ACORN ENERGY, INC. Q1 FY2025 earnings call

• Jan Loeb mentioned revenue rose 45% in Q1, driven by 78% hardware growth from a cell phone provider contract, with operating leverage as ~50% of incremental revenue drops to operating income/EBITDA. • Operating expenses decreased as a percent of revenue. • EPS rose to $0.19 per share, though below Q4 2024 adjusted EPS. • Higher expenses from tax work related to valuation allowance release. • A major cellphone provider contract totals ~$5.4 million in gross top line revenue, with hardware shipments expected in 2025 and monitoring revenue extending to 2026. • OmniMetrix is seen as a premier monitoring solution, and discussions with OEMs about bundling solutions. • Demand response rollout delayed but remains a long-term growth opportunity. • Ongoing M&A search for recurring revenue businesses aligning with operations. • Plan to uplist to Nasdaq, with application filed, and considering name change by end of Q3. • Upcoming launch of next-gen OmniMetrix products in June, including Omni and OmniPro monitors with enhanced features.

In Q1 2025, revenue rose 45% to $3.098 million. Hardware revenue increased 78% due to a large contract with a cell phone provider, and monitoring revenue rose 15%. Gross profit grew 46%, with a gross margin of 75.1% in Q1 2025 compared to 74.6% in Q1 2024. Operating expenses decreased to 56% of revenue in Q1 2025 from 71% in Q1 2024, reflecting operating leverage. Q1 2025 net income improved over 600% to $0.19 per share vs $0.03 per share in Q1 2024.

• Hardware shipments for the major cellphone provider contract expected in 2025, with monitoring revenue extending to 2026. • Anticipated launch of next-gen OmniMetrix products in June 2025. • Expect the uplisting process to Nasdaq to take a couple of months, with name change expected by end of third quarter.

• Risks associated with potential disruptions to business operations and customer demand. • Risks related to executing operating plan, maintaining high customer renewal rates, and growing customer base. • Risks from changes in technology, competitive landscape, or financial/economic environment. • A more thorough discussion of risks is in the 10-K available on sec.gov and the company's website.

Q: Are there any questions?

A: As there are no questions, Jan Loeb provided closing remarks about appreciation for support and plans to update investors in future calls.