Revenue: As of FY2026 Q2, the actual value is USD 3.749 M.

EPS: As of FY2026 Q2, the actual value is USD -0.14.

EBIT: As of FY2026 Q2, the actual value is USD -870 K.

Second Quarter 2026 Financial Highlights

Net Sales

Energy Focus, Inc. reported net sales of $3.7 million for the second quarter of 2026, representing a 228.0% increase compared to the second quarter of 2025, and a 295.0% sequential increase from the first quarter of 2026 . This growth was primarily driven by an approximately $1.1 million, or 328.4%, increase in military sales year-over-year, and an approximately $1.5 million, or 191.6%, increase in commercial sales year-over-year . Sequentially, commercial sales increased by approximately $1.9 million and military sales by $0.9 million . Commercial Products Net Sales for Q2 2026 were $2,254 thousand, MMM Products Net Sales were $1,491 thousand, and Setup Service Net Sales were $4 thousand .

Gross Profit and Margin

The company reported a gross loss of - $0.3 million, resulting in a gross profit margin of -6.8% in the second quarter of 2026 . This is a decrease compared to a gross profit of $0.1 million and a gross margin of 12.9% in the second quarter of 2025, and 23.3% in the first quarter of 2026, primarily attributed to an increase in inventory reserves .

Operating Profit

Loss from operations was - $0.9 million in the second quarter of 2026, an increase from - $0.2 million in the second quarter of 2025 and - $0.1 million in the first quarter of 2026 . This higher operating loss was mainly due to increased allowance for credit losses and business travel expenses .

Net Loss

Net loss for the second quarter of 2026 was - $0.9 million . This compares to a net loss of - $0.2 million in the second quarter of 2025 and - $0.1 million in the first quarter of 2026 .

Cash Position

Cash stood at $1.1 million as of June 30, 2026, remaining unchanged from December 31, 2025, and increasing from $0.5 million as of June 30, 2025 . The increase was primarily driven by $0.9 million from short-term borrowings, partially offset by a - $0.4 million cash advance related to an investment in a joint venture .

Adjusted Gross Margin

Adjusted gross margin was 4.5% in the second quarter of 2026, down from 16.7% in the second quarter of 2025 and 31.0% in the first quarter of 2026 . The decrease was primarily due to lower variable margins, a less favorable product mix, and higher inventory reserves recognized during the quarter .

Adjusted EBITDA

Adjusted EBITDA was - $0.9 million in the second quarter of 2026, compared to - $0.3 million in the second quarter of 2025 and - $0.1 million in the first quarter of 2026 . The decrease was primarily driven by higher inventory reserves .

Net Cash Used in Operating Activities (Six Months Ended June 30, 2026)

Net cash used in operating activities was - $0.8 million for the six months ended June 30, 2026 . Significant working-capital changes included a - $2.2 million change in accounts receivable, offset by a $2.8 million change in related party accounts payable .

Outlook / Guidance

The company’s forward-looking statements mention expansion initiatives in new geographic markets, growth initiatives in energy infrastructure and new product sectors, and expectations regarding new partnerships and customer relationships . However, these statements primarily highlight risks, such as the need for additional financing, dependence on private placements and limited customers, and uncertainties in market acceptance for new products, that could cause actual results to differ materially . The company also refers to demand recovery in military and commercial markets and product development strategy .