About NeoVolta Inc.
NeoVolta Inc. (NASDAQ: NEOV) is a U.S.-based energy technology company headquartered in Poway, California, focused on developing and manufacturing energy storage systems for residential, commercial, and industrial applications. The company’s solutions are designed to store solar energy and provide backup power, helping customers improve energy reliability and efficiency while supporting clean energy adoption.
NeoVolta’s core products include scalable battery storage systems and hybrid inverter technologies that integrate with solar installations. These systems allow homeowners and businesses to store excess solar power and use it during outages or peak-demand periods.
Founded to address the growing demand for distributed energy storage, NeoVolta has expanded its product portfolio, installer network, and manufacturing initiatives, including acquisitions and joint ventures aimed at scaling battery production and entering larger energy markets.
Management Commentary
Ardes Johnson, Chief Executive Officer of NeoVolta Inc., stated that the quarter had been transformational for the company, positioning it for its next phase of strong growth and enabling it to capitalize on a large market opportunity. He added that the company was nearing its objective of becoming a vertically integrated energy solutions provider capable of serving an estimated $45 billion addressable market across residential, commercial and industrial, and utility-scale segments by 2030.
Johnson further said that the company’s strategy was progressing as planned. He noted that NeoVolta had completed the Neubau Energy asset acquisition, was preparing to launch the NVWAVE modular battery platform to improve installation efficiency and margins, had advanced a strategic collaboration with Luminia for up to 160 MWh of energy storage supply with about $39 million in potential equipment revenue, and had launched a U.S. battery manufacturing joint venture in Georgia. He explained that the 60%-owned, 2 GWh facility would support domestic production for higher-margin utility and C&I markets while qualifying for tax incentives.
He added that NeoVolta’s integrated platform strategy created multiple value-creation opportunities. Johnson stated that the residential segment provided brand strength and revenue stability, the C&I segment represented a high-growth opportunity over the next two to three years, and the utility-scale segment, enabled by the Georgia manufacturing JV, offered scale and margin potential for long-term shareholder value. He emphasized that these initiatives were interconnected steps designed to reduce business risk while expanding market reach.
Second Quarter Fiscal 2026 Financial Highlights
NeoVolta reported revenue of $4.6 million in Q2 FY2026, compared to $1.1 million in Q2 FY2025, reflecting strong 334% year-over-year growth. For the first six months of FY2026, revenue reached $11.3 million, up 580% from $1.7 million in the same period last year.
The company’s revenue growth was driven by expansion beyond its traditional Southern California installer network into new geographic markets and distribution channels, while maintaining stable pricing.
Gross profit for Q2 FY2026 was $0.8 million, representing a 17% gross margin, compared to $0.3 million and a 30% margin in Q2 FY2025. Six-month gross profit totaled $2.3 million with a 21% margin. Margin compression mainly reflected strategic inventory investments and supply-chain factors, partially offset by the reversal of a prior-year inventory reserve.
Operating expenses rose to $5.2 million in Q2 FY2026, compared to $1.3 million in Q2 FY2025. The increase was largely due to higher non-cash share-based compensation of $2.1 million and continued investments in leadership and sales infrastructure as NeoVolta prepares for manufacturing expansion.
NeoVolta reported a net loss of $5.5 million (or $0.16 per share) in Q2 FY2026, compared to a $1.0 million loss in Q2 FY2025. The six-month net loss totaled $6.8 million (or $0.20 per share), driven by higher share-based compensation and $1.1 million in non-operating charges.
Integrated Three-Platform Strategy
NeoVolta is advancing its vision of becoming a fully integrated energy storage platform serving residential, commercial & industrial (C&I), and utility-scale markets. The residential platform strengthens brand visibility and recurring revenue through installer expansion and financing models such as Battery-as-a-Service (BaaS) and third-party ownership (TPO).
The C&I platform targets the underserved “missing middle” with bundled EPC and financing solutions, supported by a pipeline exceeding 100 MW and viewed as a key growth driver over the next two to three years. The utility-scale platform, enabled by its 60%-owned Georgia manufacturing joint venture, is designed to access higher-margin projects while meeting domestic content requirements for IRA incentives.
Strategic Milestones – Q2 FY2026
The Company completed the acquisition of substantially all assets of Neubau Energy Inc., including its proprietary NVWAVE (neuClick™) modular battery platform. The system features plug-and-play 10–15 kWh modules that install in under 30 minutes—approximately 75% faster than conventional systems—and are scalable up to 60 kWh for residential and light C&I applications. The simplified U.S.-aligned production model enhances gross margins through lower labor costs. Leadership integration followed with the appointment of Amany Ibrahim as COO and Thomas Enzendorfer as CTO. Commercial shipments commenced in January 2026 after a successful pre-order campaign.
NeoVolta progressed its strategic collaboration framework with Luminia for up to 160 MWh of battery energy storage supply. The arrangement represents approximately $39 million in potential equipment revenue at current pricing. The partnership strengthens NeoVolta’s C&I market entry by combining turnkey EPC services and structured financing, enhances demand visibility for its Georgia facility, and supports bankable energy solutions through Luminia’s established financial relationships.
The Company formed NeoVolta Power, LLC, a 60%-owned joint venture with U.S. affiliates of PotisEdge and LONGi Green Energy to establish a domestic BESS manufacturing facility in Pendergrass, Georgia. The 210,600 sq. ft. facility is designed for an initial annual capacity of 2 GWh, scalable to 8 GWh, with approximately 75% focused on utility-scale and 25% on C&I systems. The plant is structured to qualify for Section 45X and 48E tax incentives and to meet domestic content standards. Mass production is currently targeted for mid-2026. NeoVolta retains a controlling interest with three of five board seats. Strategically, the JV de-risks the supply chain, unlocks access to higher-margin markets, and positions the Company to benefit from strong U.S. demand for domestically manufactured BESS solutions.
Capital Structure and Financing Update
Since December 2025, NeoVolta has raised approximately $23 million in gross proceeds through two equity transactions. A $13 million private placement anchored by Infinite Grid Capital funded the initial $7 million JV contribution and strengthened working capital. A subsequent $10 million registered direct offering, led by Needham & Company, generated approximately $9.4 million in net proceeds to support liquidity and upcoming JV milestone obligations.
NeoVolta’s JV commitment totals three phases: an initial $7 million contribution completed in January 2026, an $8 million milestone payment due April 30, 2026, and a $10 million contribution at commissioning via an Asset Purchase Agreement. The agreement also allows up to $15 million in discretionary funding through June 30, 2027, if required for capacity expansion or accelerated growth.
Following the recent capital raises and initial JV funding, the Company holds approximately $16 million in working capital and believes it is positioned to meet its Phase 2 obligation while maintaining operational liquidity. Management continues to evaluate strategic financing options, including project and equipment financing, to support the final commissioning milestone.
Joint Venture Progress Update
The NeoVolta Power, LLC manufacturing facility is progressing in line with its development roadmap. Equipment acquisition and installation are scheduled for the first half of calendar year 2026, followed by production line commissioning in the second quarter of 2026, with mass production targeted to ramp up by mid-2026.
The facility is designed to operate at automotive-grade quality standards with an IATF 16949-certified production line and an initial workforce of approximately 89 production personnel operating on a single eight-hour shift. Early production will focus on utility-scale battery systems such as NVGain-215K6.25 and NVApex-372, along with commercial and industrial solutions including NVApex-5M and NVGain-125K233.
Looking ahead, the joint venture plans to expand its capabilities by adding pouch cell assembly capacity in 2027, further strengthening its domestic manufacturing capabilities and product portfolio.
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