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Energy Focus (NASDAQ: EFOI) Q2 2026 revenue jumps 228% but margins turn negative

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Energy Focus, Inc. reported a sharp rebound in activity for the quarter ended June 30, 2026, with net sales of $3.7 million, up 228.0% from a year earlier and 295.0% sequentially. Growth came from both segments: commercial sales rose by about $1.5 million year-over-year, supported by initial Energy Storage Systems shipments to a new customer in Australia, and military maritime (MMM) sales increased by about $1.1 million on improved demand.

Profitability weakened significantly. Gross margin fell to (6.8)% from 12.9% a year earlier, primarily due to higher inventory reserves; adjusted gross margin declined to 4.5%. Operating loss widened to $0.9 million, and net loss was $0.9 million, or $(0.14) per share, versus $(0.04) a year ago. Adjusted EBITDA was $(0.9) million. Cash was $1.1 million at June 30, 2026, unchanged from year-end, supported by $0.9 million of short-term borrowings and a $0.25 million private placement, while the company advanced $0.4 million toward a potential joint venture. The company also highlights substantial doubt about its ability to continue as a going concern in its risk disclosures.

Positive

  • Net sales grew 228.0% year-over-year to $3.7 million, with strong increases in both commercial and military maritime product sales.
  • Commercial sales rose to $2.3 million and MMM sales to $1.5 million in the quarter, reflecting new ESS business and improved demand.
  • Cash remained $1.1 million at June 30, 2026, unchanged from December 31, 2025, despite higher activity levels.

Negative

  • Gross margin deteriorated to (6.8)% from 12.9% a year earlier, driven mainly by increased inventory reserves.
  • Net loss widened to $0.9 million, or $(0.14) per share, compared with $(0.2) million, or $(0.04) per share, in the prior-year quarter.
  • Adjusted EBITDA was $(0.9) million for the quarter, weaker than $(0.3) million a year ago, reflecting lower underlying margins.
  • Risk disclosures note substantial doubt about the company’s ability to continue as a going concern, highlighting dependence on financing and key customers.
  • Current liabilities increased to $4.8 million from $0.9 million at year-end, including $3.2 million related-party payables and $0.9 million short-term borrowings.

Filing Explained

The filing reports a 65,789-share private-placement agreement and higher common shares outstanding, but does not establish that the full agreed amount was issued.

Energy Focus furnished its second-quarter results in an Item 2.02 Form 8-K and attached the earnings release as Exhibit 99.1; the release is furnished, not filed under Exchange Act Section 18.

The release reports a May 29 agreement to issue and sell $250,000 of common stock through 65,789 shares; if issued, those additional shares increase the share count and reduce existing holders’ percentage ownership absent offsetting changes.

A private placement is a sale to selected investors outside a public offering, and issuing additional shares creates the disclosed dilution mechanism for existing holders.

At June 30, 2026, common shares issued and outstanding were 6,369,222, versus 6,306,433 at December 31, 2025; the cash-flow statement separately reports $250,000 from common-stock issuance and proceeds from short-term borrowings.

