NeoVolta Q2 Earnings Call Highlights

NeoVolta (NASDAQ:NEOV) reported sharply higher revenue in its fiscal second quarter of 2026 as management highlighted a “transformational” period marked by an acquisition, a commercial and industrial (C&I) collaboration, and the launch of a U.S. manufacturing joint venture aimed at expanding beyond the company’s residential energy storage roots.

Revenue growth accelerates as geographic reach expands

For the quarter ended December 31, 2025, NeoVolta posted revenue of $4.6 million, up from $1.1 million in the year-ago period, representing 334% year-over-year growth. For the first half of fiscal 2026, revenue totaled $11.3 million, compared with $1.7 million in the prior-year period, an increase of 580%.

Chief Financial Officer and co-founder Steve Bond attributed the growth to expansion beyond the company’s original Southern California base into new regions and channels, citing “strong progress in Texas and Puerto Rico,” along with additional demand through national distributors.

Margins compress; expenses rise with scaling investments

Gross profit in the second quarter was approximately $800,000, representing a 17% gross margin, down from roughly $0.3 million and a 30% margin a year earlier. For the first half, gross profit was about $2.3 million, with gross margin of roughly 21%, compared with 25% in the prior-year period.

Bond said the margin compression reflected strategic inventory investments to support anticipated demand and ensure product availability, as well as supply chain and cost dynamics that created temporary pressure on inputs. He also noted that the prior-year comparison was affected by the reversal of an inventory obsolescence reserve.

Operating expenses increased to $5.2 million from $1.3 million in the year-ago quarter. The company said the increase was driven primarily by $2.1 million of non-cash share-based compensation and additional spending on leadership, sales and marketing, and corporate infrastructure to support growth and a planned manufacturing ramp.

Net loss for the quarter was $5.5 million, or $0.16 per share, compared with a $1.0 million loss, or $0.03 per share, in the year-ago period. For the first half, net loss totaled $6.8 million, or $0.20 per share. Bond said results included $2.3 million in non-cash stock compensation and approximately $1.1 million related to debt exchanges with the company’s commercial accounts receivable lender.

Strategic shift: from residential focus to multi-segment platform

Chief Executive Officer Ardes Johnson described the quarter as pivotal in repositioning NeoVolta from “primarily a residential storage provider” into what he called “an integrated energy solutions platform” serving residential, C&I, and utility-scale markets. Johnson argued that U.S. energy storage is moving from “supplemental technology” to “core infrastructure” as grid operators face peak demand, electrification, and wholesale power volatility, while customers seek resilience and cost management.

Management outlined a multi-pillar strategy that includes:

• Scalable U.S.-based manufacturing through NeoVolta Power, LLC, with an initial 2 GWh of annual capacity and an expansion pathway up to 8 GWh in the same building over time.
• Strengthening residential through distributors and installers and introducing the NV Wave modular platform to reduce installation time and improve per-system economics.
• Building C&I capabilities through partnerships and potential bundled engineering, procurement and construction (EPC) and financing offerings.
• Expanding services and financing including concepts such as battery-as-a-service and third-party ownership to drive adoption and recurring revenue.

Johnson also said the company estimates its U.S. total addressable market expands to approximately $45 billion by 2030, broken down into roughly $20 billion utility-scale, $15 billion residential, and $10 billion C&I storage, plus an additional $20 billion in financing and services.

Acquisition adds modular platform and new executives

NeoVolta said it closed the acquisition of substantially all assets of Neubau Energy in October, adding a proprietary modular platform it is branding NV Wave and neuClick. According to Johnson, the plug-and-play modules can be stacked up to 60 kWh for residential use and can be installed in under 30 minutes, which management said is roughly 75% faster than typical systems. The company said the speed is intended to lower labor costs for installers, increase deployment capacity, and support improved margins per system.

The acquisition also brought leadership additions, with NeoVolta appointing Amany Ibrahim as Chief Operating Officer and Thomas Enzendorfer as Chief Technology Officer.

