Expion360 (XPON 11.02%), a company specializing in lithium iron phosphate energy storage solutions for vehicles, marine, and residential uses, reported second quarter 2025 earnings on August 13, 2025. The company posted record quarterly revenue, reaching $3.0 million (GAAP), which represents a 134% increase in GAAP net sales compared to Q2 2024. Operational improvements continued, with net losses (GAAP) narrowing from $(2.2) million in Q2 2024 to $(1.4) million. Gross margin, however, decreased to 21% from the prior year’s 25% (GAAP), driven primarily by product mix, with tariffs also having an adverse effect. No forward guidance was provided for the upcoming quarters. Overall, the period showed strong sales momentum, with GAAP net sales of $3.0 million, up 134% year-over-year, continued cost controls, and signs of improvement, although margin and liquidity challenges persist.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| Revenue (GAAP) | $3.0 million | $1.3 million | 134% |
| Gross Profit | $0.6 million | $0.3 million | 91% |
| Gross Margin | 21% | 25% | (4.0 pp) decrease |
| Net Loss | $(1.4 million) | $(2.2 million) | 36% |
| Net Loss per Share (basic and diluted) | $(0.41) | $(30.20) | N/A* |
Overview of Expion360’s Business and Strategic Direction
Expion360 develops and markets lithium iron phosphate (LFP) battery systems and accessories designed for recreational vehicles (RVs), marine applications, golf carts, light industrial equipment, and increasingly, residential energy storage needs. Its batteries feature lower weight, longer lifespan, and more charging cycles than traditional lead-acid competitors, appealing to customers seeking reliable and efficient off-grid power.
The business has been expanding beyond its core RV and marine markets into residential energy solutions with its e360 Home Energy Storage Systems (HESS), positioning itself to capture interest from homeowners seeking energy independence and cost savings. Key success factors include ongoing product diversification, investment in battery technology, maintaining a broad distribution network of dealers and OEM partners, and adapting to international opportunities. Regulatory compliance and supply chain resilience, including responses to tariff risks, remain important for its long-term health.
Second Quarter Results and Operational Highlights
During the quarter, Expion360 achieved its sixth consecutive quarter of GAAP revenue growth, two of the most successful sales months in company history. The rise in sales, which management attributed to robust demand in the RV market and incremental growth from accessory partners, brought first-half 2025 GAAP revenue to $5.0 million -- 124% higher than the same period last year (GAAP). The company’s distribution network now includes over 300 dealers, wholesalers, private-label clients, and original equipment manufacturers, underscoring the importance of broad channel access for volume growth.
Gross profit (GAAP) expanded 91% compared to Q2 2024, lifted by higher sales, but gross margin narrowed to 21%. Management explained this contraction was due to “ongoing tariff uncertainty and increased volume of lower margin pass-through product sales,” Tariffs on imported battery materials and components increased costs, but the company took steps to mitigate these effects by pre-purchasing inventory ahead of tariff changes and transitioning select products to U.S. manufacturers. This shift helped reduce costs for certain SKUs, especially steel and aluminum accessories, but higher volumes of lower-margin products tempered the benefits.
Cost control was another highlight. Selling, general, and administrative (SG&A) expenses (GAAP) held flat year over year at $2.0 million but declined materially as a share of revenue, falling from 157% in Q2 2024 to 66%. Reduced rent contributed to stable expenses, while additional spending occurred in areas like travel and product development. Net loss (GAAP) improved 38% year over year to $(1.4) million, primarily due to higher sales without a large increase in overhead. Operating cash flow also improved for the first half of 2025; net cash used in operating activities (GAAP) was $(1.6) million, down from $(3.4) million in the first half of 2024.
From a product standpoint, the company formally began production of its e360 Home Energy Storage Systems during the period. These systems are designed to store energy generated from solar or grid power for residential use. One HESS model achieved UL9540 safety certification, which is essential for regulatory compliance and qualification for state tax credits in places like California. The company reported that certification of a second model is imminent.
As a result, the total share count rose by approximately 1.3 million shares as new equity was issued to shore up the balance sheet. The company also resolved its prior Nasdaq listing compliance issue, regaining compliance with the minimum bid price standard -- an important step for ongoing access to public capital markets.
Financial Position, Risks, and Look Ahead
Expion360 ended the quarter with $0.68 million in cash and equivalents. This balance, alongside $0.72 million in accounts receivable and inventory of $5.14 million (GAAP), reflects efforts to secure supply and manage growth, but exposes the company to working capital risk if sales slow. The share issuance during the period improved liquidity but also led to dilution. Stockholders’ equity (GAAP) totaled $2.07 million, and total liabilities slightly decreased since year-end.
No forward-looking guidance was provided for revenue, margins, or profitability, and management did not offer an outlook for fiscal 2025. Expion360 does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
