Eos Energy (NASDAQ: EOSE) grows Q2 sales 351% but loses $275.7M
Rhea-AI Filing Summary
Eos Energy Enterprises reported strong top-line growth but continued heavy losses for the quarter ended June 30, 2026. Revenue was $68.8 million, up 351% year over year, with about $55.0 million from a Cerberus‑financed project later contributed to the Frontier Power USA joint venture. Backlog reached a record $807 million, representing 3.4 GWh, and the commercial opportunity pipeline totaled $24.6 billion.
Profitability remains challenging. The company posted a $48.8 million gross loss and gross margin of -71%, a $275.7 million net loss mainly from fair value adjustments, and an adjusted EBITDA loss of $71.4 million. Total cash, including restricted cash, was $364.1 million at June 30, 2026. Eos tightened its 2026 revenue outlook to $300 million–$350 million, from $300 million–$400 million, as it evaluates consolidating manufacturing into its Thorn Hill facility, where a new production line is delivering faster cycle times and is expected to improve efficiency and margins over time.
Positive
- Q2 2026 revenue rose to $68.8 million, a 351% year-over-year increase, while backlog reached $807 million and the commercial opportunity pipeline expanded to $24.6 billion.
- Frontier Power USA raised $263 million of equity, expected to support more than $1 billion of deployable project capital and a development pipeline of approximately 16 GWh.
- Eos launched commercial production on Line 2 at its Thorn Hill facility, achieving about 10% faster battery line cycle times and 11% faster bipolar line times versus Line 1.
Negative
- The company reported a Q2 net loss attributable to shareholders of $275.7 million, an adjusted EBITDA loss of $71.4 million, and a still deeply negative gross margin of -71%.
- Full-year 2026 revenue guidance was tightened to $300 million–$350 million from a prior $300 million–$400 million range, lowering the top-end outlook.
Insights
Analyzing...
8-K Event Classification
2 items: 2.02, 9.01
2 items
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.
Key Figures
Q2 2026 revenue: $68.8 million
Q2 2026 gross loss: $48.8 million
Q2 2026 net loss: $275.7 million
+5 more
8 metrics
Q2 2026 revenue
$68.8 million
Total revenue for the quarter ended June 30, 2026; 351% year-over-year increase.
Q2 2026 gross loss
$48.8 million
Gross loss for the quarter; gross margin was -71%, improving 132 percentage points year over year.
Q2 2026 net loss
$275.7 million
Net loss attributable to shareholders, driven primarily by mark-to-market fair value adjustments on certain liabilities.
Q2 2026 adjusted EBITDA loss
$71.4 million
Adjusted EBITDA loss for the quarter; margin improved by 235 percentage points year over year and 16 points sequentially.
Total cash including restricted
$364.1 million
Total cash, including restricted cash, as of June 30, 2026.
Backlog
$807 million
Backlog as of June 30, 2026, representing 3.4 GWh and up 25% sequentially.
Commercial opportunity pipeline
$24.6 billion
Value of the commercial opportunity pipeline as of June 30, 2026.
2026 revenue guidance range
$300 million to $350 million
Tightened full-year 2026 revenue guidance, previously $300 million to $400 million.
Key Terms
backlog, commercial opportunity pipeline, Adjusted EBITDA, Capacity Reservation Agreement, +2 more
6 terms
backlog financial
"Backlog of $807 million, representing 3.4 GWh, up 25% sequentially,"
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
commercial opportunity pipeline financial
"with a commercial opportunity pipeline of $24.6 billion, as of June 30, 2026."
A commercial opportunity pipeline is the tracked list of products, deals, partnerships or sales leads a company expects could generate revenue, shown at different stages from early interest to near-final contracts. It matters to investors because it provides a snapshot of potential future income and how likely and how soon that income may arrive; think of it like a garden of seedlings at different growth stages that indicate the size and timing of the eventual harvest.
Adjusted EBITDA financial
"Adjusted EBITDA loss was $71.4 million, compared to an adjusted EBITDA loss of $51.6 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.
