Can you quantify the number of POCs in the pipeline compared to prior periods?

Mallory Burak declined to provide specific pipeline numbers, stating the company commits to disclosing meaningful commercial discussions as they evolve. “Yes, we haven't been providing the pipeline numbers, but we have committed to, as those turn into meaningful commercial discussions, to disclose those to the investment community, you know, just by nature of providing updates.”

Why was the British Tobacco program not mentioned this quarter, and what is its status?

Giampaolo Micheloni clarified that it is a large-scale POC with multiple use cases, currently in the final stages of testing at a very large facility. More information is expected next quarter regarding expansion plans. “What we can say is, as I mentioned during my portion, you know, this is really a large-scale POC with multiple use cases. And, you know, we are finalizing basically the entire POC at a very large facility. And I think we'll be able to provide a lot more information next quarter on how that is progressing and how, you know, we're planning to expand now into multiple other facilities across the United States.”

Can you provide guidance on the revenue trajectory for this year and next?

Mallory Burak reiterated that specific guidance is not being provided but emphasized the company's focus on achieving continued quarterly revenue growth to demonstrate market adoption. “Well, yes, so I'm still kind of not providing specific guidance, but I think, you know, we're still focused on revenue growth and we're still trying to continue to achieve, you know, quarterly revenue growth to show that the market adoption is driving commercial demand in a meaningful way. So that's still our focus.”

WATT

Energous (WATT) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Aug 12, 2026

Source: earnings call transcript

Executive summary

Energous Q2 FY26 — Revenue Growth Continues, Strategic Investments Impact Gross Margin

Energous continued its strong revenue growth in Q2 FY26, driven by expanding active deployments and a growing proof-of-concept pipeline. While gross margins were temporarily impacted by strategic investments in manufacturing capacity and supply chain management to meet customer demand, the company remains confident in its long-term margin objectives and expects recovery in coming quarters. The PowerBridge ProPlus FCC certification and diversified customer base underscore increasing commercial momentum.

Highlights

Revenue for Q2 FY26 increased 217% YoY to $3.1 million, and 368% YoY for H1 FY26 to $6.2 million.
Achieved a new historic revenue milestone, surpassing $10 million in revenue over the trailing 12 months.
Customer base diversification: five customers accounted for 74% of revenue in Q2 FY26, compared to two customers accounting for 94% a year ago.
FCC certification received for PowerBridge ProPlus in July, enabling simplified deployment architecture and driving customer demand.
Cash position of $31.2 million at quarter-end, deemed sufficient to support commercial programs without additional equity financing.

Concerns

Gross margin for H1 FY26 was 19%, significantly below historical levels due to temporary factors.
Q2 gross margin was impacted by one-time retooling costs at a U.S.-based contract manufacturer.
Supply chain disruptions and higher component costs due to AI-driven demand impacted Q2 gross margin.
Deliberate absorption of higher input costs to prioritize product availability for large strategic customers negatively affected Q2 gross margin.

Guidance & targets

Category	Target	Timeline	Confidence
Overseas production volume	Limited volume in Q3, expanding in Q4 medium materiality	Q3 FY26, Q4 FY26	Medium
Gross margin	Progressively improve high materiality	Coming quarters (Q3 FY26, Q4 FY26, FY27)	High
Commercial program advances	Meaningful advances across several programs high materiality	Balance of 2026 and into 2027	High
Warehouse Club program expansion	Expand to approximately 550 locations medium materiality	Beginning of next year (FY27)	High
Federal Government Agency deployment sites (near-term)	Ramp to a substantially larger number of active sites medium materiality	Next 12 months	High
Federal Government Agency deployment sites (long-term)	Could span up to 500 sites medium materiality	Next two to three years	High
PowerBridge ProPlus revenue contribution	Meaningful contributor to second half revenue mix medium materiality	H2 FY26	High

Product announcements

Product	Type	Timeline	Details
PowerBridge ProPlus	milestone	during July

Deals & partnerships

Wiliot Collaboration on battery-free sensing platform and data intelligence, with Energous providing RF wireless power infrastructure.

Wiliot is a strong partner advancing battery-free sensing. Energous provides the reliable energy layer for persistent intelligence, connecting the physical world to enterprise AI.

AWS Co-selling relationship generating enterprise conversations.

AWS account managers identify and introduce Energous's solution to their customer base. Several opportunities discussed in the call are from this partnership.

