Financial Performance - Q2 2025 revenue reached $15.2 million, nearly equivalent to the entire FY24 revenue[11], representing a 46% increase compared to Q1 2025's $10.5 million[22] - Total cash increased by 218% to $183.2 million compared to Q2 2024[11] - Adjusted EBITDA loss was $(51.6) million, with a margin of (339%), a 75 percentage point improvement QoQ[22] - Gross loss was $(31.0) million, with a margin of (203%), a 32 percentage point improvement QoQ[22] Commercial Growth - The commercial pipeline increased to $18.8 billion, representing approximately 77 GWh[11], a 21% increase from the previous quarter[21] - Orders backlog reached $672.5 million, representing approximately 2.6 GWh[11] - The lead generation pipeline is $15.1 billion, representing approximately 61 GWh, a 12% increase QoQ[21] Operational Improvements - Achieved a 40% improvement in discharge energy from launch[14] - The company is transitioning to CM positive cubes, increasing throughput and improving utilization[16] - Sub-assembly automation is driving faster throughput, improved consistency, and product performance, with a 64% improvement in part flatness[17]

Company Performance - Eos Energy Enterprises reported a quarterly loss of $1.05 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.17, representing an earnings surprise of -517.65% [1] - The company posted revenues of $15.24 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 28.41%, compared to revenues of $0.9 million a year ago [2] - Over the last four quarters, Eos Energy has not surpassed consensus EPS estimates, although it has topped consensus revenue estimates twice [2] Stock Outlook - Eos Energy shares have increased approximately 22.5% since the beginning of the year, outperforming the S&P 500's gain of 8.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $45.79 million, and for the current fiscal year, it is -$0.59 on revenues of $153.58 million [7] - The estimate revisions trend for Eos Energy was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Industrial Services industry, to which Eos Energy belongs, is currently ranked in the top 6% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8]

[PART I - FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) Presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements, including balance sheets, operations, equity, cash flows, and detailed notes [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Provides a snapshot of the company's financial position, detailing assets, liabilities, and shareholders' deficit Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | % Change | | :-------------------------------- | :------------ | :---------------- | :----- | :------- | | Total Assets | $360,995 | $260,318 | $100,677 | 38.7% | | Total Liabilities | $931,693 | $842,085 | $89,608 | 10.6% | | Total Shareholders' Deficit | $(1,102,967) | $(1,070,463) | $(32,504) | 3.0% | - Cash and cash equivalents increased significantly from **$74,292 thousand** at December 31, 2024, to **$120,225 thousand** at June 30, 2025, indicating improved liquidity[10](index=10&type=chunk) - Long-term debt saw a substantial increase from **$65,823 thousand** to **$307,274 thousand**, reflecting new financing activities[10](index=10&type=chunk) [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Outlines financial performance over periods, including revenue, cost of goods sold, and net loss Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $15,236 | $898 | $25,693 | $7,499 | | Cost of goods sold | $46,189 | $14,121 | $81,185 | $42,350 | | Gross profit (loss) | $(30,953) | $(13,223) | $(55,492) | $(34,851) | | Operating Loss | $(63,847) | $(29,037) | $(116,779) | $(70,172) | | Net Loss attributable to shareholders | $(222,937) | $(28,172) | $(207,801) | $(74,880) | | Basic and diluted Loss per share | $(1.05) | $(0.25) | $(0.66) | $(0.48) | - Revenue increased significantly by **1,597%** for the three months and **243%** for the six months ended June 30, 2025, driven by higher product sales and selling prices[16](index=16&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk) - Net Loss attributable to shareholders increased substantially to **$(222,937) thousand** for the three months ended June 30, 2025, primarily due to significant changes in fair value of warrants and derivatives, and a loss on debt extinguishment[16](index=16&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk) [Unaudited Condensed Consolidated Statements of Shareholders' Deficit](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Deficit) Details changes in equity accounts, including common stock, additional paid-in capital, and accumulated deficit Shareholders' Deficit Changes (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Common Stock Shares | 256,476,521 | 221,791,205 | | Additional Paid in Capital | $720,680 | $534,726 | | Accumulated Deficit | $(1,773,973) | $(1,561,716) | | Total Shareholders' Deficit | $(1,102,967) | $(1,070,463) | - The Company's common stock shares outstanding increased from **221,791,205** at December 31, 2024, to **256,476,521** at June 30, 2025, primarily due to a public offering[12](index=12&type=chunk)[18](index=18&type=chunk)[20](index=20&type=chunk)[223](index=223&type=chunk) - Additional paid-in capital increased by **$185,954 thousand**, reflecting proceeds from a public offering and stock-based compensation, partially offset by remeasurement of Preferred Stock[12](index=12&type=chunk)[18](index=18&type=chunk)[20](index=20&type=chunk)[223](index=223&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | Change | | :-------------------------------- | :--------- | :--------- | :--------- | | Net cash used in operating activities | $(95,046) | $(66,807) | $(28,239) | | Net cash used in investing activities | $(11,959) | $(10,299) | $(1,660) | | Net cash provided by financing activities | $186,820 | $50,024 | $136,796 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $79,813 | $(27,088) | $106,901 | | Cash, cash equivalents and restricted cash, end of period | $183,175 | $57,579 | $125,596 | - Net cash used in operating activities increased to **$(95,046) thousand** for the six months ended June 30, 2025, primarily due to higher net loss, partially offset by non-cash adjustments[22](index=22&type=chunk)[287](index=287&type=chunk)[288](index=288&type=chunk) - Net cash provided by financing activities significantly increased to **$186,820 thousand**, driven by proceeds from a public offering (**$81.1 million**), issuance of 2025 Convertible Notes (**$240.0 million**), and the Credit and Securities Purchase Transaction (**$38.5 million**), partially offset by debt payoffs[24](index=24&type=chunk)[290](index=290&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. Overview](index=12&type=section&id=1.%20Overview) Introduces Eos Energy Enterprises, Inc., its core business, and significant financial developments, including recent financing activities - Eos Energy Enterprises, Inc. designs, develops, manufactures, and markets innovative energy storage solutions, primarily zinc-based battery energy storage systems (BESS) for utility-scale, microgrid, and commercial & industrial applications[26](index=26&type=chunk) - The Company has incurred significant losses and negative cash flows since inception, raising substantial doubt about its ability to continue as a going concern, but management believes recent financing transactions have significantly improved its capital position[27](index=27&type=chunk)[28](index=28&type=chunk)[35](index=35&type=chunk) - Recent financing activities include a **$210.5 million** secured multi-draw facility from Cerberus (fully funded), up to **$303.45 million** from the DOE Loan Facility (Tranche 1 funded **$68.279 million**), a public offering of common stock raising **$81.075 million**, and issuance of **$250.0 million** in 2025 Convertible Notes[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) [2. Summary of Significant Accounting Policies](index=14&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) Outlines the key accounting principles and methods used in preparing the financial statements - The financial statements are prepared in accordance with U.S. GAAP, with certain disclosures condensed or omitted per SEC rules for interim reporting[36](index=36&type=chunk) - The Company accounts for Production Tax Credits (PTC) under a government grant model, analogizing to IAS 20, recognizing grants when eligibility and compliance conditions are probable[41](index=41&type=chunk)[105](index=105&type=chunk) - The Company elected the fair value option for the Delayed Draw Term Loan, reporting unrealized gains and losses in the statements of operations, with changes attributable to instrument-specific risk included in accumulated other comprehensive loss[42](index=42&type=chunk) [3. Credit and Securities Purchase Transaction](index=16&type=section&id=3.