Eos Energy Enterprises, Inc.

Q2 revenue rose to a record $68.8 million, up 351% year over year and 21% sequentially, driven by cube deliveries that increased 207% year over year and 20% sequentially. Gross loss was $48.8 million, with gross margin improving 132 points year over year and 7 points sequentially; adjusted gross loss was $42.9 million and adjusted gross margin was negative 62%. Adjusted EBITDA loss was $71.4 million, with adjusted EBITDA margin at negative 104%, improving 235 points year over year and 16 points sequentially. Cash ended at $364 million. For 2026, management tightened revenue guidance to $300 million-$350 million, saying the lower end assumes roughly the June run rate for the rest of the year and the higher end depends on getting Thorn Hill to full 24/7 operation by the end of Q4. Management also said the second half should exceed the first half, with Q4 higher than Q3.

Joe Mastrangelo framed the quarter around record shipments, backlog growth, and a deliberate decision to consolidate manufacturing into Thorn Hill even though it reduces near-term revenue. He said the move is intended to lower the cost base, improve 2027 margins, and simplify operations, emphasizing that the guidance change was a business decision rather than a surprise. He also highlighted fleet performance, saying cumulative discharge energy reached 6.5 GWh, round-trip efficiency averaged 78% across the fleet, and performance at entitlement can reach 91%.

Alessandro Lagi highlighted strong top-line growth and margin progress, noting Q2 revenue of $68.8 million, gross loss of $48.8 million, adjusted gross loss of $42.9 million, and adjusted EBITDA loss of $71.4 million. He said operating expenses were $35 million, up 6% year over year, with SG&A down 4% and R&D up 46% as the company invested in software and product development. He pointed to almost 100% free cash flow conversion from operations, $364 million in cash, and said the company expects an advance request for the second-year tranche to close by quarter end, subject to loan agreement conditions. He also laid out a path to over 72 points of adjusted gross margin improvement over the next 12 months through lower material costs, conversion-cost reductions, field service efficiencies, and yield improvements.

Analysts focused on the lowered revenue outlook, asking how much depended on Thorn Hill ramping versus Line 1 returning, and management said the low end simply assumes the June run rate continues while the high end depends on Thorn Hill reaching full 24/7 operation by late Q4. Questions also centered on customer concentration and Frontier Power USA; management said the current mix reflects an initial asset brought into Frontier Power, and over time it expects a larger pie rather than a specific mix target, with more third-party and Frontier Power projects both contributing. On data centers, management said 32% of the pipeline is data-center-related and that it is pursuing both co-located and grid-adjacent opportunities, with duration requests showing multiple cycles and shorter durations that can add up to longer discharge.