Hyliion (HYLN) Q1 2026 earnings summary

Executive summary

• Achieved a fourfold sequential revenue increase to $2.8 million, driven by U.S. Navy contracts and progress on the KARNO Power Module, including UL certification and dynamic multi-fuel switching demonstrations.

• Signed a non-binding LOI with VFG Holdings to deploy up to 250 KARNO cores (50 MW) over five years, expanding data center market reach; nearly 750 KARNO cores under LOIs, representing $400M potential revenue.

• Broadened military engagement, with ongoing discussions across multiple U.S. military branches and expectation to sign $40–$50 million in new contracts in 2026.

• On track to deploy 10 early adopter units and commercialize the KARNO Power Module by year-end 2026, with the first 800 kW Navy system build underway.

• Strategic wind-down of legacy powertrain business and monetization of assets, resulting in a non-recurring credit of $414,000.

Financial highlights

• Q1 2026 revenue was $2.8 million, up 479% year-over-year, all from R&D services, reflecting accelerated Navy contract work.

• Gross margin was $210,000 on $2.8 million revenue (7.5%), with cost of revenues at $2.6 million.

• Operating expenses fell to $13.4 million from $19.7 million year-over-year, mainly due to a 37% reduction in R&D spending.

• Net loss narrowed to $11.7 million, a 32% improvement from Q1 2025.

• Ended Q1 with $139.3 million in cash and investments; net spending for 2026 forecasted just over $50 million, with year-end cash expected at ~$100 million.

Outlook and guidance

• Reaffirmed 2026 revenue guidance of ~$10 million, with growth expected from both R&D services and initial commercial sales.

• Targeting completion of 10 early adopter units and full 200 kW design power rating by year-end, with commercialization of the KARNO Power Module expected late in the year.

• Expects to sign $40–$50 million in additional military contracts in 2026, supporting momentum into 2027.

• 2027 projected as the year for commercial ramp and expanded deployments, with further acceleration in 2028 as production scales.

• Sufficient liquidity to fund operations and strategic initiatives for at least the next twelve months.