Expion360 Reports Second Quarter 2026 Financial and Operational Results

Rhea-AI Summary

Expion360 (Nasdaq: XPON) reported Q2 2026 net sales of $2.0 million, down 32% year over year but up 30% sequentially, as it discontinued low‑margin accessory resales and managed elevated OEM inventory. Q2 gross profit rose 6% to $0.7 million, with gross margin expanding to 32.4% from 20.8% on a richer product mix and disciplined pricing.

For the first half of 2026, net sales were $3.6 million, down 29%, while gross margin improved to 29.3%. Net loss widened to $3.0 million versus $2.5 million, with operating cash use increasing to $2.6 million. Cash stood at $1.5 million, working capital at $4.4 million, and stockholders’ equity at $4.8 million as of June 30, 2026. The company expanded its OEM relationship with Forest River to two additional motorized RV brands, plans to launch a next‑generation lithium battery in 2H 2026, completed a 1‑for‑12 reverse stock split, and regained compliance with Nasdaq’s minimum bid price requirement.

Positive

• Q2 2026 gross margin 32.4%, up from 20.8% in Q2 2025
• Q2 2026 gross profit $0.66M, up 6% year over year despite lower sales
• Q2 2026 net loss $1.28M, modestly improved from $1.37M in Q2 2025
• Sequential net sales growth: Q2 2026 sales up 30% versus Q1 2026
• Forest River OEM expansion to Georgetown and Dynamax Grand Sport brands
• Nasdaq compliance regained following 1-for-12 reverse stock split
• Working capital $4.4M and stockholders’ equity $4.8M at June 30, 2026

Negative

• Q2 2026 net sales $2.03M, down 32% from $2.99M in Q2 2025
• First-half 2026 net sales $3.60M, down 29% from $5.04M in 2025 period
• First-half 2026 net loss $3.04M, wider than $2.52M in prior year
• First-half 2026 SG&A $4.13M, up 14% from $3.62M year over year
• Cash $1.54M at June 30, 2026, down from $2.97M at year-end 2025
• Operating cash use $2.61M in first half 2026 vs $1.63M in 2025 period

News Explained

For the six months ended June 30, 2026, Expion360 reported $1,219,467 of net proceeds from issuing common stock, while shares outstanding were 953,192 on June 30, 2026 versus 815,145 on December 31, 2025; issuing additional shares reduces existing holders’ percentage ownership absent offsetting changes.

Market Context

Tag-specific earnings events averaged a 4.55% 24-hour move, adding historical context to this mixed ...

Analysis

Tag-specific earnings events averaged a 4.55% 24-hour move, adding historical context to this mixed report. The record included repeated negative reactions despite operating improvements; low short positioning and ongoing cash use remain relevant risks to monitor.

Key Figures

Q2 Net Sales: $2.0 million Q2 Gross Profit: $0.7 million Q2 Gross Margin: 32.4% +5 more

8 metrics

Q2 Net Sales $2.0 million Q2 2026; down 32% year over year

Q2 Gross Profit $0.7 million Q2 2026; increased 6% year over year

Q2 Gross Margin 32.4% Q2 2026 versus 20.8% in the prior-year period

Q2 Net Loss $1.3 million Q2 2026 versus $1.4 million in Q2 2025

First-Half Operating Cash Use $2.6 million Six months ended June 30, 2026 versus $1.6 million prior year

Cash and Equivalents $1.5 million As of June 30, 2026

Working Capital $4.4 million As of June 30, 2026

Reverse Stock Split 1-for-12 Effective July 21, 2026

Previous Earnings Reports

5 past events · Latest: May 15 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 15	Q1 earnings report	Negative	-8.7%	Lower sales, widened net loss, higher expenses, and reduced cash balance
Mar 17	FY2025 earnings report	Positive	-7.3%	Higher annual sales and narrower net loss despite sharply lower gross margin
Jan 28	Preliminary earnings report	Neutral	-6.8%	Preliminary revenue growth and gross profit were offset by projected net loss
Nov 13	Q3 earnings report	Positive	-8.7%	Higher sales, gross profit, and quarterly net income contrasted with negative reaction
Aug 13	Q2 earnings report	Positive	+54.2%	Strong sales growth and improved net loss accompanied lower quarterly gross margin

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

Pattern Detected

Tag-specific earnings history showed negative 24-hour reactions in all five selected events, including announcements with revenue or margin improvements.

