Remote Monitoring and Control Provider Acorn’s Q2’25 EPS of $0.28, Up 155% on 55% Revenue Growth; Investor Call Today at 11 a.m. ET

WILMINGTON, Del., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Acorn Energy, Inc. (Nasdaq: ACFN), a provider of remote monitoring and control solutions for backup generators, gas pipelines and other critical infrastructure assets, announced results for its second quarter ended June 30, 2025 (Q2’25). Acorn will hold an investor call today at 11 a.m. ET (details below).

Summary Financial Results
($ in thousands)	Q2’25		Q2’24		Change	6M’25		6M’24		Change
Monitoring revenue	$	1,320	$	1,110	+18.9%	$	2,589	$	2,212	+17.0%
Hardware revenue	$	2,205	$	1,165	+89.3%	$	4,034	$	2,195	+83.8%
Total revenue⁽¹⁾	$	3,525	$	2,275	+54.9%	$	6,623	$	4,407	+50.3%
Gross margin		74.9%		73.2%	+170bps		75.0%		73.9%	+110bps
Net income to stockholders⁽²⁾	$	720	$	271	+165.7%	$	1,184	$	336	+252.4%
Net income per diluted share⁽²⁾	$	0.28	$	0.11	+154.5%	$	0.47	$	0.13	+261.5%

(1) All of Acorn’s revenue is derived from its 99%-owned operating subsidiary, OmniMetrix™, LLC.
(2) Net income includes federal income tax expense in Q2’25 and 6M’25 vs. the prior-year periods, which did not.

CEO Commentary
Jan Loeb, Acorn’s CEO, said, “Our Q2 results reflect the strength of our technology and solutions as well as the operating leverage of our high-margin business model. Our business is fueled by hardware sales that create recurring revenue streams from annual monitoring contracts, 90% or more of which typically renew each year. Given the modest incremental investment required to scale our business, we expect approximately 50% of each incremental revenue dollar to drop to our operating income line for the foreseeable future.

“Our results continue to benefit from an estimated $5.4M contract to provide monitoring equipment plus an initial year of monitoring services for 5,000 -10,000 cell tower backup generators for a national cellular phone provider which we refer to as the Material Contract. The monitoring hardware rollout is progressing well, and we expect to complete all hardware deliveries by the end of 2025. We recognize hardware revenue upon delivery and customer acceptance, while monitoring revenue is deferred and then amortized over 12 months. The contract contributed $1.4M of revenue in Q2’25 and a total of $4.1M since inception in Q4’24, approximately 95% of which relates to hardware sales thus far.

“Several factors are expected to drive demand for backup power generation and our remote monitoring services in the coming years. Most importantly, growing energy demand is taxing our aging grid infrastructure, resulting in increasing reliability challenges for electricity access. In addition, a growing incidence of extreme weather events and natural disasters that disrupt electricity access for days, weeks and sometimes months, further underscores the critical importance of reliable backup power. These factors are contributing to increasing awareness, interest and demand for backup power and remote monitoring solutions that ensure their proper functioning across commercial, industrial, and residential applications.

“As a pioneer and technology leader in remote monitoring solutions, OmniMetrix is primed to scale our base of monitored endpoints in step with the expected growth in standby generator deployments. At the same time, we continue to invest in developing new products as well as enhancing our industry-leading solutions to deliver the greatest possible value to our growing base of customers.

“We’ve been working diligently to ensure the success of our large cell tower rollout, demonstrating our market leadership and creating momentum for expanded collaborations and other large-scale deployment opportunities. Our internal sales team focuses on large commercial and industrial customer opportunities, and we access the residential market through our network of approximately 600 generator dealers in North America. We are also seeking to forge strategic relationships with one or more OEMs to extend our market reach. Additionally, we continue to evaluate possible M&A opportunities that are closely aligned with our business model and have the potential to be meaningfully accretive. These initiatives require discipline, patience, and persistence and, therefore, it’s not possible to predict timing or outcomes, but we want you to be aware of these areas of focus.

“Subsequent to quarter-end, we completed an uplisting to the Nasdaq Capital Market, a significant milestone for our company. The Nasdaq listing should benefit our shares and shareholders by enhancing our visibility, attracting a broader base of investors and improving trading liquidity of our shares thereby supporting growth through potential M&A opportunities.”

Financial Review
Q2’25 revenue rose 55% to $3,525,000 vs. Q2’24, reflecting an 89% increase in hardware revenue and a 19% increase in monitoring revenue. Hardware growth was principally due to $1,338,000 in sales of monitoring equipment related to our Material Contract. Growth in monitoring revenue was driven by an increase in total monitored units in Q2’25 as compared to the year-ago period. For the six months ended June 30, 2025, revenue grew 50% to $6,623,000 versus the prior-year period, due to the same factors.

