This article first appeared on GuruFocus .
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Revenue:$8.6 million in Q2 2026, up 21% year-over-year and 174% sequentially.
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Gross Margin:17.8% GAAP; adjusted non-GAAP gross margin was 26.2%, down from 29.6% in the prior-year period.
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Net Loss:$3.1 million, or $0.14 per share, compared to $4.3 million, or $0.28 per share, in Q2 2025.
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Non-GAAP Net Loss:$2.0 million, compared to $1.8 million in the prior-year quarter.
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Operating Expenses:$4.5 million, down from $5.9 million a year ago (which included a $1.4 million stock grant).
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Backlog:$5.4 million at the end of June.
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Debt:No debt, with an unused $100 million line of credit.
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Six-Month Net Loss:$9.9 million, or $0.47 per share, compared to $19.8 million, or $1.30 per share, in the prior-year period (which included a $10.8 million goodwill impairment).
Release Date: August 19, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Beam Global ( NASDAQ:BEEM ) reported a 21% year-over-year increase in revenue to $8.6 million in Q2 2026, with a 174% sequential increase from Q1, signaling a strong business re-acceleration.
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The company's strategic diversification is paying off, with Europe now contributing roughly the same revenue as the United States, and the battery business generating over $0.5 million in orders for drones and robotics in a single week.
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Beam Global ( NASDAQ:BEEM ) is expanding its intellectual property portfolio with new patents for battery solutions and energy-generation technology, and its breakthrough battery technology for AI data centers was accepted for presentation at the prestigious IECON 2026 conference.
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The relocation of manufacturing to Yuma, Arizona is expected to generate approximately $2.7 million in rent savings over the five-year lease term, along with additional savings on labor, compliance, and taxes.
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The company maintains a strong balance sheet with no debt, an unused $100 million line of credit, and a significantly lower share count compared to its peers, providing dry powder for future large orders.
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Beam Global ( NASDAQ:BEEM ) is seeing strong traction in Europe with high utilization rates (over 90%) for its deployed products and is expanding its recurring-revenue sponsorship model, which is proving to be a profitable and scalable business opportunity.
Negative Points
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Gross margin declined to 17.8% in Q2 2026 from 20.3% in the prior-year period, and adjusted non-GAAP gross margin also fell to 26.2% from 29.6%, reflecting ongoing fixed overhead costs and lower volumes.
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The company recorded a $1.1 million non-cash provision for credit losses related to a single customer balance, which negatively impacted first-half results.
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Beam Global ( NASDAQ:BEEM ) continues to operate at a net loss, reporting a net loss of $3.1 million in Q2 2026, although this was an improvement from the $4.3 million loss in the prior-year quarter.
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The Middle East market, which the company views as a significant opportunity, remains hampered by ongoing regional conflict and uncertainty, delaying potential large orders and investments.
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The company's valuation remains 'stuck in a rut' with EV charging stocks, despite its broader technology platform, which management believes undervalues its diversified product offerings and growth potential.
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Backlog decreased to $5.4 million at the end of June, down from a higher level at the start of the quarter, as a substantial portion was converted into shipments, indicating a need to replenish the order book.
Q & A Highlights
Q: Can you unpack the areas of highest growth in the order book this last quarter, particularly around Europe, the Middle East, and drone-related products in North America? Are the trends that played out in revenue continuing in the backlog? A: Desmond Wheatley (CEO): We've seen an increase in orders across the board, but the battery and energy-storage business is standing out from a percentage point of view. The work we're doing for defense applications and drones is playing an increasingly important role. The order book is telling us we're shooting at the right targets and that our investments in international expansion were the right thing to do, as we're seeing strong orders across the board in Europe and the Middle East.
Q: Can you discuss the margins on some of the new business opportunities, particularly in Europe and defense markets? What are the expected margins from your current book of business? A: Desmond Wheatley (CEO): There's still a big gap between where we are and where we want to be, largely due to volume. Our non-GAAP margins are around 26-27%, but unit economics are way better than that, with some of our more expensive products achieving as much as 40% gross margin. We don't make commodity products; we make difficult, robust products that others can't. I've often said this is a 50% gross margin business, and we're halfway there when backing out non-cash items. Volume will deliver a great deal of this improvement.
