Expion360 Q2 gross margin rises as product mix shifts to higher-margin items

Overview

• US lithium-ion battery maker's Q2 revenue fell 32% yr/yr

• Gross margin rose to 32.4% from 20.8% as product mix shifted to higher-margin items

• Company expanded OEM supply deal with Forest River to two more RV brands

Outlook

• Company expects to launch next-generation lithium battery in second half of 2026

• Expion360 aims to convert expanded OEM relationships into revenue growth

• Company expects to sustain margin improvements and maintain disciplined expense management

Result Drivers

• PRODUCT MIX SHIFT - Co said discontinuing low-margin accessory sales and focusing on core battery products drove gross margin expansion

• OEM INVENTORY - Elevated battery inventory levels at some OEM customers entering the year weighed on Q2 sales

• OEM EXPANSION - Co expanded supply relationship with Forest River to include two additional motorized RV brands

Company press release: ID:nGNX4ZN76J

Key Details

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)