Beam Global Q4 FY2025 earnings call

2025 faced near-term revenue headwinds from U.S. federal government fleet electrification program reversal but reduced reliance on government customers, expanded into international markets. Delivered 56% sequential revenue growth from Q3 to Q4 of '25. Fundamentally reshaped revenue mix with commercial customers at 72% in 2025. Ended year with $6 million in backlog, no debt and $100 million undrawn credit facility. Desmond Wheatley mentioned formation of Beam Middle East, diversification of product portfolio including smart cities infrastructure, energy storage, autonomous vehicles, etc., and GSA renewed federal purchasing contract through 2030.

Fourth quarter revenue was $9 million, up 7% year-over-year and 56% sequentially. Full year revenue was $28.2 million compared to $49.3 million in 2024. Commercial customers represented 72% of revenue in 2025, up from 38% in 2024. 70% of Q4 revenue came from new and expanded portfolio of products.

Entering 2026 with momentum and confidence in long-term trajectory, expecting growth from diversified products, customers, and geographies, with unit economics improvements expected to boost gross margins when volumes return.

Risks include U.S. federal government policy changes impacting revenue, and geopolitical risks in the Middle East affecting Beam Middle East's business推进.

Q: 70% of revenue in the fourth quarter came from new products. Are there any products that you would specifically call out as a large contribution in there, something that's really catching wind in its sales in the market? And then the 6 and change in revenue that they contributed, do you have an approximate number for the year ago? Or is this all fresh revenue in '25? Just so we can get a frame on the organic growth rate there.

A: Yes. So certainly, our smart cities infrastructure products are contributing significantly. And of course, a lot of that's also contributing to our international growth. Energy storage has picked up its head. And then we just have a much broader selection of products now, Craig. So it's not even that specifically any one of them is pulling hard away from the others. It's just that what's really different about our business is, as I said during my comments, we only ever really had that single -- the EV ARC product. It was fantastically successful with it for many years, and we still are selling a lot of them, but I think the big thing now is just that we are -- we have a much more diversified group of products, and we're taking revenue from all of them one way or another. Sorry, you asked -- you were talking about the backlog, presumably, 6 million of backlog.;Q: The re-up on GSA is encouraging. Can you maybe clarify for us if this could include slightly different formats of your existing products? There's -- there are emerging applications like drones out there where the government needs these for remote monitoring and other applications, and powering these drones is often quite problematic. I'm not calling that out as the example, but there will be other similar examples. If you were to have to modify the platform, is this something that could be covered under the GSA purchasing agreement at this time?

A: So better than modifying it, we actually have our patented BeamFlight product, and this is exactly what you've just essentially described. This is essentially an EV ARC, but for drones. It has a completely different form factor, but the same underlying technology. And we are able to deploy it in contested environments on borders anywhere, frankly, without any type of infrastructure requirement. No construction, no electrical work. It generates and stores its own electricity. Drones can land on it autonomously, refuel and take off. Now I've had a pan on that for a couple of years. We haven't been able to do very much with it because as you know, until the last couple of years, drones haven't really taken off, to give the pan. But they are taking off in a major way right now. And we expect to see a lot of business on that -- from that product and also from the fact that we're now putting, we're making bespoke and highly energy dense batteries for drones in a way that nobody else is able to, to my knowledge. To be specific to answer your question, that is not covered under our existing GSA contract. However, I do think it's very encouraging that GSA renewed our contract. I mean, they don't -- they're not out looking for work for nothing. There's a reason that they did that. And we believe that the long-term view is that electrification is going to play a major role in their future plans. And frankly, we've had enough conversations with people within the federal government to know that they believe that, too. The next thing for us to do will, of course, be to do as we've done in the past with some of these big purchasing contracts where we add product. And you're absolutely right that what we're doing with drones between -- both between our Made in America batteries and our drone recharging product will be a major area of focus for us. And so will autonomous vehicles. I mean, autonomous vehicles are -- again, we often hear stories about Waymo and Cruise and the taxi fleets. What we don't hear about is all the autonomous vehicles that are being increasingly used by militaries and for logistics and for all the other things that federal government, particularly the military, really needs them for. And our ability to get those vehicles refueled without infrastructure requirements and without human intervention, I also believe will be a major opportunity with us with the Feds. So I spent a lot of time in my comments talking about how the federal government was by far our largest customer. U.S. Army is our largest customer. That literally came to a stop, January 6 of 2025. But we still view the U.S. federal government as a major opportunity for us because we will sell them our energy security products and storage products during this administration. And then when this administration is replaced by somebody who's more in favor of electrification and renewables, then we believe we'll see a massive increase of business back then too because they'll be 4 years further behind. And that urgency is so important to us because our products are rapidly deployed and scalable. And I'll just give you 1 quick anecdote on that. We deployed something like 700 plugs for the U.S. Army in less time than they were able to put permitting and construction packages together to put traditional charger in the ground. So speed and urgency will be really important. And I believe that the Feds will be a great customer for us again in the future. It's not an accident that they replaced that contract and extended it for years.