Expion360 Issues Stockholder Letter

Rhea-AI Summary

Expion360 (Nasdaq: XPON) issued a stockholder letter dated January 13, 2026 summarizing 2025 progress and 2026 outlook.

Key 2025 metrics: Q3 net sales rose 72% to $2.4M, Q3 gross profit rose 222% to $0.5M and Q3 gross margin improved to 23%. For the nine months ended Sept 30, 2025 net sales were $7.4M vs $3.6M year-ago and gross profit was $1.7M vs $0.7M. Net cash used in operating activities for the nine months fell to $3.7M from $6.6M.

Corporate moves: new CEO/Chair joined in Oct 2025, internal CFO appointment, and financing actions in 2025 including registered direct/private placements, warrant exercises, and an ATM to improve liquidity. Company expects 2026 to focus on execution, margin expansion, new markets, product R&D and potential acquisitions.

Positive

• Q3 net sales +72% to $2.4M
• Q3 gross profit +222% to $0.5M
• Nine-month net sales doubled to $7.4M
• Operating cash use reduced to $3.7M
• Raised approximately $10.35M through 2025 financings

Negative

• Company still used net cash in operations of $3.7M (nine months)
• Continued reliance on external financings and ATM access

News Market Reaction

+1.23%

1 alert

+1.23% News Effect

On the day this news was published, XPON gained 1.23%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q3 2025 net sales: $2.4 million Q3 2025 gross profit: $0.5 million Nine-month 2025 net sales: $7.4 million +5 more

8 metrics

Q3 2025 net sales $2.4 million Increased 72% year-over-year

Q3 2025 gross profit $0.5 million Increased 222% year-over-year; margin 23% vs 12%

Nine-month 2025 net sales $7.4 million More than double prior-year $3.6 million

Nine-month 2025 gross profit $1.7 million Up from $0.7 million in prior-year period

Net cash used in operations $3.7 million Nine months 2025 vs $6.6 million prior-year period

Registered direct offering $2.6 million Gross proceeds in January 2025

Warrant exercises proceeds $6.5 million Gross proceeds from warrants issued in 2024, exercised in August

Private placement proceeds $1.25 million Completed in October 2025

Market Reality Check

Price: $0.9200 Vol: Volume 89,923 is 57% belo...

low vol

$0.9200 Last Close

Volume Volume 89,923 is 57% below 20-day average 210,107, suggesting a modest pre-news response. low

Technical Price $0.9169 is trading below the 200-day MA of $1.13, well under the 52-week high of $5.50.

Peers on Argus

XPON gained 1.88% ahead of this letter, while only one peer (CCTG) appeared on m...

1 Up

XPON gained 1.88% ahead of this letter, while only one peer (CCTG) appeared on momentum scans, up 34.76% without news. Other peers showed mixed moves, pointing to stock-specific rather than sector-driven dynamics.

Historical Context

5 past events · Latest: Nov 13 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 13	Q3 2025 earnings	Positive	+0.0%	Strong Q3 revenue growth and swing to net income with improved losses.
Oct 28	CEO appointment	Neutral	+2.2%	New CEO/Chair appointed to lead strategic direction and expansion.
Sep 08	CFO appointment	Neutral	-1.6%	Controller promoted to CFO, reinforcing financial leadership continuity.
Aug 13	Q2 2025 earnings	Positive	+54.2%	Sixth straight quarter of sales growth with 134% revenue increase.
Aug 04	Q2 prelim results	Positive	+1.8%	Preliminary record quarterly revenue and sharply improved operating cash burn.

Pattern Detected

Positive operational and earnings updates have more often aligned with upward price reactions, though the most recent strong Q3 report saw no immediate move.

Recent Company History

Over the last few quarters, Expion360 reported accelerating growth, with Q2 2025 delivering record revenue and Q3 2025 extending recovery, including a one-time swing to profitability. Leadership changes in 2025 added a new CEO and CFO, and the company regained Nasdaq compliance on Sep 17, 2025. Today’s stockholder letter reiterates many of these themes: revenue growth, margin improvement, cash burn reduction, and capital-raising steps, positioning 2026 as a year focused on execution and expansion across RV, marine, industrial, and surveillance markets.