Q: Are you shooting at any "elephants"anything that can make a dramatic impact on your P&L over the next year that could be booked within the next couple of quarters? A: Desmond Wheatley (CEO): Yes, I am, but I can't go into details. We have many senior team members shooting at very large targets that are a single signature away from completely changing our trajectory. We have the right products, are in the right industry, and are shooting at the right targets. I have a high degree of certainty that we will get there, though that's my personal point of view.
Q: Can you comment on your competitive advantages with customized batteries in the drone and robotics markets? Are competitors less flexible with their solutions? A: Desmond Wheatley (CEO): You can't have a drone without a power source, and we do two things cleverly: we have a way of recharging them without human interaction in remote locations, and we create highly energy-dense, safe, bespoke form-factored energy-storage solutions. Our existing customer baseincluding the US Army, Marine Corps, law enforcement, and European militariesis aggressively looking toward drones and robotics, and we are very well positioned to capitalize on that.
Q: Can you remind me of the scope of your existing wireless-charging patents? Is it integrating the wireless-charging pad with your EV ARC design? A: Desmond Wheatley (CEO): We remain agnostic on the charging interface itself, as we have with every other type of EV charger. What's important is our ability to deploy wireless charging rapidly at scale without construction or electrical work. In a city environment, we can put charging no more than 2 minutes away from every drop-off or pick-up point for robotaxis, without grid impact or high electricity costs. Our ability to deploy in a robust and dynamic way is our major differentiator, and we have good intellectual property protection over those patents.
Q: Should we forecast any costs in the current quarter related to moving manufacturing to Arizona? A: Desmond Wheatley (CEO): There were some costs related to the move, but we self-performed a great deal of it. The real savings kick in moving forwardtremendous reductions in rent, labor, compliance, and other costs. Everyone we wanted has moved with us, so we're taking the same equipment and key people. As we expand our labor force in Yuma, typical labor rates will be about three-quarters of what we pay in San Diego.
Q: You mentioned more than $0.5 million in drone and robotics orders in a single week. Can you give a sense of where that business sits today in terms of revenue, and is the data-center opportunity a 2027 event? A: Desmond Wheatley (CEO): We don't segment the business, so I can't break out revenues per segment, but it's growing with very high-quality sales and customers. As for the data-center opportunity, I don't know the timing, but it's a very large opportunity. AI data centers require very large surges in power for short periods, which batteries generally don't like doing. We've developed that prowess for weapon systems, which have similar requirements, and we're uniquely positioned to take advantage of this.
Q: How big can the sponsorship-funded recurring revenue model in Europe get, and does it change the margin profile? A: Desmond Wheatley (CEO): We expect it to be highly profitable because it's a recurring-revenue modelwe don't sell the units, they remain on our balance sheet. We're competing with other forms of outdoor media, and we're a very attractive solution. The difference between now and before is we're actually doing it now and seeing it scale. The world needs a lot of rapidly deployed, off-grid charging infrastructure, and our ability to find ways to pay for it without capital expenditure or per-kilowatt-hour charges is a much better model. It's a high-margin, recurring-revenue opportunity.
Q: Are you seeing any progress in the Middle East in terms of new orders or conversations progressing? A: Desmond Wheatley (CEO): Yes, without a doubt, but I don't want to create wrong impressions. People are uncertain there given the changing situation. However, the region is sunshine-rich, cash-rich, and incredibly aggressive about new mobility models. We had incredible meetings at Make it in the Emiratespolice chiefs, general-level military, and top ministersbrought to us by our partners at the Platinum Group. We just need the war to come to an end, and when it does, we'll be very well positioned to take advantage of the $1 trillion they intend to spend on sustainable infrastructure.
Q: With all your manufacturing facilities worldwide, what is the maximum amount of revenue you could produce, and can you break it down by continent? A: Desmond Wheatley (CEO): We have never come close to maxing out our capabilities. We were capable of producing revenues in the hundreds of millions of dollars globally, and we've never maxed out
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
