BEEM — Q2 2026 Financial Report Analysis

Revenue up 21%, but the backlog shrank, cash is $1.0M, and a $24M deal is pending

Beam Global, which makes solar-powered EV chargers that need no grid connection (EV ARC) along with streetlights, battery packs and other "smart city" hardware, reported second-quarter 2026 revenue of $8.56M, up 21% from $7.08M a year earlier and almost three times the $3.13M it booked in the first quarter. Its net loss narrowed to $3.08M from $4.28M. Both halves of the business grew: US sales rose 20% and European sales (Serbia, Romania, Croatia, Montenegro) rose 23%.

Look past the quarter and the picture is weaker. First-half revenue was still down 13% year on year. The order backlog fell from $9.0M to $5.4M in three months. The company ended June with $1.0M in cash, and in October it agreed to buy a Norwegian drone maker for $24M, 90% of it payable in cash.

At a glance

• Revenue $8.56M, +21% YoY. The quarter was strong, but the first half was down 13% ($11.69M vs $13.40M). Management says the swings come from when big orders happen to land, not from a change in demand.
• Backlog $5.4M, down from $9.0M on March 31. Signed orders still waiting to be delivered now add up to less than one quarter's revenue, which means fewer orders already in hand to support Q3.
• Cash $1.0M at June 30, after $4.76M of first-half operating cash burn. That burn was covered by selling $5.23M of new shares through an at-the-market (ATM) program, where shares are sold gradually into the market. The share count is up 41% in a year.

The numbers

Gross margin is the share of revenue left after the direct cost of building and delivering the products. Operating margin is what remains after overhead (salaries, offices, sales) as well. Here it is negative, meaning the company spent 35 cents more than it brought in for every dollar of sales.

Takeaway: The quarter looks better than the business behind it. Revenue recovered and the loss narrowed, but the backlog that feeds the next quarters fell 40% in three months, the company's cash covers little more than a month of its first-half burn rate, and it has signed up to pay roughly $21.6M in cash for an acquisition. Whether Beam can fund that deal without heavy dilution matters more to shareholders than how EV charger demand develops.

Where the revenue came from

The 10-Q splits revenue by country:

The European side mostly comes from Amiga, a Serbian streetlight and pole maker Beam bought in 2023. It is now close to half the company. In the first half, 48% of revenue came from outside the US, up from 37% a year earlier. This matters because US federal buying of EV chargers has almost stopped: federal customers were under 1% of revenue this quarter, against 2% in Q2 2025 and 8% in the first half of 2025. The filing says Beam "expects reduced U.S. federal government purchasing activity to continue in the near term." State and local governments, such as Dallas (a fourth EV ARC order), Stanislaus County and Long Beach in the Q2 release, now provide the US public-sector sales. The notes put them at 37% of Q2 revenue.

Revenue also depends on a few large customers. Two of them made up 13% and 11% of Q2 sales. A year earlier no single customer accounted for more than 10%. One more change in the mix: "professional services" (installation and similar work) jumped to $752K from $78K, which is close to half of the $1.49M revenue increase.

