First-Time Net Profitability
Reported net income of $600,000 ($0.03/share) in Q2 FY2026, the company's first profitable quarter in its history, compared to net losses of $2.6M in the prior quarter and $1.9M in the year-ago quarter.
Strong Sequential Revenue and Margin Improvement
Revenue for Q2 was $14.1M, up 6.8% sequentially from $13.2M, while gross margin expanded to 34.7% from 28.6% sequentially (a 610 basis point improvement) and from 32.5% year-ago (up 220 bps).
Operating Expense Reductions and Improved Profitability Metrics
Operating expenses declined ~31% sequentially to $4.1M from $5.9M driven by cost reduction initiatives and a ~$500k reversal of accrued employee bonuses. Adjusted EBITDA turned positive at $1.5M (vs. a -$1.4M loss last quarter) and non-GAAP net income was $1.0M ($0.04/share).
Product and Technology Advancements (SkyLink)
Released next-generation SkyLink telematics (quad-core 64-bit processor, 4x sensors versus prior generation, Wi-Fi/Bluetooth/cellular/GPS, onboard analytics/ML). SkyLink is in beta at multiple sites and planned for broad availability in a couple months.
Software Upgrades and Monetization Path
Sky EMS upgrades include AI-driven intelligent alerting expected to increase uptime by 10%–30% and a mobile interface estimated to reduce issue recognition time by 15%–40%. Company plans tiered software (standard and premium) to create recurring, high-margin revenue from 30,000+ batteries in the field.
State-of-Health Patent and IP Strength
Received a broad patent for state-of-health algorithms last quarter; company is integrating this capability into premium software offerings to enable lifecycle forecasting and capacity planning monetization opportunities.
Targeted Commercial Hiring and OEM Focus
Added experienced OEM Director, hiring VP of Sales for material handling and additional sales reps (California, Texas) to expand OEM and dealer channel coverage and pursue replacement/new customers.