Capacity Reservation Agreement financial
"under Frontier Power USA’s (FPUSA) 2 GWh Capacity Reservation Agreement"
A capacity reservation agreement is a contract where a buyer pays to reserve a portion of a supplier’s future production, shipping, storage or service capability so that the buyer is guaranteed access when needed. For investors, it signals committed future demand and can protect a company from shortages, but it also creates obligations or upfront costs that affect cash flow and risk if the reserved capacity goes unused—like pre-booking a block of hotel rooms for a future event.
Master Supply Agreement financial
"a binding Master Supply Agreement with CAPAC Energy, establishing an exclusive distribution partnership"
A master supply agreement is a long-term contract that sets the basic rules—price ranges, delivery schedules, quality standards, and dispute and termination terms—for future purchases between a supplier and a buyer. For investors it signals predictability in revenue, cost and supply risk—similar to a household signing a standing service contract instead of buying one-off services—so it can support more reliable financial forecasting but may also create dependency on the counterparty.
mezzanine equity financial
"Mezzanine equity - preferred stock $ 713,222 $ 1,361,542"
Mezzanine equity is a layer of financing that sits between bank loans and full ownership, combining elements of borrowed money and equity. It often gives lenders higher potential returns in exchange for taking more risk, sometimes with the option to convert into ownership or receive extra payments; think of it as a middle seat that pays more because it’s less secure than front-row debt. Investors watch it because it affects a company’s debt risk, potential dilution of ownership, and expected returns.
Earnings Snapshot
Total revenue: $68.8 million · Guidance included
quarter ended June 30, 2026
Total revenue
$68.8 million
up 351% year over year
Net loss attributable to shareholders
$275.7 million
compared with a $222.9 million loss in the prior-year quarter
Adjusted EBITDA loss
$71.4 million
compared with a $51.6 million adjusted EBITDA loss in the prior-year quarter
Backlog
$807 million
up 25% sequentially and 20% year over year
2026 revenue guidance
$300 million to $350 million
narrowed from a prior range of $300 million to $400 million
Guidance
Eos expects 2026 revenue of $300 million to $350 million, reflecting timing of consolidating manufacturing operations into its Thorn Hill facility.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Eos Energy Enterprises (EOSE) Q2 2026 revenues and growth?
Eos generated $68.8 million in Q2 2026 revenue, a 351% year-over-year increase driven by 207% higher cube deliveries. About $55.0 million came from a Cerberus-financed project later contributed to the Frontier Power USA joint venture.
How profitable was Eos Energy Enterprises (EOSE) in Q2 2026?
Eos recorded a Q2 2026 net loss attributable to shareholders of $275.7 million, largely from fair value adjustments on liabilities. Adjusted EBITDA loss was $71.4 million, and gross margin remained negative at -71%, though it improved significantly versus the prior year.
What is Eos Energy Enterprises (EOSE) 2026 revenue guidance?
Eos now expects full-year 2026 revenue between $300 million and $350 million, narrowing the prior $300 million–$400 million range. The updated outlook reflects timing considerations around consolidating manufacturing into the Thorn Hill facility to improve efficiency and margins.
How strong are Eos Energy Enterprises (EOSE) backlog and pipeline?
As of June 30, 2026, Eos reported backlog of $807 million, representing 3.4 GWh and up 25% sequentially. The commercial opportunity pipeline totaled $24.6 billion, supported by orders from four new and two repeat customers and new international partnerships.
What role does Frontier Power USA play for Eos Energy Enterprises (EOSE)?
Frontier Power USA secured approximately $263 million of gross equity proceeds from Eos and partners, supporting more than $1 billion of deployable project capital. The joint venture has a 16 GWh development pipeline, including a $100 million Blanquilla project order.
What manufacturing progress did Eos Energy Enterprises (EOSE) report at Thorn Hill?
Eos launched commercial production on Battery Line 2 at its Thorn Hill facility in mid‑June 2026, expanding capacity. Initial results show battery line cycle times about 10% faster and bipolar line times 11% faster than Line 1, with full capacity targeted in the fourth quarter.
