WILMINGTON, DE — Acorn Energy, Inc. (Nasdaq: ACFN) reported robust second-quarter results, driven by continued execution of a major monitoring contract and growth in its recurring revenue model. The company also marked a milestone with its uplisting to the Nasdaq Capital Market.
Second-quarter 2025 revenue jumped 55% year-over-year to $3.5 million, propelled by an 89% increase in hardware sales and a 19% rise in monitoring revenue. Much of the hardware growth stemmed from a $5.4 million contract with a national cellular provider to supply monitoring equipment and services for 5,000 to 10,000 backup generators at cell tower sites. This contract generated $1.4 million in Q2 revenue, with approximately 95% attributed to hardware sales.
Gross profit rose 58% to $2.6 million, with a strong gross margin of 75%. Operating leverage was evident as expenses grew just 20%, allowing operating expenses as a percentage of revenue to decline from 62% to 48% year-over-year.
Net income attributable to Acorn stockholders increased to $720,000, or $0.28 per diluted share, up from $271,000, or $0.11 per share in the same quarter last year. For the first half of 2025, net income reached $1.18 million, or $0.47 per diluted share, compared to $336,000 in the first half of 2024.
“Our Q2 results reflect the strength of our technology and the efficiency of our high-margin business model,” said CEO Jan Loeb. “With most monitoring contracts renewing annually at rates over 90%, and significant operating leverage, we expect roughly half of each incremental revenue dollar to translate into operating income.”
Loeb also pointed to growing macroeconomic tailwinds, including rising demand for backup power due to aging grid infrastructure and extreme weather, which are expected to support continued growth in remote monitoring solutions. OmniMetrix, Acorn’s flagship subsidiary, is positioned to capitalize on this demand with a broad base of monitored endpoints and a dealer network spanning 600 generator distributors across North America.
Acorn is currently exploring strategic partnerships with OEMs and evaluating M&A opportunities aligned with its scalable, recurring revenue model. While no deals are imminent, the company indicated it is actively pursuing accretive growth avenues.
The company’s liquidity position remains solid, with cash rising to $3.25 million at the end of Q2, up from $2.33 million at year-end 2024. Net working capital stood at $5.66 million, excluding deferred revenue and cost of goods sold.
Acorn’s recent uplisting to the Nasdaq is expected to improve share visibility, trading liquidity, and investor access. According to Loeb, this move will also support potential growth initiatives, including acquisitions.
With hardware deliveries under the Material Contract expected to conclude by year-end, and recurring revenue continuing to scale, Acorn appears well-positioned for further earnings growth in the second half of 2025 and beyond.
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