Executive Summary

Q3 revenue of $5.79M fell 50% YoY on “unfortunate order timing” (a ~$3M U.S. federal-funded EV ARC order delayed) and softer Europe deliveries amid regional unrest; gross margin turned slightly negative on fixed-cost under-absorption .
Results missed S&P Global consensus: revenue $5.79M vs $8.45M*, EPS $(0.28) vs $(0.24), and EBITDA $(4.0)M vs $(2.26)M; management emphasized timing rather than lost demand and cited $8M backlog excluding delayed awards and Middle East pipeline .
Operating discipline continued: non-GAAP gross margin would have been 13% excluding D&A in COGS, OpEx ex-non-cash down ~30% YoY, and non-GAAP net loss improved vs 3Q24 despite lower sales .
Strategic catalysts: Beam Middle East JV offices opened with early traction in autonomous/drone charging; Sourcewell cooperative contract and GSA MAS renewal expand streamlined U.S. state/local procurement pathways .

What Went Well and What Went Wrong

What Went Well
- Commercial mix strengthened: 82% of Q3 revenue from non-government entities (vs 48% last year), and YTD international share rose to 39% (vs 20%) .
- Cost actions: Q3 OpEx ex-non-cash fell to $3.6M from $5.1M (−30% YoY); non-GAAP gross margin would be 13% with D&A add-back; non-GAAP net loss $(2.82)M improved vs 3Q24 .
- Strategic progress: Opened Beam Middle East; showcased EV ARC and BeamBike at DRIFTx; early engagement on wireless autonomous charging and BeamFlight drone charging; CEO: “We had an unbelievable response… already meaningfully engaged with several… companies” .
What Went Wrong
- Revenue miss and negative gross margin: Q3 revenue $5.79M missed consensus and fell 50% YoY; gross margin negative on lower volume and fixed overhead .
- U.S. federal delay and Europe softness: ~$3M U.S. order delayed as funds withheld; Europe legacy product deliveries slowed amid Balkan political unrest; management sees timing, not lost demand .
- GAAP loss widened: Q3 GAAP net loss $(4.87)M vs $1.30M profit in 3Q24; cash at quarter-end $3.35M, working capital $10.9M (company notes access to $100M undrawn LOC) .

Financial Results

Quarterly trend (oldest → newest)

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$11.48	$6.32	$7.08	$5.79
GAAP Gross Margin %	11%	8%	20%	−0.5% (gross loss $0.03M)
GAAP EPS (Basic)	$0.09	$(1.04)	$(0.28)	$(0.28)
Non-GAAP Gross Margin % (ex D&A in COGS)	18%	21%	30%	13%
Non-GAAP Net Loss ($M)	$(3.02)	N/A	$(1.43)	$(2.82)

Q3 2025 actual vs S&P Global consensus

Metric	Q3 2025 Actual	Q3 2025 Consensus
Revenue ($USD)	$5,788,000	$8,450,200*
Primary EPS (Basic)	$(0.28)	$(0.244)*
EBITDA ($USD)	$(3,974,000)*	$(2,258,000)*

S&P Global disclaimer: Asterisked values retrieved from S&P Global.

KPI/Mix and Balance Sheet

KPI	Q3 2024	Q3 2025
Non-Government Commercial Mix (% of Revenue, quarter)	48%	82%
International Mix (YTD)	20%	39%
Contracted Backlog ($M)	N/A	$8
Cash ($M)	$4.57 (12/31/24)	$3.35 (9/30/25)
Working Capital ($M)	N/A	$10.9
Debt / LOC	Debt-free; $100M LOC unused	Debt-free; $100M LOC unused

Notes: Management cited slight discrepancies on Q3 gross margin (press release ~−1% vs call −0.5%) due to rounding; both indicate fixed cost under-absorption at lower volume .

Guidance Changes

Beam did not issue quantitative guidance ranges; commentary emphasized backlog conversion and improved absorption as volumes recover.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4 2025	None	No numeric guidance; expect growth as delayed U.S. and Europe orders convert; MEA pipeline building	N/A
Gross Margin	FY/Q4 2025	None	Expect improvement with higher volume; product-level GM ~44% YTD cited by CEO	Qualitative positive
OpEx	FY/Q4 2025	None	Continued cost discipline; OpEx ex-non-cash down ~30% YoY in Q3	Maintained focus
Backlog	Near term	N/A	$8M contracted; excludes delayed ~$3M U.S. order and Europe tender awards	Building

