Energy Focus (EFOI) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 were $1.1M, down 26% year-over-year, with a 71% drop in military maritime (MMM) sales, partially offset by a 118% increase in commercial sales from a major UPS project in Taiwan.

• Sequentially, net sales rose 85.6% from Q1 2025, driven by commercial sales growth.

• Gross profit margin improved to 13% in Q2 2025 from 8% in Q2 2024, mainly due to lower fixed costs, but declined from 31.5% in Q1 2025 due to lower-margin UPS project.

• Net loss for Q2 2025 was $0.2M ($0.04 per share), a 58% improvement from Q2 2024.

• Cash balance remained stable at $0.5M as of June 30, 2025, with all external high-interest debt eliminated.

Financial highlights

• Q2 2025 net sales: $1.1M (down 26% year-over-year); H1 2025 net sales: $1.8M (down 26% year-over-year).

• Gross profit: $0.1M (13% margin) in Q2 2025; $0.3M (19% margin) in H1 2025.

• Operating expenses in Q2 2025: $0.4M, down 46% year-over-year; H1 2025: $0.8M, down 41% year-over-year.

• Net loss per share: $(0.04) for Q2 2025; $(0.09) for H1 2025.

• Adjusted EBITDA loss was $0.3M in Q2 2025, improved from $0.6M loss year-over-year.

Outlook and guidance

• Management continues to seek at least $1M in new capital through equity, debt, or partnerships to support operations.

• Ongoing cost control, product innovation, and expansion into UPS and energy storage systems are expected to drive future growth, though uncertainty remains.

• Ongoing federal budget uncertainties and delays in new defense contracts continue to impact military sales.