Key Terms

oem, ul 1973, canbus, reverse stock split

4 terms

oem financial

"Expanded OEM Relationship with Forest River"

OEM stands for Original Equipment Manufacturer, which is a company that produces parts or components used in the final products made by other companies. For investors, understanding OEMs is important because their performance can impact the supply chain and overall success of major industries, especially those relying on specialized parts. Think of OEMs as the suppliers that provide the building blocks for larger products, like the engine parts for a car.

ul 1973 regulatory

"our UL 1973-certified lithium-ion battery systems"

UL 1973 is a safety standard issued by Underwriters Laboratories that sets tests and construction rules for rechargeable battery systems used in stationary storage, vehicles and light rail to reduce fire, explosion and shock hazards. For investors, UL 1973 certification is a third‑party safety mark that can speed sales and regulatory acceptance, lower recall and liability risk, and make a battery product easier to finance—like an independent inspection sticker that reassures buyers and lenders.

canbus technical

"CANBus communication"

CAN bus is a standardized digital communication system used mainly in vehicles and industrial machines to let electronic components—like sensors, brakes, engines, or infotainment—exchange information over a shared wiring “highway.” Investors care because it underpins how reliably and efficiently a product works, affects development costs, interoperability and after‑sale diagnostics, and can influence demand for suppliers or the cost and pace of new features and regulatory compliance.

reverse stock split financial

"we completed a 1-for-12 reverse stock split"

A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.

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Gross Margin Expands to 32.4% from 20.8% in Prior-Year Period

Expanded OEM Relationship with Forest River to Include Two Additional Motorized RV Brands

REDMOND, Ore., Aug. 07, 2026 (GLOBE NEWSWIRE) -- Expion360 Inc. (Nasdaq: XPON) (“Expion360” or the “Company”), an industry leader in lithium-ion battery power storage solutions, today reported its financial and operational results for the second quarter and six months ended June 30, 2026.

Second Quarter and First Half 2026 Financial and Operational Highlights

• Q2 2026 net sales totaled $2.0 million, down 32% from Q2 2025, and up 30% from Q1 2026.
• First half 2026 net sales of $3.6 million, down 29% from the first half of 2025.
• Q2 2026 gross profit increased 6% compared to Q2 2025, despite lower net sales.
• First half 2026 gross profit decreased 6% compared to the first half of 2025.
• Q2 2026 gross margin expanded to 32% of sales, compared to 21% in Q2 2025.
• First half 2026 gross margin of 29% of sales, compared to 22% in the first half of 2025.
• Q2 2026 net loss improved 6% compared to Q2 2025.
• First half 2026 cash used for operations of $2.6 million, compared to $1.6 million in the first half of 2025.
• Cash and cash equivalents of $1.5 million as of June 30, 2026.Working capital of $4.4 million and stockholders’ equity of $4.8 million as of June 30, 2026.
• Expanded existing supply relationship with Forest River, Inc.
• Regained compliance with Nasdaq minimum bid price requirement.
  

Management Commentary

“Our second quarter results reflect meaningful progress on the margin improvement initiatives we have been executing throughout 2026,” said Joseph Hammer, Chief Executive Officer and Chairman of the Board of Directors of Expion360. “Gross profit increased 6% year over year to $0.7 million even as net sales declined, and gross margin expanded more than 11 percentage points to 32.4% from 20.8% in the prior-year period. This is the direct result of our decision to discontinue the resale of certain low-margin accessories and to maintain disciplined pricing across our core battery product lines. We believe a higher-quality revenue base positions the Company for an improved earnings profile as volumes recover.

“Second quarter net sales of $2.0 million were impacted by the discontinuation of low-margin accessory resales and elevated battery inventory levels held by certain OEM customers entering the year. Encouragingly, second quarter net sales increased 30% sequentially from the first quarter, while selling, general, and administrative expenses remained essentially flat year-over-year and decreased sequentially from the first quarter.

