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Acorn Energy (ACFN)
NASDAQ:ACFN
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Acorn Energy
(NASDAQ:ACFN)
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Rating:71Outperform
Price Target:
$21.50
▲(41.26% Upside)
Overall score reflects strong improving financial fundamentals and cash generation with low leverage, supported by an attractive low P/E. The rating is held back by mixed technical signals versus longer-term averages and earnings-call risks tied to hardware revenue timing, cost growth, and near-term profit volatility.
Positive Factors
High Profitability Margins
Exceptionally high gross and net margins reflect a shift toward high-margin monitoring services and favorable product mix. Durable margin advantage supports reinvestment in R&D and sales, provides a buffer through demand cycles, and enables scalable operating leverage as recurring revenue grows.
Improved Cash Generation
Positive and improving operating and free cash flow, coupled with reported cash on hand and no debt, creates financial flexibility. This sustains capex, product development, and selective M&A, reducing funding risk and supporting growth initiatives over the next several quarters.
Strategic Partnership Expands TAM
Exclusive rights to market AIO solutions in North America expands product breadth and addressable market, adds proven hardware/software deployments, and creates shared SaaS revenue opportunities. The deal accelerates market entry, cross-selling, and scaling of OmniMetrix offerings over the medium term.
Negative Factors
Revenue Decline and Hardware Timing
TTM revenue decline and reliance on lumpy hardware contracts indicate fragile top-line durability. Timing-driven hardware swings make revenue forecasting and margin sustainability harder, increasing dependence on execution to convert monitoring growth into consistent revenue over 2–6 months.
Earnings Quality: Cash vs. Accrual
Operating cash flow materially lagging reported earnings signals working-capital or recognition gaps, reducing earnings quality. If earnings aren't converting to cash, the company faces constraints on organic reinvestment and heightened sensitivity to collection and inventory cycles.
Rising Operating Costs and Residential Weakness
Sharp SG&A and R&D cost increases, plus residential hardware softness, raise the fixed-cost base and execution risk. Higher operating burn makes profitable scaling dependent on rapid monitoring revenue growth and successful product launches to offset weaker hardware demand.
Acorn Energy (ACFN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$52.12M
Dividend YieldN/A
Average Volume (3M)20.37K
Price to Earnings (P/E)7.8
Beta (1Y)0.80
Revenue Growth30.11%
EPS Growth481.67%
CountryUS
Employees25
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.10
Shares Outstanding2,504,626
10 Day Avg. Volume16,997
30 Day Avg. Volume20,368
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)8.03
Price to Sales (P/S)4.05
P/FCF Ratio52.41
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Acorn Energy Business Overview & Revenue Model
Company DescriptionAcorn Energy, Inc., through its subsidiaries, develops and markets wireless remote monitoring and control systems for various markets in the United States and internationally. It operates through two segments, Power Generation (PG) Monitoring and Cathodic Protection (CP) Monitoring. The PG segment provides wireless remote monitoring and control systems, and services for critical assets, which include stand-by power generators, compressors, pumps, pumpjacks, light towers, turbines, and other industrial equipment; and Internet of Things applications. The CP segment offers remote monitoring of cathodic protection systems on gas pipelines for gas utilities and pipeline companies. The company was incorporated in 1986 and is based in Wilmington, Delaware.
How the Company Makes MoneyAcorn Energy generates revenue through multiple streams, primarily by selling its energy management systems and smart grid technologies to utilities, businesses, and homeowners. The company also earns money from partnerships with other firms in the energy sector, which may include joint ventures or collaborations to develop new technologies or services. Additionally, Acorn Energy may receive government and private grants aimed at promoting renewable energy initiatives, further contributing to its revenue. Its focus on innovation and efficiency positions it to benefit from growing trends in sustainable energy, making it well-placed to capitalize on increasing demand for eco-friendly energy solutions.
Acorn Energy Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 26, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in monitoring revenue and successful launch of next-generation products, contributing to improved gross margins and cash flow. However, there were significant challenges with hardware revenue due to timing of contract deliveries and softness in the residential market, leading to a decline in net income and increased operating expenses.Q3-2025 Updates
Positive Updates
Strong Monitoring and Hardware Revenue Growth
Monitoring and hardware revenue each grew over 20% for the first 9 months, driving a 35% increase in net income.
Record Monitoring Revenue
High-margin recurring monitoring revenue grew $422,000 to a record $1.560 million in Q3 2025.
Gross Margin Improvement
Q3 2025 gross margin expanded to 78.5% from 71.7%, driven by a significantly higher proportion of monitoring revenue.
Positive Cash Flow and Debt-Free Status
Cash flow from operations was $1.795 million, a 143% year-over-year increase, with $4.167 million in available cash and no debt.
Introduction of Next-Generation Products
Launch of next-generation monitors, Omni and OmniPro, offering smaller size, quicker processing speed, and enhanced features.
Long-term Growth Potential
Based on secular trends and growth initiatives, 20% average annual revenue growth is considered achievable over the next 3 to 5 years.
Negative Updates
Significant Hardware Revenue Decline
Q3 2025 hardware revenue was significantly lower than Q3 2024 due to the timing of deliveries from a large cell phone provider contract.
Residential Market Weakness
New hardware sales were soft on the residential side due to reduced power outages and ongoing economic conditions affecting generator demand.
Increased Operating Expenses
Operating expenses increased 24.8% due to higher SG&A and R&D expenses, including nonrecurring corporate expenses related to NASDAQ uplisting.