%20Credit%20and%20Securities%20Purchase%20Transaction) Details the financing agreement with Cerberus, including the secured multi-draw facility and related equity issuances - The Company entered into a Credit Agreement with Cerberus, providing a **$210.5 million** secured multi-draw facility (Delayed Draw Term Loan) and a **$105.0 million** revolving credit facility, with the DDTL fully funded by January 24, 2025[48](index=48&type=chunk)[33](index=33&type=chunk) - Amendments to the Credit Agreement deferred Consolidated Revenue and EBITDA financial covenants until March 31, 2027, and reduced the interest rate on outstanding borrowings from **15% to 7%** per annum[51](index=51&type=chunk)[126](index=126&type=chunk) - As part of the transaction, Cerberus received warrants (SPA Warrant and Contingent Warrants) and Series B Preferred Stock, resulting in a **33% ownership position** as of January 24, 2025[29](index=29&type=chunk)[56](index=56&type=chunk)[58](index=58&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) [4. Revenue Recognition](index=22&type=section&id=4.%20Revenue%20Recognition) Explains the company's policies for recognizing revenue from product sales and services, including remaining performance obligations Revenue Breakdown (in thousands) | Revenue Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Product revenue | $14,055 | $597 | $23,982 | $7,097 | | Service revenue | $1,181 | $301 | $1,711 | $402 | | Total revenues | $15,236 | $898 | $25,693 | $7,499 | - Total revenues increased significantly by **1,597%** for the three months and **243%** for the six months ended June 30, 2025, primarily due to higher product sales and selling prices[78](index=78&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk) - Remaining performance obligations as of June 30, 2025, were approximately **$104,636 thousand**, with about **85%** expected to be recognized as revenue over the next twelve months[84](index=84&type=chunk) [5. Cash, Cash Equivalents and Restricted Cash](index=23&type=section&id=5.%20Cash,%20Cash%20Equivalents%20and%20Restricted%20Cash) Provides a breakdown of cash and cash equivalents, including amounts held as restricted cash for specific purposes Cash, Cash Equivalents and Restricted Cash (in thousands) | Category | June 30, 2025 | June 30, 2024 | | :--------------------------------------- | :------------ | :------------ | | Cash and cash equivalents | $120,225 | $52,454 | | Restricted cash - current | $31,830 | $2,625 | | Long-term restricted cash | $31,120 | $2,500 | | Total cash, cash equivalents and restricted cash | $183,175 | $57,579 | - Restricted cash includes amounts for the DOE Loan Facility (warranty claims, debt servicing, interest reserve) and minimum liquidity covenants under the Credit Agreement[85](index=85&type=chunk)[87](index=87&type=chunk) [6. Inventory](index=24&type=section&id=6.%20Inventory) Details the composition and changes in the company's inventory, including raw materials, work-in-process, and finished goods Inventory Balances (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Raw materials | $27,868 | $25,126 | | Work-in-process | $12,563 | $6,665 | | Finished goods | $697 | $1,035 | | Total Inventory | $41,128 | $32,826 | - Total inventory increased by **$8,302 thousand** from December 31, 2024, to June 30, 2025, primarily driven by an increase in work-in-process and raw materials[90](index=90&type=chunk) [7. Property, Plant and Equipment, Net](index=24&type=section&id=7.%20Property,%20Plant%20and%20Equipment,%20Net) Presents the net book value of the company's tangible assets, including additions, depreciation, and write-downs Property, Plant and Equipment, Net (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Total | $109,477 | $74,376 | | Less: Accumulated depreciation | $(33,944) | $(28,716) | | Total property, plant and equipment, net | $75,533 | $45,660 | - Net property, plant and equipment increased by **$29,873 thousand**, largely due to an increase in construction in progress, reflecting ongoing investment in manufacturing facilities[91](index=91&type=chunk) - The Company recorded a loss from write-down of property, plant and equipment of **$766 thousand** for the six months ended June 30, 2025, mainly due to design changes from Z3™-Phase 1 to Z3™-Phase 2 production, rendering Phase 1 assets unusable[92](index=92&type=chunk) [8. Intangible Assets](index=24&type=section&id=8.%20Intangible%20Assets) Outlines the company's intangible assets, primarily patents and software, and their amortization policies Intangible Assets (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | Intangible assets, net | $192 | $240 | - Intangible assets, primarily patents and internal-use software, are amortized over their useful lives (**10 years** for patents, **3 years** for software)[94](index=94&type=chunk)[96](index=96&type=chunk) [9. Notes Receivable, Net and Variable Interest Entities ("VIEs") Consideration](index=25&type=section&id=9.%20Notes%20Receivable,%20Net%20and%20Variable%20Interest%20Entities%20(%22VIEs%22)%20Consideration) Discusses the company's notes receivable, including allowances for credit losses, and any considerations for VIEs - The Company recorded a full allowance against notes receivable during Q2 2025, resulting in a **zero balance** as of June 30, 2025, compared to **$847 thousand** outstanding at December 31, 2024[98](index=98&type=chunk) - The allowance for expected credit loss related to notes receivable increased from **$37 thousand** at December 31, 2024, to **$884 thousand** at June 30, 2025[99](index=99&type=chunk) [10. Accrued Expenses](index=25&type=section&id=10.%20Accrued%20Expenses) Provides a breakdown of various accrued liabilities, such as payroll, warranty reserves, and legal expenses Accrued Expenses (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Accrued payroll | $6,895 | $4,811 | | Warranty reserve | $5,917 | $5,102 | | Accrued legal and professional expenses | $3,240 | $1,709 | | Provision for contract losses | $3,772 | $4,724 | | Accrued Interest | $1,238 | $41 | | Other | $2,585 | $5,645 | | Total accrued expenses | $23,647 | $22,032 | - Total accrued expenses increased by **$1,615 thousand**, primarily due to increases in accrued payroll, warranty reserve, and legal/professional expenses, partially offset by a decrease in provision for contract losses and other accrued expenses[101](index=101&type=chunk) [11. Government Grants](index=26&type=section&id=11.%20Government%20Grants) Details the impact of government incentives, including Production Tax Credits (PTC) from the Inflation Reduction Act - The Inflation Reduction Act of 2022 (IRA) provides significant economic incentives, including Production Tax Credits (PTC) for domestically manufactured battery components, which Eos believes its products qualify for[102](index=102&type=chunk)[243](index=243&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk) - The One Big Beautiful Bill Act (OBBBA) introduces new limitations on material sourcing from prohibited foreign entities after December 31, 2025, but the Company does not anticipate a material impact[104](index=104&type=chunk)[249](index=249&type=chunk) PTC Credits Recognized (in thousands) | Period | 2025 | 2024 | | :------------------------------------ | :----- | :----- | | Three Months Ended June 30, PTC credits | $4,562 | $125 | | Six Months Ended June 30, PTC credits | $6,361 | $1,667 | [12. Related Party Transactions](index=27&type=section&id=12.