“During the quarter, we expanded our supply relationship with Forest River, a subsidiary of Berkshire Hathaway and one of the largest RV manufacturers in North America. Following our existing programs with Forest River’s Dynamax and East to West brands, Forest River selected our UL 1973-certified lithium-ion battery systems for two additional motorized brands: Georgetown and Dynamax Grand Sport. We believe this expansion reflects continued progress in growing our OEM customer base within the motorized RV market.

“We remain on track to launch the first next-generation lithium battery in the second half of 2026. This product incorporates our VHC™ internal heating technology, SmartTalk™ Bluetooth connectivity, and CANBus communication, while also being designed to improve manufacturing efficiency and support further margin expansion.

“Subsequent to the quarter, we completed a 1-for-12 reverse stock split and regained compliance with Nasdaq’s listing rules. We also announced leadership transitions in our Chief Operating Officer and Chief Financial Officer roles and are focused on ensuring continuity as we execute on these priorities. Looking ahead, our focus remains on converting expanded OEM relationships into revenue growth, executing our next-generation product launches, sustaining margin improvements, and maintaining disciplined capital and operating expense management,” concluded Mr. Hammer.

Second Quarter 2026 Financial Summary

Net sales in the second quarter of 2026 totaled $2.0 million, a decrease of 32% from $3.0 million in the prior year period. The decrease in net sales was primarily attributable to discontinuing the resale of certain low-margin accessories in order to increase profit margins.

Gross profit in the second quarter of 2026 totaled $0.7 million, or 32.4% as a percentage of net sales, compared to gross profit of $0.6 million, or 20.8% as a percentage of net sales, in the prior year period. The increase in gross profit and gross profit as a percentage of net sales was primarily attributable to a change in product mix that excluded low-margin items, combined with the maintenance of healthy pricing models across the Company’s core battery product lines.

Selling, general, and administrative expenses were $2.0 million in the second quarter of 2026, a decrease of 0.7% from $2.0 million in the second quarter of 2025. Decreases in research and development, salaries and benefits, and travel expenses were offset by increases in legal and professional fees and sales and marketing expenses.

Net loss in the second quarter of 2026 totaled $1.3 million, or $(1.34) per basic and diluted share, compared to a net loss of $1.4 million, or $(4.93) per basic and diluted share, in the second quarter of 2025.

First Half 2026 Financial Summary

For the six months ended June 30, 2026, net sales totaled $3.6 million, a decrease of 29% from $5.0 million in the prior year period. The decrease in net sales was primarily attributable to discontinuing the resale of certain low-margin accessories and to elevated battery inventory levels carried into the year by certain OEM customers.

Gross profit totaled $1.05 million, or 29.3% as a percentage of net sales, a decrease of 6% compared to $1.12 million, or 22.3% as a percentage of net sales, in the prior year period.

Selling, general, and administrative expenses increased 14% to $4.1 million compared to $3.6 million in the prior year period. The increase was primarily due to increases in legal and professional fees and salaries and benefits, only partially offset by decreases in research and development, travel expenses, and depreciation.

Net loss totaled $3.0 million, or $(3.33) per basic and diluted share, compared to a net loss of $2.5 million, or $(9.39) per basic and diluted share, in the prior year period.

Cash and cash equivalents totaled $1.5 million as of June 30, 2026, compared to $3.0 million as of December 31, 2025.

Net cash used in operating activities for the six months ended June 30, 2026 increased to $2.6 million from $1.6 million in the prior year period, primarily attributable to the timing of inventory purchases, prepaid expenses, and accounts receivable and accounts payable.

Reverse Stock Split and Nasdaq Listing Compliance

On July 21, 2026, the Company effected a one-for-12 reverse stock split of its issued and outstanding shares of common stock, together with a proportionate decrease in the number of authorized shares of common stock. The reverse stock split was undertaken in connection with the Company’s efforts to regain compliance with the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”). All share and per share amounts presented in this press release have been retroactively adjusted to reflect the reverse stock split for all periods presented.