Q2’25 gross profit grew 58% to $2,639,000 vs. Q2’24, principally reflecting higher revenue and a Q2’25 gross margin of 75%.

Operating expenses increased 20% to $1,692,000 in Q2’25 vs. $1,407,000 in Q2’24, due to a $246,000 increase in selling, general and administrative (SG&A) expenses and a $39,000 increase in research and development (R&D) expenses. However, operating expenses decreased to 48% of total revenue in Q2’25 from 62% of total revenue in Q2’24, as revenue growth outpaced expense increases. The increase in SG&A expenses reflects a $100,000 increase in commission expense related to the Material Contract, a $48,000 increase in personnel expenses due to staff additions and compensation increases, a $39,000 increase in technology fees and expenses, as well as a $59,000 increase in tax and audit professional fees and other corporate/public company expenses. Higher R&D expenses reflect the hiring of a senior-level engineer in November 2024 and salary increases, as well as increased investment in next-generation monitoring products, as well as the exploration of new products and product lines.

Reflecting revenue growth and operating leverage, Q2’25 net income attributable to Acorn stockholders improved to $720,000, or $0.28 per diluted share, from $271,000, or $0.11 per diluted share, in Q2’24. Net income for the first six months of 2025 increased to $1,184,000, or $0.47 per diluted share, as compared to $336,000, or $0.13 per diluted share, in the prior-year period. As of Q4’24, Acorn began reporting on a fully taxable basis though its earnings are shielded from federal income taxes on a cash basis due to its substantial net operating loss carryforwards. Income tax expense was $242,000, or $0.10 per share in Q2’25 vs. zero in Q2’24. Likewise, income tax expense was $396,000, or $0.16 per share, in the first six months of 2025, compared to $25,000, or $0.01 per share, in the prior-year period.

Liquidity and Cash Flow
Excluding deferred revenue of $3,155,000 and deferred cost of goods sold of $223,000, which have no impact on future cash flows, net working capital improved to $5,661,000 at June 30, 2025 from $4,230,000 at December 31, 2024. Acorn’s cash position increased to $3,253,000 at the close of Q2’25 versus $2,591,000 at the close of Q1’25 and $2,326,000 at year-end 2024.

Through the first six months of 2025 Acorn generated $900,000 of cash from operating activities, used $21,000 in investing activities and received proceeds of $48,000 from the exercise of Company stock options. The resulting net increase in cash of $927,000 compares to $14,000 generated in the first half of 2024.

Investor Call Details

Date/Time:	Thursday, August 7^th at 11:00 a.m. ET
Dial-in Number:	1-844-834-0644 or 1-412-317-5190 (Int’l)
Online Replay/Transcript:	Audio file and call transcript will be posted to the
	Investor section of Acorn's website when available.
Submit Questions via Email:	acfn@catalyst-ir.com – before or after the call.

About Acorn (www.acornenergy.com) and OmniMetrix™ (www.omnimetrix.net)
Acorn Energy, Inc. owns a 99% equity stake in OmniMetrix, a pioneer and leader in Internet of Things (IoT) wireless remote monitoring and control solutions for stand-by power generators, gas pipelines, air compressors and other industrial equipment. OmniMetrix serves tens of thousands of commercial and residential customers, including over 25 Fortune/Global 500 companies, supporting cell towers, manufacturing plants, medical facilities, data centers, retail stores, public transportation systems, energy distribution and federal, state, and municipal government facilities and residential backup generators.

OmniMetrix’s proven, cost-effective solutions make critical systems more reliable and also enable automated “demand response” electric grid support via enrolled backup generators.

Safe Harbor Statement
This press release includes forward-looking statements, which are subject to risks and uncertainties. There are no assurances that Acorn will be successful in growing its business, increasing its revenue, increasing profitability, or maximizing the value of its operating company and other assets. A complete discussion of the risks and uncertainties that may affect Acorn Energy’s business, including the business of its subsidiary, is included in “Risk Factors” in the Company’s most recent Annual Report on Form 10-K as filed by the Company with the Securities and Exchange Commission.

