Expion360, Inc. (XPON) AI Stock Analysis

Compare

295 Followers

Top Page

Expion360, Inc.

(NASDAQ:XPON)

Rating:45Neutral

Price Target:

$0.50

▼(-38.27%Downside)

The overall stock score is primarily constrained by significant financial challenges, including ongoing losses, high leverage, and poor cash flow management. While the earnings call highlighted promising strategic initiatives and revenue growth, these are overshadowed by the company's current financial instability and weak technical indicators. Valuation concerns, due to negative earnings and lack of dividends, further contribute to the low score. The corporate event, while positive, has a limited impact on the overall assessment.

Expion360, Inc. (XPON) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.75M

Dividend YieldN/A

Average Volume (3M)230.13K

Price to Earnings (P/E)―

Beta (1Y)0.70

Revenue Growth23.07%

EPS Growth50.04%

CountryUS

Employees20

SectorIndustrials

Sector Strength92

IndustryElectrical Equipment & Parts

Share Statistics

EPS (TTM)-0.37

Shares Outstanding3,374,468

10 Day Avg. Volume605,527

30 Day Avg. Volume230,126

Financial Highlights & Ratios

PEG Ratio0.57

Price to Book (P/B)0.84

Price to Sales (P/S)0.00

P/FCF Ratio-0.36

Enterprise Value/Market Cap1.41

Enterprise Value/Revenue0.19

Enterprise Value/Gross Profit3.50

Enterprise Value/Ebitda-0.09

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Expion360, Inc. Business Overview & Revenue Model

Company DescriptionExpion360 Inc. designs, assembles, manufactures, and sells lithium iron phosphate batteries and supporting accessories under the VPR 4EVER name for recreational vehicles, marine, golf, industrial, residential, and off-the-grid applications. It also provides various models of industrial tiedowns; battery monitors; terminal blocks; and bus bars. The company also engages in the development of e360 Home Energy Storage systems. It serves dealers, wholesalers, and original equipment manufacturers in the United States and internationally. The company was formerly known as Yozamp Products Company, LLC and changed its name to Expion360 Inc. in November 2021. Expion360 Inc. was founded in 2016 and is headquartered in Redmond, Oregon.

How the Company Makes MoneyExpion360, Inc. generates revenue primarily through the sale of its lithium-ion batteries and battery systems. The company's key revenue streams include direct sales to consumers, who purchase products for personal use in recreational vehicles and marine applications, as well as sales to businesses and industrial clients seeking customized or bulk energy storage solutions. Additionally, Expion360 may engage in partnerships or collaborations with manufacturers, distributors, or retailers to expand its market reach and drive sales. Factors contributing to its earnings include the increasing demand for sustainable and efficient energy solutions, technological advancements in battery performance, and the growth of renewable energy applications. The company's revenue model is heavily influenced by its ability to innovate and maintain competitive pricing in a rapidly evolving market.

Expion360, Inc. Earnings Call Summary

Earnings Call Date:May 15, 2025

(Q1-2025)

% Change Since: -17.35%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Positive

The earnings call presented a positive outlook with significant revenue growth and improved financial metrics. The company is making strategic expansions into the home energy storage market and forming new partnerships to drive future growth. However, there are challenges related to tariffs and operational cost management that require attention.

Q1-2025 Updates

Positive Updates

Significant Revenue Growth

Revenue in the first quarter of 2025 totaled $2.0 million, an increase of 111% from $1 million in the prior year period.

Improved Gross Profit and Net Loss Reduction

Gross profit in the first quarter of 2025 totaled $0.5 million or 24.5% of revenue compared to $0.2 million or 22.9% revenue in the prior year period. Net loss in the first quarter of 2025 totaled $1.2 million, a 47.5% improvement from a net loss of $2.2 million in the prior year period.

Expansion in Home Energy Storage Market

Shipments for the Home Energy Storage Solutions (HESS) began in January 2025, targeting a fast-growing battery energy storage market expected to surpass $123 billion globally by 2029.

