NeoVolta (NASDAQ:NEOV) reported third-quarter fiscal 2026 revenue of approximately $2 million, roughly in line with the year-earlier period, while management emphasized progress on its transition from a residential energy storage company into a broader energy solutions platform serving residential, commercial and industrial, and utility-scale markets.
Chief Executive Officer Ardes Johnson said the quarter marked a shift “from vision to execution,” highlighting progress at the company’s Georgia manufacturing facility, its first commercial and industrial purchase order, and continued work on residential financing models intended to offset near-term market softness.
Georgia manufacturing facility remains central to strategy
Johnson said NeoVolta Power LLC, the company’s manufacturing joint venture, remains on track. Manufacturing equipment has begun arriving at the Georgia site, installation is targeted for June, and initial production is expected to begin ramping in the third quarter of calendar 2026.
“In less than six months, we have secured a facility, finalized our production design, accepted equipment, and are weeks away from installing that equipment and commissioning our production line,” Johnson said.
Management said the facility is being structured to be compliant with Foreign Entity of Concern rules, positioning NeoVolta to offer domestically assembled battery energy storage systems that may qualify for federal incentives, including the IRS Section 45X Advanced Manufacturing Production Credit and Section 48E investment tax credits, with potential domestic content bonus treatment.
In April, NeoVolta increased its ownership interest in NeoVolta Power from 60% to 80% at no new cash cost while retaining board and operational control. The company also expanded its commercial agreement with PotisEdge to support business development and customer engagement as production approaches.
Commercial and residential markets show mixed trends
NeoVolta said it received its first purchase order from Luminia LLC in March. The initial order is valued at approximately $1.9 million and covers 40 units of the company’s NV Gain 125K261 commercial and industrial battery storage system. Johnson said the order is the first transaction under a strategic supply collaboration framework announced in December 2025.
According to Johnson, Luminia has contracted demand for approximately 160 megawatt hours and an additional pipeline of approximately 640 megawatt hours. He said the broader collaboration framework represents approximately $39 million in potential equipment revenue.
On the utility-scale side, Johnson said NeoVolta is in active discussions with prospective customers and partners and is building its commercial pipeline. During the question-and-answer session, he said the company is working with large developers with multi-gigawatt offtake requirements and expects engineering reviews, factory visits, quality assurance and quality control reviews, and other bankability steps to continue over the coming months.
Residential demand was pressured by the expiration of the federal Solar Investment Tax Credit for individuals at the end of December 2025, which management described as a market-wide headwind for residential solar and storage. Johnson said the company continues to prepare for the commercial launch of its NV Wave modular platform, which it expects to improve per-system economics and installer throughput.
NeoVolta is also working with Luminia on a third-party ownership financing model for residential customers. Johnson said the structure is intended to allow homeowners to deploy NV Wave systems with little to no upfront cost while creating recurring revenue streams for NeoVolta over time.
Revenue flat in quarter, nine-month sales rise sharply
Bond said the third quarter was the first in which NeoVolta reported on a fully consolidated basis, including NeoVolta Power LLC. The company held a 60% controlling interest during the quarter and increased that stake to 80% in April.
For the three months ended March 31, 2026, revenue was approximately $2 million, compared with approximately $2 million in the same quarter last year. For the nine-month period, revenue was $13.3 million, up approximately 262% from $3.7 million in the prior-year period.
Gross profit for the quarter was approximately $900,000, representing a gross margin of about 46%, compared with gross profit of approximately $500,000 and a margin of about 26% in the year-earlier quarter. Bond said the improvement reflected a higher-margin product mix, but noted that the reported third-quarter margin included a correcting entry related to inventory cost recognition in the prior quarter. Excluding that adjustment, gross margin was approximately 36%.
Operating expenses rose to approximately $3.6 million from approximately $1.9 million a year earlier. Bond attributed the increase to investment in commercial and operational infrastructure, research and development tied to the NV Wave platform ramp, and NeoVolta Power operating expenses as the manufacturing facility moves toward production.
Net loss was $3 million, or $0.08 per share, compared with a net loss of $1.4 million, or $0.04 per share, in the prior-year quarter.
Liquidity improves after financing transactions
As of March 31, 2026, NeoVolta had approximately $11.5 million in cash and net working capital of approximately $19.5 million. That compared with cash of approximately $212,000 and working capital of approximately $3.4 million as of Dec. 31, 2025. Bond said the improvement reflected equity financing transactions completed during the quarter.
The company’s phase two capital contribution to the joint venture, totaling $8 million, is targeted for May 31. Bond said NeoVolta is evaluating funding options including equity, debt and project financing. The company also established a revolving credit facility of up to $3 million with its depository bank in April.
In response to a question from Sidoti & Company analyst Steve Ferazani about the timing of the phase two contribution, Johnson said the change was not due to an inability to raise funds. He said the timing was adjusted after discussions with the joint venture partners because closing certain documents moved into a blackout period, and the partners agreed to shift the timing from April to May.
Management highlights supply chain and bankability work
During the call, Needham & Company analyst Sean Milligan asked about steps required before utility-scale orders, including tax credit eligibility, certification and bankability. Johnson said the company is confident on UL certification and is not making major design changes to the product. He said the company is focused on reference projects and satisfying customer requirements related to financeability, bankability and quality processes.
Johnson also said NeoVolta is evaluating cell supply options for next year, including non-Chinese supply from Southeast Asia that would be FEOC compliant, as well as U.S. suppliers and potential conversions from electric vehicle applications to stationary storage.
Johnson closed the call by saying the company is nearing an “inflection point” as the Georgia facility approaches production and reiterated that domestic manufacturing and incentive eligibility are becoming important factors in customer procurement decisions.
About NeoVolta (NASDAQ:NEOV)
NeoVolta, Inc is a clean-energy technology company that designs, manufactures and markets integrated battery storage systems for residential and light-commercial applications. Headquartered in San Jose, California, the company develops hardware and software solutions aimed at enhancing the value of rooftop solar installations, providing backup power and enabling homeowners to optimize time-of-use rate plans. NeoVolta’s modular approach to energy storage allows customers to scale capacity to match their changing needs.
The company’s flagship product family combines lithium-ion battery modules, a hybrid inverter and an energy management platform under a single enclosure.