Market Pulse Summary

This announcement reiterates Expion360’s 2025 progress, including Q3 net sales of $2.4 million, nine...

Analysis

This announcement reiterates Expion360’s 2025 progress, including Q3 net sales of $2.4 million, nine‑month net sales of $7.4 million, gross profit of $1.7 million, and reduced operating cash use of $3.7 million. It also outlines capital raises via offerings and warrant exercises that strengthened liquidity. Historically, the stock has responded positively to strong growth updates, but investors should monitor execution on 2026 priorities, demand trends in RV and industrial markets, and the balance between growth investment and further equity financing.

Key Terms

lithium iron phosphate, registered direct offering, private placement, at-the-market offering, +1 more

5 terms

lithium iron phosphate technical

"leadership position in premium lithium iron phosphate (“LiFePO4”) batteries"

A lithium iron phosphate (LFP) battery is a type of rechargeable lithium-ion battery that uses iron and phosphate in its positive electrode, offering a safer, longer‑lasting but lower energy‑density alternative to some other lithium chemistries. Investors watch LFP because it tends to cost less, resists fire and aging better, and relies on different raw materials and supply chains—factors that influence product pricing, manufacturing costs, and market adoption in electric vehicles and energy storage.

registered direct offering financial

"close of a registered direct offering and concurrent private placement"

A registered direct offering is a way for a company to sell new shares of its stock directly to select investors with regulatory approval. This method allows the company to raise funds quickly and efficiently without needing a public auction, similar to offering exclusive access to a limited number of buyers. For investors, it often provides an opportunity to purchase shares at a favorable price, while giving the company immediate access to capital.

private placement financial

"registered direct offering and concurrent private placement with institutional investors"

A private placement is a way for companies to raise money by selling securities directly to a small group of investors instead of through a public offering. This process is often quicker and less regulated, making it similar to offering a special, exclusive investment opportunity to select individuals or institutions. For investors, it can provide access to unique investment options that are not available on public markets.

at-the-market offering financial

"implemented an at-the-market offering in December, which allows management to access capital"

An at-the-market offering is a method companies use to sell new shares of stock directly into the open market over time, rather than all at once. This allows them to raise money gradually, similar to selling small pieces of a product instead of a large batch. For investors, it means the company can access funding more flexibly, but it may also increase the supply of shares and influence the stock’s price.

warrants financial

"warrant exercises from warrants issued in 2024 resulted in gross proceeds"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

AI-generated analysis. Not financial advice.

REDMOND, Ore., Jan. 13, 2026 (GLOBE NEWSWIRE) -- Expion360 Inc. (Nasdaq: XPON) (“Expion360” or the “Company”), an industry leader in lithium-ion battery power storage, today issued a letter to its stockholders from Joseph Hammer, Chief Executive Officer and Chairman of the Board of Directors.

Dear Stockholders,

Throughout 2025 we continued to build on our growth strategy and leadership position in premium lithium iron phosphate (“LiFePO4”) batteries with next generation battery products and technologies. Importantly, the year also marked an intentional period of transition, as we strengthened our leadership team and took decisive steps to improve our financial foundation. We delivered sequential revenue growth, improved gross margins, and made meaningful progress toward a more durable balance sheet, positioning the Company for disciplined execution in 2026. Our growing product line of batteries and accessories for recreational vehicles (“RV”) and marine applications, with industrial and surveillance applications under development, is enabling us to scale revenue, enter new markets, and expand into complementary high-growth verticals to capture additional market share.

