Beam Global (NASDAQ:BEEM) reported second-quarter 2026 revenue of $8.6 million, up 21% from $7.1 million a year earlier and 174% from $3.1 million in the first quarter, as the company converted a substantial portion of its backlog into shipments.
Chief Financial Officer Lisa Potok said backlog totaled $5.4 million at the end of June. The company remained debt-free and had not drawn on its $100 million line of credit, she said.
Financial Results and Margins
Second-quarter gross profit was $1.5 million, representing a 17.8% gross margin, compared with $1.4 million and a 20.3% margin in the prior-year quarter. Both periods included $700,000 of non-cash depreciation and intangible amortization in cost of revenue. Excluding those items, Beam reported an adjusted non-GAAP gross margin of 26.2%, compared with 29.6% a year earlier.
Potok said margins are expected to improve as sales volumes recover, reducing the per-unit impact of fixed overhead, and as cost-reduction initiatives take effect. President, Chief Executive Officer and Chairman Desmond Wheatley said unit economics on certain higher-priced products can reach gross margins of as much as 40%, while volume growth could help improve reported margins by spreading fixed costs across more units.
Operating expenses totaled $4.5 million, down from $5.9 million in the second quarter of 2025. The prior-year figure included a $1.4 million stock grant; excluding that item, operating expenses were essentially flat year over year, according to Potok.
The company recorded a $1.1 million non-cash provision for credit losses in the first half related to one customer balance. Potok said Beam maintains a positive relationship with that customer and continues to pursue collection.
Net loss narrowed to $3.1 million, or $0.14 per share, from $4.3 million, or $0.28 per share, a year earlier. The quarter’s loss included $1.1 million in non-cash charges. On a non-GAAP basis, Beam’s net loss was $2 million, compared with $1.8 million in the prior-year quarter.
For the first six months of 2026, net loss was $9.9 million, or $0.47 per share, compared with $19.8 million, or $1.30 per share, in the prior-year period. The 2025 first-half result included a $10.8 million goodwill impairment.
Manufacturing Move and Cost Reduction
Beam completed the relocation of its manufacturing operations from San Diego to Yuma, Arizona, during the quarter. Potok said the move is expected to save about $2.7 million in rent over the five-year lease term compared with historical San Diego manufacturing costs.
Wheatley said the company expects additional savings from labor, regulatory compliance, taxes and other operating expenses in Arizona. He added that the company incurred some moving costs but self-performed much of the relocation work. Key employees moved with the company, he said.
Wheatley also cited manufacturing operations in Chicago, Serbia and Romania. In response to an investor question, he said the company had capacity to produce revenue “in the hundreds, not the tens of millions of dollars” and described its overall existing manufacturing capacity as sufficient to support substantially higher revenue, though he cautioned against placing too much emphasis on a specific capacity estimate.
Batteries, Drones and Data Centers
Management highlighted growth in Beam’s battery and energy-storage business, including more than $500,000 in drone and autonomous robotics battery orders booked in a single week during the second quarter. Wheatley said the company is supplying specialized, energy-dense battery systems for drones, robotics, artificial intelligence-controlled devices, wildfire detection and defense-related applications.
He said Beam’s battery offerings are designed in customized form factors and incorporate safety features intended to reduce thermal-runaway risks. Wheatley also pointed to the company’s BeamFlight drone charging platform, which is designed to recharge drones in locations without construction or a connection to the electrical grid.
During the quarter, Beam received two patents: one in Europe for battery solutions and one in the U.S. for energy-generation technology, according to management. Wheatley also said a battery technology developed for artificial intelligence data centers was selected for presentation at IECON 2026 in Qatar from among 1,800 submissions. The technology is intended to provide rapid bursts of power for certain data-center applications, he said.
Wheatley said he could not provide a timeline for revenue from the data-center opportunity, but characterized it as a potentially significant market.
International Expansion and Recurring Revenue
Wheatley said Europe generated roughly the same level of revenue as the U.S. during the quarter. He cited growing deployments of EV ARC and other products in Spain, Montenegro, Romania, Hungary and Serbia, and said certain European deployments have achieved utilization rates above 90%.
The company also expanded its sponsorship-funded recurring-revenue model in Europe. Under that model, Beam retains ownership of installed systems while sponsors fund branded infrastructure deployments. Wheatley pointed to a deployment at Belgrade International Airport sponsored by Globus Insurance, which provides free charging to users of premium parking and generates recurring revenue for Beam.
In the U.S., Beam cited repeat EV ARC orders through its General Services Administration and Sourcewell procurement channels from Dallas, Stanislaus County and the City of Long Beach. The company also worked with a Massachusetts community electric-vehicle-sharing company on charging infrastructure, Wheatley said.
Beam continued business-development activity in the Middle East, including participation in the Make It in the Emirates event in Abu Dhabi, where it sold a demonstration unit that is now deployed in the city. Wheatley said regional investment decisions have been slowed by conflict and uncertainty, but management continues to pursue opportunities through its Beam Middle East joint venture with Platinum Group.
During the question-and-answer session, Wheatley said orders have increased across the business, with battery and energy-storage activity standing out on a percentage basis. He said the company is pursuing larger potential orders but did not provide details or guidance on the timing of any awards.
About Beam Global (NASDAQ:BEEM)
Beam Global (NASDAQ:BEEM) is a developer of solar-powered infrastructure solutions designed to support the transition to clean energy and electric transportation. Headquartered in California, the company specializes in producing off-grid EV charging units, solar canopy systems and energy storage solutions that can be rapidly deployed in urban, rural and remote environments. By integrating photovoltaic panels with battery storage and charging hardware, Beam Global’s products aim to reduce reliance on grid power and lower carbon emissions at charging locations.
The company’s flagship product, EV ARC, is a standalone, solar-powered electric vehicle fast-charging kiosk that requires no construction, trenching or utility upgrades.