The filing does not reconcile the 65,789 shares in the May agreement with the reported period-end share-count increase, so completion of the full agreed amount is not established by this disclosure.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net sales Q2 2026 $3.7 million Net sales for the quarter ended June 30, 2026; up 228.0% year-over-year
Gross margin Q2 2026 (6.8)% Gross profit margin for the quarter ended June 30, 2026
Net loss Q2 2026 $0.9 million Net loss for the quarter ended June 30, 2026; $(0.14) per share
Adjusted EBITDA Q2 2026 $(0.9) million Adjusted EBITDA for the quarter ended June 30, 2026
Cash balance $1.1 million Cash as of June 30, 2026 and December 31, 2025
Short-term borrowings $0.9 million Short-term borrowings outstanding as of June 30, 2026
Private placement shares 65,789 shares at $3.80 Common stock issued in May 2026 private placement, raising about $250,000
Current liabilities $4.8 million Total current liabilities as of June 30, 2026
Adjusted EBITDA financial
"Adjusted EBITDA, as defined under “Non-GAAP Measures” below, was $(0.9) million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
adjusted gross margins financial
"Adjusted gross margin, as defined under “Non-GAAP Measures” below, was 4.5% in the second quarter"
Energy Storage Systems technical
"resulting from initial shipments under the Energy Storage Systems (“ESS”) business to a new customer"
Energy storage systems are technologies that capture electricity when it’s plentiful or cheap and release it when demand or prices are higher, like a large rechargeable battery for a neighborhood or power grid. They matter to investors because they enable more reliable power, smooth out the ups and downs of renewable energy, and can create new revenue streams or cost savings by shifting when power is sold or used.
military maritime market technical
"lighting and control system products for the commercial market and military maritime market (“MMM”)"
short-term borrowings financial
"due to proceeds of $0.9 million from short-term borrowings, partially offset by a $0.4 million cash advance"
Short-term borrowings are loans, lines of credit, or other amounts a company must repay within one year, similar to using a credit card or a short bank loan to cover immediate bills. Investors care because these obligations affect a company’s near-term cash needs and financial flexibility—too much short-term debt can squeeze cash flow, increase interest costs, and raise the chance of funding stress, while manageable levels can help cover routine operating needs.
going concern financial
"our need for additional financing to continue operations and substantial doubt about our ability to continue as a going concern"
Going concern is the accounting assumption that a company will keep operating and meeting its obligations for the foreseeable future. The phrase matters most when a company or its auditors disclose substantial doubt about it, a formal warning that the business may not have enough resources to continue without raising money, restructuring, or selling assets. That language in a filing or press release signals elevated financial risk.
Net sales Q2 2026 $3.7 million up 228.0% year-over-year
Gross margin Q2 2026 (6.8)% down from 12.9% in Q2 2025
Net loss Q2 2026 $0.9 million ( $(0.14) per share ) wider than $0.2 million ( $(0.04) per share ) in Q2 2025
Adjusted EBITDA Q2 2026 $(0.9) million weaker than $(0.3) million in Q2 2025
Adjusted gross margin Q2 2026 4.5% down from 16.7% in Q2 2025 and 31.0% in Q1 2026

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FAQ

How did Energy Focus (EFOI) perform financially in Q2 2026?
Energy Focus reported Q2 2026 net sales of $3.7 million, up 228.0% year-over-year, but a net loss of $0.9 million. Gross margin turned negative at (6.8)% due mainly to higher inventory reserves.

What drove Energy Focus (EFOI) revenue growth in the second quarter of 2026?
Revenue growth was driven by $1.5 million higher commercial sales and $1.1 million higher MMM product sales. Commercial gains reflected initial Energy Storage Systems shipments to a new Australian customer and stronger demand in military maritime markets.

What was Energy Focus (EFOI) net loss and EPS for Q2 2026?
Energy Focus recorded a Q2 2026 net loss of $0.9 million, compared with $0.2 million a year earlier. Loss per share was $(0.14) basic and diluted, versus $(0.04) in the prior-year quarter and $(0.02) in Q1 2026.

What is Energy Focus (EFOI) cash and debt position as of June 30, 2026?
As of June 30, 2026, Energy Focus held $1.1 million in cash, similar to year-end 2025, and had $0.9 million in short-term borrowings. Current liabilities totaled $4.8 million, including $3.2 million in related-party payables.

Did Energy Focus (EFOI) raise capital during Q2 2026?
Yes. On May 29, 2026, Energy Focus agreed to sell 65,789 common shares at $3.80 each in a private placement, raising approximately $250,000 in gross proceeds from Euka Power Japan Co., Ltd.

What going concern risks did Energy Focus (EFOI) highlight?
Energy Focus disclosed substantial doubt about its ability to continue as a going concern, citing the need for additional financing, reliance on private placements, customer concentration, and other operational and market risks.

How did Energy Focus (EFOI) non-GAAP metrics trend in Q2 2026?
Adjusted gross margin fell to 4.5% from 16.7% a year earlier and 31.0% in Q1 2026. Adjusted EBITDA was $(0.9) million, versus $(0.3) million in Q2 2025 and $(0.1) million in Q1 2026.
0000924168FALSEENERGY FOCUS, INC/DE00009241682026-08-112026-08-11

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of Earliest Event Reported): August 11, 2026
 
ENERGY FOCUS, INC.
(Exact name of registrant as specified in its charter)  
Delaware001-3658394-3021850
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification Number)
32000 Aurora Road Suite BSolon,OH44139
(Address of principal executive offices)(Zip Code)
 
(440) 715-1300
(Registrant’s telephone number, including area code)
 
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2. below):
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each classTrading
Symbol(s)		Name of each exchange
on which registered
Common Stock, par value $0.0001 per shareEFOIThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company     ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02. Results of Operations and Financial Condition.