%20Related%20Party%20Transactions) Discloses transactions with affiliated entities, including convertible notes and manufacturing/advisory fees - Related party transactions include the 2021 Convertible Notes with Spring Creek Capital, LLC (a Koch Industries subsidiary), AFG Convertible Notes with an affiliated purchaser, and the Credit and Securities Purchase Transaction with Cerberus[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - During the three and six months ended June 30, 2025, the Company incurred manufacturing costs of **$1,133 thousand** and **$1,374 thousand**, and advisory fees of **$1,821 thousand** and **$2,491 thousand**, respectively, from vendors affiliated with Cerberus[113](index=113&type=chunk) [13. Borrowings](index=28&type=section&id=13.%20Borrowings) Provides a comprehensive overview of the company's debt instruments, including convertible notes, term loans, and their terms Total Borrowings (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Total borrowings | $445,277 | $316,896 | | Current portion | $1,073 | $2,014 | | Non-current portion | $444,204 | $314,882 | - Total borrowings increased significantly by **$128,381 thousand**, primarily due to the issuance of **$250.0 million** in 2025 Convertible Notes and draws from the DOE Loan Facility, partially offset by the payoff of the 2021 Convertible Notes and prepayment of the Delayed Draw Term Loan[114](index=114&type=chunk)[115](index=115&type=chunk)[136](index=136&type=chunk)[141](index=141&type=chunk) - The 2025 Convertible Notes, issued in June 2025 for **$250.0 million** principal, accrue interest at **6.75%** per annum and mature on June 15, 2030, with the conversion feature not bifurcated as a derivative[115](index=115&type=chunk)[116](index=116&type=chunk)[122](index=122&type=chunk) - The Delayed Draw Term Loan (DDTL) from Cerberus was fully funded by January 2025, with a prepayment of **$47,619 thousand** made in May 2025, and the interest rate reduced from **15% to 7%** per annum[123](index=123&type=chunk)[133](index=133&type=chunk)[136](index=136&type=chunk) - The DOE Loan Facility provides up to **$277,497 thousand** in principal, with **$68,279 thousand** drawn under Tranche 1 by June 30, 2025, bearing interest at the U.S. Treasury rate plus **0.375%**, paid in-kind until 2028[143](index=143&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk) - The 2021 Convertible Notes were repurchased in full for **$131.0 million** in June 2025, resulting in a loss on debt extinguishment of **$10,688 thousand**[141](index=141&type=chunk)[142](index=142&type=chunk) - The AFG Convertible Notes bear interest at **26.5% PIK** and mature in June 2026 (amended to September 30, 2034, post-period), with the embedded conversion feature bifurcated and accounted for at fair value[153](index=153&type=chunk)[154](index=154&type=chunk)[157](index=157&type=chunk) [14. Warrants Liability](index=38&type=section&id=14.%20Warrants%20Liability) Details the company's warrant liabilities, including related party and non-related party warrants, measured at fair value Warrants Liability (in thousands) | Category | June 30, 2025 Fair Value | December 31, 2024 Fair Value | | :-------------------------- | :----------------------- | :-------------------------- | | Warrants liability (non-related party) | $181,198 | $189,591 | | Warrants liability - related party | $198,984 | $266,630 | | Total Warrants Liability | $380,182 | $456,221 | - The SPA Warrant (related party) to purchase **43,276,194** common shares has a **$0.01** exercise price and a ten-year term, classified as a liability and measured at fair value[170](index=170&type=chunk) - Contingent Warrants (related party) are recognized at fair value, with changes reported in the statements of operations, and represent future issuable shares based on milestone achievements[172](index=172&type=chunk) - Non-related party warrants (IPO, April, May, December 2023) are also measured at fair value, with changes recognized in the statements of operations, and **4,893,102** December 2023 warrants were exercised during the six months ended June 30, 2025[166](index=166&type=chunk)[169](index=169&type=chunk) [15. Fair Value Measurement](index=39&type=section&id=15.%20Fair%20Value%20Measurement) Explains the methodologies and inputs used to determine the fair value of financial instruments, categorized by levels - The Company categorizes fair value measurements into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk) Financial Liabilities Measured at Fair Value (in thousands) | Liability | June 30, 2025 Fair Value | December 31, 2024 Fair Value | | :-------------------------------- | :----------------------- | :-------------------------- | | SPA Warrant (Level 3) | $198,984 | $188,857 | | Contingent warrants (Level 3) | $0 | $77,773 | | IPO, April, May, Dec 2023 Warrants (Level 2/3) | $181,198 | $189,591 | | Delayed Draw Term Loan (Level 3) | $61,705 | $76,188 | | Embedded derivatives (Level 3) | $51,639 | $44,396 | | Total liabilities | $493,526 | $576,705 | - The fair value of the Delayed Draw Term Loan decreased from **$76,188 thousand** to **$61,705 thousand**, resulting in a gain of **$31,615 thousand** for the three months ended June 30, 2025, primarily due to a reduction in the contractual interest rate and prepayment[130](index=130&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk) [16. Commitments and Contingencies](index=45&type=section&id=16.%20Commitments%20and%20Contingencies) Outlines the company's contractual obligations and potential liabilities, including legal proceedings and supply agreements - The Company settled a minimum volume commitment with a third-party supplier in Q4 2024 by paying a **$1,250 thousand** penalty and transferring equipment, and subsequently entered into a new long-term supply agreement without minimum volume commitments[197](index=197&type=chunk)[198](index=198&type=chunk) - A class action lawsuit (Houck Complaint) alleging federal securities law violations was dismissed by the District Court on March 13, 2025, and the case is closed[199](index=199&type=chunk)[301](index=301&type=chunk) - A shareholder derivative lawsuit (Hyung Complaint) alleging breach of fiduciary duties was voluntarily dismissed on June 10, 2025, and the case is closed[200](index=200&type=chunk)[302](index=302&type=chunk) [17. Stock-Based Compensation](index=46&type=section&id=17.%20Stock-Based%20Compensation) Details the expense recognized for equity-settled awards, including restricted stock units and performance-based units Stock-Based Compensation Expense (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Restricted stock units (RSU) | $5,863 | $1,767 | $9,345 | $4,534 | | Performance-based restricted stock units (PRSU) | $1,264 | $0 | $5,356 | $0 | | Stock options | $0 | $90 | $0 | $264 | | Total | $7,127 | $1,857 | $14,701 | $4,798 | - Total stock-based compensation expense increased significantly to **$14,701 thousand** for the six months ended June 30, 2025, from **$4,798 thousand** in the prior year, primarily due to higher RSU and PRSU expenses[201](index=201&type=chunk) - As of June 30, 2025, unrecognized compensation expense for unvested RSUs was **$31,355 thousand** (**2.3 years** weighted-average vesting) and for PRSUs was **$8,684 thousand** (**2.6 years** weighted-average vesting)[202](index=202&type=chunk)[209](index=209&type=chunk) [18. Income Taxes](index=47&type=section&id=18.