, basic and diluted | $ | (0.33 | ) | $ | (0.09 | ) |
| Weighted average common shares used in computing net loss per share, basic and diluted | 6,619,796 | $ | 5,000,000 | |||
ELAUWIT CONNECTION, INC.
Reconciliation from Net Loss to Adjusted EBITDA
(in thousands, except share and per value data)
(UNAUDITED)
| For the three months ended March 31, | ||||||
| 2026 | 2025 | |||||
| Net Loss | $ | (2,162 | ) | $ | (442 | ) |
| Addback: | ||||||
| Income tax expense | — | — | ||||
| Interest expense, net | (38 | ) | 73 | |||
| Depreciation and amortization | 14 | 12 | ||||
| EBITDA | $ | (2,186 | ) | $ | (357 | ) |
| Addback: | ||||||
| Change in fair value of SAFE liability | — | — | ||||
| Stock based compensation expense | 15 | — | ||||
| Adjusted EBITDA | $ | (2,171 | ) | $ | (357 | ) |
1 Adjusted earnings before interest (income) expense, income taxes, depreciation and amortization ("EBITDA") is not a U.S. generally accepted accounting principle ("GAAP") measure. Please refer to the "Non-GAAP Financial Measures" section of this earnings release for a discussion of this non-GAAP measure and the schedules attached to this earnings release for a reconciliation of adjusted EBITDA to net loss.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/297442