Eos Energy Enterprises (EOSE 4.98%), a company specializing in zinc-based battery energy storage systems, released its Q2 2025 earnings results on July 30, 2025. The main headline from the release was record quarterly GAAP revenue of $15.2 million.
Second quarter revenue was up 17x compared to the same period last year.
Yet, this figure fell well short of consensus expectations, missing the $24.2 million analyst estimate by about $9.0 million, or 37.2%. Despite the record sales, the company continued to report substantial GAAP losses, with a Non-GAAP loss per share of $(0.37).
Non-GAAP loss per share of $(0.37) was wider than both Q2 2024 and the Wall Street forecast.
Adjusted EBITDA loss deepened compared to the previous quarter.
Though the margin improved compared to previous periods. Management reiterated a full-year 2025 revenue target of $150–190 million, a goal that now requires a steep increase in the following quarters. Overall, the period showed clear progress in scaling the business but also highlighted persistent risks around profitability and order conversion.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $(0.37) | $(0.14) | $(0.30) | (23.3%) |
| Revenue (GAAP) | $15.2 million | $24.2 million | $0.9 million | 1,591.1% |
| Gross Profit (Loss) | $(31.0 million) | $(13.2 million) | (134.8%) | |
| Adjusted EBITDA Loss | $(51.6 million) | $(29.1 million) | (77.5%) | |
| Total Cash | $183.2 million | $57.6 million | 218.2% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Recent Focus
Eos Energy Enterprises designs and manufactures energy storage systems using a proprietary zinc-based battery technology. The flagship product, the Znyth™ Z3 battery module, is a type of stationary battery energy storage system (BESS). These systems are intended to store electricity for use in applications such as grid stabilization, renewable energy integration, and backup power for critical infrastructure.
Recently, the company's strategy has centered on scaling up domestic manufacturing, leveraging government incentives, and targeting customers who need long-duration and safer energy storage systems. Key factors for its success include continued improvements in product efficiency and scale, execution on converting its commercial pipeline into signed orders and deliveries, and maintaining access to funding and regulatory incentives to support further expansion.
Quarter Highlights: Revenue, Margins, and Operations
The quarter marked an all-time high for revenue.
Revenue grew both sequentially and year over year.
However, this headline figure still fell short of market expectations by nearly $9 million. Despite the growth, GAAP net losses remained deep.
Non-GAAP loss per share of $(0.37) was wider than the previous year.
Gross margins, while still negative, improved by 32 percentage points compared to the previous quarter. This was achieved through a combination of higher production output and greater operational efficiency as the company scales its manufacturing. Still, the gross loss of $(31.0) million (GAAP) highlights the challenge of translating rising sales into profitability. One factor was the fulfillment of early, lower-priced orders, which dragged on overall gross margins.
Adjusted EBITDA loss was $(51.6) million, compared to $(29.1) million in Q2 2024.
Though management pointed to a "75-point margin improvement" in adjusted EBITDA margin compared to the prior quarter. The company reported total cash on hand of $183.2 million as of June 30, 2025, reflecting a strengthened liquidity position through additional funding, equity raises, and government support.
The backlog of signed orders sat at $672.5 million as of the end of the quarter.
The commercial pipeline—the set of active project opportunities—grew by $3.2 billion sequentially to reach $18.8 billion, reflecting new customer interest in longer-duration storage and data center applications. Approximately half of all project shipments during the quarter were delivered to a single strategic customer, which creates some concentration risk.
Technological and Product Progress
This zinc-based battery system offers long-duration energy storage with improved safety and performance. The Z3 averaged nearly 88% round-trip efficiency (the percentage of energy output versus input during a full cycle) during the quarter, with peaks of 89.5% in field tests. This means the company’s batteries can efficiently discharge and recharge with minimal losses, which is important for customers who need reliable daily cycling.
The Z3 battery is positioned as safer and more flexible than traditional lithium-ion systems. It operates across a wide temperature range and does not require complex cooling or fire suppression, simplifying both installation and operation. Stand-alone storage projects—batteries installed as grid assets rather than alongside renewables—now make up more than half the company’s commercial pipeline, showing rising interest from grid operators and utilities. The company's focus on U.S.-based manufacturing and high domestic content also makes its solutions more attractive under current government incentive programs.
Regulatory Environment, Funding, and Market Trends
The company continued to benefit from regulatory incentives. It received a $22.7 million advance from the Department of Energy’s Loan Programs Office during the quarter, bringing total DOE loan proceeds to $91 million since November 2024. The loan supports manufacturing scale-up and aligns with U.S. policy priorities for domestic energy storage supply chains.
Other government programs, such as the "One Big Beautiful Bill Act" and the Investment Tax Credit, remain important. Eos' battery systems exceed the minimum domestic content requirements to qualify for these incentives. In addition, stricter tariffs on imported batteries have improved the company's competitive stance in the U.S. and opened opportunities to win business from international rivals.
The commercial opportunity pipeline represents $18.8 billion in potential projects, with long-duration storage projects and data center demand noted as particularly strong.
Factory shipments increased by 122% compared to the previous quarter.
Even as final deployment of a major equipment automation project remained on track for the second half of 2025. Management is also in the process of ordering a second manufacturing line, targeting a doubling of annualized production capacity to 2 gigawatt-hours by the second half of 2025.
The backlog of signed orders remained steady, while real-world deliveries increased during the quarter. Some completed projects during the quarter were fulfilled at lower-than-market prices, which management called "one-time lower than average selling prices." This factor weighed on short-term gross profit.
Balance Sheet, Liquidity, and Execution Risks
Liquidity improved sharply during the quarter. The company ended June with $183.2 million in cash, thanks to both a $336 million capital raise during the quarter and the ongoing DOE loan. Additionally, it extended the maturity of its convertible debt to 2034, while the interest rate was reduced from 26.5% to 7.0%, beginning June 30, 2026.
Despite this cushion, overall liabilities remain high, with total liabilities on the balance sheet of $931.7 million (GAAP) as of June 30, 2025. Additional preferred equity and legacy debt increase the financial leverage.
All of these factors make efficient scaling vital to future stability.
The challenge remains to convert the company’s large pipeline and backlog into realized revenue. Management attributed part of the quarter’s GAAP revenue shortfall to project timing issues and lower-than-normal prices for certain orders. It states that backlog conversion and project execution, especially on new, higher-priced contracts, will be crucial in achieving future financial targets.
One-off impacts, such as shipments made at discounted rates and the fulfillment of older signed contracts, are expected to subside as the mix of business shifts to current pipeline pricing. However, any delays in automation, customer site readiness, or regulatory incentives could create further variability in results.
Outlook and Guidance
Management reaffirmed its full-year 2025 revenue guidance of $150–190 million, despite the significant GAAP revenue miss and low first-half 2025 results. To reach this goal, the company will need to generate at least $124 million in additional GAAP revenue over the last two quarters—about five times the current run rate, even at the lower end of the guidance range. Execution on this ambitious ramp is subject to risks around manufacturing scale, backlog conversion, and market timing.
No specific guidance was provided for gross margins or anticipated profit trends. Management cited ongoing uncertainty regarding project deliveries, customer readiness, and regulatory developments. Investors should continue monitoring the pace of order delivery, the proportion of higher-value contracts in shipments, and the company's ability to reduce costs as new automation comes online. EOSE does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
