Beam (BEEM) - 2025 Q2 - Quarterly Results

Company Overview & Q2 2025 Highlights Beam Global reported strong Q2 2025 results, marked by global market expansion, a return to revenue growth, record GAAP Gross Margin, and significant operational efficiency improvements, all while maintaining a debt-free status Introduction Beam Global, a leading provider of innovative and sustainable infrastructure solutions for transportation electrification, energy security, and smart city infrastructure, announced its second quarter results for the period ended June 30, 2025 - Company: Beam Global (Nasdaq: BEEM), a leading provider of innovative and sustainable infrastructure solutions for the electrification of transportation, energy security, and smart city infrastructure[2] - Announcement Date: August 14, 2025[2] - Reporting Period: Second quarter ended June 30, 2025[2] CEO Commentary CEO Desmond Wheatley highlighted Q2 2025 as a quarter of significant global market expansion through the creation of Beam Middle East, a return to revenue growth, and the achievement of the best GAAP Gross Margin in company history, all while maintaining financial discipline - Strategic Expansion: Successfully executed a significant expansion of global market presence through the creation of Beam Middle East[5] - Financial Performance: Returned to revenue growth and generated the best GAAP Gross Margin in company history[5] - Operational Focus: Creating a global platform for product sales and manufacturing, while remaining focused on financial discipline, debt-free operations, reduced operating costs, and sufficient cash and operating capital[5] Key Financial & Operational Highlights Q2 2025 saw a 12% revenue increase from Q1, a 20% GAAP Gross Margin (30% non-GAAP), and a $1.2 million reduction in operating costs year-over-year. Operationally, Beam Global formed a joint venture in the Middle East, expanded into new European markets, and grew its energy storage systems business, all while remaining debt-free Key Financial Metrics | Metric | Q2 2025 | Change vs Q1 2025 | Change vs Q2 2024 | YTD June 30, 2025 | | :-------------------------------- | :------ | :---------------- | :---------------- | :---------------- | | Revenue Increase | 12% | from Q1 2025 | - | - | | GAAP Gross Margin | 20% | - | +4 percentage points | - | | Adjusted non-GAAP Gross Margin | 30% | - | +12 percentage points | - | | Operating Costs Reduction | - | - | $1.2 million | - | | Backlog | $7M | - | - | - | | Debt Status | Debt free | - | - | - | | Line of Credit | $100 million available (unused) | - | - | - | | Revenues from Non-Government Commercial Entities | - | - | - | 60% | | Revenues from International Operations | - | - | - | 37% | - Formed Beam Middle East LLC, a 50/50 joint venture with Platinum Group UAE, to sell and manufacture Beam's patented products across the Middle East and Africa[7] - Expanded into Romania with first EV ARC™ sales and received a Sustainability Award for Innovation in Infrastructure[7] - Secured distribution agreements in Croatia (Luminoux Flux) and the DACH region (AMPS Energy AG)[7] - Installed 530 kW solar at Beam Europe to power production, boosting energy efficiency and lowering costs[7] - ESS business gained three major new customers, including a Fortune 500 automotive company, and secured $2.5 million in contracts with defense customers[7] Detailed Financial Results (Q2 2025) Q2 2025 financial results show $7.1 million in revenue, a 20% GAAP gross margin, a $1.2 million reduction in operating expenses, and a net loss of $4.3 million, with the company maintaining a debt-free cash position Revenues Beam Global reported Q2 2025 revenues of $7.1 million, a 12% increase over Q1 2025. Year-to-date, commercial customers accounted for 60% of revenues (up from 24% in 2024), and international customers comprised 37% of revenues (up from 15% in 2024) Revenue Performance | Metric | Q2 2025 | Q2 2024 | YTD June 30, 2025 | YTD June 30, 2024 | | :-------------------------------- | :------ | :------ | :---------------- | :---------------- | | Revenues | $7.075 million | $14.812 million | $13.399 million | $29.373 million | | Revenue Increase (QoQ) | 12% (from Q1 2025) | - | - | - | | Commercial