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 5, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (732 ) 225-8400
N/A
(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 obligation of the registrant under any of the following provisions:
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 class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
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. ☐
1
Item 2.02 Results of Operations and Financial Condition.
On August 5, 2026, the Company issued a press release announcing its financial results for the quarter ended June 30, 2026. A copy of the press release is furnished herewith as Exhibit 99.1.
The information furnished under this Item 2.02 and in the accompanying Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.
Item 9.01 Financial Statement and Exhibits.
(d) Exhibits
Exhibit Number | Description of Document | |||||||
99.1 | Press release announcing financial results, dated August 5, 2026 | |||||||
104 | Cover page of this Current Report on Form 8-K formatted in Inline XBRL | |||||||
2
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.
EOS ENERGY ENTERPRISES, INC. | |||||||||||
Dated: August 5, 2026 | By: | /s/ Alessandro Lagi | |||||||||
Name: | Alessandro Lagi | ||||||||||
Title: | Chief Financial Officer | ||||||||||
3
Eos Energy Enterprises Reports Second Quarter 2026 Financial Results and Tightens Full-Year Revenue Guidance • Post quarter end, booked a $100 million purchase order for Phase I of the Blanquilla project under Frontier Power USA’s (FPUSA) 2 GWh Capacity Reservation Agreement • Awarded Golden Dome for America contract and entered strategic partnership with the Department of War to deploy American-made long-duration energy storage for critical defense infrastructure • Expanded backlog to a record $807 million, up 25% sequentially, driven by orders from four new and two repeat customers • Secured $263 million in gross proceeds for FPUSA, exceeding the joint venture's initial equity target and expected to support more than $1 billion of deployable project capital • Generated $68.8 million in revenue; combined revenue over the last two quarters exceeded full- year 2025 revenue • Launched commercial production on Line 2 at the Thorn Hill facility, realizing an initial 10% improvement in battery cycle time compared to Line 1, with further optimization opportunities expected as production ramps • Surpassed 6.5 GWh of cumulative energy discharged by Eos technology, up nearly half a gigawatt- hour over the past three months, with projects totaling more than 200 MWh of incremental energy expected to begin operations by year-end 2026 • Tightened full-year 2026 revenue guidance to $300 million to $350 million, from the prior range of $300 million to $400 million, and is evaluating the timing of consolidating manufacturing operations into its Thorn Hill facility to drive efficiencies, enhance margins, and support long-term profitability Pittsburgh, PA – August 5, 2026 – Eos Energy Enterprises, Inc. (NASDAQ: EOSE) (“Eos” or the “Company”), America’s leading innovator in designing, manufacturing, and providing zinc-based long- duration energy storage (LDES) systems sourced and manufactured in the United States, today announced its financial results for the second quarter ended June 30, 2026. Second Quarter Highlights • Revenue totaled $68.8 million, a 351% year-over-year increase, driven by 207% higher cube deliveries. • Gross loss was $48.8 million, compared to $31.0 million in the prior-year period. Gross margin was negative 71%, improving 132 percentage points year over year and 7 percentage points sequentially. The improvement reflects increased production volumes and lower conversion costs, partially offset by temporary manufacturing underutilization as operations ramped across two facilities and higher project costs to support a growing installed base. • Adjusted gross loss, excluding stock-based compensation and depreciation, was $42.9 million. • Net loss attributable to shareholders totaled $275.7 million, primarily driven by mark-to-market fair value adjustments on certain liabilities, reflecting changes in the Company’s end-of-quarter stock price. • Adjusted EBITDA loss was $71.4 million, compared to an adjusted EBITDA loss of $51.6 million in the prior-year period. Adjusted EBITDA margin improved by 235 percentage points year over year and 16 percentage points sequentially, reflecting continued operational efficiencies and increased leverage on higher revenue. • Total cash of $364.1 million, including restricted cash, as of June 30, 2026. • Backlog of $807 million, representing 3.4 GWh, up 25% sequentially, with a commercial opportunity pipeline of $24.6 billion, as of June 30, 2026. “We delivered more revenue in the first half of 2026 than in all of 2025,” said Joe Mastrangelo, Chief Executive Officer of Eos. “The market wants a U.S. supplier of long-duration energy storage that can deliver at scale. Our focus now is converting that demand into profitable growth. The decisions we are making today, including the consolidation of manufacturing into Thorn Hill, are about building a lower-cost operation that can support that demand.”
