WILMINGTON, Del., May 07, 2026 (GLOBE NEWSWIRE) -- Acorn Energy, Inc. (Nasdaq: ACFN), a provider of remote monitoring and control solutions for generators, gas pipelines and other critical infrastructure assets, announced results for its first quarter ended March 31, 2026 (Q1'26). Acorn will hold an investor call today at 11am ET (details below).
Summary Financial Results (1)
($ in 000s except per share data) Q1'26 Q1'25 % Change
---------------------------------- ----- ----- ----------
Monitoring revenue $1,417 $1,269 +11.7%
Hardware revenue $ 810 $1,829 -55.7%
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Total revenue $2,227 $3,098 -28.1%
---------------------------------- ----- ----- -----
Gross margin 80.2% 75.1% +510 bps
Net (loss) income to stockholders $ (77) $ 464 nm
Net (loss) income per basic and
diluted share $(0.03) $ 0.19 nm
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(1) All of Acorn's revenue is derived from its 99%-owned operating subsidiary, OmniMetrix$(TM)$, LLC.
CEO Commentary
Jan Loeb, Acorn's CEO, said, "Q1'26 results reflect continued growth in our installed base of monitored endpoints -- the core value driver of our business----offset by a decrease in hardware revenue largely due to our material cellphone provider contract, which contributed hardware revenue of $876,000 in Q1'25 vs. $93,000 in Q1'26. Given our size, large enterprise deployments are likely to create material variability in our quarterly hardware revenue comparisons, while contributing to our growing base of high-margin, recurring, monitoring revenue.
"Reflecting the increase in monitoring revenue as a percentage of total revenue, Q1'26 gross margin improved to 80.2% from 75.1% in Q1'25.
"Turning to our growth drivers, we continue to pursue both residential and enterprise deployments of our monitoring solutions and remain optimistic regarding our growth potential as customers take action to protect their homes and businesses against sudden power outages. We are also advancing our new Infrastructure Solutions segment pursuant to our technology partnership with AIO Systems, through which we secured exclusive North American rights to a comprehensive IoT monitoring solutions suite for telecommunications towers, energy sites and data centers. This solution suite addresses a much broader range of functions and capabilities and as such we expect revenue from an average site to be 5-6x that of our current average sale. Accordingly, we see significant potential as infrastructure operators seek to modernize and harden their monitoring scope and capabilities.
"We are advancing our program to launch these products in the U.S., fine-tuning product features and alerts, and developing customer materials and sales and training collateral. We've also gone live with two full telecom tower sites for use in customer demonstrations. We are still working out final hardware and services pricing models so it's still too early to project margins in this segment. Nonetheless, the AIO partnership significantly expands both our scope of capabilities as well as our addressable markets. We are confident there is no better existing suite of monitoring solutions. Therefore, we feel this segment has the potential to transform our company.
"The Infrastructure Solutions opportunity, combined with expected growth in our existing Power Generation segment, has us well-positioned with a high-margin, capital-light business model.
"We remain focused on our objective of achieving three-to-five year average revenue growth of 20% or more. In addition to our pursuit of larger commercial and industrial customer opportunities, we continue to work toward potential strategic relationships with power generator manufacturers and other OEMs. We also remain active in our pursuit of strategic M&A opportunities aligned with our business model and with the potential to be meaningfully accretive to our earnings. Q1 is typically our lowest-revenue quarter so we expect stronger performance as we progress through the year, though we do expect that hardware revenue comparisons in Q2'26 will again be below Q2'25 due to the impact of the material cell phone provider contract in Q2'25."
Financial Review
Q1'26 revenue decreased 28.1% to $2,227,000 versus $3,098,000 in Q1'25, primarily due to a $1,019,000 (55.7%) decrease in hardware revenue, as the prior-year period included significant hardware shipments under the material cellphone provider contract. Although hardware deliveries under the contract are now largely complete, we did receive an additional $93,000 of hardware revenue and $167,000 of monitoring revenue from the contract in Q1'26. Total monitoring revenue, which is amortized over the service period (typically one year), grew 11.7% to $1,417,000 in Q1'26, reflecting continued growth in our monitored endpoints.