Customer Revenue Share | - | - | 60% | 24% | | International Customer Revenue Share | - | - | 37% | 15% | Gross Profit Gross profit for Q2 2025 was $1.4 million, representing a 20% GAAP gross margin, a 4-percentage point improvement over Q2 2024. Excluding a $0.7 million non-cash impact for depreciation and amortization, the adjusted gross profit was $2.1 million, or a 30% gross margin Gross Profit Analysis | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | | GAAP Gross Profit | $1.4 million | $2.4 million | -$1.0 million | | GAAP Gross Margin | 20% | 16% | +4 percentage points | | Non-cash Impact (Depreciation/Amortization) | $0.7 million | - | - | | Adjusted Gross Profit (excl. non-cash) | $2.1 million | - | - | | Adjusted Gross Margin (excl. non-cash) | 30% | 18% | +12 percentage points | Operating Expenses Total operating expenses for Q2 2025 decreased by $1.2 million, or 17%, to $5.9 million compared to $7.1 million for the same period in 2024 Operating Expenses Summary | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------- | :------ | :------ | :----------- | | Total Operating Expenses | $5.9 million | $7.1 million | -$1.2 million (17% reduction) | Net Loss Net loss for Q2 2025 was $4.3 million, an improvement from $4.9 million in Q2 2024. Excluding non-cash items, the net loss was $1.4 million, a 20% reduction from $1.8 million in Q2 2024 Net Loss Overview | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :------ | :------ | :----------- | | GAAP Net Loss | $4.3 million | $4.9 million | -$0.6 million | | Non-GAAP Net Loss (excl. non-cash) | $1.4 million | $1.8 million | -$0.4 million (20% reduction) | Cash Position As of June 30, 2025, Beam Global had $3.4 million in cash, an increase from $2.5 million at March 31, 2025. The company remains debt-free with a $100 million unused line of credit Cash and Liquidity | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | | :----- | :------------ | :------------- | :---------------- | | Cash | $3.4 million | $2.5 million | $4.6 million | - Company remains debt-free and has a $100 million line of credit available and unused[7] - Cash requirements are generally for operating activities and acquisitions, historically met through a combination of debt and equity financing, and more recently through increasing gross profit contributions[11] Non-GAAP Financial Measures Explanation Beam Global presents Non-GAAP financial measures to supplement GAAP statements, believing they offer a more consistent and comparable overview of operations for evaluating business strategies and communicating performance, while acknowledging their limitations as analytical tools - Non-GAAP measures are used to supplement GAAP statements for overall performance assessment, evaluating business strategies, and communicating with the board of directors[12] - Believed to be helpful to investors, analysts, and other interested parties by providing a more consistent and comparable overview of operations across historical financial periods[12] - Acknowledged limitations: Non-GAAP measures should not be considered in isolation or as a substitute for GAAP results, and future results may be unaffected by the types of items excluded from Non-GAAP calculations[12] Operational Developments (Q2 2025) Q2 2025 operational developments include significant global market expansion through new joint ventures and distribution agreements, broader product and customer reach, enhanced operational efficiency with solar power, and substantial growth in the Energy Storage Systems business Global Market Expansion Beam Global significantly expanded its global footprint in Q2 2025 by forming Beam Middle East LLC, a 50/50 joint venture, and establishing new distribution agreements in Romania, Croatia, and the DACH region (Germany, Austria, Switzerland), alongside opening a new office in Serbia - Formed Beam Middle East LLC, a 50/50 joint venture with Platinum Group UAE, to sell and manufacture Beam's patented products across the Middle East and Africa, headquartered in Masdar City, Abu Dhabi[7] - Expanded into Romania with first EV ARC™ sales through Romanian reselling agent, Seltis Glass Design SRL, and received a Sustainability