Acorn Energy reported earnings for the nine months ended September 30, 2025, with total revenue rising 22% to $9.101 million and earnings per share climbing 35.7% to $0.57. The revenue growth was driven by a 23.9% increase in recurring monitoring revenue and a 20.6% rise in hardware sales, underscoring the company’s ability to expand its high‑margin subscription business while still generating significant hardware revenue.
Gross profit for the nine‑month period reached $6.910 million, a 58% increase from $4.300 million a year earlier, and the gross margin expanded to 75.9% from 73.0%. The margin lift reflects a favorable mix shift toward monitoring contracts, which carry higher gross margins, and improved operational efficiency as the company scales its IoT platform.
Operating income surged 267% to $2.947 million, and net income attributable to Acorn stockholders rose 166% to $1.436 million. The operating income jump is largely attributable to the higher gross margin and disciplined cost management, while the net income increase reflects the same operating leverage and the absence of significant one‑time charges.
The quarter’s performance was uneven. Q3 revenue fell 18.8% year‑over‑year to $2.478 million, largely because hardware sales from a major cellphone provider contract dropped 52.0% to $918 000 after the company completed the contract’s hardware rollout within 12 months. CEO Jan Loeb noted that the decline was “a natural consequence of fulfilling a large hardware contract in a single year, after which the customer’s demand for new units has slowed.” The monitoring segment, however, grew 37.1% in Q3, offsetting the hardware dip.
Cash on hand increased to $4.167 million and net working capital rose to $5.813 million, giving the company a strong liquidity cushion. Acorn also completed its uplisting to the Nasdaq Capital Market in Q3 2025, a milestone that enhances liquidity and positions the company for future growth initiatives.
Management reiterated its confidence in long‑term growth, stating that it expects to exceed a 20% average annual revenue growth target over the next three to five years. The company highlighted that 50% of incremental revenue is projected to flow to operating profit, reflecting the high operating leverage of its recurring monitoring business. CEO Loeb emphasized that the Nasdaq listing will support future M&A activity and provide a more liquid market for the company’s shares.
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