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EI

Expion360 Inc. (XPON)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 net sales grew 72% year over year to $2.4M, with gross margin at 23% and net income of $0.7M, reflecting improved product mix and other income/expense tailwinds .
  • Sequentially, revenue declined from $3.0M in Q2 to $2.4M in Q3 as battery/accessory mix normalized; SG&A increased to $3.5M but fell as a percentage of sales versus prior year .
  • Management changes are a key catalyst: Joseph Hammer appointed CEO/Chairman (Oct 28), Shawna Bowin named CFO (Sept 8); company regained Nasdaq listing compliance in September .
  • No Q3 earnings call was held due to recent management changes; investors should focus on the 10-Q for further detail and watch for leadership-driven strategic updates .

What Went Well and What Went Wrong

What Went Well

  • Net sales increased 72% YoY to $2.4M on stronger RV demand and onboarding of new customers and OEM outreach .
  • Gross margin expanded to 23% from 12% YoY, driven primarily by favorable product mix sold in the period .
  • Net income swung to $0.7M from a loss of $8.8M YoY, aided by higher sales, improved gross profit, and better other income/expense; “we believe we are well-equipped to drive our next phase of growth” — CEO Joseph Hammer .

What Went Wrong

  • Sequential revenue declined to $2.4M from $3.0M in Q2; Q2 margins had been pressured by tariff uncertainty and lower-margin pass-through accessory sales, indicating ongoing sensitivity to mix/tariffs .
  • SG&A rose to $3.5M (+69% YoY) due to salaries/benefits and legal/professional fees; while improving as % of sales YoY, the absolute increase weighs on operating leverage .
  • No Q3 earnings call or detailed guidance provided, limiting visibility into near-term trajectory and strategy execution cadence .

Financial Results

Summary Financials vs Prior Periods

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD)$2,049,331 $2,989,947 $2,393,192
Gross Profit ($USD)$501,567 $622,610 $542,483
Gross Margin (%)24.5% 21% 23%
SG&A ($USD)$1,649,435 $1,972,806 $3,544,666
Operating Income ($USD)$(1,147,868) $(1,350,196) $(3,002,183)
Other (Income)/Expense ($USD)$4,092 $18,627 $(3,725,013)
Net Income ($USD)$(1,151,998) $(1,368,860) $722,792
Basic EPS ($)$(0.37) $(0.41) $0.12
Diluted EPS ($)$(0.37) $(0.41) $0.10

Notes: YoY revenue growth reported as +111% (Q1), +134% (Q2), +72% (Q3) .

EBITDA (S&P Global)

MetricQ1 2025Q2 2025Q3 2025
EBITDA ($USD)$(1,113,840)*$(1,318,980)*$(2,975,785)*

Values retrieved from S&P Global.*

Balance Sheet/KPIs (Quarter-End)

MetricQ1 2025Q2 2025Q3 2025
Cash & Cash Equivalents ($USD)$1,092,607 $684,920 $4,293,797
Working Capital ($USD)——$8,518,764
Stockholders’ Equity ($USD)$3,196,604 $2,067,223 $9,012,065
Net Cash Used in Operating Activities (YTD) ($USD)$(1,228,934) $(1,629,896) $(3,725,143)

Segment breakdown: Not disclosed; company reports consolidated results .

Guidance Changes

No formal quantitative guidance provided in Q3 2025 press release; company referenced priorities (OEM penetration, HESS development, new features/form factors) without ranges .

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/Q4 outlookNoneNoneMaintained (no guidance)
Gross MarginFY/Q4 outlookNoneNoneMaintained (no guidance)
OpExFY/Q4 outlookNoneNoneMaintained (no guidance)
OtherFY/Q4 outlookNoneStrategic priorities reiteratedMaintained (no guidance)

Earnings Call Themes & Trends

No Q3 earnings call; trends derived from Q2/Q1 calls and Q3 commentary.

