Acorn Energy (ACFN) AI Stock Analysis

• Market Cap: $44.38M
• Dividend Yield: N/A
• Average Volume (3M): 20.37K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.85
• Revenue Growth: 30.11%
• EPS Growth: 481.67%
• Country: US
• Employees: 25
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.10
• Shares Outstanding: 2,504,626
• 10 Day Avg. Volume: 16,997
• 30 Day Avg. Volume: 20,368
• PEG Ratio: <0.01
• Price to Book (P/B): 8.03
• Price to Sales (P/S): 4.05
• P/FCF Ratio: 52.41
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 3.27
• Enterprise Value/Gross Profit: 4.36
• Enterprise Value/Ebitda: 15.15
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $21.00 ▲(37.98% Upside)

The score is driven primarily by improved financial performance (strong TTM margins and positive free cash flow) and an attractive low P/E. These positives are tempered by revenue softness and some earnings-quality concerns (cash flow lagging net income), mixed longer-term technicals (still below 100/200-day averages), and earnings-call risks around hardware timing and cost pressure.

Positive Factors

Strong cash generation and debt-free status

Sustained positive operating and free cash flow with no debt meaningfully increases strategic optionality: funds R&D, product rollouts, and selective M&A without raising external capital, lowering refinancing and solvency risk and supporting multi-year growth investments.

High-margin recurring monitoring revenue

Growing, high-margin recurring monitoring revenue increases revenue visibility and cash stability. A larger monitoring mix drives durable gross margin expansion, supports predictable lifetime customer value, and underpins management's multi-year 20% revenue growth target.

Low leverage and improved equity base

A conservative leverage profile and restored equity reduce financial vulnerability to cyclical downturns, enhance capacity for capital deployment, and improve partner/customer confidence—strengthening long-term funding flexibility for execution of product and market initiatives.

Negative Factors

Revenue softness and hardware timing concentration risk

Dependence on large, lumpy hardware contracts creates revenue volatility; timing shifts materially affect reported top line and undermine predictability. Structural concentration risk can slow steady growth and complicate planning for multi-year revenue targets.

Operating cash flow lags net income (earnings quality)

A persistent gap between net income and operating cash flow suggests earnings include non-cash or timing gains, raising durability questions. If cash conversion remains weak, it could constrain reinvestment and expose the company to working-capital stress during growth phases.

Rising operating expenses and residential softness

Persistent higher operating costs combined with softer residential hardware demand can compress margins and slow scalable growth. If expense increases are recurring rather than one-time, they erode free cash flow and require stronger revenue traction to sustain profitability.

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 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 Money

Acorn 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 Financial Statement Overview

Summary

Financials reflect a turnaround: TTM profitability and free cash flow are meaningfully stronger and leverage is modest with improved equity. Offsets include slight TTM revenue decline, prior-period volatility in equity/profitability, and operating cash flow trailing net income, raising questions on earnings durability.

Income Statement

Profitability has inflected sharply upward versus prior years: TTM (Trailing-Twelve-Months) shows very strong margins (about 75% gross margin and ~53% net margin) with solid operating profitability (roughly 21% EBIT margin). Revenue, however, is slightly down in TTM (about -4%), and the step-change in net income relative to 2023 suggests earnings may be benefiting from non-core or one-time factors, which can reduce durability.

Balance Sheet

Leverage is currently modest, with low debt relative to equity in TTM (debt-to-equity ~0.15) and an improved equity base compared with the negative equity position seen in 2021–2023. The main offset is volatility in equity/returns across periods (including prior negative equity and extreme return on equity levels), which adds risk around the consistency and quality of the capital structure over time.

Cash Flow

Cash generation has improved materially: TTM (Trailing-Twelve-Months) operating cash flow (~$2.0M) and free cash flow (~$1.9M) are positive, with free cash flow up year over year and nearly matching reported net income. The key weakness is that operating cash flow does not fully track reported earnings (operating cash flow is roughly half of net income in TTM), indicating a potential gap between accounting profits and cash realization.

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

• Technical Analysis Sentiment: Negative
• Last Price: 15.22
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 18.87, below the 50-day MA of 16.59, and below the 200-day MA of 20.42, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 48.11 is Neutral, neither overbought nor oversold. The STOCH value of 33.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACFN.

Acorn Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACFN	72 Outperform	$44.38M	6.68	178.77%	―	30.11%	481.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SOTK	61 Neutral	$64.57M	41.06	8.45%	―	-0.21%	-0.41%
NEON	56 Neutral	$30.38M	3.38	38.72%	―	-48.54%	―
ODYS	54 Neutral	$101.89M	-5.69	-65.21%	―	-15.76%	-25.27%
REFR	44 Neutral	$40.38M	-21.35	-87.36%	―	-16.49%	-59.21%

Acorn Energy Corporate Events

Acorn Energy Updates Executive Consulting and Equity Incentives

On January 19, 2026, Acorn Energy extended and refined its senior leadership consulting arrangements, entering into a new consulting agreement with President and CEO Jan H. Loeb that maintains his status as a consultant, sets his annualized compensation and additional monthly pay for his concurrent role as Acting CEO of OmniMetrix, and grants him 25,000 stock options vesting through 2028, alongside a one-time cash bonus equal to 5% of his 2025 cash compensation for his role in establishing a technology partnership between OmniMetrix and AIO Systems. On the same date, the company replaced and updated the consulting agreement with Tracy Clifford Consulting, LLC, setting CFO and OmniMetrix COO Tracy Clifford’s annualized compensation, severance protections, and a recurring 25,000-option annual grant structure, also awarding her a one-time 5% 2025 bonus, while revising the non-employee director compensation policy to provide smaller, annually recurring stock option grants, aligning director and executive incentives more closely with shareholder interests and signaling a commitment to long-term, equity-based compensation for key stakeholders.

The most recent analyst rating on (ACFN) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Acorn Energy stock, see the ACFN Stock Forecast page.