Beam Global reported third‑quarter 2025 revenue of $5.8 million, a 50% decline from $11.5 million in the same period last year. The drop is largely attributable to delayed government contracts, including a major federal order that was postponed because of withheld funding. At the same time, non‑government commercial sales grew to 82% of total revenue, up from 48% a year earlier, and international sales increased to 39% of revenue, reflecting the company’s ongoing shift toward a diversified commercial and global model.
Gross margin deteriorated to a GAAP loss of $28,000, translating to a –1% margin, compared with an 11% margin in Q3 2024. However, when non‑cash depreciation and amortization are excluded, the adjusted gross margin improves to 13%, indicating that cost‑control initiatives are beginning to offset the impact of lower sales volume. The improvement is driven by higher‑margin commercial contracts and a more favorable product mix, even as fixed overhead is spread over a smaller revenue base.
Operating expenses rose to $4.8 million, driven by higher salaries, benefits, and marketing spend, yet they were $1.5 million lower than the same period in 2024. Net loss for the quarter was $4.9 million, or $2.8 million excluding non‑cash items, compared with a $1.3 million net profit in Q3 2024. Cash on hand stood at $3.3 million, with working capital of $10.9 million, giving the company a modest liquidity cushion as it continues to invest in its diversification strategy.
Beam Global missed both revenue and earnings expectations. Consensus estimates called for $8.45 million in revenue and an EPS of –$0.25; the company reported $5.8 million in revenue and an EPS of –$0.28. The revenue miss reflects the timing of government orders and a slower uptake of commercial contracts than anticipated, while the EPS miss is largely due to the lower revenue base and the impact of one‑time restructuring charges. Market reaction was muted, with analysts noting the company’s strategic pivot but expressing concern over the continued operating losses and the need for tighter cost discipline.
Management emphasized that the quarter’s results are a “necessary step” in the company’s transition from a government‑centric model to a more diversified commercial and international portfolio. CEO Desmond Wheatley highlighted the launch of the Beam Middle East joint venture and the BeamFlight drone‑charging system as key growth drivers, while CFO Lisa Potok noted that 67% of revenue came from commercial customers, up from 31% a year earlier. The company remains debt‑free and has a credit line in place, but it will need to accelerate revenue growth and further improve margins to return to profitability.
The market reaction was driven primarily by the missed earnings and revenue estimates and the sharp year‑over‑year revenue decline. Investors focused on the company’s ability to secure new contracts and resolve order timing issues, while also weighing the strategic benefits of its expanding commercial and international presence. The company’s guidance for the next quarter remains cautious, with management signaling a focus on cost discipline and incremental revenue from new product launches.
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