Acorn Energy (ACFN)
NASDAQ:ACFN
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Acorn Energy
(NASDAQ:ACFN)
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Rating:66Neutral
Price Target:
$18.50
▲(21.55% Upside)
Action:Downgraded
Date:05/09/26
The score is primarily supported by improved underlying financial health (profitability turnaround, strong gross margins, low leverage) and a generally positive earnings call with credible long-term growth targets. It is held back by weak technical trend signals and valuation limitations (negative P/E and no dividend yield), plus near-term deceleration and cash-flow quality/volatility noted in the financial statements.
Positive Factors
High-margin recurring monitoring revenue
A 22% increase in high-margin monitoring subscriptions (95% gross margin) indicates durable, recurring revenue that converts strongly to gross profit. An expanding installed base reduces reliance on hardware cycles, smooths cash flows, and supports long-term operating leverage and margin resilience.
Negative Factors
Near-term revenue weakness
A TTM revenue decline of roughly 7.6% and lower margins versus the prior two years signal slowed demand or timing mismatches. Sustained top-line weakness erodes the base needed to achieve management's ~20% growth target and increases dependency on successful product and partnership rollouts to restore momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
High-margin recurring monitoring revenue
A 22% increase in high-margin monitoring subscriptions (95% gross margin) indicates durable, recurring revenue that converts strongly to gross profit. An expanding installed base reduces reliance on hardware cycles, smooths cash flows, and supports long-term operating leverage and margin resilience.
Read all positive factors
Acorn Energy (ACFN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.36M
Dividend YieldN/A
Average Volume (3M)20.37K
Price to Earnings (P/E)21.5
Beta (1Y)0.64
Revenue Growth-11.25%
EPS Growth-70.72%
CountryUS
Employees25
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.79
Shares Outstanding2,508,258
10 Day Avg. Volume16,997
30 Day Avg. Volume20,368
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)4.57
Price to Sales (P/S)3.28
P/FCF Ratio18.32
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue3.68
Enterprise Value/Gross Profit4.72
Enterprise Value/Ebitda28.49
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 Description
Acorn 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 ...
How the Company Makes Money
Acorn Energy primarily makes money through OMNI Metrix by selling remote monitoring solutions and associated recurring services. Revenue is generated from (1) hardware sales (monitoring/telemetry devices and related equipment installed on assets l...
Acorn Energy Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented multiple clear positives — record revenue, substantial recurring monitoring revenue growth (22%), stronger margins (up 400 bps), doubled operating cash flow (+131%), improved cash position, new product launches, and a strategically significant AIO partnership that could materially expand addressable markets. The primary negatives were timing‑related headwinds: an 8% decline in hardware revenue driven by delivery timing and a $885K reduction in deferred revenue amortization (–48% vs prior year) that depressed reported revenue, a lower EPS year driven by smaller tax benefits, a near‑term residential demand slowdown, and uncertainty/timing around AIO and large OEM/C&I wins. Overall, the positives (recurring revenue growth, margin expansion, cash generation, product and partnership initiatives) meaningfully outweigh the timing and execution risks highlighted.Positive Updates
Record Revenue and Continued Profitability
Total revenue rose 4.5% to $11,478,000 in 2025; company achieved record revenue and its third straight year of profitability.
Negative Updates
Hardware Revenue Decline and Timing Effects
Total hardware revenue declined 8% in 2025 due primarily to timing of deliveries for a large national cellphone provider contract and reduced noncash deferred revenue amortization; hardware timing created uneven comparables across quarters.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Continued Profitability
Total revenue rose 4.5% to $11,478,000 in 2025; company achieved record revenue and its third straight year of profitability.
Read all positive updates
Company Guidance
Management guided to a 20% average annual revenue growth target over the next 3–5 years and said roughly 50% of each incremental revenue dollar from existing business should flow to operating income; they also reiterated that the AIO partnership will not generate revenue until H2 2026, that the average OmniMetrix‑branded AIO sale should be ~5–6x a current Omni sale, and that the first demo will be installed by month‑end. For context, 2025 revenue rose 4.5% to $11.478M, monitoring revenue grew 22% (monitoring gross margin 95%), overall gross margin improved to 76.8% (up 400 bps), hardware revenue declined 8% (but new hardware revenue rose ~8% excluding deferred amortization), diluted EPS was $0.99 (including $0.18 per share deferred tax benefit), operating cash flow doubled to $2.09M (up 131%), year‑end cash was $4.45M and cash was $4.131M as of Mar 3, 2026 after a $250k AIO investment, and the company remains debt‑free. They noted a $885k decrease in deferred hardware revenue amortization (amortization $956k in 2025 vs $1.84M in 2024) with a $168k deferred balance to be fully amortized by August 2026, a $464k valuation‑allowance release in 2025 (vs $4.4M in 2024), a $10.3M valuation allowance against $14.4M NOLs, a 600+ dealer network, and an OEM forecast of ~10% residential generator sales growth in 2026.Acorn Energy Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.61M | 11.48M | 10.99M | 8.06M | 7.00M | 6.78M |
| Gross Profit | 8.27M | 8.81M | 8.00M | 6.00M | 5.07M | 4.90M |
| EBITDA | 1.37M | 2.10M | 2.13M | 302.00K | -456.00K | 67.00K |
| Net Income | 1.97M | 2.51M | 6.29M | 119.00K | -633.00K | -26.00K |
Balance Sheet | ||||||
| Total Assets | 13.13M | 13.33M | 10.60M | 5.45M | 5.98M | 6.04M |
| Cash, Cash Equivalents and Short-Term Investments | 4.26M | 4.45M | 2.33M | 1.45M | 1.45M | 1.72M |
| Total Debt | 1.00M | 1.04M | 98.00K | 221.00K | 336.00K | 443.00K |
| Total Liabilities | 4.68M | 5.02M | 5.02M | 6.28M | 7.00M | 6.50M |
| Stockholders Equity | 8.38M | 8.25M | 5.54M | -838.00K | -1.02M | -469.00K |
Cash Flow | ||||||
| Free Cash Flow | 1.83M | 2.06M | 849.00K | -4.00K | -261.00K | -192.00K |
| Operating Cash Flow | 1.87M | 2.09M | 905.00K | 72.00K | 31.00K | 132.00K |
| Investing Cash Flow | -287.00K | -33.00K | -56.00K | -78.00K | -308.00K | -324.00K |
| Financing Cash Flow | 81.00K | 71.00K | 28.00K | 5.00K | 5.00K | -149.00K |
Acorn Energy Technical Analysis
Negative
15.22
Price Trends
17.98
Negative
18.46
Negative
20.41
Negative
Market Momentum
-0.38
Positive
43.58
Neutral
24.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACFN, the sentiment is Negative. The current price of 15.22 is below the 20-day moving average (MA) of 17.63, below the 50-day MA of 17.98, and below the 200-day MA of 20.41, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 43.58 is Neutral, neither overbought nor oversold. The STOCH value of 24.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACFN.
Acorn Energy Risk Analysis
Acorn Energy disclosed 21 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $83.42M | 42.31 | 9.52% | ― | 1.97% | 42.20% | |
66 Neutral | $42.36M | 21.47 | 25.68% | ― | -11.25% | -70.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | $28.36M | 3.63 | 38.45% | ― | -36.94% | ― | |
45 Neutral | $26.14M | -10.85 | -122.90% | ― | -55.89% | -127.24% | |
45 Neutral | $82.88M | -4.30 | -46.58% | ― | -82.33% | -7.92% |
* Technology Sector Average
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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.