Eos Energy Enterprises, Inc. has announced a private offering of $500 million in convertible senior notes due 2031, accompanied by a registered direct equity sale to a limited group of investors. The notes are unsecured, senior, and accrue interest semi‑annually, with a maturity date of December 1, 2031. Investors will have the option to purchase an additional $75 million within 13 days of issuance, and the specific interest rate, conversion price, and conversion premium will be set at the time of pricing.
The equity offering will raise an undisclosed amount of capital, with proceeds earmarked for the repurchase of a portion of the company’s outstanding 6.75 % convertible senior notes due 2030 and for general corporate purposes. The company has not yet disclosed the exact principal amount of the 2030 notes to be repurchased or the number of shares to be issued in the equity sale.
Eos’s Q3 2025 financial results provide context for the financing. Revenue reached $30.5 million, a 100 % increase from the $15.3 million reported in Q2 2025, driven by strong demand for its Znyth zinc‑based battery systems. However, the company posted a net loss of $641.4 million, largely attributable to non‑cash fair‑value adjustments. Gross margin improved from –203 % in Q2 2025 to –111 % in Q3 2025, indicating progress in production efficiencies.
The primary rationale for the capital raise is to strengthen the balance sheet by reducing long‑term debt and lowering interest expense. Repurchasing the higher‑rate 2030 convertible notes will eliminate a costly debt instrument, potentially improving the company’s credit profile. The equity sale provides additional liquidity while preserving the company’s ability to fund expansion of its U.S. manufacturing capacity and the deployment of its Znyth battery technology.
Eos recently raised approximately $76.9 million from the exercise of public warrants that expired on November 17, 2025, further bolstering its cash position. The company faces headwinds from its ongoing lack of profitability and the sizable net loss reported in Q3 2025, but tailwinds include growing demand for long‑duration energy storage, policy support for U.S. manufacturing, and the safety and sustainability advantages of zinc‑based batteries. Management remains focused on scaling production, securing new customer contracts, and improving operational efficiency to move toward profitability.
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