As of August 4, 2026, the Company had regained compliance with the Minimum Bid Price Requirement, and Nasdaq’s listing requirements.

About Expion360

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

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 casing and solid mechanical connections help provide top performance and safety. Expion360 delivers advanced lithium battery technology that powers every adventure, every mission, for the moments that matter.

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

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 anticipated timing and commercial availability of the Company’s products; the expected normalization of customer demand and inventory levels; the Company’s ability to sustain and further improve its gross margins; the Company’s ability to execute on its growth strategy and initiatives; the Company’s ability to grow and convert its OEM relationships, including with Forest River, into revenue growth; the Company’s ability to maintain compliance with the continued listing requirements of The Nasdaq Capital Market; the Company’s ability to raise additional capital, manage operating expenses, and continue as a going concern; and the Company’s ability to expand its product portfolio and introduce new technologies. 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

EXPION360 INC. BALANCE SHEETS
	As of June 30, 2026 (Unaudited)				As of December 31, 2025
Assets
Current Assets
Cash and cash equivalents	$	1,540,348			$	2,969,096
Accounts receivable, net		638,281				718,964
Inventory		2,049,571				2,858,780
Prepaid/in-transit inventory		530,332				318,440
Prepaid expenses and other current assets		560,761				179,645
Total current assets		5,319,293				7,044,925
Property and equipment		807,083				807,083
Accumulated depreciation		(528,663	)			(478,861	)
Property and equipment, net		278,420				328,222
Other Assets
Operating leases – right-of-use asset		507,374				666,199
Deposits		32,016				32,016
Total other assets		539,390				698,215
Total assets	$	6,137,103			$	8,071,362
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	349,095			$	403,792
Customer deposits		59,216				2,978
Accrued expenses and other current liabilities		209,627				221,863
Current portion of operating lease liability		327,527				337,246
Current portion of long-term debt		13,399				31,058
Total current liabilities		958,864				996,937
Long-term debt, net of current portion and discount		142,784				166,187
Operating lease liability, net of current portion		218,008				372,478
Total liabilities		1,319,656				1,535,602
Stockholders’ equity
Preferred stock, par value $0.001; 20,000,000 shares authorized; zero shares issued and outstanding		—				—
Common stock, par value $0.001; 1,666,666 shares authorized; 953,192 and 815,145 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively		953				815
Additional paid-in capital		48,669,730				47,345,372
Accumulated deficit		(43,853,236	)			(40,810,427	)
Total stockholders’ equity		4,817,447				6,535,760
Total liabilities and stockholders’ equity	$	6,137,103			$	8,071,362

EXPION360 INC. STATEMENTS OF OPERATIONS (UNAUDITED)
	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2026				2025				2026				2025
Net sales	$	2,030,065			$	2,989,947			$	3,595,912			$	5,039,278
Cost of sales		1,371,799				2,367,337				2,541,571				3,915,101
Gross profit		658,266				622,610				1,054,341				1,124,177
Selling, general and administrative		1,959,535				1,972,806				4,126,520				3,622,241
Loss from operations		(1,301,269	)			(1,350,196	)			(3,072,179	)			(2,498,064	)
Other (income)/expense
Interest income		(13,350	)			—				(27,667	)			(1	)
Other income		(10,657	)			—				(10,657	)			—
Interest expense		3,196				3,649				8,715				9,317
Loss on sale of property and equipment		—				14,978				—				13,353
Other expense		183				—				213				50
Total other (income) / expense		(20,628	)			18,627				(29,396	)			22,719
Loss before income taxes		(1,280,641	)			(1,368,823	)			(3,042,783	)			(2,520,783	)
Franchise taxes		—				37				26				75
Net loss	$	(1,280,641	)		$	(1,368,860	)		$	(3,042,809	)		$	(2,520,858	)
Net loss per share (basic and diluted)	$	(1.34	)		$	(4.93	)		$	(3.33	)		$	(9.39	)
Weighted-average number of common shares outstanding		953,192				277,939				912,646				268,586