Q1'26 gross profit was $1,785,000, reflecting a gross margin of 80.2%, compared to gross profit of $2,326,000 and a gross margin of 75.1% in Q1'25. The gross margin improvement was driven by a higher proportion of monitoring revenue, which carries a 94% gross margin, and lower hardware revenue from the material contract.
Operating expenses increased 11.2% to $1,914,000 in Q1'26 versus $1,722,000 in Q1'25, due to a $228,000 increase in selling, general and administrative (SG&A) expense, partially offset by a $36,000 decrease in research and development (R&D) expense. The increase in SG&A was primarily driven by $136,000 in higher stock-based compensation expense due to stock option grants issued to officers and directors and $111,000 in higher OmniMetrix SG&A, including additional personnel and technology expenses, partially offset by lower commissions. Lower R&D expense reflected reduced costs following the completion of the new Omni and OmniPro product development.
Lower revenue and higher SG&A, resulted in a Q1'26 net loss attributable to Acorn stockholders of $(77,000), or $(0.03) per basic and diluted share, compared to net income of $464,000, or $0.19 per basic and diluted share, in Q1'25. The Q1'26 loss includes $197,000 of non-cash stock-based compensation expense versus $61,000 in Q1'25. The Company recognized an income tax benefit of $25,000 in Q1'26 versus income tax expense of $154,000 in Q1'25.
Liquidity and Cash Flow
Excluding deferred revenue of $2,934,000 and deferred cost of goods sold of $25,000, which have no impact on future cash flow, net working capital was $6,024,000 at March 31, 2026 versus $6,184,000 at December 31, 2025. This included cash of $4,257,000 at March 31, 2026 versus $4,454,000 at year-end 2025.
In Q1'26, Acorn generated $53,000 of cash from operating activities, used $260,000 for investing activities (including $250,000 for the acquisition of the exclusive distribution and commercialization rights under the AIO Systems technology partnership agreement and $10,000 in other capital items), and received $10,000 from the exercise of stock options, for a net decrease in cash of $197,000.
Investor Call Details
Date / Time: Thursday, May 7th at 11:00 AM ET
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Dial-in Number: 1-800-715-9871 or 1-646-307-1963 (Int'l)
Conference ID# 6786386
Replay & Transcript: Posted on the Investor Relations page of Acorn's website
when available.
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About Acorn (www.acornenergy.com) and OmniMetrix(TM) (www.omnimetrix.net)
Acorn's 99%-owned OmniMetrix subsidiary is a pioneer and leader in wireless remote monitoring and control solutions for critical infrastructure including standby generators, cell towers, gas pipelines, data centers, and utility networks. OmniMetrix serves tens of thousands of commercial and residential endpoints, including over 25 Fortune/Global 500 companies in sectors including telecom, manufacturing, healthcare, data centers, retail, public transportation, energy distribution and government facilities, as well as residential customers through generator dealers.
OmniMetrix's industry-leading, 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.
Follow us
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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)
Three months ended March 31,
------------------------------------
2026 2025
---------------- --------------
Revenue $ 2,227 $ 3,098
COGS 442 772
--- ----------- ----------
Gross profit 1,785 2,326
Operating expenses:
Research and development (R&D)
expenses 255 291
Selling, general and
administrative (SG&A)
expenses 1,659 1,431
--- ----------- ----------
Total operating expenses 1,914 1,722
--- ----------- ----------
Operating (loss) income (129) 604
Interest income, net 31 24
--- ----------- ----------
(Loss) income before income
taxes (98) 628
(Benefit from) provision for
income taxes (25) 154
--- ----------- ----------
Net (loss) income (73) 474
Non-controlling interest share of
income (4) (10)
--- ----------- ----------
Net (loss) income attributable
to Acorn Energy, Inc.
stockholders $ (77) $ 464
=== =========== ==========
Basic and diluted net (loss)
income per share attributable to
Acorn Energy, Inc.
stockholders:
Net (loss) income per share
attributable to Acorn Energy,
Inc. stockholders -- basic and
diluted $ (0.03) $ 0.19
=== =========== ==========
Weighted average number of
shares outstanding attributable
to Acorn Energy, Inc.