2026 Revenue Outlook Eos is tightening its full-year 2026 revenue guidance to $300 million to $350 million, from its prior range of $300 million to $400 million. The revised outlook reflects the Company's evaluation of the timing associated with consolidating its production lines into a single manufacturing footprint in Thorn Hill. The consolidation initiative is expected to improve manufacturing efficiency, optimize capacity utilization, enhance margins, and strengthen the Company's long-term operating profile. Recent Business Highlights Frontier Power USA FPUSA exceeded its initial $250 million equity target, with approximately $263 million of gross proceeds raised from Eos, Cerberus Capital Management, and Hudson Bay Capital Management. With Eos’ Rights Offering now complete, the platform has secured the equity needed to advance its next phase of growth. These commitments, including the gross proceeds of the Rights Offering, are dedicated to FPUSA and will be used to fund project development at the joint venture. FPUSA is expected to have access to more than $1 billion of deployable project capital and has established a development pipeline totaling approximately 16 GWh. Approximately 5.0 GWh of projects have been acquired, selected, or are under active diligence, including approximately 1.8 GWh that are under construction or approaching notice to proceed. In anticipation of the formation of FPUSA, Eos generated $55.0 million of revenue in the second quarter from a pre-existing project executed using financing provided by an affiliate of Cerberus prior to the closing of the joint venture. The project contributed approximately 80% of total second quarter revenue and was contributed to FPUSA upon closing, which occurred on August 4, 2026. As of June 30, 2026, this project and FPUSA represented 49% of Eos' backlog volume. Commercial Momentum Commercial momentum remained strong during and after the quarter. Backlog increased to a record $807 million, up 25% sequentially and 20% year over year, driven by orders from four new customers and two repeat customers. During the quarter, Eos received the first purchase order supporting the 100 MW / 400 MWh Redbird project. Upon FPUSA closing on August 4, 2026, this purchase order was transferred to FPUSA, where it became part of the parties’ 2 GWh Capacity Reservation Agreement. Eos also expanded its international presence through a binding Master Supply Agreement with CAPAC Energy, establishing an exclusive distribution partnership across Germany, Austria, and Switzerland with an initial 750 MWh commitment and the potential to scale to 2 GWh through 2031. Subsequent to quarter end, Eos announced a strategic partnership with the Department of War and was awarded a contract supporting the Golden Dome for America initiative to deploy its Eos Z3™ zinc-based long-duration energy storage technology at a critical defense installation. The Company also received a $100 million purchase order from FPUSA for Phase I of the Blanquilla project. These milestones reflect continued commercial execution, expanding market opportunities, and growing demand for Eos' safe, American-made energy storage technology, further strengthening the Company's long-term growth outlook. Launch of Commercial Production at Eos’ New Thorn Hill Facility Eos launched commercial production on Battery Line 2 at its Thorn Hill facility in mid-June, on schedule and in line with prior expectations, expanding manufacturing capacity to support growing customer demand. The Company is currently operating one partial production shift as part of its planned ramp strategy and remains on track to reach full production capacity in the fourth quarter. During the quarter, Eos completed Site Acceptance Testing and commissioning across all sub-assembly operations, bringing the full automation online. Line 2 continues to demonstrate strong initial operational performance, with cycle times running approximately 10% faster on the battery line and 11% faster on the bipolar line compared to Line 1, reflecting continued improvements in manufacturing efficiency and throughput. Earnings Conference Call and Webcast Eos will host a conference call to discuss its second quarter 2026 results on August 5, 2026, at 8:30 a.m. ET. The live webcast of the earnings call will be available on the “Investor Relations” page of the Company’s website at Eos Investors or may be accessed using this link Eos Energy Second Quarter 2026 Earnings
