Expion360 Inc. reported a net loss of $1.76 million for the first quarter of 2026, a significant increase from the $1.15 million loss recorded in the same period of the previous year. The company's revenue for the quarter was $1.57 million, down 24% from $2.05 million in Q1 2025. This decline in revenue was attributed to the discontinuation of certain low-margin accessory sales and elevated inventory levels among some original equipment manufacturer (OEM) customers, which reduced order volumes. The gross profit for the quarter was $396,076, representing a gross margin of 25.3%, an increase from 24.5% in the prior year, despite the overall decrease in sales.
Total selling, general, and administrative expenses rose to $2.17 million, a 31% increase compared to $1.65 million in Q1 2025. This increase was primarily driven by higher legal and professional fees, as well as increased salaries and benefits. The company’s operational challenges are compounded by ongoing negative cash flows, with $1.13 million used in operating activities during the quarter, slightly less than the $1.23 million used in the same period last year.
In terms of strategic developments, Expion360 has been actively expanding its product offerings and market presence. The company announced plans to release three next-generation lithium-ion battery models in the second half of 2026, which are designed to enhance capacity and incorporate advanced technologies such as Bluetooth connectivity and internal heating systems. Additionally, Expion360 entered a strategic partnership with Dealer Accessory Supply to launch the DASGen Hybrid Energy Storage System, marking its entry into the industrial energy storage market.
As of March 31, 2026, Expion360's total assets were approximately $7.53 million, a decrease from $8.07 million at the end of 2025. The company had cash and cash equivalents of $3.06 million, reflecting a slight increase from $2.97 million at the end of the previous year. The company’s liabilities totaled $1.48 million, with current liabilities accounting for $1.03 million. The company continues to face significant challenges, including a substantial accumulated deficit of $42.57 million and ongoing concerns regarding its ability to continue as a going concern without additional financing.
Looking ahead, Expion360 is focused on addressing its liquidity challenges and plans to raise additional capital to support its operations and growth initiatives. The company is also evaluating opportunities to expand its sales channels and manage inventory levels more effectively. However, the outlook remains uncertain, as the company anticipates continued operating losses and negative cash flows in the near term.
About Expion360 Inc.
Expion360 designs, manufactures, and sells lithium iron phosphate (LiFePO4) batteries and accessories primarily for RV, marine, and home energy storage markets. Its products offer high performance, safety, and long lifespan, serving dealers, OEMs, and private-label customers. The company leverages proprietary technology, strong industry relationships, and expanding product lines to capitalize on the shift from lead-acid to lithium energy storage solutions.
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