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Beam Global (BEEM)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 revenue of $7.08M grew 12% sequentially but modestly missed S&P Global consensus ($7.25M); GAAP EPS of -$0.28 was slightly below the -$0.27 consensus, while adjusted gross margin reached 30% and GAAP gross margin hit a company-best 20% . Revenue Consensus Mean: $7.25M*; EPS Consensus Mean: -$0.274*.
  • Mix pivoted further toward commercial and international: 60% of YTD revenue from non-government enterprise (vs 24% prior year) and 37% international (vs 15% prior year), reducing federal exposure after a “more or less complete cessation” of federal orders cited by management .
  • Operating expenses fell 17% YoY to $5.9M as cost actions and lean execution continued; net loss improved YoY to -$4.28M; cash ended at $3.4M; backlog stood at $7M; company reiterated it is debt free with a $100M undrawn line of credit .
  • Strategic catalysts: formation of Beam Middle East JV (Masdar City) to sell/manufacture across MEA , 21% 1H ESS revenue growth and ~$2M ESS PO slated for 2025 recognition , and post-quarter GSA schedule renewal with Cooperative Purchasing enabling state/local buys via GSA .

Note: All estimate values marked with * are from S&P Global.

What Went Well and What Went Wrong

  • What Went Well

    • Best GAAP gross margin in company history (20%) and 30% adjusted non-GAAP gross margin; management emphasized sustained cost reductions and synergies, with a path to further overhead absorption as volumes improve . Quote: “generated the best GAAP Gross Margin in our history… while remaining debt free, reducing our operating costs” .
    • Commercial and international diversification: 60% YTD revenue from commercial and 37% international, validating the strategy to offset reduced U.S. federal demand .
    • Strategic expansion: Beam Middle East JV signed; expanded European reseller network; 21% 1H ESS revenue growth and ~$2M ESS PO for delivery in 2025 .

  • What Went Wrong

    • Modest top-line and EPS misses vs consensus; Q2 revenue $7.08M vs $7.25M* and EPS -$0.28 vs -$0.274*; EBITDA loss exceeded consensus as well (actual -$3.66M vs -$2.75M*) . Revenue/EPS/EBITDA consensus values from S&P Global*.
    • Federal headwind persists: management described a near “complete cessation” of U.S. federal purchases under the new administration, pressuring volume and unit absorption .
    • Tariff uncertainty and Serbia tariff friction complicate prior plans to bridge U.S. supply via Serbia, though management says impact to date has been “very little” and offset by cost reductions .

Financial Results

  • Income Statement and Margins
MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$13.399 $6.324 $7.075
GAAP Gross Margin %16% (20% in Q2’25 is +4ppt YoY) 8% 20%
Adjusted Gross Margin % (non-GAAP)18% (30% in Q2’25 is +12ppt YoY) 21% 30%
Operating Expenses ($USD Millions)$7.147 $16.045 (incl. $10.780 impairment) $5.901
Net Loss ($USD Millions)$(4.916) $(15.523) $(4.278)
Diluted EPS ($)$(0.34) $(1.04) $(0.28)
  • Customer/Geography Mix (YTD through 6/30)
Mix KPI1H 20241H 2025
Commercial % of Revenue24% 60%
International % of Revenue15% 37%
  • KPIs and Balance Sheet Snapshots
KPIQ1 2025Q2 2025
Backlog ($USD Millions)$6.3 $7.0
Cash ($USD Millions)$2.5 $3.4
Debt / Liquidity“Debt free” and $100M undrawn LOC “Debt free” and $100M undrawn LOC
  • Results vs S&P Global Consensus (Q2 2025)
MetricActualConsensus*Variance
Revenue ($USD)$7,075,000 $7,251,600*-$176,600 (≈ -2.4%)
EPS (Primary/GAAP)$(0.28) $(0.274)*-$0.006
EBITDA ($USD)$(3,659,000) (S&P actual)*$(2,753,000)*-$906,000

Estimates marked with * are Values retrieved from S&P Global.

Guidance Changes

Beam provided qualitative outlook but no numerical guidance ranges.

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025None“Expect… revenue to grow” N/A
Gross MarginFY 2025None“Fixed overhead absorption to continue to improve resulting in improved gross margins” N/A
Operating ExpensesFY 2025NoneContinued cost discipline; Opex reduced YoY in Q2 N/A
LiquidityOngoingNone“Debt free” with $100M unused LOC N/A

