NeoVolta Fourth-Quarter Sales Collapse After Tax Credit Ends
Fourth-quarter revenue was about $13.5 thousand, and the company said a $3.9 million credit-loss provision and $1.1 million of residential inventory obsolescence widened the period's GAAP net loss to $11.7 million.
NeoVolta Inc. (NEOV), a U.S.-based energy technology company delivering scalable energy storage solutions, reported fourth-quarter revenue of about $13.5 thousand for the three months ended June 30, 2026, down from $4.8 million a year earlier. The drop reflected a substantial decline in residential and traditional installer-channel sales after federal tax law changes in early calendar year 2026.
That sequential collapse followed a third quarter in which revenue had already stalled at $2.0 million, matching the year-ago period after the individual federal solar investment tax credit expired on December 31, 2025. Gross profit reversed with the sales line: the fourth quarter produced a $1.14 million gross loss, versus $575 thousand of gross profit a year earlier.
GAAP net loss for the quarter was $11.7 million, or $(0.24) a share, compared with $1.6 million, or $(0.05) a share, a year earlier. The increase was primarily driven by a $3.9 million provision for credit losses and bad debt expenses and $1.1 million of residential inventory obsolescence reserve. Adjusted EBITDA, disclosed for the first time as a supplemental non-GAAP measure, was $(8.0) million in the fourth quarter versus $(0.7) million in the year-ago quarter.
For the full fiscal year ended June 30, 2026, revenue increased 58% year-over-year to $13.3 million from $8.4 million in fiscal year 2025, reflecting expansion beyond its historical residential base. Nine-month revenue had already totaled $13.3 million, up about 262% from $3.7 million a year earlier, meaning the fourth quarter contributed almost nothing to that full-year total. Full-year GAAP net loss widened to $21.5 million, or $(0.55) a share, from $5.0 million, or $(0.15) a share, in fiscal year 2025. Full-year Adjusted EBITDA was $(12.8) million versus $(2.6) million a year earlier.
Cash and cash equivalents were $22.2 million as of June 30, 2026, plus $3.2 million of restricted cash, for $25.4 million in total, following the company’s May 2026 public offering. Cash had been about $11.5 million as of March 31, 2026.
Fiscal 2026 marked the completion of the company’s transformation into a multi-market energy storage platform anchored by NeoVolta Power LLC, its 80%-owned Pendergrass, Georgia utility and C&I manufacturing joint venture. It received a formal opinion confirming Foreign Entity of Concern compliance for the Pendergrass facility, the NVApex 5MWh BESS and the NVWave residential product, positioning those products’ eligibility under IRA Section 48E.
The commercial pipeline expanded into utility-scale and C&I markets, including a non-binding letter of intent with Infinite Grid Capital for approximately 1.1 GWh, representing about $200 million in potential deployments, of utility-scale battery systems. In September, NeoVolta Power entered a binding capacity reservation agreement with IGC to provide BESS for North Ontario Edge AI datacenter projects for calendar year 2027.
Subsequent to fiscal year-end, on August 31, 2026, NeoVolta Power announced a five-year strategic supply and manufacturing collaboration with SK On. The signed agreement covers 9 GWh of U.S.-manufactured LFP battery cells from 2027 through 2031, with a framework for an additional 9 GWh of cells and pack purchases, expected to support up to 18 GWh of combined activity.
The company also entered a senior secured term loan facility providing $20 million, less a $1.0 million original issue discount, with the potential to increase the aggregate commitment by up to an additional $10 million upon mutual agreement.
Fiscal year 2027 milestones include completing site acceptance testing and commissioning of the Pendergrass facility, with a production ramp underway from the second quarter of fiscal year 2027, converting the non-binding utility-scale and C&I pipeline into binding orders, and progress toward a second Pendergrass production line that could scale site capacity toward 8 GWh of annual BESS production in calendar year 2028. Capital allocation priorities for fiscal year 2027 are focused on funding working capital for the production ramp and investment in the second production line.
Chief Executive Officer Ardes Johnson said the company believes it has positioned itself for significant growth with Pendergrass on track to start production ramp-up in the second quarter of fiscal year 2027. Chief Financial Officer Jing Nealis said the focus entering fiscal year 2027 is disciplined execution of the Pendergrass production ramp and converting commercial opportunities into durable growth.