Conference Call. To avoid delays, we encourage participants to join the conference call fifteen minutes ahead of the scheduled start time. The conference call replay will be available via webcast through Eos’ investor relations website for twelve months following the live presentation. The webcast replay will be available from approximately 11:30 a.m. ET on August 5, 2026, and can be accessed by visiting Eos Investors. About Eos Energy Enterprises Eos is accelerating the shift to American energy independence with positively ingenious solutions that transform how the world stores power. The Company’s BESS features the innovative Znyth™ technology, a proven chemistry with readily available non-precious earth components, that is the pre-eminent safe, non- flammable, secure, stable, and scalable alternative to conventional technology. The Company’s BESS is ideal for utility-scale, microgrid, commercial, and industrial long-duration energy storage applications (i.e., 4 to 16+ hours), and provides customers with significant operational flexibility to effectively address current and future increased grid demand and complexity. For more information about Eos (NASDAQ: EOSE), visit eose.com. Contacts Investors: ir@eose.com Media: media@eose.com Forward Looking Statements Except for the historical information contained herein, the matters set forth in this press release are forward- looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding our expected revenue for the fiscal year ending December 31, 2026, our path to profitability and strategic outlook, statements regarding orders backlog and opportunity pipeline, statements regarding the joint venture, the transactions related thereto, and any anticipated benefits of the joint venture, statements regarding our expectation that we can continue to increase product volume on our state-of-the-art manufacturing lines, statements regarding our future expansion and its impact on our ability to scale up operations and increase margins, statements regarding the expected impact of DawnOSTM on efficiency operating costs, and grid coordination, statements regarding the launch of IndensityTM and our expectations for the architecture and its expected energy density, statements regarding our expectation that we can continue to strengthen our overall supply chain, statements that refer to outlook, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are based on our management’s beliefs, as well as assumptions made by, and information currently available to, them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: changes adversely affecting the business in which we are engaged; our ability to forecast trends accurately; our ability to generate cash, service indebtedness and incur additional indebtedness; our ability to raise financing in the future; our ability to obtain stockholder approval of an increase to our authorized common stock; risks associated with the joint venture, including the risk that the joint venture will not be completed on the anticipated timeline or terms, or at all, and risks associated with FPUSA’s ability to develop, finance, construct and monetize projects; risks associated with the credit agreement with Cerberus, including risks of default, and dilution of outstanding common stock; our customers’ ability to secure project financing; the amount of final tax credits available to our customers or to Eos pursuant to the
Inflation Reduction Act, including potential impacts from any repeal or modifications of the legislation; the timing and availability of future funding under the Department of Energy Loan Facility; risks associated with the successful execution and expected benefits of any manufacturing consolidation initiatives; our ability to continue to develop efficient manufacturing processes to scale and to forecast related costs and efficiencies accurately; fluctuations in our revenue and operating results; competition from existing or new competitors; our ability to convert firm order backlog and pipeline to revenue; risks associated with security breaches in our information technology systems; risks related to legal proceedings or claims; risks associated with evolving energy policies in the United States and other countries and the potential costs of regulatory compliance; risks associated with changes to the U.S. trade environment; our ability to maintain the listing of our shares of common stock on NASDAQ; our ability to grow our business and manage growth profitably, maintain relationships with customers and suppliers and retain our management and key employees; risks related to adverse changes in general economic conditions, including inflationary pressures and increased interest rates; risk from supply chain disruptions and other impacts of geopolitical conflict; changes in applicable laws or regulations; the possibility