%20Income%20Taxes) Discusses the company's income tax expense, deferred tax assets, and the impact of recent tax legislation Income Tax Expense (in thousands) | Period | 2025 | 2024 | | :----------------------- | :--- | :--- | | Three Months Ended June 30, | $6 | $8 | | Six Months Ended June 30, | $11 | $33 | - Income tax expense is minimal and primarily relates to taxable earnings from foreign operations, with a valuation allowance against U.S. deferred tax assets due to cumulative losses[210](index=210&type=chunk)[212](index=212&type=chunk)[271](index=271&type=chunk) - The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, extending key provisions of the 2017 Tax Cuts and Jobs Act, but is not expected to have a material impact on the Company's consolidated financial statements[215](index=215&type=chunk) [19. Shareholders' Deficit](index=48&type=section&id=19.%20Shareholders'%20Deficit) Provides details on changes in common stock, additional paid-in capital, and accumulated deficit, including public offerings - As of June 30, 2025, the Company had **256,476,521** shares of common stock issued and outstanding, an increase from **221,791,205** shares at December 31, 2024[218](index=218&type=chunk) - A public offering completed in June 2025 resulted in the issuance and sale of **21,562,500** shares of common stock, raising net proceeds of **$81,075 thousand**[223](index=223&type=chunk) - The Company retired treasury stock of **$488 thousand** for the six months ended June 30, 2025, for shares withheld from employees to cover payroll tax liability of vested RSUs[219](index=219&type=chunk) [20. Earnings Per Share](index=49&type=section&id=20.%20Earnings%20Per%20Share) Presents the basic and diluted loss per share, explaining the anti-dilutive effect of potential common shares Basic and Diluted Loss Per Share | Period | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic Loss per share | $(1.05) | $(0.25) | $(0.66) | $(0.48) | | Diluted Loss per share | $(1.05) | $(0.25) | $(0.66) | $(0.48) | - Basic and diluted EPS are the same due to the Company incurring a net loss, making potential dilutive shares (stock options, RSUs, warrants, convertible notes, Series B Preferred Stock) anti-dilutive[226](index=226&type=chunk) [21. Segment Reporting](index=50&type=section&id=21.%20Segment%20Reporting) Describes the company's operating and reportable segments, primarily focusing on zinc-based energy storage solutions - The Company operates in one operating and one reportable segment, focusing on zinc-based energy storage solutions for utility-scale, microgrid, and C&I applications, with nearly all revenue from U.S. customers[227](index=227&type=chunk)[228](index=228&type=chunk) Segment Financial Performance (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $15,236 | $898 | $25,693 | $7,499 | | Gross profit (loss) | $(30,953) | $(13,223) | $(55,492) | $(34,851) | | Net income (loss) | $(222,937) | $(28,172) | $(207,801) | $(74,880) | [22. Subsequent Events](index=51&type=section&id=22.%20Subsequent%20Events) Discloses significant events that occurred after the reporting period, impacting the company's financial position or operations - On July 1, 2025, the FFB funded an additional **$22,666 thousand** under the DOE Loan Facility (second loan advance)[231](index=231&type=chunk) - The measurement period for achieving Sales Milestone 4 under the Credit Agreement was extended to October 31, 2025, with potential for Cerberus to receive additional warrants or preferred stock if not met[232](index=232&type=chunk) - The AFG Convertible Notes were amended on July 29, 2025, to extend maturity to September 30, 2034, reduce the interest rate to **7.0%** from June 30, 2026, and amend optional redemption provisions[233](index=233&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=51&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis of financial condition, results of operations, liquidity, capital resources, and strategic initiatives [Overview](index=52&type=section&id=Overview) Introduces Eos's Znyth™ technology battery energy storage systems and related services, emphasizing their market applications - Eos offers innovative Znyth™ technology battery energy storage systems (BESS) for utility-scale, microgrid, and commercial & industrial (C&I) applications, utilizing accessible non-precious earth components[238](index=238&type=chunk) - The Z3™ battery module is highlighted as a core product, designed and manufactured in the U.S., offering an alternative to lithium-ion and lead-acid batteries for **3-to 12-hour** discharge durations[238](index=238&type=chunk) - Beyond BESS, the Company provides a Battery Management System (BMS), project management, commissioning, and long-term maintenance services[239](index=239&type=chunk) [Strategy](index=52&type=section&id=Strategy) Outlines the company's growth strategy, focusing on sales expansion, product development, and manufacturing efficiency - The Company's growth strategy focuses on increasing sales of BESS and related software/services through direct sales and channel partners, targeting utilities, project developers, and C&I customers[240](index=240&type=chunk) - Eos is investing in its next-generation Z3 battery, aiming to reduce costs and weight, enhance manufacturability, and improve system performance, building on its existing electrochemistry[241](index=241&type=chunk) - The Z3 battery module began commercial production on its first fully-automated manufacturing line in Q3 2023, incorporating lessons from **15 years** of experience to drive efficiencies[242](index=242&type=chunk) [U.S. Department of Energy ("DOE")](index=53&type=section&id=U.S.%20Department%20of%20Energy%20(%22DOE%22)) Details the significance and funding structure of the DOE Loan Facility for expanding Eos's manufacturing capacity - The DOE Loan Facility, closed on November 26, 2024, is crucial for Project AMAZE, aiming to expand Eos' manufacturing capacity to **8 GWh** by 2027[244](index=244&type=chunk) - The facility provides up to **$303.5 million** in funding across multiple tranches, covering **80%** of eligible project costs for corresponding production lines[245](index=245&type=chunk)[246](index=246&type=chunk) - As of June 30, 2025, **$68.3 million** has been funded under Tranche 1 for eligible project costs, with an additional **$22.7 million** funded on July 1, 2025[246](index=246&type=chunk) [Inflation Reduction Act of 2022 ("IRA")](index=53&type=section&id=Inflation%20Reduction%20Act%20of%202022%20(%22IRA%22)) Discusses the economic incentives provided by the IRA, including tax credits for domestically manufactured battery components - The IRA provides significant economic incentives, including a **10-year** term investment tax credit (ITC) for new energy storage facilities and Production Tax Credits (PTC) for domestically manufactured battery components[247](index=247&type=chunk)[248](index=248&type=chunk) - Eos believes its American-made batteries qualify for the **10%** domestic content bonus credit, offering a strategic advantage[247](index=247&type=chunk) - The Company is observing accelerated customer activity in 2025 to secure eligibility for current ITC safe harbor provisions before transitioning to the technology-neutral Section 48E framework[247](index=247&type=chunk) [Company Highlights](index=53&type=section&id=Company%20Highlights) Summarizes key operational and strategic achievements, including financing milestones and significant customer orders - In January 2025, Eos achieved all operational milestones for the final **$40.5 million** draw under the **$210.5 million** Delayed Draw Term Loan, fully funding it and solidifying its capital position[250](index=250&type=chunk) - Key operational achievements include surpassing raw materials cost-out targets by **6%** and delivering manufacturing cycle times below **10 seconds**[253](index=253&type=chunk) - Strategic developments include an **$8 million** BESS order for the Naval Base of San Diego, a **5 GWh** energy storage framework agreement