Management Commentary
"This was a transformational quarter that sets NeoVolta up for the next phase of strong growth and positions us to capitalize on the massive market opportunity ahead," said Ardes Johnson, Chief Executive Officer of NeoVolta. "We are rapidly approaching our goal of becoming a vertically integrated energy solutions provider capable of serving what we estimate to be a $45 billion combined addressable market across residential, C&I, and utility-scale segments by 2030."
"Our strategy is coming together exactly as planned. We closed the Neubau Energy asset acquisition and are preparing to launch our innovative NVWAVE modular battery platform, which delivers faster installation times and enhanced margins. We advanced our proposed strategic collaboration with Luminia for up to 160 MWh of energy storage supply, representing approximately $39 million in potential equipment revenue. And most significantly, we launched our transformational U.S. battery manufacturing joint venture in Georgia. This plant is a 60% owned, 2 GWh facility that when completed will unlock domestic production for higher-margin utility and C&I markets while qualifying for tax incentives."
Johnson continued, "Our integrated platform strategy creates multiple vectors of value creation. Residential provides brand strength and revenue stability. C&I represents the high-growth 'missing middle' where we believe there are significant near-term opportunities over the next 2 to 3 years. And utility-scale, to be enabled by our Georgia manufacturing JV, delivers the scale and margin profile to drive long-term shareholder value. These aren't isolated initiatives. They're deliberately interconnected levers that we believe will begin to de-risk our business model while expanding our market reach."
Second Quarter Fiscal 2026 Financial Highlights
Revenue: $4.6 million for Q2 FY2026, compared to $1.1 million for Q2 FY2025, representing growth of 334% year-over-year. Six-month revenue totaled $11.3 million, up 580% compared to $1.7 million in the prior year period.
Revenue Growth Drivers: Year-over-year revenue acceleration was driven by continued expansion beyond the Company's traditional Southern California installer base into multiple new geographic markets and distribution channels, while maintaining consistent pricing.
Gross Profit: Gross profit for Q2 FY2026 was $0.8 million, or approximately 17% gross margin, compared to $0.3 million, or approximately 30% gross margin, in Q2 FY2025. Six-month gross profit was $2.3 million, or approximately 21% gross margin. The year-over-year margin compression primarily reflects strategic inventory investments and supply chain dynamics, partially offset by the reversal of a prior-year inventory obsolescence reserve in the comparable quarter.
Operating Expenses: Operating expenses for Q2 FY2026 totaled $5.2 million, compared to $1.3 million in Q2 FY2025. The increase was primarily attributable to higher non-cash share-based compensation of $2.1 million and ongoing investments in leadership and sales infrastructure, resulting in an elevated quarterly expense level as the Company resets its operating structure ahead of planned manufacturing expansion.
Net Loss: Net loss for Q2 FY2026 was $(5.5) million, or $(0.16) per share, compared to $(1.0) million, or $(0.3) per share, in Q2 FY2025. Six month net loss was $(6.8) million, or $(0.2) per share. The increased loss during the second quarter includes higher share-based compensation expense for employees, board members and consultants of $2.1 million and non-operating charges of $1.1 million.
Strategic Transformation Update: Building an Integrated Energy Storage Platform
NeoVolta is executing on its vision to become an integrated energy storage platform serving three complementary market segments, each offering distinct strategic advantages:
Residential Platform: Provides brand visibility, channel diversification, and recurring revenue foundation through expanded installer partnerships and innovative financing models including Battery-as-a-Service (BaaS) and third-party ownership (TPO) structures.
Commercial & Industrial (C&I) Platform: Targets the underserved "missing middle" market with bundled EPC and financing solutions. The Company has advanced discussions for a pipeline exceeding ...
