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Acorn Energy
(NASDAQ:ACFN)
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Rating:66Neutral
Price Target:
$20.50
▲(0.49% Upside)
Action:Reiterated
Date:08/07/26
Overall score is driven primarily by improved financial health versus prior years but clear near-term deceleration (lower revenue, margin compression, softer free cash flow). Earnings-call takeaways are constructive on product/backlog and balance sheet strength but tempered by near-term revenue pressure and execution/timing risks. Technicals and valuation are supportive only at a moderate level, with no dividend cushion and only mixed momentum signals.
Positive Factors
High‑margin recurring revenue
Recurring monitoring revenue with an exceptionally high 94% gross margin provides durable cash conversion and margin stability. Growth from an installed base reduces customer acquisition pressure, supports operating leverage as monitoring scales, and underpins long‑term profitability even if hardware is lumpy.
Negative Factors
Revenue volatility & hardware concentration
Large year‑over‑year declines driven by timing and completion of a single material hardware contract illustrate structural revenue lumpiness. Heavy reliance on episodic hardware sales undermines consistent growth, reduces visibility into future top‑line, and weakens operating leverage over multi‑quarter horizons.
Read all positive and negative factors
Positive Factors
Negative Factors
High‑margin recurring revenue
Recurring monitoring revenue with an exceptionally high 94% gross margin provides durable cash conversion and margin stability. Growth from an installed base reduces customer acquisition pressure, supports operating leverage as monitoring scales, and underpins long‑term profitability even if hardware is lumpy.
Read all positive factors
Acorn Energy (ACFN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$47.28M
Dividend YieldN/A
Average Volume (3M)20.37K
Price to Earnings (P/E)23.9
Beta (1Y)0.59
Revenue Growth-11.25%
EPS Growth-70.72%
CountryUS
Employees27
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.62
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
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., established in 1986 and headquartered in Wilmington, Delaware, specializes in the global development and marketing of wireless remote monitoring and control systems across diverse sectors. Through its subsidiaries, the company'...
How the Company Makes Money
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Acorn Energy Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presented a mix of positive operational progress and near-term financial pressure. Positive elements include recurring monitoring revenue growth, a very high monitoring gross margin (94%), gross margin expansion to 80.2%, continued profitability at the OmniMetrix subsidiary ($395k operating income), a meaningful backlog ($3.269M with $2.934M expected in 12 months), a debt-free balance sheet with stable cash, ongoing deployment of next-generation products, and an exclusive AIO partnership with two live demo sites and outsized average sale potential (5x–6x). Negative or cautionary points include a 28.1% year-over-year revenue decline driven by a 55.7% drop in hardware revenue, a small consolidated net loss in Q1 2026 driven by higher noncash stock-based compensation, an 11.2% rise in operating expenses, modest operating cash flow ($53k), near-term uncertainty for IS revenues and potentially long sales cycles, and concentration/timing risk from the large customer contract. Overall, the positive operational momentum and growth initiatives are offset by meaningful near-term revenue and expense pressures, leaving the tone balanced.Positive Updates
Monitoring Revenue Growth and High Margins
Monitoring revenue increased 11.7% year-over-year to $1.417 million in Q1 2026 (a $148,000 increase). Monitoring carried a very high gross margin of 94% in the quarter, reflecting strong recurring, high-margin revenue expansion from the installed base of monitored endpoints.
Negative Updates
Total Revenue Decline
Total revenue for Q1 2026 was $2.227 million, down 28.1% versus $3.098 million in Q1 2025, largely reflecting timing and completion of a material hardware contract.
Read all updates
Q1-2026 Updates
Positive
Negative
Monitoring Revenue Growth and High Margins
Monitoring revenue increased 11.7% year-over-year to $1.417 million in Q1 2026 (a $148,000 increase). Monitoring carried a very high gross margin of 94% in the quarter, reflecting strong recurring, high-margin revenue expansion from the installed base of monitored endpoints.
Read all positive updates
Company Guidance
Management's forward-looking guidance emphasized incremental 2026 hardware revenue of $350,000–$500,000 from the large telecom customer (with follow‑on deployments expected to start in Q2 2026), a medium‑term target of ~20% average annual revenue growth over a 3–5 year period, and a capital‑light model that should convert roughly 50% of each incremental revenue dollar from existing businesses into operating income; they expect AIO‑based sales to average about 5×–6× the size of current OmniMetrix sales, do not expect Infrastructure Solutions (IS) revenue in H1 2026, and noted OmniMetrix’s backlog was $3.269 million at quarter‑end with $2.934 million expected to be recognized within 12 months, while also warning that higher noncash stock‑based compensation (50,000 options at a $19.02 grant price vesting over 12 quarters) will impact results through Q3 2028.Acorn Energy Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
78
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.57M | 11.48M | 10.99M | 8.06M | 7.00M | 6.78M |
| Gross Profit | 7.68M | 8.81M | 8.00M | 6.00M | 5.07M | 4.90M |
| EBITDA | 847.00K | 2.10M | 2.13M | 302.00K | -383.00K | 184.00K |
| Net Income | 1.54M | 2.51M | 6.29M | 119.00K | -633.00K | -21.00K |
Balance Sheet | ||||||
| Total Assets | 13.39M | 13.33M | 10.60M | 5.45M | 5.98M | 6.04M |
| Cash, Cash Equivalents and Short-Term Investments | 4.48M | 4.45M | 2.33M | 1.45M | 1.45M | 1.72M |
| Total Debt | 959.00K | 1.04M | 98.00K | 221.00K | 336.00K | 443.00K |
| Total Liabilities | 4.54M | 5.02M | 5.02M | 6.28M | 7.00M | 6.50M |
| Stockholders Equity | 8.77M | 8.25M | 5.54M | -838.00K | -1.02M | -469.00K |
Cash Flow | ||||||
| Free Cash Flow | 1.44M | 2.06M | 849.00K | -4.00K | -261.00K | -192.00K |
| Operating Cash Flow | 1.47M | 2.09M | 905.00K | 72.00K | 31.00K | 132.00K |
| Investing Cash Flow | -275.00K | -33.00K | -56.00K | -78.00K | -308.00K | -324.00K |
| Financing Cash Flow | 33.00K | 71.00K | 28.00K | 5.00K | 5.00K | -149.00K |
Acorn Energy Technical Analysis
Positive
20.40
Price Trends
17.69
Positive
17.90
Positive
17.99
Positive
Market Momentum
0.33
Positive
51.92
Neutral
30.04
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 20.4 is above the 20-day moving average (MA) of 19.27, above the 50-day MA of 17.69, and above the 200-day MA of 17.99, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 51.92 is Neutral, neither overbought nor oversold. The STOCH value of 30.04 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 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $81.26M | 38.55 | 10.54% | ― | 4.04% | 44.65% | |
66 Neutral | $47.28M | 23.88 | 25.68% | ― | -11.25% | -70.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
47 Neutral | $14.13M | 1.65 | 38.45% | ― | -36.94% | ― | |
45 Neutral | $70.93M | -3.84 | -66.30% | ― | -82.33% | -7.92% | |
44 Neutral | $13.95M | -5.64 | -159.17% | ― | -55.89% | -127.24% |
* Technology Sector Average
ACFN
Acorn Energy
18.95
-11.21
-37.17%
NEON
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0.95
-21.79
-95.80%
REFR
Research Frontiers
0.47
-1.10
-70.25%
ODYS
Odysightai
4.40
-0.14
-3.19%
SOTK
Sono-Tek
5.42
2.15
65.75%
HOLO
MicroCloud Hologram
1.55
-3.01
-66.01%
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.