Energous (NASDAQ:WATT) reported second-quarter revenue of approximately $3.1 million, up 217% from the prior-year period, as the wireless power company expanded enterprise deployments and progressed proof-of-concept programs across retail, logistics, food service and government markets.
For the first six months of 2026, revenue reached approximately $6.2 million, compared with $1.3 million a year earlier. Chief Executive Officer and Chief Financial Officer Mallorie Burak said first-half revenue exceeded the company’s full-year 2025 revenue of $5.6 million and helped Energous surpass $10 million in trailing 12-month revenue.
Margin Pressure Linked to Manufacturing and Supply Chain
For the first half, gross profit rose 176% year over year to $1.2 million, while gross margin was 19%. Burak said second-quarter margins were below recent levels because the company needed to rely on U.S.-based production while its overseas contract manufacturer was unable to retool in time to produce volume during the quarter.
The U.S. manufacturer incurred one-time costs to retool and upgrade production lines, according to Burak. Energous also faced higher component costs after supply disruptions led it to use alternative suppliers to meet customer delivery schedules. Burak cited an “AI-driven vacuum effect” in which limited global supplies of some components were directed toward hyperscalers.
“All of the PO backlog that we had from our strategic customers was fully delivered in Q2,” Burak said during the question-and-answer session. She said supply chain conditions did not prevent the company from delivering products, but increased the cost of sourcing components on time.
Energous implemented a price increase across its product lines effective July 1. Burak said the pricing action, production normalization and higher revenue scale support the company’s expectations for margin recovery in the third and fourth quarters. Energous continues to target gross margins above 40% over the longer term.
Second-quarter GAAP operating expenses totaled $3.3 million, compared with $3.1 million in the year-ago period. The company reported a GAAP net loss of approximately $2.9 million, or $0.53 per basic and diluted share, compared with a net loss of approximately $2.8 million, or $2.35 per share, in the prior-year quarter.
Chief Accounting Officer Greg Sadikoff said Energous had recorded zero product returns since commercial production of its PowerBridge Pro began in 2024. Prepaid expenses to contract manufacturers were approximately $6.3 million as of June 30.
Retail and Enterprise Deployments Expand
Burak said Energous’ largest active commercial deployment, with a leading national retailer, targets approximately 4,700 U.S. retail locations. The company has delivered thousands of PowerBridge Pro units, and approximately 90% of the retail rollout has been completed.
The retailer is also evaluating additional in-store uses beyond the original cold-chain compliance deployment, including inventory-related applications and internal parcel delivery. Burak said the company sees potential future opportunities at the retailer’s distribution centers and within its trucking fleet.
Separately, Energous is working with the same customer at roughly 50 membership warehouse locations on a cold-chain initiative designed to provide real-time visibility into pallet movement during receiving. The company said the program could expand to about 550 locations at the beginning of next year, with a potentially broader rollout in 2027.
Its second Fortune 10 deployment, involving an enterprise in e-commerce, technology and cloud services, has expanded beyond the 14 international installations discussed during the first-quarter call. Burak said the customer is deploying across multiple international markets and has several additional countries on its expansion roadmap. Energous is supporting five distinct use cases that are in active deployment but not yet fully scaled.
Customer concentration also declined. Five customers represented approximately 74% of second-quarter revenue, compared with two customers accounting for roughly 94% of revenue a year earlier.
Government, Restaurant and Grocery Programs Advance
Energous said an active program with a major federal government agency generated meaningful second-quarter revenue and was among its top five customers. The proof of concept centers on dock-door operations for checking items in and out and loading materials onto trailers.
Burak said the domestic manufacturing capability of Energous’ U.S.-based contract manufacturer supports the federal program’s procurement requirements. The company is discussing a multistage deployment that could span as many as 500 sites over the next two to three years. In closing remarks, Burak said the agency was deploying the technology across two initial sites and had a planned roadmap covering approximately 15 sites over the remainder of 2026.
Chief Strategy and Growth Officer Giampaolo Marino said the company completed an initial proof of concept with a major national quick-service restaurant operator, which was also one of Energous’ top five customers during the quarter. The evaluation tested the technology in food-preparation and cold-storage environments. Energous is now discussing a potential rollout across the operator’s store network and pursuing opportunities with distributors and other ecosystem participants.
The company also has an active proof of concept with a national grocery chain operating hundreds of stores. Marino said the program uses Energous’ end-to-end solution and focuses on applications including cold-chain compliance, inventory visibility and food-safety monitoring.
In response to an analyst question, Burak and Marino said a British American Tobacco program remains in a large-scale proof of concept involving multiple use cases at one facility. Marino said Energous expects to provide more information next quarter as it completes testing and evaluates potential expansion to additional U.S. facilities.
PowerBridge Pro+ Certification and Pipeline Outlook
Energous received Federal Communications Commission certification in July for its PowerBridge Pro+, a transmitter that combines wireless power with integrated gateway data connectivity. Marino said the capability eliminates the need for a separate Bluetooth gateway at deployment sites, reducing hardware requirements and installation complexity.
Burak said the PowerBridge Pro+ is now certified for U.S. commercial deployment and is being discussed for use in several active programs. She expects it to become a meaningful contributor to the company’s second-half revenue mix.
The company said its enterprise sales cycles have shortened to six to nine months for new programs, compared with 18 to 24 months two years ago. Marino said customers may still extend evaluation periods to test additional facilities or use cases before making broader deployment decisions.
Energous declined to provide a number of proof-of-concept programs in its pipeline or formal revenue guidance. Burak said the company remains focused on quarterly revenue growth and expects to disclose updates as programs advance into meaningful commercial discussions.
Burak added that Energous had $31.2 million in cash at quarter-end and had not used its at-the-market equity facility since the first-quarter call. She said the company had no plans to use the facility this year and believes its cash position is sufficient to support commercial programs without additional equity financing.
About Energous (NASDAQ:WATT)
Energous Corporation develops and commercializes radio frequency (RF)–based wireless charging technology designed to deliver power over the air to compatible devices. Its WattUp platform includes near‐field and far‐field transmitters that emit targeted RF energy and receiver modules that convert that energy into electrical power. The company’s solutions aim to eliminate the need for cables and charging pads by enabling contactless power delivery to a range of products, from wearables and IoT sensors to medical devices and consumer electronics.