Award for Innovation in Infrastructure[7] - Signed a distribution agreement with Luminoux Flux in Zagreb, marking strategic entry into the Croatian market[7] - Signed a distribution agreement with AMPS Energy AG, marking strategic entry into the DACH region (Germany, Austria, and Switzerland)[7] - Opened a new office in Belgrade, Serbia, featuring EV ARC™ and BeamBike™ installations on campus[7] Product & Customer Reach Beam Global successfully shipped EV ARCs and other products to 13 US states and multiple European countries, expanding its customer base to include both commercial and military clients for its energy storage systems - Shipped EV ARCs and other Beam products to 13 states in the US (Arizona, California, Colorado, District of Columbia, Massachusetts, Michigan, New Mexico, Texas, Washington, Ohio, Illinois, Alabama) and internationally to Serbia, Romania, Croatia, Montenegro, Bosnia, Alberta, and Quebec[5][7] - Grew energy storage systems (ESS) business with both commercial and military customers[5] Operational Efficiency & Sustainability Initiatives Beam Global enhanced its European operations by implementing lean manufacturing processes and installing a 530 kW solar generation system on its factory buildings, significantly improving energy efficiency, lowering costs, and supporting sustainable operations - Made European operations far more efficient through continuing to add lean manufacturing processes[5] - Installed 530 kW solar generation at Beam Europe to power its production operations, boosting energy efficiency, lowering costs, and reducing reliance on external sources[5][7] Energy Storage Systems (ESS) Business Growth The Energy Storage Systems (ESS) business secured three major new customers, including a Fortune 500 automotive company, and expanded its defense contracts with $2.5 million in new sales scheduled for revenue recognition by the end of 2025 - ESS business gained three major new customers, including a Fortune 500 automotive company[7] - Further ESS expansion with defense customers, securing contracts totaling $2.5 million in sales, scheduled to be recognized as revenue by the end of 2025[7] Condensed Consolidated Financial Statements The condensed consolidated financial statements for Q2 2025 reflect a decrease in total assets to $46.74 million, a net loss of $4.3 million, and a significant difference between GAAP and Non-GAAP net losses due to various adjustments Condensed Consolidated Balance Sheets The balance sheet shows total assets decreased from $61.46 million at December 31, 2024, to $46.74 million at June 30, 2025, primarily due to a reduction in current assets and the impairment of goodwill. Total liabilities also slightly decreased, while stockholders' equity declined Balance Sheet Summary | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Cash | $3,414 | $4,572 | -$1,158 | | Accounts receivable, net | $6,082 | $8,027 | -$1,945 | | Inventory, net | $11,280 | $12,284 | -$1,004 | | Total current assets | $22,445 | $27,126 | -$4,681 | | Goodwill | $0 | $10,580 | -$10,580 | | Total assets | $46,744 | $61,459 | -$14,715 | | Total current liabilities | $12,676 | $13,315 | -$639 | | Total liabilities | $19,852 | $20,171 | -$319 | | Total stockholders' equity | $26,892 | $41,288 | -$14,396 | Condensed Consolidated Statements of Operations and Comprehensive Loss For Q2 2025, revenues were $7.1 million, resulting in a GAAP gross profit of $1.4 million. The company reported a net loss of $4.3 million for the quarter and a total comprehensive loss of $3.6 million. Year-to-date, the net loss was $19.8 million, significantly impacted by a $10.78 million impairment of goodwill Statements of Operations and Comprehensive Loss | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ending June 30, 2025 | Six Months Ending June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Revenues | $7,075 | $14,812 | $13,399 | $29,373 | | Cost of revenues | $5,641 | $12,456 | $11,464 | $25,538 | | Gross profit | $1,434 | $2,356 | $1,935 | $3,835 | | Operating expenses | $5,901 | $7,147 | $11,166 | $11,674 | | Impairment of goodwill | $0 | $0 | $10,780 | $0 | | Loss from operations | $(4,467) | $(4,791) | $(20,011) | $(7,839) | | Net