Beam Glb (NASDAQ:BEEM) reported first-quarter financial results on Friday. The transcript from the company’s first-quarter earnings call has been provided below.
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Summary
Beam Global’s backlog grew by 50% to $9 million, with significant contributions from Smart City applications and energy storage.
Q1 2026 revenue decreased by 51% to $3.1 million compared to the previous year, due to order timing and reduced federal EV spending.
International customers made up 51% of revenues in Q1 2026, marking significant diversification from government contracts.
The company remains debt-free with a $100 million unused line of credit, indicating strong financial health.
Gross profit saw a decline, with a reported gross loss of $0.4 million, impacted by fixed overheads and lower volumes.
Beam Global launched a patented wireless charging system for autonomous vehicles and expanded its international footprint, notably in the Middle East and Africa.
Management emphasized strategic diversification and highlighted significant growth opportunities in international markets and new product lines.
Full Transcript
OPERATOR
Hi, Good afternoon and thank you for participating in Beam Global’s first quarter 2026 operating results conference call. We appreciate you joining us today. Desmond Wheatley, President, CEO, and Chairman of Beam Global, is joining me by phone. Desmond will be giving his thoughts on 2026 and providing an update on recent activities at Beam Global, followed by a question and answer session. But first I’d like to remind you that during this call management will be making forward looking statements, including statements that address Beam’s expectations for future performance or operational results. Forward looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in Beam’s most recently filed Form 10K and other periodic reports with the SEC. The content of this call contains time sensitive information that is accurate only as of today, May 15, 2026. Except as required by law, Beam disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. So I’m going to go ahead and start with a few key highlights. Our backlog grew 50% during the quarter from 6 million at December 31 of 25 to 9 million at March of 31 of 26, with more than half attributable to the Smart city applications, approximately 1/3 to energy storage and the balance to the EV ARC and related products. And perhaps most importantly, our Q2 2026 revenue through today and has already exceeded our first quarter results, a clear signal that the business is accelerating operationally. The quarter was active. We made our first EV ARC sale in Abu Dhabi for public EV charging. We launched a patented autonomous wireless charging system for autonomous vehicles. We were selected to supply patented battery systems for drones supporting life saving aerial operations globally. Beam Europe achieved a record 1.7 million in smart City infrastructure orders in a single week across Romania, Croatia, Montenegro, Serbia and Italy, approximately doubling the strongest weekly order volume achieved in 2025 and we secured the largest residential EVRC order to date in New York. We continue to operate with no debt, no going concern issues and an unused hundred million dollar line of credit. Turning to the financials, our first quarter revenue was 3.1 million, a decrease of 51% compared to 6.3 million in Q1 of 25. The decline reflects order timing with two large orders being moved out of the quarter, a seasonally slow period for our European operations and the ongoing reduction in federal government EV spending. Our International customers comprised 51% of revenues in Q1 of 26 versus 25% in Q1 of 25 and revenues from non government commercial entities increased 48% year over year to represent 78% of our total revenues. Continuing the diversification trend we have been executing against on gross profit, we reported a gross loss of 0.4 million or negative 13.3% compared to a gross profit of 0.5 million or 7.9% in Q1 of 25. Our gross results included a 0.7 million of non cash depreciation and tangible amortization in cost of revenues. Excluding these items, the adjusted non-GAAP gross margin was 9.4% compared to 20.6% in the prior year period. The decline reflects the impact of our fixed overhead allocations against the lower product volume and is not indicative of deterioration in our underlining unit economics which continues to improve. Our operating expenses were 6.3 million compared to 16 million in Q1 of 25. The prior period includes a non cash goodwill impairment charge of 10.8 million not represented this quarter. Excluding that charge, our operating expenses increased approximately 1 million year over year. This is primarily due to a 1.8 million non-cash provision for credit losses related to a single customer balance that was reserved in accordance with our policy. When we remove these one timers, our reductions in compensate the reduction is related to compensation facilities and other G and A expenses which partially offset the increase. Our net loss was 6.9 million compared to 15.5 million in Q1 of 25. The Q1 of 26 net loss includes the 3.5 million of noncash charges. Excluding these items, the non GAAP net loss was 3.7 million compared to 3 million in Q1 of 25. We believe the relative consistency of our non GAAP net loss across both periods despite a 51% decline in revenue reflects our disciplined cost structure and is indicative of our meaningful operating leverage as revenue recovers. On liquidity, our working capital decreased 2.7 million to 6.2 million at March 31 of 26. Excluding the 1.8 million non cash credit loss provision, the underlying operational decrease was approximately 0.9 million. Our cash increased 1 million during the quarter. We remain debt free and we have an unused 100 million credit facilities and we believe we are well positioned to fund operations. In closing, our Q1 was a challenging quarter on revenue. Excuse me, I have something all of a sudden. Desmond, would you like to go ahead? Let me go ahead and hand it over to Desmond. All of a sudden I’m joking for something.
Desmond Wheatley (President, CEO and Chairman)
Thanks for that. And thanks all of you for tuning into this first part. Lisa, maybe you could mute your phone just while you recover there on the other line. Thanks everybody for tuning into the call. It was only about a month ago that we had the earnings call for the release of our 10K, and during that call I went through a pretty comprehensive update on the happenings of 2025 in the first quarter of 2026, both operationally and financially. So I’m going to keep my comments fairly brief today and leave plenty of time for any questions that you may have. Well, as Lisa said, Our first quarter revenues in 2026 were not what we’d like them to have been. They are in no way an indication of an underlying or fundamental weakness in the business or our strategic plan. First quarter has historically always been a slow quarter for us, and that’s particularly true of the contributions from our Beam Europe offices, where the Orthodox Christmas and New Year pushes well into January and weather and other considerations tend to slow down the deployment of the traditional infrastructure products which we manufacture and sell across Europe, like street lights, traffic portals and other street furniture. Coincidentally and unfortunately, from a timing point of view, we also had 2 large deployments of EV ARC systems pushed from the first quarter into the second, which have had an outsized impact on our Q1 revenues. I guess we haven’t lost those orders. They’re both good orders and we expect to recognize the revenue from them. Also has to be said that the war in the Middle East has not helped our efforts because we were actually anticipating some material revenues coming from our new operations in the Middle East. But those, like everything else in the region, seem to have been put on hold while the authorities and decision makers prioritized dealing with the immediate impact of the war. I’ve just spent a significant amount of time at our Beam Middle East offices, and while I certainly did observe a lack of momentum where all business dealings are concerned, it’s also very clear that the United Arab Emirates and the Gulf region in general, are determined to get through this conflict and come out on the other side stronger, with even more aggressive plans for future growth. And in fact, we did actually make our first sale of EV ARC for public charging in Abu Dhabi while I was there a couple of weeks ago. We’ve already got it deployed for some other reasons, but this is for public charging. So while we didn’t get the material contribution to revenues that we’ve been hoping for in the first quarter, we have managed to make some sales in the Middle East since that time. And I’ll spend a few minutes on my time in the Middle East. Later in the call back to our results. Like any manufacturing company with facilities across the world, we have fixed overhead costs which do not reduce when the volumes of products which we deliver reduce. Those costs, like rent, insurance, and other day to day operational costs associated with owning and maintaining our factories stay pretty much exactly the same whether we do a small volume of products or a very large volume. The result of this, as you’ve seen in the first quarter, is that our gross profits can be negatively impacted by the allocation of fixed overhead across a smaller number …
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