10-Q · May 13, 2026
Eos Energy Enterprises reported Q1 2026 revenue of $56.963 million, a 445% increase year-over-year, with a surprising EPS of $0.12 against an expected loss. The company's focus on advancing its innovative battery…
Earnings analysis · 10-Q
EOSE earnings analysis
Filed August 5, 2026 · Our reading of the company's report
The latest report
Eos delivered $68.775 million of Q2 revenue, up 351% year over year and above Q1's $57 million, but below the supplied $72.647 million consensus estimate. Gross margin improved sharply to negative 71.0%, yet operating…
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Eos delivered $68.775 million of Q2 revenue, up 351% year over year and above Q1's $57 million, but below the supplied $72.647 million consensus estimate. Gross margin improved sharply to negative 71.0%, yet operating margin remained negative 121.9% and diluted EPS was negative $1.20, versus negative $1.05 a year earlier and positive $0.12 in Q1. Liquidity was substantial at $305.5 million of unrestricted cash, but first-half operating cash burn of $191.753 million and capex of $70.551 million drove $262.304 million of calculated free-cash-flow usage; the newly disclosed FPUSA investment adds execution, governance and dilution risks.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $-1.2
- Gross margin
- -71.0%
- Operating margin
- -121.9%
What stood out
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Revenue rose 351% year over year
Total revenue rose $53.539 million, or 351% year over year, to $68.775 million, driven by greater deliveries, higher average selling prices and higher third-party-material revenue. Revenue also increased from $57 million in Q1 2026.
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Gross-margin loss narrowed materially
Gross margin improved to negative 71.0% from negative 203.2% a year earlier and negative 78.0% in Q1 2026, as $22.8 million of production tax credits reduced six-month cost of goods sold.
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Second production line entered operation
The company launched commercial production on its second Z3 manufacturing line on June 16, 2026. Management expects higher utilization and fixed-cost absorption as production volumes rise.
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Cash position supports near-term ramp
Liquidity at June 30 comprised $305.5 million of unrestricted cash and cash equivalents, $58.6 million of restricted cash, and $356.1 million of working capital. The DOE facility also had approximately $186.6 million of remaining availability.
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FPUSA could support order conversion
FPUSA is targeting a multi-gigawatt-hour long-duration-storage project pipeline, while the company announced a rights offering targeting approximately $150.0 million to fund its planned contribution to the venture.
What to watch
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Operations remain materially unprofitable
Operating margin was negative 121.9%, versus negative 419.1% a year ago and negative 139.2% in Q1 2026. Cost of goods sold of $117.576 million exceeded quarterly revenue of $68.775 million by $48.801 million.
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Cash burn and capex accelerated
Six-month operating cash use doubled to $191.753 million from $95.046 million, while capital expenditures increased to $70.551 million from $11.959 million. This produced calculated free-cash-flow usage of $262.304 million for the first half.
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New FPUSA investment and governance risk
The updated risk factors identify FPUSA as a new strategic risk: Eos is funding its planned minority investment through a rights offering targeting approximately $150.0 million and a $75.0 million registered direct offering, while FPUSA will be controlled and managed by a related party.
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Working capital absorbed cash
Inventory increased $16.6 million, grant receivables increased $22.8 million, and contract assets increased $7.4 million in the first half, contributing to $54.1 million of operating working-capital outflows.
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Debt obligations and interest burden increased
Contractual future debt payments totaled $1.190 billion at June 30, including $657.750 million for November 2025 convertible notes and $348.386 million for the delayed-draw term loan. Quarterly interest expense rose to $11.972 million from $2.980 million.
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New shareholder litigation disclosed
The company disclosed a March 6, 2026 securities class action alleging misleading statements regarding manufacturing capabilities and financial outlook; related derivative cases were consolidated on May 13, 2026. The filing does not quantify potential damages.
Management's outlook
The 10-Q contains no explicit quantitative revenue or EPS outlook. Management states it expects revenue to increase as production scales, and expects utilization, fixed-cost absorption and manufacturing efficiencies to improve as volumes increase.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.