New OEM Partnerships

Announced new OEM customers including Scout Campers, Alaskan Campers, and K-Z Recreational Vehicles, with ongoing efforts to strengthen relationships with existing partners.

Successful Capital Raising

Closed a registered direct offering and concurrent private placement with institutional investors in January 2025, raising approximately $2.6 million.

Negative Updates

Tariff Challenges

Facing challenges from new tariffs, although some reduction in tariffs on imports from China has been noted. Efforts are underway to mitigate the impact on business.

Operational Cost Management

Despite revenue growth, the company is actively working on initiatives to increase margins and reduce costs, indicating ongoing operational cost management challenges.

Company Guidance

During the Expion360 First Quarter 2025 Financial Results Conference Call, significant guidance was provided regarding the company's strategic direction and anticipated growth. Revenue for the first quarter totaled $2.0 million, marking a 111% increase from the prior year, driven by a rebound in the RV market and initial sales in the home energy sector. The gross profit was reported at $0.5 million, representing 24.5% of revenue, an increase from the prior year period. The company highlighted its focus on expanding its market presence in the home energy storage solutions (HESS) sector, leveraging incentives like California's Self-Generation Incentive Program and federal tax credits. Expion360 also discussed efforts to onshore manufacturing capabilities and reduce tariff impacts, which included a potential partnership with NeoVolta to establish a U.S.-based battery manufacturing facility. Additionally, the company's ongoing expansion efforts included new OEM partnerships, with a registered direct offering and private placement raising approximately $2.6 million to support these initiatives. The company emphasized its commitment to increasing margins and reducing costs, having already built a 6 to 12-month inventory to mitigate tariff effects and support continued growth.

Expion360, Inc. Financial Statement Overview

Summary

Expion360, Inc. is facing significant financial challenges. The income statement reflects ongoing losses and margin pressures. The balance sheet shows high leverage, and cash flows indicate a reliance on external funding with insufficient internal cash generation. The company needs to improve operational efficiency and manage debt to enhance its financial stability.

Income Statement

Negative

Expion360, Inc. has faced challenges in its income statement, with consistent negative net income and EBIT margins over the years, indicating ongoing operational losses. Additionally, revenue growth has been inconsistent, with a decline from 2022 to 2023. The gross profit margin has also been low, reflecting cost structure issues.

Balance Sheet

Neutral

The balance sheet shows a high debt-to-equity ratio, with stockholders' equity being negative in the past and only recently improving. Although total assets have grown, liabilities remain high, posing a financial risk. The equity ratio is moderate, but the company needs to manage its leverage carefully.

Cash Flow

Negative

The company has struggled with negative operating and free cash flows, indicating cash outflows exceed inflows, which could affect liquidity. Although there is cash from financing activities, dependence on external funding is high. The cash flow to net income ratios are below optimal levels, suggesting inefficiencies in converting net income to cash.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
5.62M	5.98M	7.16M	4.52M	1.57M
	Gross Profit
1.16M	1.58M	2.29M	1.65M	302.97K
	EBIT
-6.75M	-7.17M	-5.95M	-1.26M	-673.89K
	EBITDA
-12.33M	-7.12M	-5.77M	-4.10M	-661.04K
	Net Income Common Stockholders
-13.48M	-7.46M	-7.54M	-4.72M	-876.48K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
547.57K	3.93M	7.20M	773.24K	290.68K
	Total Assets
9.11M	11.91M	16.70M	6.53M	1.60M
	Total Debt
1.03M	5.96M	4.56M	3.62M	2.67M
	Net Debt
481.52K	2.03M	-2.65M	2.84M	2.37M
	Total Liabilities
6.59M	6.56M	5.09M	4.27M	2.98M
	Stockholders Equity
2.52B	5.35M	11.61M	2.26M	-1.38M
Cash Flow		Free Cash Flow
-9.58M	-5.55M	-6.04M	-4.01M	-1.16M
	Operating Cash Flow
-9.56M	-5.53M	-5.47M	-3.90M	-1.12M
	Investing Cash Flow
113.41K	16.58K	-515.69K	-113.69K	-36.75K
	Financing Cash Flow
6.06M	2.25M	12.41M	4.49M	1.31M