Luminia collaboration and Georgia JV set stage for C&I and utility scale

NeoVolta described Luminia as a California-based storage project developer and financing platform focused on C&I projects. Johnson said Luminia has executed contracted demand for approximately 160 MWh of distributed battery energy storage equipment and has an additional 640 MWh active pipeline, representing what he characterized as roughly 800 MW of total potential demand. NeoVolta said it advanced a supply collaboration framework for the contracted 160 MWh, which it estimated could represent approximately $39 million of potential equipment revenue based on current market pricing.

In January, the company announced the formation of NeoVolta Power, LLC, a joint venture with U.S. affiliates of PotisEdge and LONGi Green Energy to establish U.S. battery energy storage manufacturing in a 210,600-square-foot facility in Pendergrass, Georgia. NeoVolta said it holds a 60% ownership interest, controls three of five board seats, and will consolidate the venture’s financial results.

Management said the joint venture is structured with an initial expected capacity of approximately 2 GWh per year and the ability to scale to 8 GWh over time. The targeted product mix is approximately 75% utility-scale and 25% C&I. NeoVolta said the facility is being structured to align with Foreign Entity of Concern compliance standards and to qualify for Section 45X advanced manufacturing production tax credits, while supporting customers seeking eligibility under Section 48E investment tax credits, including potential domestic content bonus treatment where applicable.

During Q&A, Johnson said the company is working through bankability standards, including pre-production and inspection quality assurance steps with third parties, and said it expects to start production in the second half of the year, with definitive purchase orders anticipated “in the coming weeks.” He also described an expansion path where adding additional shifts could raise output to over 4 GWh before adding a second production line; he said a second line could be ordered as soon as “six to eight months” if needed.

On timing, Johnson said the company’s internal goal is to have the line installed, started up, and commissioned by the end of its fiscal year in June, with production starting in the “July-August timeframe.” He added that, on a full-capacity basis, the joint venture could accomplish just under 1 GWh of output for that year.

Johnson also discussed cell sourcing, saying the company can procure cells from China for the remainder of the calendar year under the current tax code guidance, and is evaluating non-Chinese supply options starting in calendar 2027, including potential sources in Southeast Asia, Europe, and the U.S. He said the company had previously targeted U.S. cell manufacturing for calendar 2028 but suggested that timing could be accelerated based on evolving domestic capacity and potential shifts from EV to stationary applications.

On profitability expectations from U.S. production, Johnson said NeoVolta is “shooting for” margins in the mid-20% range and as high as 30%, noting market dynamics would influence early results.

From a liquidity standpoint, Bond said cash was approximately $212,000 as of December 31, 2025, with working capital of about $3.4 million, but that working capital stood at approximately $16 million at the time of the call. NeoVolta said it completed two equity financings totaling roughly $23 million in gross proceeds: a $13 million private placement anchored by Infinite Grid Capital and a $10 million registered direct offering that generated net proceeds of approximately $9.4 million. Bond outlined three funding phases for the joint venture, including a $7 million Phase I contribution funded in January 2026 and an $8 million Phase II milestone payment due April 30, 2026, with additional commitments tied to commissioning.

Johnson also addressed a planned change in the Chief Product Officer role, saying it reflected the next phase of execution and did not change product architecture, commercialization plans, customer deliveries, regulatory approvals, or the Georgia ramp timeline.

About NeoVolta (NASDAQ:NEOV)

NeoVolta, Inc is a clean-energy technology company that designs, manufactures and markets integrated battery storage systems for residential and light-commercial applications. Headquartered in San Jose, California, the company develops hardware and software solutions aimed at enhancing the value of rooftop solar installations, providing backup power and enabling homeowners to optimize time-of-use rate plans. NeoVolta’s modular approach to energy storage allows customers to scale capacity to match their changing needs.

The company’s flagship product family combines lithium-ion battery modules, a hybrid inverter and an energy management platform under a single enclosure.