Sign in

You're signed outSign in or to get full access.

EI

Expion360 Inc. (XPON)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $2.05M, up 111% year over year and 3% sequential; revenue beat Wall Street consensus by ~22% ($2.05M vs $1.68M) and EPS beat (-$0.37 vs -$0.64). Drivers included RV market rebound and first sales in Home Energy Storage Solutions (HESS) .*
  • Gross margin expanded to 25% from 22.1% in Q4 2024 and 12.1% in Q3 2024 on lower cost of goods and increased scale; SG&A fell 25% YoY to $1.65M due to lower salaries/stock comp, legal/professional fees, and warehouse lease termination .
  • Began HESS shipments in January and built 6–12 months of inventory to mitigate tariff risk; management is pursuing supply chain diversification and a potential U.S. onshoring collaboration with NeoVolta .
  • Liquidity improved: cash increased to $1.09M at quarter end, supported by January’s $2.6M financing; net cash used in operations was $1.23M, reflecting prepaid inventory receipts and payments toward a suspended liability .
  • Near-term catalysts: continued sequential growth, expanding OEM/distributor relationships, HESS commercialization progress, and tariff/onshoring developments highlighted on the call .

What Went Well and What Went Wrong

What Went Well

  • Revenue momentum and margin expansion: “Revenue grew 111% year over year to $2.0 million… on a rebounding RV market,” with gross margin rising to ~25% and five consecutive sequential revenue gains .
  • Strategic execution in HESS: Began production shipments in January; management expects incentives (California SGIP, federal tax credits) to support uptake and is working on additional orders for 2025 .
  • Cost discipline: SG&A fell 25% YoY to $1.65M driven by lower salaries/stock comp, reduced legal/professional fees, and warehouse lease termination .

What Went Wrong

  • Profitability still negative: Net loss was $1.15M (improved YoY), with operating loss of $1.15M; cash burn from operations was $1.23M in the quarter .
  • Balance sheet burden from warrant-related liabilities: Suspended liability remained elevated at $4.49M (down from $4.99M in Q4), a headwind to equity value and cash deployment flexibility .
  • Tariff/supply chain overhang: Management took preemptive steps (6–12 months inventory, supplier diversification) but tariff uncertainty persists, necessitating mitigation and potential onshoring .

Financial Results

Core financials across recent quarters

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$1.39 $2.00 $2.05
Gross Margin %12.1% 22.1% 25.0%
SG&A ($USD Millions)$2.10 $1.60 $1.65
Net Loss ($USD Millions)$(8.81) $(0.25) $(1.15)

EPS evolution and YoY comparison

MetricQ1 2024Q3 2024Q1 2025
Diluted EPS ($USD)$(31.30) $(24.55) $(0.37)

Actuals vs Wall Street consensus (S&P Global)

MetricPeriodConsensusActualSurprise
Revenue ($USD)Q1 2025$1,676,800*$2,049,331 +22.2%*
EPS ($USD)Q1 2025$(0.64)*$(0.37) +$0.27*
# of Estimates (Revenue)Q1 20251*——
# of Estimates (EPS)Q1 20251*——

Values retrieved from S&P Global.*

KPIs and balance sheet indicators

KPIQ4 2024Q1 2025
Cash and Equivalents ($USD)$547,565 $1,092,607
Inventory ($USD)$4,831,461 $6,036,033
Prepaid/In-Transit Inventory ($USD)$1,612,686 $149,541
Accounts Receivable, Net ($USD)$613,022 $592,625
Suspended Liability ($USD)$4,985,948 $4,485,948
Net Cash Used in Operating Activities ($USD)—$(1,228,934)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Incremental revenue from new OEMs/distributorsFY 2025~$5.0M incremental revenue No numeric update; management expects continued sequential growth Maintained qualitatively
Gross profit increaseFY 2025~$1.4M incremental gross profit Not reiterated numerically; focus on margin initiatives and HESS Maintained qualitatively
Tariff mitigation and onshoringOngoingMitigation initiatives, NeoVolta LOI Building 6–12 months inventory; diversifying suppliers; pursuing tariff exclusion and onshoring collaboration Expanded execution detail

