Expion360 Q1 Sales Fall 24% to $1.6M, Launches Industrial DASGen Partnership
XPON•Expion360's Q1 2026 net sales dropped 24% to $1.6 million and gross profit fell 21% to $0.4 million, driving a net loss of $1.8 million. The company secured a partnership to launch the DASGen Hybrid Energy Storage System and plans three next-gen battery models commercial availability in H2 2026.
1. Q1 Financial Performance
First quarter net sales totaled $1.6 million, down 24% year-over-year, and gross profit was $0.4 million, down 21%, representing a 25% margin. Expion360 recorded a net loss of $1.8 million and held $3.1 million in cash and equivalents at quarter end.
2. Strategic Industrial Partnership
The company entered a strategic partnership to launch the DASGen Hybrid Energy Storage System for construction and industrial job sites, leveraging its battery technology to buffer power between diesel generators and electrical loads. Early tests showed reduced generator runtimes and major construction firm interest, with commercial rollout planned via its sales organization.
3. Next-Gen Product Pipeline
Expion360 announced three next-generation lithium-ion battery models targeting industrial and commercial markets, with commercial availability expected in the second half of 2026. These models promise higher energy density, lower cost, and improved margins compared to current offerings.
4. Outlook and Market Expansion
Management plans to normalize OEM order volume in Q2 as inventory levels adjust and aims to diversify into new verticals with LiFePO4 chemistries and modular platforms. SG&A expenses rose 31% to $2.2 million due to legal fees and increased headcount as the company scales operations.