Decline in Net Income
Q3 2025 net income fell to $252,000 from $725,000 in Q3 2024, a result of lower revenue and higher operating costs.
Company Guidance
During Acorn Energy's Third Quarter 2025 Earnings Conference Call, Jan Loeb, CEO of Acorn and OmniMetrix, highlighted key metrics and guidance for the company. Despite a significant 35% increase in net income for the first nine months of 2025, Q3 revenue was lower than Q3 2024 due to a $945,000 variance in hardware revenue, primarily influenced by the timing of a substantial cell phone provider contract. This contract's final hardware deliveries were postponed to Q4 2025 or Q1 2026, impacting Q3 results. Monitoring revenue grew by 37%, contributing to a record $1.560 million in Q3 2025, while gross margin expanded to 78.5% from 71.7% due to a higher proportion of monitoring versus hardware revenue. Acorn expects consistent growth in recurring monitoring revenues and is targeting a 20% average annual revenue growth over the next 3 to 5 years, driven by strategic initiatives across commercial, industrial, and residential markets, and potential future M&A transactions. The company's ongoing product development, such as the new Omni and OmniPro monitors, aims to enhance customer value and support long-term growth in the face of economic challenges and evolving market demands.Acorn Energy Financial Statement Overview
Summary
Acorn Energy has shown remarkable improvement in financial performance, with strong revenue growth, enhanced profitability, and improved cash flow generation in 2024. The company's low leverage and high equity ratio highlight a stable financial foundation, though the rapid changes in equity levels warrant monitoring.Income Statement
Acorn Energy has demonstrated strong revenue growth, with a 36.37% increase in 2024 compared to 2023. The company has achieved a significant turnaround in profitability, with a net profit margin of 57.29% in 2024, up from 1.48% in 2023. Gross profit margin is robust at 72.82% for 2024, indicating effective cost management. EBIT and EBITDA margins have also improved substantially, reflecting operational efficiency.Balance Sheet
The balance sheet shows a healthy equity ratio of 52.30% in 2024, demonstrating strong capital structure. The debt-to-equity ratio is low at 0.02, indicating minimal leverage risk. Return on equity is positive at 113.58%, showcasing high profitability relative to equity. However, the rapid increase in equity from negative figures may indicate potential volatility in equity positions.Cash Flow
Acorn Energy has achieved impressive growth in free cash flow, with a dramatic improvement from negative figures in prior years to $905,000 in 2024. The operating cash flow to net income ratio is 0.14, suggesting stable operating cash generation. The free cash flow to net income ratio is also positive, further indicating strong cash conversion from profits.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.63M | 10.99M | 8.06M | 7.00M | 6.78M | 5.92M |
| Gross Profit | 9.47M | 8.00M | 6.00M | 5.07M | 4.90M | 4.13M |
| EBITDA | 2.72M | 2.13M | 302.00K | -456.00K | 67.00K | 251.00K |
| Net Income | 6.67M | 6.29M | 119.00K | -633.00K | -26.00K | 34.00K |
Balance Sheet | ||||||
| Total Assets | 12.43M | 10.60M | 5.45M | 5.98M | 6.04M | 5.20M |
| Cash, Cash Equivalents and Short-Term Investments | 4.17M | 2.33M | 1.45M | 1.45M | 1.72M | 2.06M |
| Total Debt | 1.05M | 98.00K | 221.00K | 336.00K | 443.00K | 691.00K |
| Total Liabilities | 5.20M | 5.02M | 6.28M | 7.00M | 6.50M | 5.72M |
| Stockholders Equity | 7.17M | 5.54M | -838.00K | -1.02M | -469.00K | -523.00K |
Cash Flow | ||||||
| Free Cash Flow | 1.93M | 849.00K | -4.00K | -261.00K | -192.00K | 371.00K |
| Operating Cash Flow | 1.96M | 905.00K | 72.00K | 31.00K | 132.00K | 464.00K |
| Investing Cash Flow | -33.00K | -56.00K | -78.00K | -308.00K | -324.00K | -101.00K |
| Financing Cash Flow | 86.00K | 28.00K | 5.00K | 5.00K | -149.00K | 453.00K |
Acorn Energy Technical Analysis
Positive
15.22
Price Trends
16.62
Positive
22.05
Negative
20.10
Positive
Market Momentum
0.59
Negative
66.90
Neutral
76.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACFN, the sentiment is Positive. The current price of 15.22 is below the 20-day moving average (MA) of 16.19, below the 50-day MA of 16.62, and below the 200-day MA of 20.10, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 66.90 is Neutral, neither overbought nor oversold. The STOCH value of 76.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACFN.
Acorn Energy Risk Analysis
Acorn Energy disclosed 22 risk factors in its most recent earnings report. Acorn Energy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Acorn Energy Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $52.12M | 7.85 | 178.77% | ― | 30.11% | 481.67% | |
62 Neutral | $66.28M | 44.00 | 8.45% | ― | -0.21% | -0.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $31.89M | 3.55 | 38.72% | ― | -48.54% | ― | |
52 Neutral | $62.15M | -3.47 | -65.21% | ― | -15.76% | -25.27% | |
44 Neutral | $42.73M | -22.60 | -87.36% | ― | -16.49% | -59.21% |
* Technology Sector Average
ACFN
Acorn Energy
20.81
2.25
12.12%
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1.90
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REFR
Research Frontiers
1.27
-0.37
-22.56%
ODYS
Odysightai
3.80
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-60.00%
SOTK
Sono-Tek
4.22
0.45
11.94%
HOLO
MicroCloud Hologram
2.99
-84.21
-96.57%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.