WILMINGTON, DE — Acorn Energy, Inc. (NASDAQ: ACFN), a remote monitoring and control technology provider, reported a 35.7% rise in nine-month earnings per share to $0.57, driven by a 22% year-to-date revenue increase and strong growth in its recurring monitoring business.
While total third-quarter revenue fell 18.8% year-over-year to $2.48 million due to the completion of a major cellphone provider hardware contract, monitoring revenue hit a company record of $1.56 million, up 37.1% from the prior year. Hardware revenue declined 52% to $918,000 as the one-time rollout was largely fulfilled within 12 months.
Net income for the quarter was $252,000, or $0.10 per diluted share, compared with $725,000, or $0.29 per share, a year earlier. However, for the first nine months of 2025, Acorn’s net income climbed to $1.44 million from $1.06 million a year ago, reflecting improved operating leverage and expanding high-margin recurring revenue.
Gross margin improved to 78.5% in the quarter, up from 71.7% last year, as monitoring services made up a greater share of the revenue mix. Year-to-date gross margin stood at 75.9%, an increase of nearly three percentage points.
CEO Jan Loeb said the company’s focus on expanding its installed base of remote monitoring endpoints continues to pay off, positioning Acorn for steady, predictable revenue growth. He noted that Acorn’s Nasdaq uplisting in the third quarter was a key milestone that enhanced visibility and liquidity for shareholders, while also strengthening its position for future mergers and acquisitions.
Looking ahead, Loeb said Acorn is pursuing strategic relationships with original equipment manufacturers (OEMs) and testing new products including the Omni and OmniPro next-generation monitors for residential and industrial markets, as well as an updated RAD EX system for the pipeline sector. The company expects long-term growth tailwinds from the increasing adoption of Internet of Things (IoT) devices and rising energy demands across industries.
Acorn’s cash balance grew to $4.17 million at the end of September, up from $2.33 million at year-end 2024, supported by $1.8 million in operating cash flow through the first nine months of the year. The company continues to target average top-line growth of 20% over the next three to five years, with about half of incremental revenue expected to flow to operating income.
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