WILMINGTON, DE — Acorn Energy, Inc. (OTCQB: ACFN) posted strong financial results for the first quarter of 2025, showcasing significant revenue growth driven by its major contract with a leading U.S. cellular provider, alongside strategic plans for long-term expansion.
The company’s revenue for Q1 2025 totaled $3.1 million, a 45% increase over the same period in 2024. This surge was spurred by a 78% rise in hardware revenue, led by $876,000 in contributions from TrueGuard generator monitor sales under the cellular provider contract, and a 15% growth in monitoring revenue. Gross profit for the quarter climbed to $2.3 million, reflecting a gross margin of 75%.
Net income attributable to Acorn stockholders rose to $464,000, or $0.19 per diluted share, up from $65,000, or $0.03 per share, last year. CEO Jan Loeb highlighted operational efficiencies, noting, “Our Q1’25 results reflect our strong operating leverage, with 54% of incremental revenue dropping to the operating income line.”
Acorn’s contract with the cellular provider has played a pivotal role, contributing $2.6 million in revenue since its launch in the third quarter of 2024. The rollout, which involves monitoring equipment for 5,000 to 10,000 cell tower backup generators, is progressing on schedule and expected to conclude in 2025.
The company remains focused on achieving long-term revenue growth of 20% or more, with efforts centered on expanding its presence in the commercial, industrial, and residential markets. This includes leveraging its network of 600 generator dealers in North America and pursuing partnerships with original equipment manufacturers to enhance customer offerings.
Acorn is also advancing its strategic initiatives, having filed an initial application to uplist its common stock to the Nasdaq Capital Market. According to Loeb, “We believe that we currently meet all the requirements for uplisting and we have submitted our initial application.” The company is also exploring a potential corporate name change to better represent its operational focus.
Acorn ended Q1 2025 with a solid financial position, reporting $2.6 million in cash, up from $2.3 million at year-end 2024. Operating activities generated $271,000 in cash during the quarter, further strengthening its balance sheet.
With growing demand for reliable backup power solutions and remote monitoring systems driven by factors like severe weather and aging infrastructure, Acorn expects to capitalize on these trends. The company remains committed to delivering industry-leading solutions and creating value for its customers and shareholders.
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