Factorial Energy (NASDAQ:FAC) Announces Earnings Results

Factorial Energy (NASDAQ:FAC) announced its earnings results on Tuesday. The company reported $0.07 EPS for the quarter, beating analysts’ consensus estimates of ($0.10) by $0.17, Zacks reports. The company had revenue of $0.03 million for the quarter.

Here are the key takeaways from Factorial Energy’s conference call:

• Factorial recorded its first customer revenue in Q3 2026—about $26,000 from initial drone-cell shipments—beating its prior 2027 timeline. Management expects more meaningful commercial revenue in 2027, though it has not provided a specific forecast.
• The company said its aerospace cells reached 450 Wh/kg, about 15% above the cells used in its record-setting drone flight. It is qualifying products with additional customers and sees demand potential as U.S. restrictions on certain foreign battery suppliers approach.
• Factorial is expanding manufacturing capacity and pursuing a capital-light model with industrial partners, including an MOU with SK On to evaluate production across its network. The company also said its pilot-line yield reached about 85%, while acknowledging that the figure excludes coating and that gigafactory-scale yields would need to be higher.
• Q3 gross loss was $1.8 million, largely reflecting an inventory write-down, and management said early production volumes and high material costs mean cells currently cost more to make than expected selling prices. Revenue is expected to remain modest and fluctuate until production programs ramp.
• Factorial lowered its 2026 non-GAAP operating-expense outlook to $36 million–$38 million from about $40 million and cut its capital-expenditure outlook to $10 million–$12 million from about $13 million. Some equipment payments may shift into early 2027, and the company expects higher spending in Q4 as costs move between periods.

Factorial Energy Trading Down 13.3%

Shares of FAC stock traded down $0.59 on Thursday, reaching $3.88. 430,238 shares of the stock were exchanged, compared to its average volume of 302,164. The stock has a market cap of $414.70 million, a PE ratio of -5.79 and a beta of 1.17. The stock’s 50 day moving average price is $5.11. Factorial Energy has a 1-year low of $3.75 and a 1-year high of $25.33.

Wall Street Analyst Weigh In

FAC has been the subject of a number of analyst reports. Oppenheimer began coverage on Factorial Energy in a report on Tuesday, August 25th. They issued an “outperform” rating and a $8.00 price target for the company. Weiss Ratings raised shares of Factorial Energy from a “sell (e)” rating to a “sell (d)” rating in a research note on Friday, September 25th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $18.00 price target on shares of Factorial Energy in a research note on Wednesday, August 12th. Finally, Wall Street Zen downgraded shares of Factorial Energy from a “sell” rating to a “strong sell” rating in a report on Sunday, August 16th. Two analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $13.00.

About Factorial Energy

Factorial Energy is a U.S.-based battery technology company founded in 2013 and headquartered in Woburn, Massachusetts. It develops solid-state lithium-metal batteries for electric vehicles and other applications, with a focus on improving energy storage, safety and charging performance. The company’s proprietary FEST (Factorial Electrolyte System Technology) platform uses a solid electrolyte and is designed to work with existing lithium-ion manufacturing processes. Factorial has collaborated with automakers including Mercedes-Benz, Stellantis and Hyundai Motor Company on the development and evaluation of its battery technology.