EXPION360 INC. STATEMENTS OF CASH FLOWS (UNAUDITED)
		For the Six Months Ended June 30,
		2026				2025
Cash flows from operating activities
Net loss		$	(3,042,809	)		$	(2,520,858	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation			49,802				65,244
Loss on sale of property and equipment			—				13,353
Stock-based compensation			105,029				183,950
Issuance of common stock in exchange for services			—				106,250
Allowance for doubtful accounts			7,972				—
Non-cash expense in exchange for asset disposal			—				21,420
Changes in operating assets and liabilities:
Accounts receivable			72,711				(102,702	)
Inventory			809,209				(306,802	)
Prepaid/in-transit inventory			(211,892	)			1,127,179
Prepaid expenses and other current assets			(381,116	)			(114,387	)
Deposits			—				(4,545	)
Accounts payable			(54,697	)			337,260
Customer deposits			56,238				219
Accrued expenses and other current liabilities			(12,236	)			62,926
Right-of-use assets and lease liabilities			(5,364	)			1,597
Suspended liability			—				(500,000	)
Net cash used in operating activities			(2,607,153	)			(1,629,896	)
Cash flows from investing activities
Net proceeds from sale of property and equipment			—				4,250
Net cash provided by investing activities			—				4,250
Cash flows from financing activities
Principal payments on long-term debt			(41,062	)			(16,556	)
Net proceeds from issuance of common stock			1,219,467				1,779,557
Net cash provided by financing activities			1,178,405				1,763,001
Net change in cash and cash equivalents			(1,428,748	)			137,355
Cash and cash equivalents, beginning			2,969,096				547,565
Cash and cash equivalents, ending		$	1,540,348			$	684,920
Supplemental disclosure of cash flow information:
Cash paid for interest		$	8,807			$	9,783
Cash paid for franchise taxes		$	176			$	—
Non-cash financing activities:
Acquisition/modification of operating lease right-of-use asset and lease liability			—				198,216

FAQ

How did Expion360 (XPON) perform financially in Q2 2026?

Expion360 reported Q2 2026 net sales of $2.03 million, down 32% year over year. According to Expion360, gross profit was $0.66 million with gross margin improving to 32.4%, while net loss was $1.28 million, slightly better than the prior-year quarter.

Why did Expion360’s (XPON) revenue decline in the first half of 2026?

Expion360’s first-half 2026 net sales fell 29% to $3.60 million, mainly due to ending resale of low-margin accessories. According to Expion360, elevated battery inventory at some OEM customers at the start of the year also contributed to lower revenue versus the 2025 period.

What drove Expion360’s gross margin expansion in Q2 2026?

Gross margin rose to 32.4% in Q2 2026 from 20.8% a year earlier, driven by product mix and pricing. According to Expion360, discontinuing low-margin accessory resales and maintaining disciplined pricing on core battery lines were key factors supporting this margin improvement.

What is the status of Expion360’s Nasdaq listing and reverse stock split (XPON)?

Expion360 completed a 1-for-12 reverse stock split on July 21, 2026 to address Nasdaq’s minimum bid price rule. According to Expion360, the company had regained compliance with the Minimum Bid Price Requirement and Nasdaq listing standards as of August 4, 2026.

How strong is Expion360’s balance sheet as of June 30, 2026?

As of June 30, 2026, Expion360 reported $1.54 million in cash and cash equivalents. According to Expion360, total assets were $6.14 million, working capital was about $4.4 million, and stockholders’ equity stood at $4.82 million, with modest debt levels.

What OEM developments did Expion360 (XPON) announce with Forest River in 2026?

In Q2 2026, Expion360 expanded its supply relationship with Forest River to two additional motorized brands. According to Expion360, its UL 1973-certified lithium-ion systems were selected for Forest River’s Georgetown and Dynamax Grand Sport lines, building on existing Dynamax and East to West programs.

When will Expion360 launch its next-generation lithium battery and what features are planned?

Expion360 expects to launch its first next-generation lithium battery in the second half of 2026. According to Expion360, the product will include VHC internal heating, SmartTalk Bluetooth, CANBus communication, and a design aimed at improving manufacturing efficiency and future margin expansion.