Risks & headwinds

Gross margin compression due to one-time retooling costs Q2 FY26 (temporary)

Gross margin was 19% for the six months ended June 30, 2026 (below recent quarters)

Mitigation:not expected to continue at the same level going forward as investments were necessary for higher production volumes.

Supply chain disruptions and higher component costs Q2 FY26 (temporary)

Impacted Q2 gross margin.

Mitigation:expected to moderate over time as supply availability normalizes and primary sourcing channels stabilize.

Deliberate absorption of higher input costs Q2 FY26 (temporary)

resulted in lower gross margins in the near term

Mitigation:Strategic decision to protect customer relationships and support continued revenue growth, expected to lead to margin recovery in coming quarters.

AI-driven vacuum effect on critical component supply Q2 FY26 (temporary)

Finite global supplies directed to hyperscalers, leading to higher component costs.

Mitigation:Sourced from alternative suppliers to maintain production, expecting cost pressure to diminish as supply normalizes.

What to watch in Q3 FY26

Gross Margin trajectory

Q3 FY26 and Q4 FY26

Current 19% for H1 FY26 (below recent quarters)

Target Progressively improve towards 40%+ long-term objective

Why it matters

Critical for profitability and demonstrating the underlying economics of the business are intact.

As these temporary headwinds subside and operational efficiencies are realized, we expect gross margins to progressively improve over the coming quarters.

Find out whether WATT delivers this. Inve re-checks your case every morning.

Q&A highlights

Did supply chain issues cause shipments to be pushed from Q2 to Q3?

Mallory Burak stated that supply chain issues did not impact the ability to deliver Q2 demand; all PO backlog was fulfilled. The issues only created cost pressure.

“I don't think that it impacted our ability to deliver. It just created some cost pressure for us in terms of being able to source the components in a timely manner to fulfill the demand.”

asked by Jon Hickman · answered by Mallory Burak

2 min read 8 chapters

Detailed narrative

Q2 Financial Performance & Gross Margin Headwinds

Revenue saw significant YoY growth, but gross margins were compressed due to three temporary factors: one-time retooling costs at a U.S. manufacturer for hardware enhancements, supply chain disruptions and higher component costs (partly due to AI-driven demand), and a deliberate decision to absorb higher input costs to prioritize customer commitments. These factors are expected to moderate, with margins progressively improving in coming quarters.

Customer Diversification & Strategic Relationships

The company achieved a significant milestone by surpassing $10 million in trailing 12-month revenue. Customer concentration has reduced, with five customers accounting for 74% of Q2 revenue, down from two customers accounting for 94% a year ago, indicating successful diversification across multiple enterprise relationships and verticals.

Expanding Active Deployments

The largest active deployment with a national retailer is 90% complete across 4,700 U.S. retail locations, with expansion discussions for additional use cases (inventory, parcel delivery) and potential new deployments in distribution centers and trucking fleets. A separate cold chain initiative with this customer is planned to expand to 550 warehouse locations next year.

Accelerating E-commerce/Cloud Deployment

A second Fortune 10 deployment in the e-commerce, technology, and cloud services sector is accelerating, expanding significantly in international geographies and supporting five distinct use cases. This multi-use case, multi-geography program is still in early stages but represents substantial scale.

Federal Government Agency Program

A new proof-of-concept with a major federal government agency for transport and processing of letters/packages is active, generated meaningful Q2 revenue, and is enabled by U.S.-based manufacturing. The use case focuses on dock door operations, with potential for a multi-stage deployment spanning up to 500 sites over 2-3 years.

PowerBridge ProPlus & Technology Advancement

The FCC certification of PowerBridge ProPlus in July is a key milestone. This advanced transmitter integrates data gateway capability, simplifying deployment architecture and reducing hardware footprint, which is directly driving strong customer demand and is expected to be a meaningful contributor to H2 revenue.

Evolving Sales Cycle & Pipeline Quality

The enterprise sales cycle for wireless power network infrastructure has shortened to 6-9 months from 18-24 months, reflecting technology maturity. The quality and scale of the current pipeline are exponentially larger than 12 months ago, with individual opportunities now operating at a magnitude that would have been exceptional previously, indicating a transformative potential for revenue trajectory.

Wiliot Partnership & Persistent Energy

The partnership with Wiliot highlights Energous's role in providing reliable energy infrastructure for battery-free sensing. As physical AI deployments scale, the need for persistent energy becomes critical to ensure continuous sensing and trusted operational data, connecting the physical world to enterprise AI.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.