Acorn Energy (ACFN)
NASDAQ:ACFN
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Acorn Energy
(NASDAQ:ACFN)
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Rating:65Neutral
Price Target:
$18.50
▲(21.55% Upside)
Action:Reiterated
Date:06/01/26
The score is primarily supported by improved multi-year profitability with strong gross margins and a low-leverage balance sheet. It is held back by near-term deceleration and volatility (TTM revenue decline and recent quarter revenue drop), weaker cash conversion signals, and bearish-to-neutral technicals. Valuation is moderate and the earnings call was balanced, with meaningful backlog and growth initiatives offset by execution/timing and customer-concentration risks.
Positive Factors
High recurring monitoring margins
Very high monitoring gross margins (94%) reflect a subscription-style, low-capex revenue stream tied to installed endpoints. That recurring, high-margin mix supports durable operating profitability, scalability as installed base grows, and insulation from commodity hardware margin pressure over months.
Negative Factors
Revenue decline and hardware volatility
Material quarter-to-quarter swings tied to large hardware contracts create revenue volatility and impede steady growth. Reliance on lumpy hardware shipments makes topline pacing unpredictable and complicates execution against multi-year growth targets and operating plan assumptions.
Read all positive and negative factors
Positive Factors
Negative Factors
High recurring monitoring margins
Very high monitoring gross margins (94%) reflect a subscription-style, low-capex revenue stream tied to installed endpoints. That recurring, high-margin mix supports durable operating profitability, scalability as installed base grows, and insulation from commodity hardware margin pressure over months.
Read all positive factors
Acorn Energy (ACFN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$40.88M
Dividend YieldN/A
Average Volume (3M)20.37K
Price to Earnings (P/E)20.7
Beta (1Y)0.66
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 Cap0.97
Enterprise Value/Revenue3.75
Enterprise Value/Gross Profit4.81
Enterprise Value/Ebitda29.02
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
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:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 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
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
17.51
Negative
18.01
Negative
19.60
Negative
Market Momentum
-0.32
Negative
45.79
Neutral
68.93
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 16.60, below the 50-day MA of 17.51, and below the 200-day MA of 19.60, indicating a bearish trend. The MACD of -0.32 indicates Negative momentum. The RSI at 45.79 is Neutral, neither overbought nor oversold. The STOCH value of 68.93 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $83.13M | 46.05 | 9.52% | ― | 1.97% | 42.20% | |
65 Neutral | $40.88M | 20.75 | 25.68% | ― | -11.25% | -70.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
47 Neutral | $18.80M | 2.25 | 38.45% | ― | -36.94% | ― | |
45 Neutral | $67.90M | -3.69 | -66.30% | ― | -82.33% | -7.92% | |
43 Neutral | $20.92M | -8.56 | -122.90% | ― | -55.89% | -127.24% |
* 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.