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    WATT
    Earnings call· Jun 2026(Q2 FY26)

    Energous Q2 FY26 earnings call WATT

    Aug 12, 2026 Source

    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

    5

    • 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

    4

    • 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

    7
    CategoryTargetConfidence
    Overseas production volume
    Limited volume in Q3, expanding in Q4
    medium materiality
    Medium
    Gross margin
    Progressively improve
    high materiality
    High
    Commercial program advances
    Meaningful advances across several programs
    high materiality
    High
    Warehouse Club program expansion
    Expand to approximately 550 locations
    medium materiality
    High
    Federal Government Agency deployment sites (near-term)
    Ramp to a substantially larger number of active sites
    medium materiality
    High
    Federal Government Agency deployment sites (long-term)
    Could span up to 500 sites
    medium materiality
    High
    PowerBridge ProPlus revenue contribution
    Meaningful contributor to second half revenue mix
    medium materiality
    High

    Operational metrics

    24
    Revenue
    $3.1 million217% improvement YoY
    Q2 FY26

    for the three months ended June 30, 2026

    Revenue
    $6.2 million368% improvement YoY
    H1 FY26

    for the six months ended June 30, 2026

    Trailing 12-month Revenue
    surpassed $10 millionhistoric milestone
    TTM ended Q2 FY26
    Gross Profit
    $1.2 million176% increase YoY
    H1 FY26

    for the six months ended June 30, 2026

    Gross Margin
    19%below recent quarters
    H1 FY26

    Expected to progressively improve over coming quarters towards 40%+ long-term objective.

    Long-term Gross Margin Objective
    40%+
    Long-term

    Company remains confident in achieving this despite Q2 headwinds.

    Revenue from top 5 customers
    74%vs 94% from top 2 customers a year ago
    Q2 FY26

    Reflects meaningful diversification of commercial base.

    Product price increase
    implemented
    effective July 1st

    Across product lines, supports Q3 and Q4 margin recovery.

    Prepaid expenses to contract manufacturers
    $6.3 million
    as of June 30, 2026

    Related to investment in building out capacity and supply chain management.

    Cash balance
    $31.2 million
    as of June 30, 2026

    Deemed sufficient to support commercial programs without additional equity financing.

    ATM facility usage
    no use
    since Q1 call

    Commitment stands for no additional ATM usage this year.

    AWS customer launch badge count
    can decline or plateau
    Ongoing

    Explained as a top-of-funnel pipeline activity metric, not an indicator of commercial momentum slowing.

    Enterprise sales cycle length
    6 to 9 monthsdown from 18 to 24 months two years ago
    Current

    Reflects technology maturity and clearer value proposition.

    Pipeline opportunity scale
    exponentially larger
    Current vs 12 months ago

    Each program now operates at a scale that would have been exceptional a year ago.

    National retailer rollout completion
    90%
    Q2 FY26

    Across 4,700 U.S. retail locations.

    Warehouse Club locations expansion
    550 locations
    Beginning of next year

    Part of a cold chain initiative with a major retail customer.

    Federal Logistics Program potential sites
    up to 500 sites
    Next 2-3 years

    Multi-stage deployment discussion.

    Federal Logistics Program active sites
    two initial sites
    Current

    With a planned multiyear expansion roadmap spanning approximately 15 sites over the remainder of this year.

    E-commerce/Cloud international installations
    grownvs 14 in Q1
    Q2 FY26

    Scope expanded significantly in geographies and use cases.

    E-commerce/Cloud distinct use cases
    five
    Current

    In active deployment, none fully deployed at scale yet.

    GAAP Operating Expenses
    $3.3 millionvs $3.1 million for same period in 2025
    Q2 FY26
    GAAP Net Loss
    $2.9 millionvs $2.8 million for same period in 2025
    Q2 FY26
    GAAP Loss Per Share
    $0.53vs $2.35 for same period in 2025
    Q2 FY26
    Product returns
    zero
    since PowerBridge Pro began in 2024

    Company maintains its quality performance record.

    Industry KPIs

    4
    MetricValueDetails
    Orders bookings growth—
    Backlog by segment end market—
    Data center exposure pipeline—
    Incremental flow through margin—

    Product announcements

    1
    ProductTypeDetails
    PowerBridge ProPlusmilestone

    Deals & partnerships

    2
    WiliotCollaboration 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.

    AWSCo-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

    4
    Gross margin compression due to one-time retooling costsQ2 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 costsQ2 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 costsQ2 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 supplyQ2 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

    5

    Gross Margin trajectory

    Q3 FY26 and Q4 FY26
    Current19% for H1 FY26 (below recent quarters)
    TargetProgressively 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 headwind📎s subside and operational efficiencies are realized, we expect gross margins to progressively improve over the coming quarters.

    Q&A highlights

    7

    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 read8 chapters

    Detailed Narrative

    01

    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 disruption🌐s 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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    07

    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.

    08

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.