Acorn Energy Reports 45.3% Revenue Growth to $3.1 Million in Q1 2025

Acorn Energy, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenue reaching $3.1 million, a 45.3% increase from $2.1 million in the same period of 2024. The company achieved a gross profit of $2.3 million, maintaining a gross margin of approximately 75%. Operating income also saw a substantial rise to $604,000, compared to $78,000 in the prior year, while net income attributable to Acorn stockholders was $464,000, up from $65,000 in the first quarter of 2024.

The company’s revenue growth was primarily driven by its Power Generation (PG) segment, which reported a 60.9% increase in revenue, totaling $2.9 million. This growth was attributed to sales under a significant contract with a major telecommunications provider, which involved monitoring hardware and services for backup generators. In contrast, the Cathodic Protection (CP) segment experienced a decline in revenue, dropping 37.6% to $211,000. The overall increase in revenue was complemented by a rise in hardware sales, which increased by 78% year-over-year.

Acorn Energy's operational metrics indicate a positive trend in customer engagement, with an increase in the number of monitored connections contributing to the revenue growth. The company reported a backlog of $3.9 million in deferred revenue as of March 31, 2025, which is expected to be recognized over the next twelve months. This backlog reflects the ongoing demand for its monitoring services and hardware products, particularly following the launch of updated product versions that allow for greater functionality and customer choice.

The company’s total assets increased to $11.1 million as of March 31, 2025, up from $10.6 million at the end of 2024. Cash reserves also improved, with $2.6 million in cash reported, compared to $2.3 million at the end of the previous fiscal year. Acorn Energy's working capital stood at $1.7 million, indicating a solid liquidity position to support ongoing operations. The company anticipates that its current cash, along with expected operational cash flow, will be sufficient to finance its activities for at least the next twelve months.

Looking ahead, Acorn Energy plans to continue investing in research and development to enhance its product offerings and maintain competitive advantages in the market. The company expects moderate increases in R&D expenses as it focuses on launching next-generation products and expanding its service capabilities. Management remains optimistic about future growth opportunities, particularly in light of recent contract wins and the evolving landscape of energy infrastructure management.