Expion360, Inc. Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.81

Price Trends

50DMA

0.90

Negative

100DMA

1.18

Negative

200DMA

2.84

Negative

Market Momentum

MACD

-0.03

Positive

RSI

45.71

Neutral

STOCH

41.31

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XPON, the sentiment is Negative. The current price of 0.81 is below the 20-day moving average (MA) of 0.90, below the 50-day MA of 0.90, and below the 200-day MA of 2.84, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 45.71 is Neutral, neither overbought nor oversold. The STOCH value of 41.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XPON.

Expion360, Inc. Risk Analysis

Expion360, Inc. disclosed 46 risk factors in its most recent earnings report. Expion360, Inc. 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 3 New Risks

Although our common stock is listed on The Nasdaq Capital Market, the exchange could subsequently delist our common stock if we fail to comply with ongoing listing standards. Q3, 2024

The exercise of each Series A Warrant and, to a lesser extent, the Series B Warrants may result in a substantial increase in the number of shares of our common stock that are outstanding. Q3, 2024

The Series A Warrants and Series B Warrants may have an adverse effect on the market price of our common stock and make it more difficult to affect a business combination. Q3, 2024

Expion360, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$4.41B	12.06	5.22%	249.80%	4.09%	-12.16%
FLUX	51 Neutral	$27.75M	―	-1582.76%	―	-1.45%	-15.76%
XPON	45 Neutral	$2.75M	―	-362.03%	―	23.07%	50.04%
POLA	43 Neutral	$4.57M	―	-41.53%	―	8.08%	59.60%
GWH	39 Underperform	$24.33M	―	-172.05%	―	-58.05%	-6.90%
DFLI	37 Underperform	$3.75M	―	-3420.59%	―	-11.38%	-9.63%
NXUR		$2.32M	―	-236.01%	―	―	―

* Industrials Sector Average

Performance Comparison

XPON

Expion360, Inc.

0.83

-170.17

-99.51%

POLA

Polar Power

1.82

-1.41

-43.65%

FLUX

Flux Power Holdings

1.65

-1.44

-46.60%

GWH

ESS Tech

1.97

-9.93

-83.45%

DFLI

Dragonfly Energy Holdings Corp

0.40

-8.82

-95.66%

NXUR

Nxu

0.90

-9.50

-91.35%

Expion360, Inc. Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Expion360 Approves 2025 Employee Incentive Plan

Positive

Apr 15, 2025

On April 9, 2025, Expion360, Inc.‘s Compensation Committee approved the 2025 Employee Incentive Plan, which includes cash bonuses for executive officers based on achieving specific performance milestones. This plan aims to align with the company’s strategic objectives and create long-term value for stockholders. The plan outlines various performance targets, such as net sales, financial reporting, operational efficiency, product certification, joint ventures, and liquidity improvement, with corresponding bonus percentages tied to base salaries. Executives can choose to receive restricted stock units instead of cash bonuses, and payments are contingent on the company maintaining a minimum cash balance.

Executive/Board ChangesBusiness Operations and Strategy

Expion360 Announces COO Leadership Transition

Neutral

Apr 4, 2025

Expion360 Inc. announced the resignation of its Chief Operating Officer, Paul Shoun, effective April 1, 2025. Shoun will continue as President and Chairman of the Board. Carson Heagen, currently Vice President of Operations, will assume the role of COO, bringing extensive experience in business management and supply chain optimization. This leadership change is part of the company’s strategic efforts to strengthen its operational capabilities.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.