On August 11, 2026, Energy Focus, Inc. a Delaware corporation, issued an earnings release announcing its financial results for the three and six months ended June 30, 2026, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

This information, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and will not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the extent expressly set forth by specific reference in such filing.

Item 9.01    Financial Statements and Exhibits.

    (d)    Exhibits.
Exhibit
NumberDescription
99.1
Press Release Dated August 11, 2026
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: August 11, 2026
ENERGY FOCUS, INC.
By:/s/ Chiao Chieh (Jay) Huang
Name:Chiao Chieh (Jay) Huang
Title:Chief Executive Officer


ef_logoxtaglinelockupxcmyka.jpg
Exhibit 99.1
Energy Focus, Inc. Reports Second Quarter 2026 Financial Results
SOLON, Ohio, August 11, 2026 -- Energy Focus, Inc. (NASDAQ: EFOI) (the “Company” or “Energy Focus”), a leader in sustainable, energy-efficient lighting and control system products for the commercial market and military maritime market (“MMM”), today announced its financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 Financial Highlights:
•Net sales of $3.7 million, an increase of 228.0% compared with the second quarter of 2025, reflecting an increase of approximately $1.1 million, or 328.4%, of growth in military sales period-over-period and an increase of approximately $1.5 million, or 191.6%, of growth in commercial sales. Sequentially, net sales increased 295.0% compared with the first quarter of 2026, primarily reflecting increases of approximately $1.9 million in commercial sales and $0.9 million in military sales. The net sales increase in the second quarter was primarily driven by higher commercial sales resulting from initial shipments under the Energy Storage Systems (“ESS”) business to a new customer in Australia, together with increased sales of MMM products due to improved demand compared to the prior year period.
•Gross profit margin was (6.8)% in the second quarter of 2026, compared with 12.9% in the second quarter of 2025 and 23.3% in the first quarter of 2026. The decrease was primarily driven by an increase in inventory reserves.
•Loss from operations of $0.9 million in the second quarter of 2026, compared with $0.2 million in the second quarter of 2025 and $0.1 million in the first quarter of 2026. The higher loss from operations was primarily due to higher allowance for credit losses and business travel expenses.
•Net loss was $0.9 million, or $(0.14) per basic and diluted share of common stock, in the second quarter of 2026, compared with a net loss of $0.2 million, or $(0.04) per basic and diluted share, in the second quarter of 2025 and a net loss of $0.1 million, or $(0.02) per basic and diluted share, in the first quarter of 2026
•Cash was $1.1 million as of June 30, 2026, unchanged from December 31, 2025 and up from $0.5 million as of June 30, 2025. The increase was primarily due to proceeds of $0.9 million from short-term borrowings, partially offset by a $0.4 million cash advance related to an investment in a joint venture.

•On May 29, 2026, the Company entered into a securities purchase agreement with Euka Power Japan Co., Ltd., pursuant to which the Company agreed to issue and sell, in a private placement, an aggregate of 65,789 shares of its common stock, par value $0.0001 per share, for a purchase price of $3.80 per share, for aggregate gross proceeds of approximately $250,000 (the “May 2026 Private Placement”). Additional details regarding the May 2026 Private Placement are available in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 3, 2026.
Second Quarter 2026 Financial Results:
Net sales were $3.7 million in the second quarter of 2026, an increase of $2.6 million, or 228.0%, compared with $1.1 million in the second quarter of 2025. The increase primarily reflected a $1.5 million, or 191.6%, increase in
32000 Aurora Road, Solon, OH 44139        • www.energyfocus.com        • 800.327.7877
ef_logoxtaglinelockupxcmyka.jpg
commercial sales, driven by initial shipments to a new customer in Australia through the ESS business, and a $1.1 million, or 328.4%, increase in MMM product sales due to improved demand compared with the prior-year period.

Gross loss was $0.3 million, representing a gross margin of (6.8)% of net sales, in the second quarter of 2026, compared with gross profit of $0.1 million, representing a gross margin of 12.9% in the second quarter of 2025. The year-over-year decrease in gross profit margin was primarily attributable to increased inventory reserves.

Adjusted gross margin, as defined under “Non-GAAP Measures” below, was 4.5% in the second quarter of 2026, compared with 16.7% in the second quarter of 2025. The decrease was primarily attributable to lower variable margins in the second quarter of 2026. Sequentially, adjusted gross margin decreased from 31.0% in the first quarter of 2026 to 4.5% in the second quarter of 2026, representing a decrease of 26.5 percentage points. The decline was primarily attributable to a less favorable product mix and higher inventory reserves recognized during the quarter.

