Eos Energy's Revenue Slips as Cash Burn Accelerates
Eos Energy Enterprises reported second-quarter revenue of $68.8 million, down 21% from the prior quarter even as its backlog swelled to a record $807 million.
Eos Energy Enterprises (EOSE) reported second-quarter revenue of $68.8 million, up 351% from a year earlier but down 21% from the $57.0 million posted in the first quarter and below the $58.0 million record set in the fourth quarter of 2024. 80% of the quarter's revenue came from a single pre-existing related-party project tied to the formation of Frontier Power USA, its joint venture with Cerberus Capital Management.
The sequential pullback in revenue came alongside a narrower full-year outlook. Eos tightened its 2025 revenue guidance to a range of $300 million to $350 million, down from the $300 million to $400 million range it had reaffirmed as recently as the first quarter, citing an evaluation of the timing for consolidating manufacturing operations into its Thorn Hill, Pennsylvania facility. That consolidation plan is a new disclosure; prior-quarter releases dating back to the third quarter of 2024 discussed Thorn Hill only in the context of capacity expansion, not consolidation.
Gross margin was negative 71% in the quarter, improving 132 percentage points from a year earlier and 7 points sequentially from the negative 78% implied in the first quarter. The pace of improvement slowed: the first quarter's gain over the fourth quarter of 2024 was 16 points. Adjusted EBITDA margin improved 235 points year-over-year and 16 points sequentially, also a deceleration from the 294-point annual and 4-point sequential gains reported three months earlier, and the dollar loss of $71.4 million was roughly back to the $71.5 million posted in the fourth quarter after narrowing to $68.0 million in the first quarter.
Cash, including restricted cash, fell to $364.1 million as of June 30 from $472.4 million at the end of the first quarter and $624.6 million at year-end 2024, a decline of roughly $260 million over six months. Operating activities used $191.8 million of cash in the first half of the year and investing activities used another $70.6 million. Operating expenses rose to $35.0 million from $32.9 million a year earlier, driven by research and development spending that climbed to $10.5 million from $7.2 million, while selling, general and administrative costs held roughly flat at $24.5 million versus $25.5 million. That marked a reversal from the third quarter of 2024, when operating expenses had declined $5.6 million sequentially.
Net loss attributable to shareholders was $275.7 million, a swing from the $508.9 million net income Eos reported in the first quarter and a wider loss than the $222.9 million posted a year earlier; both periods' results were driven by non-cash, mark-to-market fair-value swings.
Backlog, one of the quarter's brighter figures, reached a record $807 million, or 3.4 gigawatt-hours, up 25% sequentially and 20% from a year earlier. That accelerated from $644.6 million at the end of the first quarter, which had been essentially flat against the $644.4 million reported at the end of the third quarter of 2024. Eos's commercial opportunity pipeline, by contrast, was little changed at $24.6 billion, versus $24.3 billion in the first quarter and $23.6 billion at year-end, a sharp slowdown from the 21% sequential pipeline growth the company reported in the third quarter of 2024.
On the operational side, Eos began commercial production on Thorn Hill's Line 2 in mid-June, reporting an initial cycle-time improvement of about 10% on the battery line and 11% on the bipolar line compared with Line 1. That followed a first-quarter update in which Line 2 had completed only factory acceptance testing and installation. Cumulative energy discharged by Eos's technology passed 6.5 gigawatt-hours, up from just over 6.0 gigawatt-hours in the first quarter.
The Frontier Power USA joint venture, first announced in the first quarter with a $100 million Cerberus equity commitment and a targeted roughly $150 million contribution from Eos, closed August 4 having raised approximately $263 million in gross proceeds, exceeding its initial $250 million equity target and giving the venture access to more than $1 billion in deployable project capital. Eos also disclosed a Golden Dome for America defense contract award and a strategic partnership with the Department of War, along with a $100 million Frontier Power USA purchase order for Phase I of the Blanquilla project, both entered after quarter-end.