Executive Summary

Record quarter: Revenue reached $10.5M (+58% Y/Y, +44% Q/Q) as production ramped; YTD shipments have already surpassed full-year 2024 shipments, and management reaffirmed FY25 revenue guidance of $150–$190M .
Profitability optics mixed: GAAP net income was $15.1M, driven by non‑cash fair value gains; underlying performance remained loss-making with gross loss of $24.5M and adjusted EBITDA loss of $43.2M, though margins improved materially versus last year and last quarter .
Execution milestones: 15 of 16 Cerberus performance milestones achieved; the final cash-receipt milestone received a no‑penalty extension to July 31, 2025; subassembly automation is slated for full implementation early Q3 to lift throughput and reduce labor/overhead .
Commercial traction: Pipeline rose to $15.6B (60 GWh) and backlog stood at $680.9M; new MOUs include 400 MWh in Puerto Rico and 5 GWh with Frontier Power in the UK cap-and-floor program, plus a microgrid order with a large regulated utility in Florida .
Potential stock catalysts: Maintenance of FY25 revenue guide; automation on track for early Q3; continued backlog conversion and bankability progress; visibility on DOE LPO reimbursement cadence; and additional order conversions from MOUs and tariff-driven domestic preference .

What Went Well and What Went Wrong

What Went Well
- Record revenue with manufacturing ramp; “We are starting to see the product cost-out benefits combined with higher manufacturing output,” and operations set production records across key processes .
- Material margin improvement despite losses: underlying gross margin improved by 93 points Y/Y and 89 points Q/Q on lower unit costs and scaling, with adjusted EBITDA margin improving 145 points .
- Strengthening demand signals and domestic tailwinds: pipeline up 10% Q/Q to $15.6B, backlog ~$681M, and tariffs/91% domestic content driving incremental customer interest, especially in data centers and utilities .
What Went Wrong
- Still significant losses on core operations: gross loss of $24.5M; adjusted EBITDA loss of $43.2M; OpEx rose 46% Y/Y with mix of non‑cash items and strategic headcount to scale .
- Price variability and legacy backlog weigh near term: management flagged lower-priced older projects flowing through Q2, creating quarterly revenue and margin variability as higher-priced newer orders backfill .
- Timing risk persists: macro/tariff and ITC uncertainty may shift project timing; Cerberus’ remaining cash-receipt milestone extended to July 31, 2025 due to 2024 sales reduction, though management expects to meet it .

Financial Results

Quarterly comparison (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($M)	$0.85	$7.30	$10.46
GAAP Basic EPS	$(1.77)	$(2.20)	$0.42
Adjusted Basic EPS	$(0.44)	$(1.22)	$0.12
Gross Profit (Loss) ($M)	$(24.91)	$(23.50)	$(24.54)
Operating Expenses ($M)	$28.42	$28.20	$28.39
Adjusted EBITDA ($M)	$(46.09)	$(44.61)	$(43.24)
Cash, Cash Eq. & Restricted ($M)	$30.64	$103.36	$111.69

Contextual highlights:
- Q1 revenue +58% Y/Y and +44% Q/Q; record quarterly revenue .
- Q1 net income $15.1M driven by non‑cash fair value changes (warrants/derivatives) tied to stock price; underlying adjusted EBITDA remained negative .
- Non-GAAP reconciliation: Adjusted EBITDA adds back stock comp, changes in fair value of derivatives/debt, and other items; Adjusted EPS similarly adjusts GAAP EPS for these non‑cash items .
KPIs and operating metrics (oldest → newest)

KPI	Q3 2024	Q4 2024	Q1 2025
Commercial Pipeline ($B)	$14.2	$14.4	$15.6
Orders Backlog ($M)	$588.9	$682.0	$680.9
Cash incl. Restricted ($M)	$30.64	$103.36	$111.69
YTD shipments status	N/A	N/A	YTD shipments surpassed full-year 2024 shipments

