Aug 19, 2026 earnings call — Battery-led global growth and cost cuts
Q2 revenue was $8.6 million, up 21% year over year and 174% versus Q1, showing a reacceleration.
Revenue $0.0B (est $0.0B) · EPS $-0.14 (est $-0.20)
Key quotes
"There were weeks in the second quarter when we brought in over $500 thousand of orders for batteries for applications like drones."
"Europe is now contributing more or less the same amount of revenue as the United States is."
"we completed our relocation of our manufacturing operations to Yuma, Arizona. A move that we expect to generate approximately $2.7 million in rent savings alone over the 5-year lease term when compared to what we have historically spent on manufacturing in San Diego."
Analyst Q&A 4
where orders and margins are growing
Q (Craig Irwin · ROTH Capital Partners): Analyst asked which parts of the order book grew most (Europe, Middle East, drone products) and whether those trends will continue; also asked about gross margin details by product and region and any big potential wins coming soon.
A: Management said orders rose across the business, with battery and energy storage and defense/drone products growing fast. Volume increases drove much of the recent gross margin improvement and there is more upside from higher volume and further cost reductions. Management also said they are pursuing some very large opportunities but could not give details or timing.
"And so that tells us that we have got a lot of ground to gain in gross margins without changing anything else except increasing volume." — Desmond Wheatley (CEO·CHAIR)
drone batteries and wireless charging edge
Q (Tate Sullivan · Maxim Group): Analyst asked what competitive advantages the company’s custom batteries give in drones and robotics, and asked about the scope of wireless charging patents and whether the company integrates wireless pads with EV ARC.
A: Management said their strengths are high energy-density, bespoke, very safe batteries and remote recharging without human interaction, plus existing customers in military and law enforcement who need drone and robotic power. On wireless charging, management said they stay agnostic to charging interfaces but can deploy wireless charging rapidly, at scale, and without construction, with patents protecting their approach.
"In fact, you can operate your fleet on zero unit cost of the energy without construction, without electrical, electrical work, without human beings." — Desmond Wheatley (CEO·CHAIR)
battery revenue, data center timing, recurring EV revenue
Q (Ryan Pfingst · B. Riley): Analyst asked how big the drone and robotics revenue is now and what the pipeline looks like; asked timing for data center opportunities; and asked how big and margin-impacting the recurring sponsorship rental EV ARC model can be.
A: Management said they do not break out revenue by segment but confirmed the drone/robotics business is growing with high-quality customers. On data centers, they said the timing is uncertain but expect a large opportunity because some AI data centers need short, very large power bursts and the company’s batteries are engineered for that. For the recurring EV ARC sponsorship model they said it is recurring and highly profitable, stays on their balance sheet, can scale, and could be very large.
"I do not know but I am pretty clear that it is going to be a very large opportunity for us, I believe." — Desmond Wheatley (CEO·CHAIR)
manufacturing capacity worldwide
Q (Individual Investor): Analyst asked how much revenue the company could produce worldwide with existing manufacturing and asked for a breakdown by continent if possible.
A: Management said their San Diego facility was never maxed and Yuma will be as capable or more so, with more insourcing to improve margins. They noted large capacity in Serbia (250 thousand square feet plus 6 acres) and said it is reasonable to state they can get to a billion in revenue with existing facilities, while advising caution on the exact figure.
"So it is certainly not hyperbole to say that we can get to a billion in revenue with our existing facilities." — Desmond Wheatley (CEO·CHAIR)