Beam Global (BEEM)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 revenue was $6.32M, down 56.6% YoY and 25.4% QoQ, driven by a sharp reduction in U.S. federal demand; mix shifted meaningfully to commercial (53%) and international (25%) revenue .
• GAAP diluted EPS was -$1.04 due to a non-cash goodwill impairment of $10.8M; gross margin was 8% GAAP and 21% on an adjusted, non-GAAP basis .
• Versus S&P Global consensus, Beam missed: revenue $6.32M vs $8.00M*, Primary EPS -$0.316 vs -$0.255*; formal numeric guidance was not provided, but management reiterated expectations for a return to growth and margin improvement .
• Near-term catalysts: international expansion (CE mark for EV ARC, reseller buildout), a 23% QoQ increase in orders, and continued gross margin improvement at unit economics despite lower volumes .

What Went Well and What Went Wrong

What Went Well

• Commercial and international mix inflected: commercial revenue share rose to 53% (vs 16% a year ago); international comprised 25% (vs 11% a year ago), reducing reliance on U.S. federal sales .
• Non-GAAP gross margin strengthened to 21% despite lower volume; unit-level EV ARC margins are “in the 40–50% range,” positioning for margin expansion with volume .
• Management tone constructive on diversification and resilience: “We have the pieces in place to return to growth…We have no debt and no going concern…gross profits net of non-cash items are still north of 20%” .

What Went Wrong

• Revenue reset: $6.32M vs $14.56M last year on federal demand pause and certification updates; GAAP gross margin compressed to 8% given fixed overhead absorption at lower volumes .
• Large non-cash goodwill impairment ($10.8M) due to market cap falling below net assets; GAAP net loss widened to -$15.5M (vs -$3.0M YoY) .
• Tariff/macro uncertainty and supply chain constraints remain headwinds, with management noting inflationary impacts from tariffs and the need to localize power electronics and scale European capacity .

Financial Results

GAAP results vs prior periods

Values marked with * retrieved from S&P Global.

Results vs Wall Street consensus (S&P Global)

Values marked with * retrieved from S&P Global. Actuals are S&P Global “Primary EPS”; company-reported GAAP diluted EPS was -$1.04 .

Revenue mix and segment-like KPIs

Operating KPIs

Guidance Changes

No formal numeric guidance ranges were provided; commentary was directional.

Earnings Call Themes & Trends

Management Commentary

• “Sales of our flagship product EV ARC™ increased in the first quarter…We have sufficient cash and working capital…We have no debt and no going concern…gross profits net of non-cash items are still north of 20%” — Desmond Wheatley, CEO .
• On impairment: “GAAP accounting requires it…our market cap is now lower than the value of our assets…these are noncash items…no impact on the operational viability of the company” .
• On margins and scale: “EV ARC…unit economics…still up in the 40% and 50% range…When we get back to volume, then you’ll see us dramatically increasing those gross margins at a GAAP level” .
• On resiliency: “Our units were continuing to operate…in 8 feet of storm surge…We are flood-proof to 9.5 feet and…survived Category 5 185-mile an hour winds” .

Q&A Highlights

• Margin mix and trajectory: Management emphasized unit-level margins in the 40–50% range, 20%+ non-GAAP gross margin despite low volume, and future GAAP margin expansion with scale and supply-chain leverage .
• European capacity: U.S. facility can do ~4,000 units/year; Europe has ~5x roof space and room to expand quickly, with power electronics localization to mitigate supply-chain risk .
• Resiliency demand: BeamWell and EV ARC highlighted for disaster and military use; examples of flood-proof operation and blackout immunity underpin energy security narrative .

Estimates Context

• Q1 2025 missed consensus: revenue $6.32M vs $8.00M*, S&P “Primary EPS” -$0.316 vs -$0.255*; company-reported GAAP diluted EPS was -$1.04 due to non-cash impairment .
• With federal demand paused, sell-side estimates likely need lower near-term revenue and EPS, partially offset by higher non-GAAP margin assumptions from mix and unit economics .
  Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

• Beam’s Q1 reset reflects external U.S. federal demand pauses rather than product competitiveness; mix shift to commercial (53%) and international (25%) reduces reliance on federal sales .
• Despite low volumes, non-GAAP gross margin reached 21% and unit-level EV ARC margins remain 40–50%, supporting operating leverage when volume returns .
• Large GAAP loss was driven by a non-cash goodwill impairment ($10.8M); liquidity remains: $2.5M cash and an untapped $100M credit line; net cash used in ops improved to $1.8M vs $3.0M YoY .
• Near-term trading: stock likely sensitive to order momentum and tariff headlines; watch for validation via the 23% QoQ orders increase and international wins post-CE mark .
• Medium-term thesis: scaling EU/MEA manufacturing and localized power electronics can expand margins and mitigate tariff/supply risks; recurring revenue opportunities (sponsorship/smart city data) add structural value .
• Estimates likely drift lower near-term given revenue miss vs consensus; monitor gross margin progression and backlog conversion ($6.3M) for signs of inflection .
• Execution priorities: expand reseller networks, accelerate international deployments, and sustain unit-level margin improvements to drive GAAP margin recovery with volume .

Notes:
- GAAP actuals sourced from Q1 2025 press release and 8-K financials **[1398805_e20ae71c7c4842b38a41494c932d36f1_6]** **[1398805_0001683168-25-003712_beam_ex9901.htm:5]**.  
- Consensus and “Primary EPS” values marked with * are retrieved from S&P Global.