Operating loss was $0.9 million in the second quarter of 2026, an increase of $0.6 million compared with operating loss of $0.2 million in the second quarter of 2025, and an increase of $0.7 million compared with $0.1 million in the first quarter of 2026. The year-over-year and sequential increases were primarily due to higher allowance for credit losses and increase in business travel expenses. Net loss was $0.9 million, or $(0.14) per basic and diluted share of common stock, in the second quarter of 2026, compared with a net loss of $0.2 million, or $(0.04) per basic and diluted share, in the second quarter of 2025 and net loss of $0.1 million, or $(0.02) per basic and diluted share, in the first quarter of 2026.

Adjusted EBITDA, as defined under “Non-GAAP Measures” below, was $(0.9) million in the second quarter of 2026, compared with $(0.3) million in the second quarter of 2025 and $(0.1) million in the first quarter of 2026. The decrease in the second quarter of 2026, as compared to the second quarter of 2025, was primarily driven by higher inventory reserves.

Net cash used in operating activities was $0.8 million in the six months ended June 30, 2026. Net loss in the six months ended June 30, 2026 was $1.0 million, adjusted for non-cash items, including depreciation, provisions for inventory, warranty, accounts receivable reserves and working capital changes. During the six months ended June 30, 2026, significant working-capital changes included a $2.2 million change in accounts receivable due to the specific timing of customer collections, which was offset by a $2.8 million change in related party accounts payable due to the timing of inventory receipts and payments.
About Energy Focus
Energy Focus is a leader in energy-efficient light-emitting diode (“LED”) lighting and energy infrastructure solutions. As the creator of the first flicker-free LED lamps, Energy Focus develops high quality LED lighting products and controls that provide extensive energy and maintenance savings, as well as aesthetics, safety, health and sustainability benefits over conventional lighting. Energy Focus is headquartered in Solon, Ohio. For more information, visit our website at www.energyfocus.com. The Company routinely posts important updates on its website.
32000 Aurora Road, Solon, OH 44139        • www.energyfocus.com        • 800.327.7877
ef_logoxtaglinelockupxcmyka.jpg
Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding our expansion initiatives in new geographic markets, our growth initiatives in energy infrastructure and new product sectors, our expectations regarding new partnerships and customer relationships, demand recovery in military and commercial markets, product development strategy, and future performance. Important factors that could cause actual results to differ materially include our need for additional financing to continue operations and substantial doubt about our ability to continue as a going concern, dependence on private placements with related parties and resulting shareholder dilution, reliance on a limited number of customers including dependence on single large projects, dependence on military maritime customers and ongoing federal budget uncertainties, risks associated with expansion in new geographic markets where we lack established presence, early stage of new customer relationships with no assurance of long-term partnerships or material revenue, uncertainty regarding whether new product initiatives will achieve market acceptance or generate meaningful revenue, global trade policies including tariffs that could materially increase costs, reliance on related party suppliers and global supply chain disruptions, elevated inventory reserves, ability to compete against companies with greater resources, significant expense fluctuations, ability to comply with government contracting laws and regulations, and other risks detailed in our filings with the Securities and Exchange Commission. The forward-looking statements made in this press release speak only as of the date of this press release, and we undertake no obligation to update these statements except as required by law.
###
Investor Contact:
Chiao Chieh (Jay) Huang
Chief Executive Officer
(800) 327-7877
32000 Aurora Road, Solon, OH 44139        • www.energyfocus.com        • 800.327.7877

Condensed Consolidated Balance Sheets
(unaudited)
(in thousands, except per share data)
June 30, 2026December 31, 2025
(Unaudited)
ASSETS
Current assets:
Cash$1,096 $1,064 
Trade accounts receivable, less allowances of $184 and $33, respectively2,563 526 
Inventories, net2,771 2,930 
Prepayments to vendors693 3 
Prepaid and other current assets274 126 
Total current assets7,397 4,649 
Property and equipment, net81 97 
Operating lease, right-of-use asset143 207 
Advance for investment in joint venture522 156 
Total assets$8,143 $5,109 
LIABILITIES
Current liabilities:
Accounts payable$181 $158 
Accounts payable - related party3,200 386 
Accrued liabilities158 56 
Accrued legal and professional fees72 44 
Accrued payroll and related benefits64 47 
Accrued sales commissions1 1 
Accrued warranty reserve63 91 
Operating lease liabilities151 139 
Short-term borrowings911 — 
Total current liabilities4,801 922 
(continued on next page)
32000 Aurora Road, Solon, OH 44139        • www.energyfocus.com        • 800.327.7877