that Eos may be adversely affected by other economic, business, and/or competitive factors; other factors beyond our control; and other risks and uncertainties indicated. The forward-looking statements contained in this press release are also subject to additional risks, uncertainties, and factors, including those more fully described in the Company’s most recent filings with the Securities and Exchange Commission (the “SEC”), including the Company’s most recent Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Further information on potential risks that could affect actual results will be included in the subsequent periodic and current reports and other filings that the Company makes with the Securities and Exchange Commission from time to time. Moreover, the Company operates in a very competitive and rapidly changing environment, and new risks and uncertainties may emerge that could have an impact on the forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made. Should one or more of these risks or uncertainties materialize or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Key Metrics Backlog. Our backlog represents the amount of revenue that we expect to realize from existing agreements with our customers for the sale of our battery energy storage systems and performance of services. The backlog is calculated by adding new orders in the current fiscal period to the backlog as of the end of the prior fiscal period and then subtracting the shipments in the current fiscal period. If the amount of an order is modified or cancelled, we adjust orders in the current period and our backlog accordingly, but do not retroactively adjust previously published backlogs. There is no comparable U.S. GAAP financial measure to backlog. We believe that the backlog is a useful indicator regarding the future revenue of our Company. Pipeline. Our pipeline represents projects for which we have submitted technical proposals or non-binding quotes plus letters of intent (“LOI”) or firm commitments from customers. Pipeline does not include lead generation projects. Booked Orders. Booked orders are orders where we have legally binding agreements with a Purchase Order (“PO”) or Master Supply Agreement (“MSA”) executed by both parties. Non-GAAP Financial Measures To provide investors with additional information regarding our financial results, we have disclosed in this earnings release non-GAAP financial measures, including adjusted EBITDA and adjusted gross profit (loss), which are non-GAAP financial measures as defined under the rules of the SEC. These non-GAAP financial measures should be considered supplemental to, and not a substitute for or superior to, the financial measures of the Company’s calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes adjusted EBITDA and adjusted gross profit (loss) are useful measures in evaluating its financial and operational performance distinct and apart from financing costs, certain non-cash expenses and non-operational expenses. We believe that non-GAAP financial information, when taken collectively, may be helpful to our investors in assessing our operating performance. There are a number of limitations related to the use of these non- GAAP financial measures and their nearest GAAP equivalents. For example, the Company’s definitions of non-GAAP financial measures may differ from non-GAAP financial measures used by other companies. Below is a description of the non-GAAP financial information included herein as well as reconciliations to its most directly comparable GAAP measure. You should review the reconciliations below but not rely on any single financial measure to evaluate our business. Adjusted EBITDA is defined as earnings (net loss) attributable to Eos adjusted for interest expense, income tax, depreciation and amortization, non-cash stock-based compensation expense, change in fair value of debt and derivatives, debt extinguishment, and other non-cash or non-recurring items as determined by management which it does not believe to be indicative of its underlying business trends. Adjusted gross profit (loss) is defined as gross profit (loss) adjusted to exclude stock-based compensation, depreciation and amortization.
