Elauwit Connection (ELWT) Q1 2026 earnings summary

Executive summary

• Achieved significant growth in key customer metrics, including a 29% year-over-year increase in contracted units to 36,720, a 110% increase in activated units to 24,530, and a 114% increase in billed units to 20,059, despite an 18.6%-19% year-over-year revenue decline due to timing of construction contracts and lower project-based activity.

• Recurring revenue base is expanding rapidly, with recurring service revenue more than doubling to $1.1 million as more networks reached activation and billing stages.

• Backlog grew to $38.1 million as of March 31, 2026, up from $15.6 million a year earlier, indicating robust future revenue streams.

• Investments in sales, marketing, and operational infrastructure, including AI-enabled systems and expanded sales teams, are driving accelerated growth and improved customer experience.

• Successful Nasdaq IPO in November 2025 raised $15.6 million gross ($13.6 million net), strengthening the balance sheet and enabling expansion.

Financial highlights

• Q1 2026 revenue was $4.4 million, down 18.6%-19% year-over-year, primarily due to lower construction activity.

• Gross profit was $0.8 million, down from $1.3 million in the prior year period; gross margin was 18.7%-19%.

• Operating expenses rose to $3 million from $1.6 million, reflecting investments in growth and public company costs.

• Operating loss and net loss both widened to $2.2 million from $0.4 million year-over-year; net loss per share was $0.33, compared to $0.09 in Q1 2025.

• Adjusted EBITDA loss was $2.2 million, compared to a $0.4 million loss in the prior year.

Outlook and guidance

• Full-year 2026 forecast remains robust, with expectations for stronger Q3 and Q4 performance and recurring revenue expected to become a larger portion of total revenue as the business scales.

• Management expects continued operating losses and negative cash flows as investments in commercial capabilities persist, but anticipates improvement as recurring revenue grows.

• Liquidity is considered sufficient for at least the next twelve months, supported by recent equity and debt financings, including a $2.0 million term loan secured in May 2026.

• Pipeline includes more managed services than Network as a Service (NaaS), with NaaS projects expected to ramp up later in the year.