Earnings Call Themes & Trends

TopicQ4 2024 (Q-2)Q1 2025 (Q-1)Q2 2025 (Current)Trend
Federal demand / policyNew administration halted EV/charging purchases; major pipeline impact Working to offset with commercial/intl and new products “More or less complete cessation” of federal sales; offset by commercial/intl Negative at federal level; offset by mix shift
Tariffs / supply chainTariff uncertainty; Europe ops as hedge BABA compliance; potential easing; still inflationary effects Limited impact so far; Serbia tariffs complicate plan, but costs trending down Managed risk; watch Serbia tariffs
Product portfolioNew launches: BeamSpot, BeamBike, BeamPatrol, BeamWell Unit-level EV ARC margins strong; non-GAAP GM >20% Best-ever GAAP GM (20%); strong interest in BeamBike Improving economics; growing interest
Regional expansionEurope expansion; CE mark; resellers Europe/Mideast pipeline; BeamWell demo Jordan Beam Middle East JV signed (Masdar); shipments across EU and 13 U.S. states Accelerating
Energy Storage (ESS)Power electronics/battery integration PCC thermal tech; defense and AMR/robotics leads 21% 1H ESS revenue growth; ~$2M PO Positive momentum
Charging architecture——DCFC seen as niche over time; Level 2 ubiquitous; BEEM supports both Strategic positioning

Management Commentary

  • Strategy and execution: “We returned to revenue growth and generated the best GAAP Gross Margin in our history… creating a global platform… while remaining laser focused on financial discipline.”
  • Federal headwinds and diversification: “We’re doing this in the face of a more or less complete cessation of all federal sales activities… [but] 60% of our revenues… came from non‑government commercial entities” .
  • Cost/margins: “We reported GAAP gross margins of 20%… 30% [adjusted]… We will continue to… pursue cost reductions although never at the expense of quality.”
  • Middle East JV: “We’re creating sales and manufacturing platforms in all the most significant markets… BEAM Middle East… will position [us] to take advantage of… vast sums… invested in sustainable technologies.”
  • Liquidity: Company reiterated “debt free” status and $100M untapped line .

Q&A Highlights

  • DC Fast vs Level 2: Management prefers Level 2 ubiquity over time (costs/behavior), though BEEM offers DC fast without grid construction where needed; sees DC fast as a niche long-term .
  • Tariffs: Limited impact to date; pre-buying by shippers noted; Serbia tariff (≈35%) hampers one bridging strategy; internal cost-downs expected to outpace tariff pressures .
  • ESS traction: Clarified 21% 1H increase refers to sales orders; mainly U.S. customers currently; expects international expansion, particularly in tech-forward Middle East .
  • Reseller model / OpEx leverage: Aggressively adding resellers to scale without OpEx; commissions are primary variable OpEx; ERP and process efficiencies driving SG&A leverage .
  • New products: BeamBike generating strong inbound interest; BeamWell positioned for humanitarian and resiliency use cases .

Estimates Context

  • Q2 2025 vs S&P Global: Revenue $7.075M vs $7.252M* (≈ -2.4%); EPS -$0.28 vs -$0.274*; EBITDA -$3.66M vs -$2.75M* .
  • Forward consensus points to modest sequential revenue lift in Q3 with continued losses: Q3 2025 revenue $8.45M*, EPS -$0.244*, EBITDA -$2.26M* (for context only).
    Estimates marked with * are Values retrieved from S&P Global.

Key Takeaways for Investors

  • Margins inflecting: Best-ever 20% GAAP GM and 30% adjusted GM despite lower YoY volume—evidence of durable cost-downs and acquisition synergies; continued absorption can expand margins as volume returns .
  • Mix shift reduces policy risk: Commercial and international now a majority of revenue YTD, mitigating U.S. federal pause; EU and Middle East footprints broaden TAM .
  • Near-term catalysts: Execution in the Middle East JV, conversion of ESS orders (21% 1H growth; ~$2M PO slated for 2025), and reseller-driven pipeline scale-up .
  • Watchlist risks: Federal demand timing uncertain; tariff path and Serbia duties could pressure plans; execution on new product ramps and international sales cycles remains critical .
  • Trading setup: Slight top- and bottom-line misses vs consensus but notable quality-of-earnings improvements (margins, Opex control, cash up QoQ) set a “prove-it” path; headlines around Middle East wins, ESS contracts, or state/local buys via GSA Cooperative Purchasing could move the stock .
  • Liquidity/cash runway: Cash increased to $3.4M QoQ; management emphasizes no debt and $100M credit line flexibility for selective growth/recurring-revenue models .
  • Strategic narrative: From “one product/one customer” to diversified products/regions with manufacturing footprints in U.S., Europe, and planned MEA; levered to secular EV/infra demand even as U.S. federal cadence pauses .

References:

  • Q2 2025 8-K and Press Release: financials, margins, mix, cash, backlog .
  • Q2 2025 Call: federal demand halt; tariffs; DCFC vs L2; resellers; BeamBike interest .
  • Q1 2025 8-K and Call: Q1 comps; goodwill impairment; non-GAAP margins; diversification progress .
  • FY 2024 Call: product launches; CE mark; strategy; tariff hedges via Europe .
  • Middle East JV and ESS press releases: JV creation and ESS orders/growth .
  • GSA MAS renewal (post-quarter): Cooperative Purchasing expansion .