New Executive Leadership

During 2025, Expion360 undertook a deliberate evolution of its executive leadership to strengthen governance, execution, and financial discipline. I was privileged to join the Company in October of last year as CEO and Chairman of the Board after more than 20 years in senior financial leadership roles and service as a public company director. I saw in Expion360 a business with premium product differentiation, an established market presence, and a clear opportunity to scale through focused execution and disciplined capital allocation. Since then, I have worked to advance the trajectory for our portfolio of innovative LiFePO4 batteries and accessories across a growing list of distribution partners and original equipment manufacturers.

Earlier in the year, the Company also prioritized continuity and rigor in its financial leadership. Shawna Bowin, the previous Controller of Expion360, was appointed as Chief Financial Officer, bringing more than 20 years of progressive accounting and finance experience across public and private companies. Shawna’s leadership as Controller, particularly guiding us through the complexities of annual audits, quarterly reviews and SEC reporting, made her an ideal fit for the role. With her deep knowledge of our business and proven ability to navigate financial and regulatory requirements, she has excelled in this new role.

Fiscal Year 2025 Financial Results Review

During the year we continued to focus on product sales growth for our next-generation technologies and batteries. Our results demonstrated a meaningful recovery of demand in the RV market, combined with expanded outreach to OEMs and successful onboarding of new customers.

In the third quarter of 2025, we saw net sales increase 72% to $2.4 million, while gross profit increased 222% to $0.5 million, and gross margin as a percentage of net sales nearly doubled to 23% from 12%.  

Net sales and gross profit for the nine months ended September 30, 2025 were more than double our net sales for the same period in 2024, with net sales of $7.4 million compared to $3.6 million in the prior period, and gross profits of $1.7 million compared to $0.7 million in the prior period. Our strong performance resulted in net cash used in operating activities for the nine months ended September 30, 2025 decreasing to $3.7 million, compared to $6.6 million in the prior year period. These results reflect both improving market conditions and enhanced operational discipline across the organization.

Operational and Balance Sheet Improvements

During the year we took several steps to opportunistically strengthen our balance sheet, supporting execution of key milestones and growth initiatives. In January we took the opportunity to strengthen our balance sheet with the close of a registered direct offering and concurrent private placement with institutional investors with gross proceeds of approximately $2.6 million. In August, warrant exercises from warrants issued in 2024 resulted in gross proceeds of $6.5 million, and we received another $1.25 million from a private placement completed in October. In addition, we implemented an at-the-market offering in December, which allows management to access capital opportunistically to support growth opportunities as they arise. Collectively, these transactions improve liquidity and provide the flexibility to support ongoing operations and strategic initiatives. Based on investor confidence in our future, as well as balanced financial discipline, we are confident that we have the cash runway to advance into our next phase of growth.

2026 Operational Outlook

With a strengthened leadership team and improved financial position, we believe 2026 will be a milestone year for Expion360. We are entering the year supported by growing demand for our portfolio of innovative LiFePO4 batteries and accessories across an expanding base of distribution partners and OEMs. We expect to build on a pipeline supported by steady, recurring orders and momentum from new relationships developed throughout 2025.

Our focus in 2026 is execution. We are prioritizing innovation, margin expansion, and disciplined growth across end markets where we see durable demand and attractive economics. We continue to focus our development efforts on next-generation energy storage products designed to deliver lower cost structures, higher margins, and increased capacity and value for our customers. These initiatives emphasize improved energy density, system efficiency, and manufacturability, enabling us to introduce solutions that are more competitive across a broader range of applications.

We are also actively pursuing growth opportunities within the industrial and construction sectors, where energy storage represents a compelling alternative to traditional generator-based power solutions. We believe our battery systems can significantly reduce fuel consumption, operating costs, and carbon emissions for customers operating in remote or temporary locations that have historically relied on generators as their primary source of power. As these markets increasingly prioritize efficiency, sustainability, and total cost of ownership, we believe Expion360 is well positioned to capture meaningful demand and drive incremental growth.

In addition, we are developing specialized energy storage solutions designed to support surveillance and monitoring applications that require long-duration, reliable power in remote or infrastructure-limited environments. These products are being engineered to prioritize extended runtime, low-temperature performance, high reliability, and secure system integration, addressing the needs of customers operating unmanned or continuous-duty surveillance systems where grid access is limited or unavailable.

