Eos Energy sees third-quarter revenue of up to $83 million, about 172% above a year earlier

Eos Energy Enterprises said on Monday that preliminary third-quarter 2026 revenue will reach $83 million at the top of its range, up roughly 172% from $30.5 million a year earlier and 21% from the second quarter's $68.8 million, with the low end implying about 169% growth. The release, filed with the SEC before the market opened, also put GAAP gross margin at (55)% to (53)%, an improvement of 16 to 18 percentage points from the negative 71% reported for the second quarter.

Revenue nearly triples as Line 2 adds volume

The preliminary range of $82 to $83 million compares with $68.8 million in the second quarter and $30.5 million a year earlier. At the midpoint, it is nearly triple the year-earlier figure. Shipments rose about 23% sequentially, slightly faster than revenue, a gap the release does not explain. Line 2 at Thorn Hill supplied about 17% of battery production and finished the quarter with first-pass yield matching Line 1, although it ran partial shifts while Eos hired and trained operators. A final shift is meant to bring the site to 24-hour operation in the fourth quarter, when Thorn Hill, which the company says will serve as its manufacturing facility after consolidation, is expected to have about 4 GWh of annual nameplate capacity across two lines.

Margins improve for an eighth quarter but stay negative

Eos called it the eighth consecutive quarter of gross-margin improvement, crediting higher production volumes and lower conversion costs per unit. In the second quarter, the negative 71% margin came with a $48.8 million gross loss on $68.8 million of revenue, and even the top of the new range leaves cost of goods sold above revenue. Management expects more progress from higher utilization, a single manufacturing footprint and material cost cuts once Line 2 is fully staffed. “We delivered our highest revenue to date and improved gross margin by roughly 17 points as volume begins to ramp at Thorn Hill,” Chief Financial Officer Alessandro Lagi said.

Cash falls as capital spending and DOE draws fund the ramp

Total cash, including restricted cash, was about $344 million at September 30, down from $364 million at June 30, a decline of about $20 million, or 5.5%. Eos said the quarter-end balance was helped by about $114 million of operating inflows from customer deposits, project milestone receipts and tax credit collections, and by an additional $87 million advanced under its Department of Energy loan facility. Capital expenditures were about $35 million, mostly for Line 2 automation. The release includes no cash-flow statement, so those items do not by themselves reconcile the net decline.

Backlog slips from its June record

Backlog was about $765 million, or 3.2 GWh, at September 30, compared with $807 million and 3.4 GWh at June 30, a 5.2% decline. Eos calculates backlog by adding new orders and subtracting shipments, so revenue recognized in the quarter works against the balance. Six purchase orders came from six customers, including a previously announced $100 million order under an existing capacity reservation agreement that the company said did not contribute to quarter-over-quarter backlog growth. The release does not reconcile the backlog change order by order.

Guidance stays at the low end before the November 5 report

Full-year 2026 revenue is still expected in the lower half of the $300 million to $350 million range Eos set in August, when it narrowed the band from $300 million to $400 million. Nine-month revenue, combining the first half's reported total with the new third-quarter range, is about $208 million, leaving about $92 million to find in the fourth quarter to reach even $300 million — more than the third quarter's midpoint. The forecast assumes the final Thorn Hill shift is added during the quarter. Full results are due before the market opens on November 5, with a call at 8:30 a.m. Eastern. The preliminary figures remain subject to quarter-end closing and audit committee review, and the release gives no net loss, earnings per share, adjusted EBITDA or cash-flow numbers.