Quarterly Earnings Discussion Transcript for Expion360 (XPON) in Q2, 2025
Expion360, a leading provider of home energy storage solutions (HESS), has announced its financial results for the second quarter ended June 30, 2025. The company reported a significant increase in revenue, improved net loss, and a decline in selling and administrative expenses compared to the same period last year.
Financial Highlights
During the second quarter, Expion360 recorded net sales of $3.0 million, representing a 134% increase year-over-year and a 46% increase from the prior quarter. The company's gross profit increased by 91% year-over-year to $600,000, although the gross margin declined to 21% due to tariff uncertainties and higher sales of lower-margin products.
The net loss improved by 38% year-over-year to $1.4 million. Selling and administrative expenses for the second quarter were $2 million, a substantial decrease from 157% of sales in 2024 to 66% in 2025.
Operational Highlights
Expion360 began shipping its home energy storage solutions in January 2025, targeting home and small commercial solar users. The company has more than 300 customers nationwide, including major RV retailers and OEM partners.
The company is actively pursuing OEM partner growth, onshoring manufacturing of key battery components, and expanding into potential markets such as AI data center storage, government, and defense. Expion360 has implemented operational mitigation measures such as early inventory builds, production cost reductions, supply chain diversification, and ongoing lobbying for tariff exclusions.
Product Development
Expion360 reported ongoing e360 product and IP development, including eleven patents pending targeting both established and emerging markets. The company has a pipeline of new products, including the next-generation GC2, group 27, and edge batteries. One e360 home energy storage product has cleared UL 9540 certification, a safety certification standard for energy storage systems required for market access and compliance in key U.S. states.
Future Outlook
With a strong focus on innovation and growth, Expion360 is well-positioned for the future. The company's financial results for the second quarter demonstrate its ability to navigate challenges and deliver strong growth. The conference call took place on August 13, 2025, at 4:30 p.m. ET, where Brian Schaffner, Chief Executive Officer and Interim Chief Financial Officer, presented the company's results of operations for the second quarter ended June 30, 2025. As of June 30, 2025, the company had $700,000 in cash and cash equivalents.
[1] Revenue: Net sales of $3.0 million, representing a 134% increase year-over-year and up 46% from the prior quarter. [2] Gross Profit and Margin: Gross profit increased 91% year-over-year; however, the gross margin declined to 21% from 24% in the previous quarter due to tariff uncertainties and higher sales of lower-margin products. [3] Net Loss: The net loss improved by 38% year-over-year to $1.4 million. [4] Selling, General, and Administrative (SG&A) Expenses: SG&A expenses remained flat at $2.0 million compared to the prior year but declined significantly as a percentage of revenue, dropping from 157% to 66%. [5] Over $5 million in inventory was available for sale as of June 30, 2025. [6] Selling and administrative expenses for the second quarter were $2 million, down to 66% of sales in 2025 from 157% in 2024. [7] OEM refers to a company that purchases Expion360 components or products for integration into their own branded end products. [8] HESS refers to Expion360's product line offering modular lithium battery storage systems for residential and small commercial applications aimed at the solar power market. [9] CAN bus is a vehicle bus standard designed to facilitate communication among microcontrollers and devices without a host computer, relevant in industrial and automotive battery applications. [10] Expion360 is actively pursuing OEM partner growth, onshoring manufacturing of key battery components, and expanding into potential markets such as AI data center storage, government, and defense. [11] The conference call took place on August 13, 2025. [12] Expion360 implemented operational mitigation measures such as early inventory builds, production cost reductions, supply chain diversification, and ongoing lobbying for tariff exclusions. [13] The call took place on Wednesday, August 13, 2025, at 4:30 p.m. ET. [14] Expion360 reported ongoing e360 product and IP development, including eleven patents pending targeting both established and emerging markets. [15] The company has a pipeline of new products, including the next-generation GC2, group 27, and edge batteries. [16] One e360 home energy storage product has cleared UL 9540 certification. [17] Expion360 had $700,000 in cash and cash equivalents as of June 30, 2025. [18] Participants included Brian Schaffner (Chief Executive Officer and Interim Chief Financial Officer), Larry Holub (Director of Investor Relations).
- The significant increase in earnings during the second quarter was due to an improvement in net loss, a decline in selling and administrative expenses, and a 134% year-over-year increase in net sales for Expion360, a provider of home energy storage solutions (HESS).
- In the financial sector, Expion360's focus on cost reductions and tariff exclusions helped contribute to a 38% decline in net loss year-over-year, while maintaining over $5 million in inventory for sale.
- By actively pursuing OEM partnerships, onshoring manufacturing of key battery components, and expanding into markets like AI data center storage, government, and defense, Expion360 is seeking to grow its business beyond home energy storage solutions.
- The company's ongoing product development includes the next generation of GC2, group 27, and edge batteries, with one product already cleared for UL 9540 certification, a safety standard for energy storage systems in key U.S. states.
- Looking ahead, Expion360 is well-positioned to navigate challenges and deliver strong growth, with a focus on innovation, including artificial intelligence, technology, and real-estate applications, supported by $700,000 in cash and cash equivalents as of June 30, 2025.
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