NEW YORK, August 5, 2026, 10:06 EDT – Shares of Eos Energy NASDAQ:EOSE dropped 15% as the company reported that a related-party project contributed 80% to its second quarter revenue.
- The Nasdaq regular session was underway. The most recent quote indicated Eos trading at $3.71, a decline of 14.7%.
- A Cerberus-backed initiative accounted for $55.0 million, making up 80% of revenue in the second quarter.
- The updated midpoint implies roughly $99.6 million in revenue needed for each quarter in the second half.
Eos shares declined as record sales highlighted a limited revenue base. The company’s leadership also trimmed $50 million from the upper end of its yearly outlook.
The related-party project generated quarterly sales of $55.0 million, with financing provided by Cerberus prior to the Frontier Power USA closure. Excluding this project, revenue stood at $13.7 million.
The remaining figure was 9.8% lower than Eos’s total second-quarter revenue in the previous year. The main growth rate came in at 351%.
| Q2 revenue composition | Q2 2026 | Comparison |
|---|---|---|
| Reported revenue | $68.8 million | 351% increase from a year earlier |
| Cerberus-financed related-party project | $55.0 million | Accounts for 80.0% of total revenue |
| Revenue excluding that project | $13.7 million | Makes up 20.0% of total revenue |
| Q2 2025 revenue | $15.2 million | Excluding the project, Q2 2026 revenue dropped by 9.8% |
The data has not been audited. Company-reported figures are the basis for all percentage calculations.
Profitability saw an uptick, however, the financials stayed in the red. Cost of goods sold totaled $117.6 million, equating to $1.71 for each revenue dollar. Gross margin stood at negative 71%, compared to negative 78% in the prior quarter.
Gross loss increased to $48.8 million, up from $31.0 million. Adjusted EBITDA loss climbed to $71.4 million from $51.6 million. Cash holdings, inclusive of restricted amounts, declined 23% since March to $364.1 million.
Eos has updated its 2026 revenue forecast to a range of $300 million to $350 million. The lower limit is unchanged, while the prior upper estimate of $400 million has been removed. Executives attributed this adjustment to the potential consolidation of manufacturing operations at Thorn Hill.
| 2026 revenue outcome | H2 revenue required | Average per H2 quarter | Versus Q2 2026 |
|---|---|---|---|
| $300 million, low end | $174.3 million | $87.1 million | 26.7% above |
| $325 million, midpoint | $199.3 million | $99.6 million | 44.9% above |
| $350 million, high end | $224.3 million | $112.1 million | 63.0% above |
The projections are based on first-half revenue of $125.7 million. These are not official quarterly forecasts from the company.
Eos must secure $199.3 million in the second half, equating to nearly $100 million each quarter. This target is 45% higher than its previous best for second-quarter sales.
Chief Executive Joe Mastrangelo stated, “Our focus now is converting that demand into profitable growth.” He added that concentrating production at Thorn Hill is expected to reduce costs. Eos Energy Enterprises, Inc.
Backlog provides transparency, totaling $807 million, an increase of 25% since March. However, FPUSA along with the contributed project accounted for 49% of the backlog’s value.
FPUSA secured approximately $263 million in gross proceeds, which are allocated for joint-venture project development. Of this total, Eos’s standalone rights offering contributed $37.7 million.
Peer activity highlighted the divergence. Eos declined much more sharply than three comparable companies in the storage sector.
| Storage company | Latest price | Session move |
|---|---|---|
| Eos Energy Enterprises NASDAQ:EOSE | $3.71 | -14.7% |
| Fluence Energy NASDAQ:FLNC | $15.01 | -4.2% |
| ESS Tech NYSE:GWH | $0.73 | +0.6% |
| Energy Vault Holdings (NYSE:NRGV) | $3.18 | -2.5% |
Prices reflect the most recent data at 10:06 EDT and could be subject to delay.
The disparity highlights issues unique to the company’s sales execution and quality, rather than indicating a broad selloff in the storage sector.
The most recent analyst moves listed by Benzinga occurred before Wednesday’s results and reflected both optimism for growth and reservations about execution.
| Date | Firm and analyst | Action | Rating | Price target |
|---|---|---|---|---|
| July 14 | Truist Financial NYSE:TFC, Christopher Souther | Started coverage | Buy | $7 |
| July 13 | Stifel Financial NYSE:SF, Stephen Gengaro | Lowered target | Buy | $10 from $12 |
| May 22 | Needham, Sean Milligan | Started coverage | Buy | $11 |
| May 14 | TD Cowen, owned by Toronto-Dominion Bank (TSE:TD), Jeff Osborne | Raised target | Hold | $8 from $7 |
| April 16 | JPMorgan Chase NYSE:JPM, Mark Strouse | Lowered target | Neutral | $6 from $9 |
| March 5 | B. Riley Financial NASDAQ:RILY, Ryan Pfingst | Lowered target | Neutral | $8 from $12 |
The table shows the most recent named moves featured in Benzinga’s tracker.
Out of the six actions, three had Buy ratings and the other three were rated Hold or Neutral. Price targets were set between $6 and $11.
Risks: Eos continues to operate with negative gross margins and a concentrated backlog, alongside exposure to dilution risk. Manufacturing consolidation may impact production levels, while FPUSA relies on both project financing and on-schedule delivery.
The next evaluation is focused on revenue quality rather than just bookings. Sales to a wider range of customers need to increase. Improvements in unit economics are expected at a quicker pace.
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