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q1 2025)Trend
Tariffs and onshoringNeoVolta LOI; intent to develop US-based battery facility CEO in Washington, D.C.; tariff exclusion request; 6–12 months inventory build; diversify supply to South Korea; perceived valuation disconnect due to inventory vs market cap Intensifying focus and action
HESS commercializationUL certifications underway; launch planning Shipments began in January; fulfilling POs; incentives (CA SGIP, IRA) cited Scaling early commercialization
OEM partnershipsAdded Scout, Alaskan, K-Z; more relationships forming Continuing to add OEMs/distributors; substantial POs in hand Expanding base
RV market backdropDownturn persisted with high rates RVIA data: total shipments +14% in Q1 2025; management expects continued improvement Improving macro
Regulatory/incentives & ULUL processes and authorities’ requirements highlighted Final stages of UL 9540 testing; incentives expected to aid HESS adoption Progressing
Supply chain and inventory—6–12 months inventory for tariff mitigation; supplier diversification Proactive risk mitigation

Management Commentary

  • “The first quarter of 2025 was underscored by continued strong revenue momentum, margin expansion and a strengthened balance sheet… building our Home Energy Storage Solutions vertical.”
  • “We took the opportunity to prepare for continued growth and tariff mitigation by adding 6–12 months of inventory early in the quarter… and are working to diversify our supply chain with potential sourcing from additional countries.”
  • “Looking ahead… we believe we are well positioned to continue our growth initiatives… With substantial purchase orders already in hand… we expect our quarterly sequential growth to continue.”

Q&A Highlights

  • Onshoring financial impact: Management expects cost-plus access to cells, economies of scale, and royalty income from cell sales; partner would bear capital burden for domestic plant construction .
  • Tariff strategy: Pursuing tariff exclusion; added 6–12 months inventory early; diversifying supply to free-trade countries (e.g., South Korea) to avoid tariffs and improve margins .
  • Washington, D.C. meetings: CEO reported strong support for increasing U.S. manufacturing investment and expressed confidence in onshoring prospects .

Estimates Context

  • Q1 2025 revenue beat: $2.05M actual vs $1.68M consensus; ~22% upside and fifth straight sequential growth cited by management .*
  • Q1 2025 EPS beat: -$0.37 actual vs -$0.64 consensus; improved YoY from -$31.30 on a reverse-split adjusted basis, aided by higher sales and lower SG&A .*
  • Coverage is thin (one estimate), so future estimate revisions may be sensitive to company disclosures and HESS/order cadence.*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Revenue and EPS beats with broad-based gross margin expansion signal operational leverage returning as volumes increase and COGS mix improves; monitor whether margin gains persist with HESS scaling .*
  • HESS commercialization is underway; incentives and UL 9540 certification progress could accelerate adoption—key for diversifying away from RV cycle exposure .
  • Tariff mitigation actions (inventory build, supplier diversification) and potential NeoVolta-led onshoring provide optionality to protect margins and expand addressable markets (including government/defense) .
  • Balance sheet: cash improved post financing, but operating cash burn and suspended liability remain watch items; watch conversion of suspended liability and working capital normalization as prepaid/in-transit inventory unwinds .
  • OEM/distributor growth remains a tangible driver; prior guidance suggested ~$5M incremental FY25 revenue from new relationships—look for updates/validation via orders and run-rate trajectory .
  • Trading implication: Small-cap coverage is light; beats + improving RV macro + HESS milestones may catalyze sentiment, but liquidity and liability overhang can temper moves—watch for concrete onshoring/tariff outcomes and HESS revenue contribution .*
  • Medium-term thesis: Execution on HESS and supply-chain/onshoring could structurally lift margins and resilience; sustained sequential growth and OEM expansion will be key to re-rating.
Note: Asterisk (*) denotes estimate-related values and comparisons. Values retrieved from S&P Global.

Sources

  • Expion360 Q1 2025 press release and attached financials .
  • Expion360 Form 8-K (Item 2.02; Exhibit 99.1) for Q1 2025 .
  • Earnings call transcript Q1 2025 and .
  • Q4 2024 results (8-K press release and financials) .
  • Q3 2024 results (8-K press release and financials) .
  • HESS shipping announcement (Jan 2, 2025) .
  • Financing closing (Jan 3, 2025) .
  • Call announcement (May 1, 2025) .