XCHG (XCH) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was $10.3 million, down 17.5% year-over-year, mainly due to customer procurement timing and project delivery delays.

• Gross margin declined to 38.8% from 51.3% year-over-year, impacted by a higher proportion of lower-margin products and increased input costs.

• Operating loss widened to $11.2 million from $7.4 million, and net loss increased to $11.1 million from $7.3 million year-over-year.

• Order volume increased despite lower recognized revenue, supporting expectations for stronger H2 2026 performance.

• Significant commercial milestones included a long-term partnership with EnBW and the launch of new products GridOne and the next-generation C7 charger.

Financial highlights

• Product revenues were $9.5 million (down from $12.1 million), while service revenues rose to $0.8 million (from $0.4 million).

• Cost of revenues increased 3.6% to $6.3 million, driven by higher input costs and FX effects.

• Operating expenses rose 9.2% to $15.2 million, with selling and marketing up 12.7% and general/admin up 51.3%.

• Research and development expenses fell 42.7% to $2.3 million due to non-recurrence of prior-year development costs.

• Non-GAAP net loss was $10.4 million (vs. $4.6 million prior year); non-GAAP loss per share was $0.003 (vs. $0.002).

Outlook and guidance

• Full-year 2026 revenue expected between $32.9 million and $38.2 million, representing 31%–52% year-over-year growth.

• H2 2026 performance anticipated to improve significantly, driven by scheduled deliveries and increased business activity.