with Frontier Power Ltd. (UK), and a **3 MW / 15 MWh** Eos Z3™ system order for Faraday Microgrids[253](index=253&type=chunk) - The Company completed a public offering of common stock in June 2025, raising **$81.1 million**, and issued **$250.0 million** in **6.75%** convertible senior notes due 2030[253](index=253&type=chunk) [Results of Operations](index=54&type=section&id=Results%20of%20Operations) Analyzes the company's financial performance, detailing revenue, cost of goods sold, and various expense categories [Revenue](index=54&type=section&id=Revenue) Analyzes the company's revenue performance, highlighting significant increases driven by product sales and pricing Revenue Performance (in thousands) | Period | 2025 | 2024 | $ Change | % Change | | :------------------------------- | :----- | :----- | :------- | :------- | | Three Months Ended June 30, Revenue | $15,236 | $898 | $14,338 | 1597% | | Six Months Ended June 30, Revenue | $25,693 | $7,499 | $18,194 | 243% | - The significant increase in revenue for both periods is attributed to higher product sales and increased selling prices, as the Company scales production to meet customer demand[252](index=252&type=chunk) [Cost of goods sold](index=55&type=section&id=Cost%20of%20goods%20sold) Discusses the changes in cost of goods sold, attributing increases to sales volume and expectations for future trends Cost of Goods Sold Performance (in thousands) | Period | 2025 | 2024 | $ Change | % Change | | :------------------------------- | :----- | :----- | :------- | :------- | | Three Months Ended June 30, COGS | $46,189 | $14,121 | $32,068 | 227% | | Six Months Ended June 30, COGS | $81,185 | $42,350 | $38,835 | 92% | - Cost of goods sold increased due to higher product sales volume, partially offset by a decrease in unit production cost, as the Company continues to scale production[255](index=255&type=chunk) - The Company expects COGS to exceed revenues in the near term due to production start-up and commissioning costs for its nascent technology and new manufacturing process[254](index=254&type=chunk) [Research and development expenses](index=55&type=section&id=Research%20and%20development%20expenses) Analyzes the increase in R&D expenses, linking it to business scaling, payroll, and consulting costs R&D Expenses Performance (in thousands) | Period | 2025 | 2024 | $ Change | % Change | | :------------------------------- | :----- | :----- | :------- | :------- | | Three Months Ended June 30, R&D | $7,201 | $4,250 | $2,951 | 69% | | Six Months Ended June 30, R&D | $14,038 | $9,450 | $4,588 | 49% | - The increase in R&D expenses was driven by higher payroll, stock-based compensation, and consulting costs to support business scaling and key growth areas[257](index=257&type=chunk) [Selling, general and administrative expenses](index=55&type=section&id=Selling,%20general%20and%20administrative%20expenses) Details the increase in SG&A expenses, primarily due to expanded headcount and associated compensation costs SG&A Expenses Performance (in thousands) | Period | 2025 | 2024 | $ Change | % Change | | :------------------------------- | :----- | :----- | :------- | :------- | | Three Months Ended June 30, SG&A | $25,488 | $11,293 | $14,195 | 126% | | Six Months Ended June 30, SG&A | $46,483 | $25,535 | $20,948 | 82% | - SG&A expenses increased primarily due to expanded headcount in key growth areas, leading to higher payroll and stock-based compensation costs, including **$3.7 million** in one-time costs for the six months ended June 30, 2025[259](index=259&type=chunk) [Loss from write-down of property, plant and equipment](index=56&type=section&id=Loss%20from%20write-down%20of%20property,%20plant%20and%20equipment) Explains losses incurred from asset write-downs, mainly due to design changes in manufacturing processes Loss from Write-Down of PP&E (in thousands) | Period | 2025 | 2024 | | :------------------------------------ | :--- | :--- | | Three Months Ended June 30, Loss | $205 | $271 | | Six Months Ended June 30, Loss | $766 | $336 | - Losses from write-downs were mainly due to design changes from Z3™-Phase 1 to Z3™-Phase 2 production, rendering Phase 1 assets unusable or not repurposable for Phase 2[260](index=260&type=chunk) [Interest expense, net](index=56&type=section&id=Interest%20expense,%20net) Analyzes the decrease in net interest expense, primarily due to the payoff of a senior secured term loan Interest Expense, Net (in thousands) | Period | 2025 | 2024 | | :------------------------------- | :--------- | :--------- | | Three Months Ended June 30, Interest | $(2,129) | $(3,515) | | Six Months Ended June 30, Interest | $(2,293) | $(7,782) | - Interest expense, net decreased by **$1.4 million** and **$5.5 million** for the three and six months ended June 30, 2025, respectively, primarily due to lower interest expense from the payoff of the Senior Secured Term Loan in 2024[261](index=261&type=chunk) [Interest expense - related party](index=56&type=section&id=Interest%20expense%20-%20related%20party) Discusses changes in interest expense from related party borrowings, including convertible notes Related Party Interest Expense (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | 2021 Convertible Note Payable | $(2,671) | $(3,479) | $(6,613) | $(6,895) | | AFG Convertible Note | $(1,839) | $(1,433) | $(3,678) | $(2,868) | | Total | $(4,510) | $(4,912) | $(10,291) | $(9,763) | - Total related party interest expense increased for the six months ended June 30, 2025, primarily due to higher interest and amortization on AFG Convertible Notes, partially offset by the payoff of the 2021 Convertible Notes[262](index=262&type=chunk)[141](index=141&type=chunk) [Change in fair value of debt - related party](index=56&type=section&id=Change%20in%20fair%20value%20of%20debt%20-%20related%20party) Explains the significant gain recognized from changes in the fair value of related party debt, driven by interest rate reductions and prepayments Change in Fair Value of Debt - Related Party (in thousands) | Period | 2025 | 2024 | | :------------------------------------ | :------- | :----- | | Three Months Ended June 30, Change | $31,615 | $(240) | | Six Months Ended June 30, Change | $25,682 | $(240) | - A significant gain of **$31.6 million** and **$25.7 million** was recognized for the three and six months ended June 30, 2025, respectively, related to the Delayed Draw Term Loan, driven by a reduction in the contractual interest rate (**15% to 7%**) and a decrease in the loan balance due to prepayment[16](index=16&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk) [Change in fair value of warrants](index=56&type=section&id=Change%20in%20fair%20value%20of%20warrants) Analyzes the loss incurred from changes in the fair value of warrants, reflecting market fluctuations and exercises Change in Fair Value of Warrants (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | IPO warrants | $(38) | $(3) | $99 | $3 | | April 2023 warrants | $(20,319) | $(1,874) | $(4,080) | $(1,092) | | May 2023 warrants | $(4,611) | $(461) | $(886) | $(274) | | December 2023 warrants | $(32,968) | $(5,603) | $(7,144) | $(3,678) | | Total | $(57,936) | $(7,941) | $(12,011) | $(5,041) | - The change in fair value of warrants resulted in a loss of **$57.9 million** for the three months and **$12.0 million** for the six months ended June 30, 2025, significantly higher than the prior year, reflecting market fluctuations and warrant exercises[266](index=266&type=chunk) [Change in fair value of derivatives - related parties](index=57&type=section&id=Change%20in%20fair%20value%20of%20derivatives%20-%20related%20parties) Details the loss from changes in the fair value of related party derivatives, including warrants and embedded features Change in Fair Value of Derivatives - Related Parties (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Embedded derivatives | $(24,264) | $(1,525) | $(7,330) | $(991) | | Warrants - related