What the headline numbers hide

• Cash burn is larger than the loss suggests, and it is funded by selling shares. First-half operating cash flow was -$4.76M, more than double the -$2.08M a year earlier. The first-half net loss of $9.94M includes about $5.0M of non-cash charges (depreciation and amortization $1.66M, a $1.84M bad-debt provision, $0.74M of lease-asset amortization, $0.74M of stock pay), so the cash loss before working-capital movements was about $4.9M. Running down inventory brought in $1.17M. Beam sold $5.23M of stock through its ATM program with B. Riley, and $10.0M of that program remains.
• The liquidity statement is hard to square with the burn. The 10-Q says Beam needs "approximately $3.0 million of cash to fund our operations" over the next 12 months and that current cash flows will cover it. In the first half alone, operations used $4.76M. The filing includes no going-concern warning, but it also says the company "may be required to raise capital... until it achieves positive cash flow" and "cannot currently predict when or if it will achieve positive cash flow."
• The "$100 million unused line of credit" in the press release is not committed money. The 10-Q describes the OCI facility as one where OCI "is not obligated to accept any drawdown request." It works by advancing cash against approved customer invoices, and Beam has never drawn on it. It should not be counted as available funding.
• Nearly 30% of receivables have been reserved as possibly uncollectible. The allowance for credit losses rose from $0.94M to $2.78M in six months, which is 29% of the $9.52M Beam is owed. According to the filing, most of the increase relates to "a single customer balance," which the company still expects to work through with that customer. Because the provision is booked as an operating expense, it pushed first-half overhead higher. If any of it is collected later, reported results will improve without any new sales.
• Lower overhead this quarter mostly reflects a one-off last year. Q2 operating expenses fell $1.38M, but Q2 2025 included a $1.4M stock grant. The filing itself says that without it, operating expenses were "flat year over year."
• The per-share improvement owes a lot to dilution. The net loss shrank 28%, but the loss per share halved because the average share count rose 41% (21.9M vs 15.5M). That makes the per-share figure look better while each existing share now owns a smaller slice of the company.
• Gross margin is low partly because the factories are underused. The 17.8% gross margin includes about $0.5M of factory depreciation and $0.2M of amortization each quarter. These are fixed costs, so gross margin swings sharply with volume: it was -13% in Q1 on $3.1M of revenue. On the company's own adjusted measure, which excludes those charges, Q2 gross margin was 26.2%. That measure is not a GAAP figure.
• Europe grew sales but swung to a loss. The Serbian operations lost $0.27M in Q2 after earning $0.69M a year earlier, even though their sales rose to $3.98M from $3.30M.
• Controls and reporting. The 10-Q was filed late, under an NT 10-Q notice that blamed the headquarters move. Management also reports five unremediated material weaknesses in internal controls, covering inventory accounting, account reconciliations, IT controls, segregation of duties and oversight of the European unit. The filing's own percentages do not quite agree with each other: MD&A gives state and local government as 38% of Q2 "product sales," while the notes give 37% of revenue.

The drone acquisition changes the balance sheet question

After the quarter ended, Beam signed a letter of intent (September 22) and then, on October 6, a definitive agreement to buy ScoutDI AS, a Norwegian company that makes inspection drones and software for oil-and-gas and maritime customers. The base price is $24.0M: 10% in Beam shares and 90% (about $21.6M) in cash. The sellers can also earn extra payments if ScoutDI hits revenue targets. For 2026, nothing is paid below $3.5M of ScoutDI revenue, and the maximum earn-out of $3.8M is reached at $4.5M. Those thresholds suggest a business with low-single-digit-millions of annual revenue, which would make the price several times its sales.

The cash part of the price is about 21 times the $1.0M Beam held at June 30, and more than twice the $10.0M left on its ATM. The 8-K itself names "the Company's ability to fund the cash consideration" as a risk. The deal can be terminated if it has not closed by November 4, 2026. The filings do not yet say how Beam will pay for it. Any answer involving large share sales or new debt would change the investment case more than the EV charger business has. Separately, the board granted the CEO 250,000 shares and the CFO 90,000 shares on September 21 as bonuses for fiscal 2025.

Outlook

Management gave no numerical guidance. Its stated view is that the first-half revenue decline is "primarily a function of order timing rather than a fundamental change in demand." It expects gross margins to improve as volume grows and fixed factory costs are spread over more units, and it describes the $5.4M backlog as "indicative of demand." Moving manufacturing to a leased site in Yuma, Arizona, which the release says will save about $2.7M in rent over the lease term, should lower fixed costs from the second half onward.

Our read: Q2 shows Beam can grow when European and municipal orders arrive together. Q3 starts from a smaller order book, though: $5.4M of backlog against $8.6M of Q2 revenue. Revenue is therefore more likely to drop back toward first-half levels than to keep climbing, unless new orders arrive quickly. Things to watch in the Q3 10-Q, due around mid-November: (1) whether ScoutDI closed and how the cash price was funded, including any new shares; (2) whether the backlog rebuilds above $9M; (3) whether any of the $2.78M bad-debt reserve is collected; and (4) whether gross margin stays above the high teens at lower volume.