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Investor Relations Contacts
Catalyst IR
William Jones, 267-987-2082
David Collins, 212-924-9800 acfn@catalyst-ir.com

ACORN ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE DATA)

	Six months ended June 30,						Three months ended June 30,
	2025			2024			2025			2024

Revenue	$	6,623		$	4,407		$	3,525		$	2,275
COGS		1,658			1,151			886			610
Gross profit		4,965			3,256			2,639			1,665
Operating expenses:
Research and development (R&D) expenses		556			464			265			226
Selling, general and administrative (SG&A) expenses		2,858			2,456			1,427			1,181
Total operating expenses		3,414			2,920			1,692			1,407
Operating income		1,551			336			947			258
Interest income, net		51			33			27			18
Income before income taxes		1,602			369			974			276
Provision for income taxes		396			25			242			—
Net income		1,206			344			732			276
Non-controlling interest share of income		(22	)		(8	)		(12	)		(5	)
Net income attributable to Acorn Energy, Inc. stockholders	$	1,184		$	336		$	720		$	271

Net income per share attributable to Acorn Energy, Inc stockholders – basic and diluted
Basic	$	0.48		$	0.14		$	0.29		$	0.11
Diluted	$	0.47		$	0.13		$	0.28		$	0.11
Weighted average number of shares outstanding attributable to Acorn Energy, Inc. stockholders – basic and diluted
Basic		2,492			2,487			2,493			2,487
Diluted		2,534			2,501			2,534			2,507

ACORN ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

	As of June 30, 2025			As of December 31, 2024
	(Unaudited)
ASSETS
Current assets:
Cash	$	3,253		$	2,326
Accounts receivable, net		2,140			1,933
Inventory		953			436
Other current assets		262			288
State income tax receivable		—			10
Deferred cost of goods sold (COGS)		223			406
Total current assets		6,831			5,399
Property and equipment, net		447			505
Right-of-use assets		1,048			84
Deferred COGS		2			70
Other assets		94			103
Deferred tax assets		4,115			4,435
Total assets	$	12,537		$	10,596
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	424		$	297
Accrued expenses		303			290
Deferred revenue		3,155			3,521
Current operating lease liabilities		90			98
Other current liabilities		84			59
State income tax payable		46			19
Total current liabilities		4,102			4,284
Long-term liabilities:
Deferred revenue		514			712
Noncurrent operating lease liabilities		973			—
Other long-term liabilities		27			24
Total liabilities		5,616			5,020
Commitments and contingencies
Equity:
Acorn Energy, Inc. stockholders
Common stock - $0.01 par value per share: Authorized - 42,000,000 shares; issued - 2,549,337 at June 30, 2025 and 2,541,308 at December 31, 2024; outstanding - 2,499,159 at June 30, 2025 and 2,491,130 at December 31, 2024		25			25
Additional paid-in capital		103,546			103,405
Accumulated stockholders’ deficit		(93,670	)		(94,854	)
Treasury stock, at cost – 50,178 shares at June 30, 2025 and December 31, 2024		(3,036	)		(3,036	)
Total Acorn Energy, Inc. stockholders’ equity		6,865			5,540
Non-controlling interests		56			36
Total equity		6,921			5,576
Total liabilities and equity	$	12,537		$	10,596

ACORN ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS)

	Six months ended June 30,
	2025			2024
Cash flows provided by operating activities:
Net income	$	1,206		$	344
Depreciation and amortization		56			58
Deferred tax expense		320			—
Decrease in the provision for credit loss		—			(7	)
Impairment of inventory		4			19
Non-cash lease expense		66			64
Stock-based compensation		93			38
Change in operating assets and liabilities:
(Increase) decrease in accounts receivable		(207	)		3
(Increase) decrease in inventory		(521	)		212
Decrease in deferred COGS		251			451
Decrease (increase) in other current assets and other assets		35			(56	)
Decrease in state income tax receivable		10			—
Decrease in deferred revenue		(564	)		(1,004	)
Decrease in operating lease liability		(65	)		(71	)
Increase in state income tax payable		27			—
Increase (decrease) in accounts payable, accrued expenses, other current liabilities and non-current liabilities		189			(10	)
Net cash provided by operating activities		900			41

Cash flows used in investing activities:
Investments in technology		(9	)		(36	)
Leasehold improvements		(4	)		—
Patents		(1	)		—
Purchases of furniture and equipment		(7	)		(4	)
Net cash used in investing activities		(21	)		(40	)

Cash flows provided by financing activities:
Stock option exercise proceeds		48			13
Net cash provided by financing activities		48			13

Net increase in cash		927			14
Cash at the beginning of the period		2,326			1,449
Cash at the end of the period	$	3,253		$	1,463

Supplemental cash flow information:
Cash paid during the year for:
Interest	$	—		$	1
Income Taxes	$	34		$	2
Non-cash investing and financing activities:
Right-of-use assets	$	1,025			—
Operating lease liability		1,025			—
Accrued preferred dividends to former CEO of OmniMetrix	$	2		$	2

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