EOS ENERGY ENTERPRISES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In thousands, except share and per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue $ 13,741 $ 15,236 $ 70,704 $ 25,693 Revenue - related party 55,034 — 55,034 — Total revenue 68,775 15,236 125,738 25,693 Cost of goods sold 117,576 46,189 218,966 81,185 Gross profit (loss) (48,801) (30,953) (93,228) (55,492) Operating expenses Research and development expenses 10,505 7,201 21,224 14,038 Selling, general and administrative expenses 24,500 25,488 48,595 46,483 Loss from write-down of property, plant and equipment 5 205 76 766 Total operating expenses 35,010 32,894 69,895 61,287 Operating income (loss) (83,811) (63,847) (163,123) (116,779) Other income (expense) Interest expense (11,972) (2,980) (24,214) (3,958) Interest expense - related parties — (4,510) — (10,291) Interest income 3,654 851 6,441 1,665 Change in fair value of debt - related party (4,534) 31,615 (8,766) 25,682 Change in fair value of warrants (22,585) (57,936) 146,140 (12,011) Change in fair value of derivatives (70,447) — 95,488 — Change in fair value of derivatives - related parties (50,546) (76,455) 216,684 (41,869) Loss on debt extinguishment — (49,063) — (49,063) Loss on contingently issuable securities (35,662) — (35,662) — Other income (expense) 206 (606) 203 (1,166) (Loss) income before income taxes $ (275,697) $ (222,931) $ 233,191 $ (207,790) Income tax expense 13 6 18 11 Net (loss) income attributable to shareholders $ (275,710) $ (222,937) $ 233,173 $ (207,801) Remeasurement of Preferred Stock - related party (130,558) (21,385) 648,320 58,612 Down round deemed dividend — (4,456) — (4,456) Net (loss) income applicable to common stock $ (406,268) $ (248,778) $ 881,493 $ (153,645)
Other comprehensive (loss) income Change in fair value of debt - credit risk - related party $ (45,629) $ (6,224) $ (4,090) $ (6,224) Foreign currency translation adjustment (3) 14 (13) 21 Comprehensive (loss) income attributable to common shareholders $ (451,900) $ (254,988) $ 877,390 $ (159,848) Net income available to common shareholders $ (406,268) $ (248,778) $ 566,165 $ (153,645) Basic and diluted (loss) income per share attributable to common shareholders Basic $ (1.20) $ (1.05) $ 1.67 $ (0.66) Diluted $ (1.20) $ (1.05) $ (0.26) $ (0.66) Weighted average shares of common stock Basic 339,799,132 237,741,328 339,920,441 231,616,540 Diluted 339,799,132 237,741,328 531,673,873 231,616,540
EOS ENERGY ENTERPRISES, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) June 30, 2026 December 31, 2025 Balance sheet data Cash and cash equivalents $ 305,491 $ 567,992 Other current assets $ 208,509 $ 140,488 Property, plant and equipment, net $ 177,453 $ 114,415 Other assets $ 215,326 $ 62,302 Total assets $ 906,779 $ 885,197 Total liabilities $ 1,224,341 $ 1,762,517 Mezzanine equity - preferred stock $ 713,222 $ 1,361,542 Total deficit $ (1,030,784) $ (2,238,862) EOS ENERGY ENTERPRISES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Six Months Ended June 30, 2026 2025 Net cash used in operating activities $ (191,753) $ (95,046) Net cash used in investing activities (70,551) (11,959) Net cash provided by financing activities 1,808 186,820 Effect of exchange rate changes on cash, cash equivalents and restricted — (2) Net (decrease) increase in cash, cash equivalents and restricted cash (260,496) 79,813 Cash, cash equivalents and restricted cash, beginning of the period 624,566 103,362 Cash, cash equivalents and restricted cash, end of the period $ 364,070 $ 183,175
EOS ENERGY ENTERPRISES, INC. UNAUDITED RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue $ 13,741 $ 15,236 $ 70,704 $ 25,693 Revenue - related party 55,034 — 55,034 — Total revenue 68,775 15,236 125,738 25,693 Cost of goods sold 117,576 46,189 218,966 81,185 Gross profit (loss) (48,801) (30,953) (93,228) (55,492) Gross profit (loss) margin % (71.0) % (203.2) % (74.1) % (216.0) % Add: Stock-based compensation 516 503 1,023 1,523 Depreciation and amortization 5,416 2,632 10,296 5,026 Adjusted gross profit (loss) $ (42,869) $ (27,818) $ (81,909) $ (48,943) Adjusted gross profit (loss) margin % (62.3) % (182.6) % (65.1) % (190.5) % EOS ENERGY ENTERPRISES, INC. UNAUDITED RECONCILIATION OF NET (LOSS) INCOME TO EBITDA AND ADJUSTED EBITDA (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net (loss) income $ (275,710) $ (222,937) $ 233,173 $ (207,801) add: Interest expense, net 8,318 6,639 17,773 12,584 add: Income tax expense 13 6 18 11 add: Depreciation and amortization 6,067 2,935 11,461 5,615 EBITDA (loss) (261,312) (213,357) 262,425 (189,591) EBITDA (loss) margin % (380) % (1400) % 209% (738) % add: Stock based compensation 6,183 7,127 12,085 14,701 add (deduct): Change in fair value of derivatives 143,578 134,390 (458,312) 53,880 add (deduct): Change in fair value of debt 4,534 (31,615) 8,766 (25,682) add: Loss on debt extinguishment — 49,063 — 49,063 add: Other non-cash or non-recurring 35,662 2,766 35,662 2,766 Adjusted EBITDA (loss) $ (71,355) $ (51,626) $ (139,374) $ (94,863) Adjusted EBITDA (loss) margin % (104) % (339) % (111) % (369) %