stockholders -- basic and
diluted:
Basic 2,506 2,491
=== =========== ==========
Diluted 2,506 2,498
=== =========== ==========
ACORN ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
As of As of
March 31, 2026 December 31, 2025
----------------- --------------------
(Unaudited)
ASSETS
Current assets:
Cash $ 4,257 $ 4,454
Accounts receivable, net 840 887
Inventory 1,196 1,254
Other current assets 225 267
State income tax
receivable 51 21
Deferred cost of goods
sold (COGS) 25 70
------------- --- ---------------
Total current assets 6,594 6,953
------------- --- ---------------
Property and equipment, net 364 383
Intangibles, net 266 17
Right-of-use assets, net 921 963
Other assets 112 119
Deferred tax assets 4,871 4,899
------------- --- ---------------
Total assets $ 13,128 $ 13,334
============= === ===============
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 213 $ 306
Accrued expenses 140 171
Deferred revenue 2,934 3,097
Current operating lease
liabilities 163 158
Other current liabilities 29 46
State income tax payable -- 18
------------- --- ---------------
Total current
liabilities 3,479 3,796
------------- --- ---------------
Long-term liabilities:
Deferred revenue 335 312
Noncurrent operating
lease liabilities 838 884
Other long-term
liabilities 27 26
------------- --- ---------------
Total liabilities 4,679 5,018
------------- --- ---------------
Commitments and
contingencies
Equity: Acorn Energy,
Inc. stockholders
Common stock - $0.01 par
value per share:
Authorized - 42,000,000
shares; issued - 2,557,937
at March 31, 2026 and
2,555,717 at December 31,
2025; outstanding -
2,506,846 at March 31,
2026 and 2,504,626 at
December 31, 2025 25 25
Additional paid-in
capital 103,828 103,621
Accumulated stockholders'
deficit (92,421) (92,344)
Treasury stock, at cost
-- 51,091 shares at
March 31, 2026 and
December 31, 2025 (3,052) (3,052)
------------- --- ---------------
Total Acorn Energy,
Inc. stockholders'
equity 8,380 8,250
Non-controlling interests 69 66
------------- --- ---------------
Total equity 8,449 8,316
------------- --- ---------------
Total liabilities and
equity $ 13,128 $ 13,334
============= === ===============
ACORN ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) (IN THOUSANDS)
Three months ended March 31,
------------------------------------
2026 2025
---------------- --------------
Cash flows provided by operating
activities:
Net (loss) income $ (73) $ 474
Depreciation and amortization 30 30
Deferred income tax benefit 28 125
Increase (decrease) in the
provision for credit losses 1 (1)
Non-cash lease expense 58 32
Stock-based compensation 197 61
Change in operating assets
and liabilities:
Decrease (increase) in
accounts receivable 46 (126)
Decrease (increase) in
inventory 58 (484)
Decrease in deferred COGS 45 135
Decrease in other current
assets and other assets 49 17
(Increase) decrease in
state income tax
receivable (30) 10
Decrease in deferred
revenue (140) (278)
Decrease in operating lease
liability (57) (37)
(Decrease) increase in
state income tax payable (18) 15
(Decrease) increase in
accounts payable, accrued
expenses, other current
liabilities and
non-current liabilities (141) 298
--- ----------- ----------
Net cash provided by
operating activities 53 271
--- ----------- ----------
Cash flows used in investing
activities:
Equipment and trade show booth
purchases (3) (6)
Payment for exclusive
distribution and
commercialization rights (250) --
Investments in technology (7) --
--- ----------- ----------
Net cash used in investing
activities (260) (6)
--- ----------- ----------
Cash flows provided by financing
activities:
Stock option exercise proceeds 10 --
--- ----------- ----------
Net cash provided by
financing activities 10 --
--- ----------- ----------
Net (decrease) increase in cash (197) 265
Cash at the beginning of the
period 4,454 2,326
--- ----------- ----------
Cash at the end of the period $ 4,257 $ 2,591
=== =========== ==========
Supplemental cash flow
information:
Cash paid during the year for:
Income taxes $ -- $ 4
Non-cash investing and financing
activities:
Accrued preferred dividends
to former CEO of OmniMetrix $ 1 $ 1
(END) Dow Jones Newswires
May 07, 2026 07:59 ET (11:59 GMT)