parties | $(52,191) | $(46,202) | $(34,539) | $(46,202) | | Total | $(76,455) | $(47,727) | $(41,869) | $(47,193) | - The change in fair value of derivatives from related parties resulted in a loss of **$76.5 million** for the three months and **$41.9 million** for the six months ended June 30, 2025, primarily driven by changes in the fair value of related party warrants and embedded derivatives in convertible debt[266](index=266&type=chunk) [(Loss) gain on debt extinguishment](index=57&type=section&id=(Loss)%20gain%20on%20debt%20extinguishment) Explains the loss recognized from debt extinguishment due to the payoff of convertible notes and prepayment of a term loan (Loss) Gain on Debt Extinguishment (in thousands) | Period | 2025 | 2024 | | :------------------------------------ | :--------- | :------- | | Three Months Ended June 30, (Loss) gain | $(49,063) | $68,478 | | Six Months Ended June 30, (Loss) gain | $(49,063) | $68,478 | - The Company recognized a loss of **$49.1 million** on debt extinguishment for the three and six months ended June 30, 2025, due to the payoff of the 2021 Convertible Notes and prepayment of the Delayed Draw Term Loan[267](index=267&type=chunk) - In contrast, a gain of **$68.5 million** was recognized for the same periods in 2024 from the payoff of the Senior Secured Term Loan[268](index=268&type=chunk) [Other expense](index=57&type=section&id=Other%20expense) Details other expenses, primarily professional fees related to financing activities and debt extinguishment Other Expense (in thousands) | Period | 2025 | 2024 | | :----------------------- | :----- | :----- | | Three Months Ended June 30, | $(606) | $(3,270) | | Six Months Ended June 30, | $(1,166) | $(3,134) | - Other expense for the six months ended June 30, 2025, primarily relates to professional fees for the Cerberus Amendments, extinguishment of the 2021 Convertible Notes, and financing issuance costs[269](index=269&type=chunk) [Income tax expense](index=58&type=section&id=Income%20tax%20expense) Discusses the minimal income tax expense, primarily from foreign operations, and the impact of tax legislation Income Tax Expense (in thousands) | Period | 2025 | 2024 | | :----------------------- | :--- | :--- | | Three Months Ended June 30, | $6 | $8 | | Six Months Ended June 30, | $11 | $33 | - Income tax expense remains insignificant, primarily attributable to foreign operations, with no material impact expected from recent tax legislation[271](index=271&type=chunk) [Liquidity and Going Concern](index=58&type=section&id=Liquidity%20and%20Going%20Concern) Addresses the company's ability to meet its short-term and long-term obligations, including recent financing activities and capital position - Eos has incurred significant losses and negative cash flows from operations since inception, raising substantial doubt about its ability to continue as a going concern[272](index=272&type=chunk)[279](index=279&type=chunk)[280](index=280&type=chunk) - Recent financing activities, including the fully funded **$210.5 million** Delayed Draw Term Loan from Cerberus, the DOE Loan Facility (up to **$303.5 million**), a **$81.1 million** public offering, and **$250.0 million** in 2025 Convertible Notes, have significantly improved the Company's capital position[274](index=274&type=chunk)[275](index=275&type=chunk)[277](index=277&type=chunk)[278](index=278&type=chunk)[286](index=286&type=chunk) - As of June 30, 2025, the Company had **$120.2 million** of unrestricted cash and cash equivalents and **$128.0 million** in working capital, and was in compliance with the Minimum Liquidity financial covenant[279](index=279&type=chunk) [Financing Arrangements](index=60&type=section&id=Financing%20Arrangements) Outlines the company's reliance on external capital, detailing key transactions like convertible notes and equity issuances - The Company relies on outside capital (convertible notes, term loans, equipment financing, equity issuance) to fund its cost structure and expects this reliance to continue until profitability is achieved[281](index=281&type=chunk)[273](index=273&type=chunk) - Key capital transactions in the six months ended June 30, 2025, include the full funding of the Cerberus DDTL, a public offering raising **$81.1 million**, and the issuance of **$250.0 million** in 2025 Convertible Notes[286](index=286&type=chunk) [Capital Expenditures](index=60&type=section&id=Capital%20Expenditures) Discusses the company's investments in property, plant, and equipment, driven by its growth strategy and manufacturing expansion Capital Expenditures (in thousands) | Period | 2025 | 2024 | | :------------------------------------ | :--------- | :--------- | | Six Months Ended June 30, Capital Expenditures | $12,000 | $10,300 | - Capital expenditures and working capital requirements are expected to increase as the Company executes its growth strategy, with **$12.0 million** spent in the first six months of 2025 for manufacturing facility improvements[281](index=281&type=chunk)[289](index=289&type=chunk) [Discussion and Analysis of Cash Flows](index=60&type=section&id=Discussion%20and%20Analysis%20of%20Cash%20Flows) Provides a detailed analysis of cash flows from operating, investing, and financing activities, highlighting significant changes Cash Flow Summary (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | $ Change | | :-------------------------------- | :--------- | :--------- | :--------- | | Net cash used in operating activities | $(95,046) | $(66,807) | $(28,239) | | Net cash used in investing activities | $(11,959) | $(10,299) | $(1,660) | | Net cash provided by financing activities | $186,820 | $50,024 | $136,796 | - Operating cash outflows increased due to higher net loss, partially offset by non-cash adjustments and net cash inflows from changes in operating assets and liabilities[287](index=287&type=chunk)[288](index=288&type=chunk) - Financing cash inflows significantly increased, driven by proceeds from the public offering (**$81.1 million**), 2025 Convertible Notes (**$240.0 million**), and Cerberus transaction (**$38.5 million**), used to repay other debts[290](index=290&type=chunk)[291](index=291&type=chunk) [Contractual Obligations](index=61&type=section&id=Contractual%20Obligations) Summarizes the company's future payment obligations under various debt instruments and lease agreements Future Debt Payments (in thousands) | Debt Obligation | Due Date | Amount | | :-------------------------------- | :--------- | :--------- | | Delayed Draw Term Loan | June 2034 | $348,411 | | AFG Convertible Notes | June 2026 (amended to Sept 2034) | $32,468 | | Equipment financing facility | April 2026 | $1,147 | | DOE Loan Facility | June 2034 | $91,470 | | 2025 Convertible Notes | June 2030 | $336,114 | | Total | | $809,610 | - The Company also has future lease payments of **$3.5 million** under non-cancellable operating and financing leases expiring before 2030[293](index=293&type=chunk) [Critical Accounting Estimates ("CAE")](index=62&type=section&id=Critical%20Accounting%20Estimates%20(%22CAE%22)) Highlights the significant accounting judgments and estimates that could materially impact the financial statements - The Company's financial statements rely on management's assumptions, judgments, and estimates, which could differ materially from actual results[294](index=294&type=chunk) - There have been no material changes in the critical accounting estimates as compared to those disclosed in the 2024 Annual Report on Form 10-K[295](index=295&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) States no material changes to market risk exposures for the six months ended June 30, 2025, compared to the 2024 Annual Report on Form 10-K - No material changes in market risk exposures for the six months ended June 30, 2025, compared to the prior fiscal year[296](index=296&type=chunk) [Item 4. Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) Details management's evaluation of the Company's disclosure controls and procedures and internal control over financial reporting - Management, with CEO and CFO participation, concluded that disclosure controls and procedures were effective as of June 30, 2025, providing reasonable assurance of timely and accurate information reporting[297](index=297&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025, that materially affected or are reasonably likely to materially affect such controls[298](index=298&type=chunk) [PART II - OTHER INFORMATION](index=62&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) Provides updates on legal proceedings, risk factors, equity sales, defaults, and other significant events [Item 1. Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) Provides an update on legal proceedings, noting that while the Company may be involved in litigation, management does not expect material adverse effects - A class action lawsuit (Houck Complaint) alleging federal securities law violations was dismissed by the District Court on March 13, 2025, and the case is considered closed[199](index=199&type=chunk)[301](index=301&type=chunk) - A shareholder derivative lawsuit (Hyung Complaint) alleging breach of fiduciary duties was voluntarily dismissed on June 10, 2025, and the case is considered closed[200](index=200&type=chunk)[302](index=302&type=chunk) [Item 1A. Risk Factors](index=63&type=section&id=Item%201A.%20Risk%20Factors) States no additional material changes to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K - No additional material changes to the risk factors disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024[303](index=303&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=63&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Indicates no unregistered sales of equity securities or use of proceeds to report for the period - No unregistered sales of equity securities and use of proceeds to report[304](index=304&type=chunk) [Item 3. Defaults Upon Senior Securities](index=63&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) States no defaults upon senior securities to report for the period - No defaults upon senior securities to report[304](index=304&type=chunk) [Item 4. Mine Safety Disclosures](index=63&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Indicates no mine safety disclosures to report for the period - No mine safety disclosures to report[304](index=304&type=chunk) [Item 5. Other Information](index=63&type=section&id=Item%205.%20Other%20Information) Provides updates on significant events occurring after the reporting period, including amendments to the AFG Convertible Notes and an extension for achieving Sales Milestone 4 under the Credit Agreement - On July 29, 2025, the AFG Convertible Notes were amended to extend maturity, reduce interest rates, and modify optional redemption provisions[305](index=305&type=chunk) - The measurement period for achieving Sales Milestone 4 under the Credit Agreement was extended to October 31, 2025, with potential for additional equity issuance to Cerberus if not met[306](index=306&type=chunk) [Item 6. Exhibits](index=64&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed as part of the Form 10-Q, including corporate governance documents, debt agreements, and certifications - The exhibit list includes various corporate documents, such as Certificates of Incorporation and Bylaws, as well as debt agreements like the Indenture for 2025 Convertible Notes and amendments to the Credit Agreement[309](index=309&type=chunk)[310](index=310&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer, pursuant to Exchange Act Rules and Sarbanes-Oxley Act, are filed herewith[310](index=310&type=chunk)

[Filing Information](index=1&type=section&id=Filing%20Information) [Registrant Details](index=1&type=section&id=Registrant%20Details) This section identifies EOS Energy Enterprises, Inc. as the registrant, detailing its incorporation, executive offices, and contact information - Registrant Name: **EOS ENERGY ENTERPRISES, INC.**[1](index=1&type=chunk) - State of Incorporation: Delaware[1](index=1&type=chunk) - Principal Executive Offices: 3920 Park Avenue, Edison, New Jersey 08820[1](index=1&type=chunk) - Registrant's Telephone Number: (732) 225-8400[1](index=1&type=chunk) [Securities Registered](index=1&type=section&id=Securities%20Registered) This section lists the classes of securities registered by EOS Energy Enterprises, Inc. and their trading symbols on Nasdaq | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common stock, par value $0.0001 per share | EOSE | The Nasdaq Stock Market LLC | | Warrants, each exercisable for one share of common stock | EOSEW | The Nasdaq Stock Market LLC | [Emerging Growth Company Status](index=1&type=section&id=Emerging%20Growth%20Company%20Status) The registrant indicates its status concerning the 'emerging growth company' definition under relevant securities acts - **EOS Energy Enterprises, Inc. is not an emerging growth company**[3](index=3&type=chunk) [Current Report Items](index=3&type=section&id=Current%20Report%20Items) [Item 2.02 Results of Operations and Financial Condition](index=3&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) This item reports Eos Energy Enterprises, Inc. issued a press release announcing financial results for the quarter ended June 30, 2025 - On July 30, 2025, Eos Energy Enterprises, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2025[5](index=5&type=chunk) - A copy of the press release is furnished as Exhibit 99.1 and is not deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934[5](index=5&type=chunk)[6](index=6&type=chunk) [Item 9.01 Financial Statement and Exhibits](index=3&type=section&id=Item%209.01%20Financial%20Statement%20and%20Exhibits) This section lists the exhibits accompanying the Form 8-K filing, including the financial results press release and XBRL cover page | Exhibit Number | Description of Document | | :------------- | :---------------------- | | 99.1 | Press release announcing financial results, dated July 30, 2025 | | 104 | Cover page of this Current Report on Form 8-K formatted in Inline XBRL | [Signature](index=4&type=section&id=Signature) [Signatory Information](index=4&type=section&id=Signatory%20Information) This section confirms the report was duly authorized and signed by EOS Energy Enterprises, Inc.'s Interim Chief Financial Officer - The report was signed on July 30, 2025, by Nathan Kroeker, Interim Chief Financial Officer, on behalf of EOS ENERGY ENTERPRISES, INC.[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk)

Core Insights - Eos Energy Enterprises, Inc. reported its strongest operational quarter to date, with significant revenue growth and improved production efficiency [3][5] - The company anticipates full-year revenue for 2025 to be between $150 million and $190 million, continuing its manufacturing expansion efforts [4][5] Financial Performance - Eos achieved record quarterly revenue of $15.2 million, a 46% increase from the previous quarter and a 17-fold increase year-over-year [6] - The gross loss was $31.0 million, reflecting a 32-point margin improvement from the prior quarter [6] - Operating expenses totaled $32.9 million, a decrease from the previous quarter when excluding one-time non-recurring items [6] - The net loss attributable to shareholders was $222.9 million, primarily due to non-cash changes in fair value and other adjustments [6][29] Commercial Pipeline and Growth - The commercial opportunity pipeline increased to $18.8 billion, a 21% rise from the prior quarter, with a backlog of $672.5 million [5][6] - Eos signed a 5 GWh Memorandum of Understanding (MOU) with Frontier Power, contributing to strong demand for energy storage solutions in the UK [9][10] - Over half of Eos' pipeline consists of stand-alone energy storage projects, which are increasingly sought after for grid management [10] Manufacturing and Capacity Expansion - Eos is implementing subassembly automation to double the throughput of its battery module line, aiming for an annualized production rate of 2 GWh by the second half of 2025 [7] - The company has successfully launched its first state-of-the-art manufacturing line, producing battery modules every 10 seconds [4][5] Financial Flexibility and Debt Management - Eos closed $336 million in concurrent offerings of common stock and convertible senior notes, enhancing its financial flexibility [11][12] - The company extended the maturity of its 26.5% convertible senior notes to September 30, 2034, and reduced the interest rate to 7.0% starting June 30, 2026 [13]