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
Tariffs/MacroActive tariff exclusion efforts; building 6–12 months inventory; onshoring goal; lobbying in D.C. Tariff uncertainty weighed on margins; mix shift to lower-margin accessories; mitigation via early inventory and supply diversification No specific update beyond recovery narrative; leadership changes; focus on product roadmap and OEM penetration Stabilizing; margin sensitivity persists
Supply Chain/OnshoringExploring NeoVolta partnership for U.S. manufacturing; diversify to free-trade sources Diversification to U.S.-based manufacturers and South Korea; long-term onshoring goal Emphasis on new OEM-centric form factors and features; strong inventory supports growth Progressing gradually
Product Performance (RV/Batteries)Edge battery features; RV market rebound; 5th consecutive sequential growth 6th consecutive sequential growth; strong battery sales; accessory mix impacted margins 72% YoY revenue growth; demand recovery in RV; onboarding new customers Positive, with mix-normalization
HESS (Home Energy Storage)Began shipments Jan; UL certification in process; incentives tailwind One system UL9540 certified; second nearing UL approval; continued development Near-term priority to further develop home energy solutions Building capability/validation
OEM Penetration/DistributionNamed OEMs (Scout, Alaskan, K-Z); expanding channels Continued pursuit of OEM partners; >300 customers nationwide Priority to add OEM partners; broad nationwide base Expanding reach

Management Commentary

  • “Net sales grew 72% year over year to $2.4 million, driven by strong organic sales of premium lithium iron phosphate (LiFePO4) batteries and accessories… Our results demonstrate a meaningful recovery of demand in the RV market, combined with expanded outreach to OEMs and successful onboarding of new customers.” — CEO/Chairman Joseph Hammer .
  • “Looking ahead… our near-term priorities include adding OEM market penetration with new major partners, further developing home energy storage solutions, and introducing new battery features, technologies, and unique OEM-centric form factors.” — Joseph Hammer .
  • Q2 call: “Gross margin was adversely affected by ongoing tariff uncertainty during the quarter and increased volume of lower margin pass-through product sales… We are seeking to improve margins by diversifying our supply chain and have already transitioned certain products to U.S.-based manufacturers.” — Brian Schaffner .
  • Q1 call: “Our long-term goal is to onshore the U.S. manufacturing of most of our components and assemblies… This would… allow us to pursue opportunities in the government and defense space.” — Brian Schaffner .

Q&A Highlights

  • Tariff environment: Management confident in lobbying efforts; inventory pre-built for next year aids near-term margin stability .
  • Inventory levels: Over $5M available for sale from prior pre-built purchases; actively planning replacement builds heading into 2026 .
  • Margin mix: Expect battery sales (vs. accessories) to support stronger margin in subsequent quarter; mix remains key driver .
    Note: No Q3 call/Q&A due to management changes .

Estimates Context

Coverage is limited. For Q1 2025, revenue beat the single-analyst estimate; EPS less negative than expected. Q2/Q3 lacked consensus estimates, constraining “beat/miss” framing.

MetricQ1 2025 EstimateQ1 2025 Actual# of EstimatesQ2 2025 EstimateQ2 2025 ActualQ3 2025 EstimateQ3 2025 Actual
Revenue ($USD)$1,676,800*$2,049,331* 1*—$2,989,947* —$2,393,192*
Primary EPS ($)$(0.64)*$(0.37)* 1*—$(0.41)* —$0.10*

Values retrieved from S&P Global.*
Note: S&P Global provided actuals for certain periods; consensus estimates largely unavailable for Q2/Q3.

Key Takeaways for Investors

  • XPON delivered a profitable Q3 ($0.10 diluted EPS) on 23% gross margin despite lower sequential revenue; YoY growth and margin expansion validate demand recovery and mix improvements .
  • Tariff/mix sensitivities remain the principal margin swing factor; watch product mix and tariff updates alongside supply chain diversification and potential onshoring progress .
  • Strategic leadership changes (CEO/Chairman Hammer, CFO Bowin) and regained Nasdaq compliance are catalysts for execution discipline, capital access, and investor confidence .
  • HESS progress (UL certifications, early shipments) provides an optionality-rich adjacency to RV/marine batteries, with incentives tailwinds; monitor commercialization milestones and installer/channel traction .
  • Limited sell-side coverage makes “beats/misses” opaque; Q1 showed a clear revenue beat vs single-analyst estimate; expect models to adjust to revenue cadence and mix effects as disclosures evolve [GetEstimates].
  • Near-term trading: Focus on any forthcoming strategic updates/guidance from new leadership, tariff outcomes, and mix signals; medium-term thesis hinges on OEM penetration, HESS scaling, and cost actions to unlock operating leverage .
  • Liquidity and equity strengthened materially (cash $4.3M; equity $9.0M; working capital $8.5M), supporting growth initiatives without near-term financing pressure .

Citations:

  • Q3 2025 press release/8-K:
  • Q2 2025 press release/8-K/call:
  • Q1 2025 press release/call:
  • CEO appointment: ; CFO appointment: .