Segment breakdown: Not applicable; the company reports as a single operating set of products/systems .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	$150–$190M (3/4/25)	$150–$190M (5/6/25)	Maintained
Subassembly automation completion	2025	“Full implementation in second and early third quarter” (3/4)	“Full implementation early in the third quarter” (5/6)	Timing narrowed (later in early Q3)
Line 1 capacity expansion	2025 year-end	Expand to ~2 GWh annualized (3/4)	Expand to ~2 GWh annualized (5/6)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
AI/software & data centers	CTS AI-driven BMS platform initiative; focus on bankability	FlexGen integration pipeline ($1.4B opps); data center use case rising	Data centers highlighted for multi-cycling, lower OPEX, +3.5% computing power from low aux load	Increasing strategic emphasis
Supply chain	Acute enclosure delay hurt Q3 revenue ($0.9M)	Diversifying enclosure suppliers; ramping subassembly automation	Q1 production records; first subassembly cell passed SAT; 7 more lines in 60–90 days	Improving, automation ramping
Tariffs/macro	N/A specific tailwind	U.S.-made positioning vs tariffs, regulatory uncertainty	Tariffs a commercial tailwind; 91% domestic content cited	Positive tailwind
DOE LPO	Expected 2024 closing; progressing	Closed $303.5M LPO; first $68.3M draw	“Business as usual” with DOE; portfolio review; on track for reimbursement submission	Stable engagement
Manufacturing scaling	Project AMAZE cost below forecast; milestones achieved	Subassembly automation Q2–Q3; containerization productivity focus	Full subassembly automation early Q3; exploring containerization automation; Line 1 to 2 GWh	Executing scale-up
International expansion	Puerto Rico LOI noted	Evaluating UK/LatAm/EU; Factory 2 RFQs	400 MWh MOU (Puerto Rico), 5 GWh MOU (UK cap & floor)	Broadening footprint
Backlog pricing	N/A	Contribution margin positive on new orders; legacy lower-price projects linger	Q2 will include lower-end pricing projects; schedule to customer demand	Mix headwind near term

Management Commentary

“We are starting to see the product cost-out benefits combined with higher manufacturing output… we continue to position the Company for long-term profitable growth” – CEO Joe Mastrangelo, press release .
“Notably, our underlying gross margin improved… by 93 percentage and 89 percentage points respectively” – CFO Eric Javidi, prepared remarks .
“Tariffs should be a strong tailwind… our American made product with 91% domestic content is becoming a key competitive advantage” – CCO Nathan Kroeker .
“As we sit here today… what we’ve shipped in 2025 exceeds what we shipped in 2024” – CEO Joe Mastrangelo .

Q&A Highlights

Automation ramp and labor/productivity: First subassembly station passed SAT; eight stations total to be installed over May–Aug; substantial labor reduction and quality/yield gains expected; containerization automation to lift throughput with similar headcount .
Pricing variability and backlog cadence: Older, lower‑priced projects flow in Q2; scheduling driven by customer demand rather than margin optimization; newer pipeline pricing holding amid safety/OPEX/tariff tailwinds .
Macro/ITC/tariffs and timing: Near‑term uncertainty can shift project timing, but regulated utility and co‑op projects continue; long‑term demand intact .
DOE LPO: Regular engagement; current leadership portfolio review is “business as usual”; on schedule for reimbursement submissions .
Capacity expansion: Line 1 scaling to ~2 GWh by year‑end; Line 2 targeted for implementation around year-end into 2026 ramp; second factory site selection ongoing .

Estimates Context

S&P Global consensus for Q1 2025 revenue and EPS was unavailable for EOSE; we cannot determine a beat/miss versus Street this quarter (S&P Global data fetch returned no values) [Values from S&P Global unavailable via tool].
Management reaffirmed FY25 revenue guidance of $150–$190M; in absence of quarterly consensus, this guide remains the primary Street anchor for near‑term modeling .

Key Takeaways for Investors

Reaffirmed FY25 revenue guide ($150–$190M) with record Q1 revenue and accelerating output reduces execution risk on topline this year .
Underlying profitability is improving (gross margin and adjusted EBITDA margin point gains), but core losses remain until automation and containerization productivity fully flow through in 2H25 .
Commercial momentum is building (pipeline $15.6B, backlog ~$681M) with expanding use cases (data centers, military, microgrids) and tariff-driven domestic preference, supporting medium‑term order conversion .
Near‑term mix headwinds (older lower‑priced backlog) and potential timing shifts from macro/incentives can cause quarterly volatility; focus on 2H ramp and automation milestones as catalysts .
Financing actions and liquidity are improving flexibility (cash $112M at Q1; later announced equity/convertible offerings to refinance and lower PIK interest), though post‑quarter transactions introduce capital structure changes to monitor .
Watch DOE LPO reimbursement cadence and Cerberus final milestone by July 31, 2025 for additional de‑risking signals .

Supporting Details and Additional Press Releases

Naval Base San Diego standalone BESS order ($8M) funded by CEC strengthens defense credentials and bankability .
MOU with Trip Ventures for 400 MWh Puerto Rico project pending NEPA review; directly aligns with island resiliency needs .
5 GWh MOU with Frontier Power positions Eos for UK’s LDES cap & floor opportunity and potential local manufacturing if volumes materialize .

Notes on non‑GAAP: Adjusted EBITDA and Adjusted EPS exclude stock‑based comp, fair value changes of derivatives/warrants/debt and other non‑recurring items; reconciliations provided in filings .

Eos Energy Enterprises, Inc. (EOSE)·Q1 2025 Earnings Summary