WILMINGTON, DE — Acorn Energy Inc. (NASDAQ: ACFN) reported a 29.4% decline in second-quarter revenue as hardware sales to a major telecommunications customer fell sharply, outweighing growth in the company’s higher-margin recurring monitoring business.
Revenue fell to $2.49 million for the quarter ended June 30 from $3.53 million a year earlier. Net income attributable to Acorn stockholders dropped 59.2% to $294,000, while diluted earnings per share declined to 12 cents from 28 cents.
The decline largely reflected hardware revenue, which fell 51.7% to $1.06 million from $2.21 million. Acorn attributed much of the change to the timing of deployments for a national cellular provider, which generated $263,000 in hardware revenue during the quarter compared with $1.34 million a year earlier.
Recurring monitoring revenue moved in the opposite direction, rising 8% to $1.43 million as the number of monitored endpoints increased. Monitoring revenue from the national cellular provider rose to $147,000 from $102,000.
The shift toward monitoring lifted Acorn’s gross margin to 82.4% from 74.9% a year earlier. Monitoring revenue itself carried a 95.6% gross margin during the quarter, compared with 94.6% in the prior-year period.
Acorn’s 99%-owned OmniMetrix subsidiary provides remote monitoring and control systems for generators and infrastructure including cell towers, gas pipelines, data centers and utility networks.
The company is seeking to expand that recurring-revenue base through a partnership with Champion Power Equipment that makes OmniMetrix remote monitoring and control the standard monitoring option on Champion’s aXis and fleX home standby generators. Acorn Chief Executive Officer Jan Loeb expects the agreement to begin contributing to results during the third quarter.
Acorn also launched OMNI360, its first product under a recently formed Infrastructure Solutions segment. The platform targets telecommunications tower sites with monitoring and management capabilities covering environmental conditions, security, electrical systems, fuel use, batteries and cooling.
Loeb cautioned that OMNI360 is expected to face a longer sales cycle because of the scope of the system and size of prospective customers, leaving the company unable to provide visibility on when the product could begin generating meaningful revenue.
Acorn is also evaluating acquisitions that could add revenue and earnings. With unusually large hardware shipments to the national cellular provider now moving out of year-over-year comparisons, management expects revenue comparisons to improve and is targeting average annual growth of 20% over a three- to five-year period.
Operating expenses declined 1% to $1.68 million from $1.69 million. Lower research and development spending was partly offset by higher selling, general and administrative expenses, including increased stock-based compensation and personnel costs.
For the first six months of 2026, revenue fell 28.8% to $4.72 million from $6.62 million, while net income attributable to Acorn stockholders declined to $217,000, or 9 cents per diluted share, from $1.18 million, or 47 cents per diluted share, a year earlier.
Acorn ended June with $4.48 million in cash, little changed from $4.45 million at the end of 2025. The company generated $277,000 in operating cash flow during the first half and invested $250,000 during the first quarter in the OMNI360 product suite.
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