Energy Focus Reports Improved Net Loss of $231,000 in Q2 2025 Amid Sales Decline

Energy Focus, Inc. reported a net loss of $231,000 for the second quarter of 2025, a significant improvement from a loss of $554,000 in the same period of 2024. The company’s net sales for the quarter were $1.14 million, down 26% from $1.55 million year-over-year, primarily due to a 71% decrease in military maritime market (MMM) sales, which was partially offset by a 118% increase in commercial product sales. For the first half of 2025, net sales totaled $1.76 million, also reflecting a 26% decline compared to $2.39 million in the first half of 2024. The decrease in MMM sales was attributed to reduced military demand amid ongoing federal budget uncertainties.

The company’s gross profit for the second quarter was $147,000, representing 13% of net sales, compared to 8% in the prior year. This increase was driven by lower fixed costs, including reduced rent and labor expenses. Operating expenses decreased significantly, with product development costs dropping 47% to $74,000 and selling, general, and administrative expenses falling 45% to $297,000. These reductions contributed to a narrower loss from operations of $224,000, down from $557,000 in the previous year.

Energy Focus has been actively restructuring its operations to align with market conditions, including a significant reduction in workforce and a focus on cost control. The company has also been expanding its commercial product offerings, including newly introduced uninterruptible power supply (UPS) systems, which have contributed to recent sales growth. The company’s strategic initiatives include diversifying its supply chain and enhancing its product portfolio to remain competitive in a challenging market characterized by aggressive pricing pressures.

As of June 30, 2025, Energy Focus reported total assets of $4.8 million, down from $5.6 million at the end of 2024, with cash reserves of $499,000. The company continues to face substantial doubt about its ability to continue as a going concern, primarily due to its accumulated deficit of $155.4 million and reliance on a limited number of customers for a significant portion of its revenue. Energy Focus is exploring various funding options to support its operations and growth strategies, including potential equity and debt financing.

Looking ahead, Energy Focus aims to leverage its recent product innovations and strategic partnerships to drive sales growth, particularly in the commercial sector. The company is also focused on improving its financial position through ongoing cost management and exploring new market opportunities. However, the outlook remains cautious due to the unpredictable nature of sales cycles and external market conditions.