Loss | $(4,278) | $(4,916) | $(19,801) | $(7,953) | | Total Comprehensive Loss | $(3,645) | $(5,011) | $(18,706) | $(8,377) | | Net Loss per share - basic/diluted | $(0.28) | $(0.34) | $(1.30) | $(0.55) | Reconciliation of Net Loss to Non-GAAP Net Loss For Q2 2025, Non-GAAP Gross Profit was $2.09 million (30% margin) compared to GAAP Gross Profit of $1.43 million (20% margin). Non-GAAP Net Loss for the quarter was $1.43 million, significantly lower than the GAAP Net Loss of $4.28 million, primarily due to adjustments for depreciation, non-cash compensation, allowance for credit losses, warrant amortization, and goodwill impairment Non-GAAP Reconciliation | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ending June 30, 2025 | Six Months Ending June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | GAAP Total Revenue | $7,075 | $14,812 | $13,399 | $29,373 | | Non-GAAP Total COGS | $4,985 | $12,148 | $10,007 | $24,989 | | Non-GAAP Gross Profit | $2,090 | $2,664 | $3,392 | $4,384 | | Non-GAAP Gross Margin % | 30% | 18% | 25% | 15% | | GAAP Total Operating Expenses | $5,901 | $7,147 | $21,946 | $11,674 | | Non-GAAP Total Operating Expenses | $3,705 | $4,311 | $7,790 | $8,148 | | GAAP Net Loss | $(4,278) | $(4,915) | $(19,801) | $(7,953) | | Non-GAAP Total Adjustments | $2,852 | $3,143 | $15,613 | $4,075 | | Non-GAAP Net Loss | $(1,426) | $(1,772) | $(4,188) | $(3,878) | - Key adjustments for Non-GAAP calculations include depreciation and amortization, non-cash compensation, allowance for credit losses, warrant amortization, and impairment of goodwill[23] Corporate Information This section provides an overview of Beam Global as a clean technology innovator, details for an upcoming conference call, a standard forward-looking statements disclaimer, and essential investor and media contact information About Beam Global Beam Global is a clean technology innovator focused on developing and manufacturing sustainable infrastructure products and technologies, operating at the nexus of clean energy and transportation with a focus on EV charging, energy storage, and smart city solutions across the U.S., Europe, and the Middle East - Company Description: Clean technology innovator developing and manufacturing sustainable infrastructure products and technologies[15] - Focus Areas: Sustainable energy infrastructure, rapidly deployed and scalable EV charging solutions, safe energy storage, energy security, and Smart Cities Infrastructure[15] - Global Operations: U.S., Europe, and the Middle East, with headquarters in San Diego, CA, and facilities in Broadview, IL, Belgrade and Kraljevo, Serbia, and Abu Dhabi, UAE[15] - Nasdaq Listing: BEEM[15] Conference Call Information Management will host a conference call on August 14, 2025, at 4:30 p.m. ET to review financial results and provide an update on corporate developments, followed by a question-and-answer session - Date & Time: Thursday, August 14, 2025, at 4:30 p.m. ET[13] - Purpose: To review financial results and provide an update on corporate developments, followed by a question-and-answer session[13] - Access: Participants can register online or call in directly using provided numbers[13][14] Forward-Looking Statements This press release contains forward-looking statements, which are predictions about future events or results and involve known and unknown risks and uncertainties that may cause actual results to differ materially. Beam Global disclaims any obligation to update these statements, except as required by law - Nature: Statements about future events or results, generally accompanied by terms such as 'estimate,' 'project,' 'predict,' 'believe,' 'expect,' etc[16] - Disclaimer: These statements are predictions involving known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different[16] - Obligation: Beam Global expressly disclaims any obligation to update any forward-looking statements, except to the extent required by law[16] Investor & Media Contacts Contact information for investor relations and media inquiries is provided for further communication - Investor Relations: Luke Higgins, +1 858-261-7646, IR@BeamForAll.com[17] - Media Contact: Lisa Potok, +1 858-327-9123, Press@BeamForAll.com[17]