Condensed Consolidated Balance Sheets
(unaudited)
(in thousands, except per share data)
June 30, 2026December 31, 2025
(Unaudited)
Operating lease liabilities, net of current portion— 78 
Total liabilities4,801 1,000 
STOCKHOLDERS' EQUITY
Preferred stock, par value $0.0001 per share:
Authorized: 5,000,000 shares (3,300,000 shares designated as Series A Convertible Preferred Stock) as of June 30, 2026 and December 31, 2025
Issued and outstanding: 876,447 as of June 30, 2026 and December 31, 2025
— — 
Common stock, par value $0.0001 per share:
Authorized: 50,000,000 shares as of June 30, 2026 and December 31, 2025
Issued and outstanding: 6,369,222 as of June 30, 2026 and 6,306,433 as of December 31, 2025
1 1 
Additional paid-in capital160,285 160,035 
Accumulated other comprehensive loss(3)(3)
Accumulated deficit(156,941)(155,924)
Total stockholders' equity3,342 4,109 
Total liabilities and stockholders' equity$8,143 $5,109 
32000 Aurora Road, Solon, OH 44139        • www.energyfocus.com        • 800.327.7877

Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)
Three months endedSix months ended June 30,
June 30, 2026March 31, 2026June 30, 202520262025
Net sales$3,749 $949 $1,143 $4,698 $1,759 
Cost of sales4,004 728 996 4,732 1,418 
Gross profit (loss)(255)221 147 (34)341 
Operating expenses:
Product development84 76 74 160 124 
Selling, general, and administrative529 286 297 815 709 
Total operating expenses613 362 371 975 833 
Loss from operations(868)(141)(224)(1,009)(492)
Other expenses (income):
Interest expense5 — — 5 — 
Interest income(3)(1)(1)(4)(1)
Other expenses— — 8 — 8 
Loss from operations before income taxes(870)(140)(231)(1,010)(499)
Provision for income taxes7 — — 7 — 
Net loss$(877)$(140)$(231)$(1,017)$(499)
Comprehensive loss $(877)$(140)$(231)$(1,017)$(499)
Net loss per common share - basic and diluted:
Net loss$(0.14)$(0.02)$(0.04)$(0.16)$(0.09)
Weighted average shares of common stock outstanding:
Basic and diluted6,3276,2485,3796,3175,323
32000 Aurora Road, Solon, OH 44139        • www.energyfocus.com        • 800.327.7877

Condensed Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
Three months endedSix months ended
June 30,
June 30, 2026March 31, 2026June 30, 202520262025
Cash flows from operating activities:
Net loss$(877)$(140)$(231)$(1,017)$(499)
Adjustments to reconcile net loss to net cash used in operating activities:
Foreign exchange loss (gain)5 6 (45)11 (45)
Loss on settlement of vendor obligations— — 8 — 8 
Depreciation8 8 10 16 19 
Stock-based compensation— — — — (4)
Provision for credit losses and sales returns169 (17)71 152 64 
Provision for slow-moving and obsolete inventories424 73 44 497 58 
Provision for warranties1 (29)3 (28)(30)
Changes in operating assets and liabilities:
Accounts receivable(2,250)58 (414)(2,192)(191)
Inventories499 (837)85 (338)101 
Prepayments to vendors(678)(12)197 (690)(16)
Prepaid and other assets(63)(85)2 (148)18 
Accounts payable19 4 — 23 (63)
Accounts payable - related party1,891 928 31 2,819 74 
Accrued and other liabilities35 112 26 147 21 
Right of use assets and lease liabilities(2)— (2)(2)(2)
Total adjustments58 209 16 267 12 
Net cash provided by (used in) operating activities(819)69 (215)(750)(487)
Cash flows from investing activities:
Acquisitions of property and equipment— — — — (5)
Advance for investment in potential joint venture(380)— — (380)— 
Net cash used in investing activities(380)— — (380)(5)
(continued on next page)
32000 Aurora Road, Solon, OH 44139        • www.energyfocus.com        • 800.327.7877

