NeoVolta Provides Fiscal 2Q 2026 Results and Update on Strategy for Transition to Integrated Energy Solutions Platform

About NeoVolta Inc.

NeoVolta Inc. (NASDAQ: NEOV) is a US-based energy technology company headquartered in Poway, California, focused on developing and manufacturing energy storage systems for residential, commercial, and industrial applications. The company’s solutions are designed to store solar energy and provide backup power, helping customers improve reliability and energy efficiency while supporting the adoption of clean energy.

NeoVolta’s core products include scalable battery storage systems and hybrid inverter technology that integrates with solar installations. These systems allow homeowners and businesses to store excess solar energy and use it during off-peak or peak-demand times.

Established to address the growing demand for distributed energy storage, NeoVolta has expanded its product portfolio, installer network, and manufacturing systems, including acquisitions and partnerships aimed at scaling battery production and entering large energy markets.

Management Comments

Ardes Johnson, Chief Executive Officer of NeoVolta Inc., said the quarter was transformative for the company, placing it in its next phase of strong growth and enabling it to take advantage of a large market opportunity. He added that the company is getting closer to its goal of becoming an integrated energy solutions provider capable of serving an estimated $45 billion market that can address residential, commercial and industrial, and utility scales by 2030.

Johnson went on to say that the company’s strategy is continuing as planned. He noted that NeoVolta had completed the acquisition of Neubau Energy, was preparing to launch the NVWAVE battery platform to improve installation efficiency and margins, developed a partnership with Luminia up to 160 MWh of energy storage for approximately $39 million in equipment revenue, and launched a US battery manufacturing partnership in Georgia. He explained that the 60%-owned, 2 GWh facility will support domestic production of high-quality utilities and C&I markets while qualifying for tax incentives.

He added that NeoVolta’s integrated platform strategy creates many opportunities to create value. Johnson said the residential segment provides product strength and revenue stability, the C&I segment represents a high growth opportunity over the next two to three years, and the utility scale segment, enabled by the Georgia manufacturing JV, provides scale and margin strength for long-term shareholder value. He emphasized that these programs are interlinked measures designed to reduce business risk while expanding market access.

Financial Highlights for the Second Quarter of 2026

NeoVolta reported revenue of $4.6 million in Q2 FY2026, compared to $1.1 million in Q2 FY2025, representing strong 334% year-over-year growth. In the first six months of FY2026, revenue reached $11.3 million, up 580% from $1.7 million in the same period last year.

The company’s revenue growth was driven by expansion beyond its Southern California installer network into new geographic markets and distribution channels, while maintaining stable pricing.

Net profit for Q2 FY2026 was $0.8 million, representing a gross margin of 17%, compared to $0.3 million and a margin of 30% in Q2 FY2025. Net profit for the six months reached $2.3 million for an average of 21%. Margin compression primarily reflected investments in strategic inventory and supply chain aspects, partially offset by prior year inventory reserve reversals.

Operating expenses increased to $5.2 million in Q2 FY2026, compared to $1.3 million in Q2 FY2025. The increase was largely due to non-structural compensation based on higher capital of $2.1 million and continued investment in leadership and sales infrastructure as NeoVolta prepares for increased production.

NeoVolta reported a net loss of $5.5 million (or $0.16 per share) in Q2 FY2026, compared to a loss of $1.0 million in Q2 FY2025. Net loss for the six months came in at $6.8 million (or $0.20 per share), driven by higher share-based compensation and $1.1 million in non-operating charges.

Integrated Strategy for Three Platforms

NeoVolta is advancing its vision of becoming a fully integrated energy storage platform serving the residential, commercial and industrial (C&I), and utility-scale markets. The residential platform strengthens product visibility and recurring revenue through installer expansion and financing models such as Battery-as-a-Service (BaaS) and third-party ownership (TPO).

The C&I platform targets the underserved “lost space” with integrated EPC and financial solutions, supported by a pipeline of more than 100 MW and is considered a key growth factor in the next two to three years. The utility-scale platform, powered by its 60%-owned Georgia manufacturing joint venture, is designed to access high-end projects while meeting the domestic content requirements of IRA benefits.

Strategic Milestones – Q2 FY2026

The company has completed the acquisition of all assets of Neubau Energy Inc., including its NVWAVE (neuClick™) modular battery platform. The system features 10–15 kWh plug-and-play modules that install in less than 30 minutes—about 75% faster than conventional systems—and can scale up to 60 kWh for residential and light C&I applications. A simplified US-aligned manufacturing model improves gross margins with lower labor costs. Leadership consolidation followed with the appointment of Amany Ibrahim as COO and Thomas Enzendorfer as CTO. Commercial shipments began in January 2026 after a successful pre-order campaign.

NeoVolta has advanced its strategic partnership framework with Luminia up to 160 MWh of battery power supply. This plan represents approximately $39 million in potential property income at current prices. The partnership strengthens NeoVolta’s C&I market penetration by combining turnkey EPC services and structured financing, improves demand visibility for its Georgia facility, and supports the bank’s energy solutions through Luminia’s established financial relationships.

The company formed NeoVolta Power, LLC, a 60 percent owned joint venture with the US subsidiaries of PotisEdge and LONGi Green Energy to establish a domestic BESS production facility in Pendergrass, Georgia. The 210,600 sq. ft. facility. ft. we are designed for an initial annual capacity of 2 GWh, scalable to 8 GWh, approximately 75% focused on utility scale and 25% on C&I systems. The industry is designed to qualify for Section 45X and 48E tax benefits and meet domestic content standards. Mass production is currently targeted for mid-2026. NeoVolta retains a controlling interest with three out of five board seats. Strategically, the JV de-risks the supply chain, opens up access to high-margin markets, and positions the Company to benefit from strong US demand for domestically produced BESS solutions.

Capital Structure and Financing Update

As of December 2025, NeoVolta has raised approximately $23 million in capital through two equity transactions. The $13 million private placement backed by Infinite Grid Capital was funded by an initial JV offering of $7 million and leveraged working capital. The $10 billion registered direct offering, led by Needham & Company, generated approximately $9.4 million in proceeds to support the financing and upcoming milestone commitments of the JV.

NeoVolta’s JV commitment consists of three phases: an initial offering of $7 million completed in January 2026, a milestone payment of $8 million due on April 30, 2026, and a $10 million offering upon approval of the Purchase Agreement. The agreement also allows for up to $15 million in contingent financing through June 30, 2027, if needed to increase capacity or accelerate growth.

Following the recent capital increase and the initial JV financing, the Company holds approximately $16 million in working capital and believes it is in a position to meet its Phase 2 obligation while maintaining operating cash flow. Management continues to evaluate strategic financing options, including project and equipment financing, to support the final approval milestone.

Joint Venture Progress Update

The NeoVolta Power, LLC manufacturing facility is progressing along its development roadmap. Acquisition and installation of equipment is scheduled for the first half of the 2026 calendar year, followed by production line rollout in the second half of 2026, with volume production targeted to ramp up in mid-2026.

The facility is designed to operate with automotive-grade quality standards with an IATF 16949 certified production line and an initial workforce of approximately 89 production workers working in one eight-hour shift. Early production will focus on utility-scale battery systems such as the NVGain-215K6.25 and NVAPex-372, as well as commercial and industrial solutions including the NVAPex-5M and NVGain-125K233.

Looking ahead, the joint venture plans to increase its capacity by adding pouch cell assembly capacity by 2027, further strengthening its domestic manufacturing capabilities and product portfolio.