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025, Q2 2025)	Current Period (Q3 2025)	Trend
Middle East expansion	Entered ME via partner Solvana (Q1 PR) ; formed Beam Middle East JV (Q2)	Opened ME offices; live deployments of EV ARC/BeamBike at DRIFTx; strong AV/drone interest	Accelerating
Autonomous/wireless charging	Concept/patent position discussed (Q2)	Highlighted AV wireless charging integration; active engagements; BeamFlight drone charging emphasized	Rising focus
Energy Storage (ESS)	21% 1H order growth; F500 and defense wins (Q2)	New bespoke high-density battery programs; safety and TCO advantages	Growing, higher-margin niches
U.S. federal demand	Severe slowdown; pivot to commercial/international (Q2)	~$3M federal-funded order delayed; no federal sales in Q3	Headwind persists
Europe operations	Lean gains; reseller network; tenders (Q2)	Legacy delivery delays amid unrest; awards for EV ARC tenders in cities	Mixed near term, positive pipeline
Tariffs/macro	Watching tariffs; Serbia tariff impact highlighted (Q2)	Political/regulatory backdrop impacting timing; diverse markets offset	Manageable via diversification
Vertical integration/reliability	Power electronics acquisition rationale (reduce 3rd-party failures) (Q2)	Warranty costs manageable; integration to improve reliability and margin recapture	Continued execution

Management Commentary

CEO on growth vectors despite Q3 shortfall: “Had we executed on [the ~$3M] order… we would be reporting closer to $10 million in revenues with… gross margins around 20% GAAP… [Q3] reduction… is driven by order timing rather than… fundamental” .
CEO on Middle East opportunity: “Our patent-pending wireless charging… creates the perfect platform for autonomous vehicles… unbelievable response… already meaningfully engaged” .
CFO on margin optics: “Gross profit… negative $28,000… driven by fixed overhead allocations on reduced sales… excluding non-cash expense… gross margins for Q3… 13%” .
Cost discipline: “Operating expenses, excluding non-cash items, [were] $3.6 million vs $5.1 million… an improvement of… 30 percentage points” .

Q&A Highlights

Wireless and autonomy: Analysts probed commercialization of wireless charging; management sees nearer-term adoption with AV/drone ecosystems vs slower auto OEM integration .
Backlog/pipeline mix: Pipeline now diversified beyond EV ARC/federal; increasing contributions from ESS, BeamBike, Europe tenders; backlog policy remains PO-only .
Middle East cadence: Strong initial engagement; timing uncertain but management expects announcements “in the not-too-distant future” .
Capacity/utilization and reliability: U.S. capacity underutilized; Europe has significant owned capacity; vertical integration targets third-party component failure reduction; warranty costs not chronic and embedded in financials .

Estimates Context

Q3 2025 vs S&P Global consensus: Revenue $5.79M vs $8.45M*, EPS $(0.28) vs $(0.244), EBITDA $(3.97)M vs $(2.26)M*; meaningful top-line and profitability misses driven by order timing and fixed-cost absorption .
Forward consensus points to modest sequential Q4 revenue (~$5.79M*) and improving losses into 1H26 as volumes recover*; estimate counts are thin (3–5 analysts), implying sensitivity to new datapoints*.
S&P Global disclaimer: Asterisked values retrieved from S&P Global.

Key Takeaways for Investors

Near-term: Significant miss versus consensus largely from timing (delayed ~$3M U.S. order; Europe unrest), not demand destruction; watch for backlog conversion and any 8-K/PRs confirming delayed order funding .
Mix pivot: Structural shift away from U.S. federal toward commercial (82% in Q3) and international (39% YTD) is intact, reducing policy risk and broadening TAM .
Margin path: Non-GAAP GM at 13% despite weak volume shows cost progress; volume leverage is key to restoring GAAP GM; product-level GM cited at ~44% YTD provides headroom when utilization normalizes .
Balance sheet/liquidity: $3.35M cash, $10.9M working capital, debt-free with $100M unused LOC—enough to pursue MEA/Europe pipelines while absorbing volatility .
Catalysts: Middle East JV wins (AV/drone charging, BeamWell), Europe municipal tenders for EV ARC, U.S. state/local easier purchasing via Sourcewell/GSA MAS renewals .
Risk factors: U.S. policy/funding uncertainty, Europe geopolitical/tariff impacts, order lumpiness causing absorption swings; vertical integration and reseller strategy aim to mitigate .

Appendices

Additional Relevant Press Releases in/around Q3 2025

Sourcewell cooperative contract awarded (streamlines state/local procurement) .
GSA MAS renewal through 2030 with cooperative purchasing (state/local eligibility) .
China patent for hybrid solar-wind tracking (BeamSpot) .
U.S. patent for fast charging batteries at low temperatures (iBTM) .
Beam Middle East showcases EV ARC and BeamBike at DRIFTx (first UAE deployments) .

Non-GAAP Reconciliations (Q3 2025)

Non-GAAP COGS excludes $0.77M D&A; Non-GAAP OpEx excludes $1.28M of non-cash items; Non-GAAP net loss $(2.82)M vs GAAP $(4.87)M .

Data Sources

Q3 2025 8-K and press release, including financial statements .
Q3 2025 earnings call transcript –.
Q2 2025 press release and call for prior-quarter comps – –.
Q1 2025 press release for earlier comps –.
S&P Global consensus (asterisked values).

Beam Global (BEEM)·Q3 2025 Earnings Summary