WATT earnings analysis
What we found in WATT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Energous delivered strong year-over-year revenue growth, with Q2 revenue of $3.089 million, up 217% from Q2 2025, and first-half revenue exceeding full-year 2025 revenue. However, production ramp costs, a $3.193 million operating loss, negative $3 million free cash flow, and a $0.53 EPS loss indicate that the company remains far from profitability. Cash of $31.2 million supports near-term liquidity, but no quantitative forward guidance was provided and the filing reported no material changes to the previously disclosed risk factors.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue remained sharply above prior year
- Q2 revenue was $3.089 million, up 217% from $0.975 million in Q2 2025 and slightly above the approximately $3.0 million reported in Q1 2026.
- Cash balance was $31.2 million
- The company reported a $31.2 million cash balance, providing liquidity despite continued operating losses.
- First-half revenue surpassed FY2025
- First-half 2026 revenue exceeded full-year 2025 revenue, indicating significant year-over-year commercial growth.
- Gross margin held near prior-year level
- Q2 gross margin was 34.7%, compared with 35.5% in Q1 2026 and 34.7% in Q2 2025.
- Cash burn improved sequentially
- Q2 free cash flow was negative $3 million, an improvement from negative $6 million in Q1 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Operating losses remain substantial
- Q2 operating loss was $3.193 million, and the operating margin was negative 285.1%, demonstrating that operating expenses remain very high relative to revenue.
- Production ramp costs pressure margins
- Six-month gross margin was 19%, reflecting production ramp costs and indicating that scaling manufacturing continues to pressure profitability.
- Earnings remain volatile and negative
- Diluted EPS was a loss of $0.53 in Q2, compared with a loss of $0.43 in Q1 2026 and income of $0.15 in Q4 2025.
- Ongoing cash burn requires liquidity
- Free cash flow was negative $3 million in Q2, following negative $6 million in Q1 2026, leaving the company dependent on its $31.2 million cash balance to fund ongoing operations.
- No material risk-factor updates
- The filing states that there were no material changes to the risks disclosed in the December 31, 2025 Form 10-K; therefore, no new risk-factor changes were identified.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.53
- Gross margin
- 34.7%
- Operating margin
- -285.1%
What they said about what is next.
No forward revenue or EPS guidance was provided in the filing; the prior outlook also contained no quantitative guidance.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 14, 2026
- Energous Corporation reported significant growth in revenue and improvement in financial performance for Q4 2026. Revenue surged to $3.1 million, a 799% year-over-year increase, surpassing estimates, while diluted EPS…
- 10-K · March 26, 2026
- Energous reports a clear top-line inflection in 2025 with preliminary FY2025 revenue of approximately $5,600,000 (press release / 8-K) after four consecutive quarters of growth; gross margin expanded to ~37.5% in 2025Q4…
- 10-Q · November 13, 2025
- Energous reported Q3 2025 revenue of $1,272,000 and a GAAP net loss of $2,113,000 ($(1.31) per share). Revenue and gross profit improved materially year-over-year and sequentially, and the company materially…
- 10-Q · November 13, 2024
- Energous reported Q3 revenue of $230,000 and a GAAP net loss of $3,412,000 (loss per share $0.50). Revenue improved versus prior-year quarter ($230,000 vs $169,000) and operating loss narrowed (loss from operations…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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