Condensed Consolidated Statements of Cash Flows – continued
(unaudited)
(in thousands)
Three months endedSix months ended
June 30,
June 30, 2026March 31, 2026June 30, 202520262025
Cash flows from financing activities:
Issuance of common stock250 — 200 250 400 
Proceeds from short-term borrowings922 — — 922 — 
Net cash provided by financing activities1,172 — 200 1,172 400 
Effect of exchange rate changes on cash(3)(7)26 (10)26 
Net increase (decrease) in cash(30)62 11 32 (66)
Cash, beginning of period1,126 1,064 488 1,064 565 
Cash, end of period$1,096 $1,126 $499 $1,096 $499 
Non-cash investing and financing activities:
Acquisition of property and equipment through accounts payable— — 34 — 39 

32000 Aurora Road, Solon, OH 44139        • www.energyfocus.com        • 800.327.7877

Sales by Product
(unaudited)
(in thousands)
Three months endedSix months ended
June 30,
June 30, 2026March 31, 2026June 30, 202520262025
Net sales:
Commercial products$2,254 $318 $773 $2,572 $976 
MMM products1,491 628 348 2,119 761 
Setup service4 3 22 7 22 
Total net sales$3,749 $949 $1,143 $4,698 $1,759 
Non-GAAP Measures
In addition to the results in this release that are presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), we provide certain non-GAAP measures, which present operating results on an adjusted basis. These non-GAAP measures are supplemental measures of performance that are not required by or presented in accordance with U.S. GAAP and include:
•adjusted EBITDA, which we define as net income (loss) before giving effect to financing charges, income taxes, non-cash depreciation, stock non-cash compensation, accrued incentive compensation, non-routine charges to other income or expense; and
•adjusted gross margins, which we define as our gross profit margins excluding the impact of inventory reserve charges (excess and obsolete, in-transit and net realizable value adjustments) and inventory write-offs. Management believes this measure better reflects the underlying profitability of products sold during the period by excluding the impact of prior period inventory purchasing decisions.
We believe that our use of these non-GAAP financial measures permits investors to assess the operating performance of our business relative to our performance based on U.S. GAAP results and relative to other companies within the industry by isolating the effects of items that may vary from period to period without correlation to core operating performance or that vary widely among similar companies, and to assess liquidity, cash flow performance of the operations, and the product margins of our business relative to our U.S. GAAP results and relative to other companies in the industry by isolating the effects of certain items that do not have a current period impact. However, our presentation of these non-GAAP measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. Further, there are limitations on the use of these non-GAAP measures to compare our results to other companies within the industry because they are not necessarily standardized or comparable to similarly titled measures used by other companies. We believe that the disclosure of these non-GAAP measures is useful to investors as they form part of the basis for how our management team and Board of Directors evaluate our operating performance.
Adjusted EBITDA and adjusted gross margins do not represent cash generated from operating activities in accordance with U.S. GAAP, are not necessarily indicative of cash available to fund cash needs and are not intended to and should not be considered as alternatives to cash flow, net income and gross profit margins, respectively, computed in accordance with U.S. GAAP as measures of liquidity or operating performance. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP are provided below for total adjusted EBITDA and adjusted gross margins, respectively.

32000 Aurora Road, Solon, OH 44139        • www.energyfocus.com        • 800.327.7877

Three months endedSix months ended
June 30,
(in thousands)June 30, 2026March 31, 2026June 30, 202520262025
Net loss$(877)$(140)$(231)$(1,017)$(499)
Interest expense5 — — 5 — 
Interest income(3)(1)(1)(4)(1)
Foreign exchange loss (gain)5 6 (45)11 (45)
Depreciation8 8 10 16 19 
Stock-based compensation (1)
— — — — (4)
Adjusted EBITDA $(855)$(127)$(267)$(982)$(530)
(1) No equity awards were granted to employees or consultants during the six months ended June 30, 2026 Accordingly, no stock-based compensation expense was recognized during the period. A reversal of $4 thousand was recognized during the six months ended June 30, 2025.
Three months Ended
(in thousands)June 30, 2026March 31, 2026June 30, 2025
($)(%)($)(%)($)(%)
Net sales$3,749$949$1,143
Actual gross profit (loss)$(255)(6.8)%$22123.3 %$14712.9 %
Excess and obsolete, in-transit and net realizable value inventory reserve changes, net of scrap write-off for inventory reduction42411.3 %737.7 %443.8 %
Adjusted gross profit$1694.5 %$29431.0 %$19116.7 %

32000 Aurora Road, Solon, OH 44139        • www.energyfocus.com        • 800.327.7877

Source: View Original Filing on SEC EDGAR

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