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Energy Focus (EFOI) investor relations material

Energy Focus Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary12 Nov, 2025

Executive summary

  • Net sales for Q3 2025 were $0.8 million, down 31% year-over-year, with declines in both military and commercial segments due to economic weakness and high inflation.

  • Net loss for Q3 2025 was $0.2 million ($0.03 per share), a 46% improvement from Q3 2024, driven by reduced operating expenses.

  • For the nine months ended September 30, 2025, net sales were $2.6 million, down 28% year-over-year, with a net loss of $0.7 million, a 48% improvement from the prior year period.

  • The company eliminated all external high-interest debt and raised $0.9 million through private placements in 2025, primarily with the CEO and related parties.

  • Ongoing cost reduction and restructuring efforts have aligned expenses with expected sales volumes.

Financial highlights

  • Gross profit margin improved to 18% in Q3 2025 from 16% in Q3 2024, and to 19% for the nine months ended September 30, 2025, from 12% in the prior year period.

  • Adjusted gross margin was 27.2% in Q3 2025, up from 24.5% in Q3 2024 and 16.7% in Q2 2025.

  • Operating expenses for Q3 2025 were $0.3 million, down 45% year-over-year; for the nine months, $1.2 million, down 42% year-over-year.

  • Adjusted EBITDA loss was $0.1 million, improving from a $0.4 million loss in Q3 2024 and $0.3 million loss in Q2 2025.

  • Cash balance at September 30, 2025 was $0.9 million, up from $0.6 million at December 31, 2024.

Outlook and guidance

  • Management continues to seek at least $1 million in additional capital through equity, debt, or strategic partnerships to support operations and growth.

  • Substantial doubt remains about the ability to continue as a going concern due to ongoing losses and limited cash.

  • Strategic focus remains on cost control, product innovation, and expanding sales channels, with an emphasis on new product launches and market diversification.

  • Management highlights ongoing risks from federal budget uncertainties, economic weakness, and inflation impacting demand and pricing.

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Frequently asked questions

Energy Focus, Inc. is a company specializing in energy-efficient lighting products and solutions. Its primary offerings include LED lighting systems designed for commercial, industrial, and military applications. The company's products focus on delivering energy savings, long operational life, and improved lighting quality. Energy Focus serves various sectors, including healthcare, education, government, and naval defense, providing lighting solutions that help reduce energy consumption and maintenance costs. In addition to lighting products, the company offers control systems for intelligent lighting management, further enhancing energy efficiency and operational flexibility. The company is headquartered in Solon, Ohio, and its shares are listed on the NASDAQ.

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