Looking ahead, our technology roadmap includes higher-energy-density lithium-ion and LiFePO4 chemistries, modular battery platforms, and advanced battery-management systems designed to enhance safety, cycle life, and cost efficiency for mobile and off-grid applications. We are also evaluating targeted acquisitions and strategic partnerships across power electronics and energy-management solutions to expand our portfolio and strengthen vertical integration.

The market outlook is strong with steady growth in RV, overland, marine, surveillance, and industrial markets where we sell our products. Beyond commercial markets, we see transformative potential in defense technology. As the Pentagon implements its 2026 battery strategy focused on securing a robust, domestic supply chain for advanced batteries, we believe our core technical capabilities will align with the growing demand for drones and autonomous vehicles, where mission success is directly proportional to energy density.

With these developments, we believe we are well-positioned to further enhance our market presence and continue delivering advanced energy solutions that meet the unique needs of customers. We enter 2026 with a strengthened leadership team, improved financial position, and a clear strategic focus. We thank all our stockholders for your ongoing support as we diligently work to build on the short- and long-term value of our Company. We look forward to providing additional updates in the months ahead, including financial results for the quarter and year ended December 31, 2025, which are expected to be announced in March 2026.

Sincerely,

Joseph Hammer
Chief Executive Officer and Chairman of the Board of Directors

About Expion360

Expion360 is an industry leader in premium lithium iron phosphate (LiFePO4) batteries and accessories for recreational vehicles, marine applications, Light EV and residential energy storage.

The Company’s lithium-ion batteries feature half the weight of standard lead-acid batteries while delivering three times the power and ten times the number of charging cycles. Expion360 batteries also feature better construction and reliability compared to other lithium-ion batteries on the market due to their superior design and quality materials. Specially reinforced, fiberglass-infused, premium ABS and solid mechanical connections help provide top performance and safety. With Expion360 batteries, adventurers can enjoy the most beautiful and remote places on Earth even longer.

The Company is headquartered in Redmond, Oregon. Expion360 lithium-ion batteries are available today through more than 300 dealers, wholesalers, private-label customers, and OEMs across the country.

To learn more about the Company, visit expion360.com.

Forward-Looking Statements and Safe Harbor Notice

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Company’s business prospects, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. Forward-looking statements included in this press release include, but are not limited to, statements relating to the Company’s business outlook, operations, development initiatives, growth prospects and market opportunity; the Company’s ability to expand its product portfolio and introduce new technologies; and the Company’s ability to execute on its strategic priorities and expand sales across markets. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the security laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

Company Contact:
541-797-6714
Shawna.Bowin@expion360.com

External Investor Relations:
Chris Tyson, Executive Vice President
MZ Group - MZ North America
949-491-8235
XPON@mzgroup.us
www.mzgroup.us

FAQ

What were Expion360 (XPON) Q3 2025 sales and gross margin?

Expion360 reported Q3 net sales of $2.4M and gross margin of 23%.

How did Expion360 (XPON) perform year-to-date through Sept 30, 2025?

Nine-month net sales were $7.4M versus $3.6M in the prior year; gross profit was $1.7M.

What financings did Expion360 (XPON) complete in 2025?

Expion360 completed a Jan registered direct/private placement (~$2.6M), Aug warrant exercises ($6.5M), an Oct private placement ($1.25M), and an ATM in Dec.

Who are the new executives named at Expion360 (XPON) in 2025?

A new CEO and Chair joined in October 2025 and the company promoted Shawna Bowin to CFO.

What is Expion360's strategic focus for 2026 (XPON)?

The company plans to prioritize execution, margin expansion, next-gen LiFePO4 products, OEM growth, and targeted acquisitions.

When will Expion360 (XPON) report full-year 2025 financial results?

The company expects to announce results for the quarter and year ended Dec 31, 2025 in March 2026.