Group 1 - The article discusses the investment experiences in both the Rust Belt and high-tech sectors, highlighting the potential for significant gains and losses in these areas [1] - The individual mentioned has a background in business and is currently involved in venture capital and private company investments, while also seeking stock picks regularly [1] Group 2 - There is a disclosure regarding a beneficial long position in the shares of EOSE and NEE, indicating a vested interest in these companies [2] - The article emphasizes that past performance does not guarantee future results, and no specific investment recommendations are provided [3]

Company Overview - Eos Energy Enterprises, Inc. (EOSE) shares increased by 10.8% to close at $5.87, with notable trading volume compared to typical sessions, and a total gain of 15.7% over the past four weeks [1] - The company is set to report its second quarter 2025 results on July 31 [1] Financial Performance - In Q1 2025, Eos Energy reported record revenues of $10 million, reflecting a 58% year-over-year increase, driven by higher customer deliveries [2] - The adjusted EBITDA loss for Q1 was $43.2 million, but this represented a 145-point margin improvement due to increased customer deliveries at lower product costs [2] Future Expectations - The upcoming quarterly loss is expected to be $0.16 per share, indicating a year-over-year change of +46.7%, with revenues projected at $23.46 million, a significant increase of 2506.9% from the same quarter last year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, suggesting that stock price movements may be influenced by trends in earnings estimate revisions [4] Industry Context - Eos Energy is part of the Zacks Industrial Services industry, which includes other companies like LegalZoom (LZ), that has also shown positive performance with a 0.1% increase in the last trading session [5] - LegalZoom's consensus EPS estimate has remained unchanged at $0.15, representing a +50% change from the previous year, and it also holds a Zacks Rank of 2 (Buy) [6]

Core Viewpoint - Eos Energy Enterprises, Inc. is set to release its second quarter 2025 financial results on July 30, 2025, with a conference call scheduled for the following morning to discuss the results [1] Group 1: Financial Results Announcement - The company will announce its second quarter 2025 financial results after the U.S. market closes on July 30, 2025 [1] - A conference call to discuss these results will take place on July 31, 2025, at 8:30 a.m. Eastern Time [1] Group 2: Shareholder Engagement - Eos has partnered with Say Technologies to allow both retail and institutional shareholders to submit and vote on questions prior to the earnings call [2] - The Q&A platform will open for registered shareholders on July 18, 2025, and will remain available until July 28, 2025 [3] Group 3: Conference Call Logistics - The live webcast of the earnings call will be accessible on the company's "Investor Relations" page [4] - Participants are encouraged to join the call fifteen minutes early to avoid delays [4] - A replay of the conference call will be available via webcast for twelve months following the live presentation [5] Group 4: Company Overview - Eos Energy Enterprises focuses on innovative energy storage solutions, specifically its Znyth™ aqueous zinc battery, which aims to address the limitations of lithium-ion technology [6] - The company emphasizes safety, scalability, and sustainability in its products, which are manufactured in the U.S. [6] - Eos was founded in 2008 and is headquartered in Edison, New Jersey [6]

Core Insights - The near-term outlook for the Zacks Industrial Services industry is positive, driven by increasing e-commerce activity and a recent rise in the production index [1][5] - Companies like Siemens, MSC Industrial Direct, and Eos Energy Enterprises are strategically positioned to leverage these trends through cost-cutting, operational efficiency improvements, and investments in automation and digitization [2] Industry Overview - The Zacks Industrial Services industry includes companies providing industrial equipment products and MRO services, serving diverse sectors such as commercial, government, healthcare, and manufacturing [3] - The industry focuses on reducing MRO supply-chain costs and enhancing productivity through inventory management and procurement solutions [3] Trends Impacting the Industry - E-commerce is expected to drive growth, with global e-commerce revenues projected to grow at a CAGR of 18.9% from 2024 to 2030, and the U.S. market at a CAGR of 16.4% [4] - The manufacturing sector, contributing around 70% to the industry's revenues, has shown signs of recovery with the production index entering expansion territory at 50.3% in June, up from 45.4% in May [5] Cost Management Strategies - The industry faces significant inflation, including rising labor, freight, and fuel costs, prompting companies to implement pricing actions, cost-cutting measures, and productivity improvements [6] Market Performance - The Zacks Industrial Services industry has outperformed both its sector and the S&P 500 over the past year, growing 16.5% compared to the sector's 14.8% and the S&P 500's 11.2% [9] - The industry currently trades at a forward 12-month EV/EBITDA ratio of 30.7X, significantly higher than the S&P 500's 13.89X and the Industrial Products sector's 19.94X [12] Company Highlights - Siemens reported a 10% increase in orders and a 7% rise in revenues in Q2, bolstered by acquisitions that enhance its capabilities in industrial AI and simulation [18][19] - Eos Energy Enterprises secured a $22.7 million loan advance to support its production expansion, with projected revenues for 2025 between $150 million and $190 million, up from $15.7 million in 2024 [21][22] - MSC Industrial noted positive trends in its fiscal third quarter, focusing on long-term growth objectives and recent acquisitions to enhance its market position [25]

Core Viewpoint - Eos Energy Enterprises, Inc. has received a second loan advance of $22.7 million from the Department of Energy, completing the maximum allowable amount under the first tranche of $90.9 million, aimed at expanding its manufacturing capabilities for zinc-based battery energy storage systems [1][2][5] Group 1: Financial Developments - The loan advance covers 80% of eligible costs related to the Company's production expansion plans for Project AMAZE, supporting efforts to meet growing customer demand [2] - Eos has successfully closed $336 million in concurrent offerings of common stock and convertible senior notes, which has restructured the Company's balance sheet and lowered its cost of capital [5] Group 2: Production and Capacity Expansion - Production volumes at Eos' first manufacturing line are increasing weekly, with a target capacity of 2 GWh [3] - The Company has submitted a purchase order for its second manufacturing line, which is a significant step in expanding U.S. production [4] Group 3: Strategic Objectives - Eos aims to scale operations to meet the rising demand for energy storage solutions, particularly in AI-driven load growth and data centers [3] - The Company is focused on building a robust domestic supply chain and creating high-quality American jobs through its manufacturing initiatives [5][6]