Beam Global Reports 51% Revenue Decline and $6.9 Million Net Loss in Q1 2026

Beam Global reported its financial results for the first quarter of 2026, revealing a significant decline in revenue and an ongoing net loss. The company generated revenues of $3.1 million for the three months ended March 31, 2026, a decrease of 51% from $6.3 million in the same period of the previous year. This decline is attributed primarily to order timing rather than a fundamental change in demand for its products. The gross loss for the quarter was $415,000, compared to a gross profit of $501,000 in the prior year, resulting in a negative gross margin of 13.3%.

Operating expenses totaled $6.3 million for the first quarter of 2026, down from $16 million in the same period of 2025, which included a non-cash goodwill impairment charge of $10.8 million. The adjusted operating expenses increased by approximately $1 million, mainly due to a $1.6 million increase in the provision for credit losses related to a single customer. The net loss for the quarter was $6.9 million, a reduction from a net loss of $15.5 million in the first quarter of 2025.

In terms of operational metrics, Beam Global's backlog increased to approximately $9 million as of March 31, 2026, up from $6 million at the end of 2025. This backlog is primarily driven by demand for Smart Cities products and energy storage solutions. The company also reported that international customers accounted for 51% of total revenue in the first quarter, a significant increase from 25% in the prior year, reflecting the impact of its recent acquisitions and geographic expansion efforts.

Beam Global's cash position improved slightly, with cash balances rising to $2 million from $1 million at the end of 2025. The company utilized $2.3 million in cash for operating activities during the quarter, compared to $1.8 million in the same period last year. The increase in cash used in operations was influenced by a rise in accounts receivable and inventory levels. The company has not yet drawn on its $100 million supply chain line of credit established in March 2023, which is intended to support working capital needs.

Looking ahead, Beam Global anticipates that the electric vehicle market will continue to grow, which may increase demand for its products. The company is focused on expanding its sales personnel and marketing resources while reducing reliance on large individual orders from federal agencies. Management believes that the current backlog and ongoing investments in product development will support revenue growth in the coming quarters, despite the challenges posed by order timing and changes in government procurement activity.