Full Transcript: Beam Glb Q2 2026 Earnings Call

Beam Glb (NASDAQ: BEEM ) released second-quarter financial results and hosted an earnings call on Wednesday. Read the complete transcript below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

6 million, up 21% year-over-year and 174% over the previous quarter, driven by backlog conversion and strategic diversification. The company operates without debt and maintains a $100 million unused credit line, while moving its manufacturing operations to Yuma, Arizona, to save on costs. Beam Glb's focus on expanding its intellectual property portfolio with new patents in battery and energy technology has strengthened its market position, particularly in Europe and the Middle East. The company's strategic initiatives in drone and robotics battery orders and its BeamFlight drone recharging platform are gaining traction, contributing to its growth and competitive edge.

Management expressed optimism about future growth prospects, supported by their robust technology platform and expanding international presence, despite geopolitical uncertainties in the Middle East. Full Transcript OPERATOR Good day and welcome to the Beam Glb Second Quarter 2026 Operating Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad; to withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Lisa A.

Potok, Chief Financial Officer. Please go ahead. Lisa A. Potok, MBA, CPA — Chief Financial Officer Good afternoon and thank you for participating in Beam Glb Second Quarter 2026 Operating Results Conference Call.

We appreciate you joining us today. Desmond Wheatley, President, CEO, and Chairman of Beam Glb, is joining me. We are both in San Diego today. Desmond will be giving his thoughts on 2026 and providing an update on recent activities at Beam Glb, followed by a question and answer session.

But first I'd like to remind you that during this call management will be making forward-looking statements, including statements that address Beam Glb's expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in Beam Glb's most recently filed Form 10-K and other periodic reports filed with the SEC. The content of this call contains time-sensitive information that is accurate only as of today, August 19, 2026.

Except as required by law, Beam Glb disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. Let me start with a few key highlights. 6 million. It's up 21% year over year and 174% over the first quarter, a clear signal that the business is re-accelerating after a slow start to the year.

4 million. We continue to operate with no debt, no going concern qualification, and an unused $100 million line of credit. Operationally, the quarter was active. We booked more than a half a million dollars in drone and autonomous robotics battery orders in a single week.

We extended our federal GSA and Sourcewell momentum with repeat EV ARC orders from Dallas, Dane County, and the City of Long Beach. 7 million in rent savings alone over the five-year lease term when compared to what we have historically spent manufacturing in San Diego. Desmond will take you through the business in more detail in a moment. 1 million we reported in the first quarter.

3%, in 2Q25. Both periods included $700,000 of non-cash depreciation and intangible amortization in cost of revenues. 6% in the prior-year period. We expect our margins to improve as our volumes continue to recover, reducing the impact of our fixed overhead on each unit sale and as our cost reduction initiatives take further effect.

4 million stock grant. Excluding that item, our operating expenses were essentially flat year over year. 0 million non-cash provision for credit losses related to a single customer balance reserved in accordance with our policy, largely offset by reductions in our compensation, our facilities, and our other G&A expenses. We maintain a positive relationship with that customer and continue to work toward collecting the balance.

3 million, or 28 cents per share, a year earlier. 1 million of non-cash charges. 8 million in the prior-year quarter. 8 million goodwill impairments.

We believe the improvement in both our GAAP and non-GAAP results, together with our 21% revenue growth over the prior-year quarter, reflects our initiatives to expand our opportunities, our disciplined cost structure, and the largely fixed nature of our non-cash charges, and is indicative of our meaningful operating leverage as our revenue recovers. We remain debt free with an unused $100 million line of credit and we believe we are well positioned to fund operations and support our growth initiatives. In closing, the second quarter marked a clear reacceleration in our business.

Our revenue grew sharply, our net loss narrowed, our diversification continued to gain traction, and our cost structure remained disciplined. We believe the actions we are taking are positioning Beam Glb for more stable and scalable growth as market conditions continue to evolve in our favor. I will now turn the call over to Desmond to provide a business update. Desmond Wheatley — President & CEO Thank you, Lisa.

And thank you to all of you for joining us today for this earnings call. At risk of being a little bit repetitive, I'm just going to go back over a couple of those numbers for you. So in the second quarter of 2026, we did return to growth at the top line. 174% increase in revenue over the prior quarter, growth at the gross margin level with about a 30% improvement in gross margin over the prior quarter.

That's 30 percentage points better gross margin than in the prior quarter and a simultaneous significant reduction in operating costs. About half a million dollars less in spending in the first half of this year than in the same period in 2025. Now, we're happy about this level of growth, but particularly because it's come from the very deliberate strategic diversifications that we've been focusing on for the last several quarters. Europe is now contributing more or less the same amount of revenue as the United States is.

When we first created Beam Europe, I commented at the time that I thought that the contribution from that—the largest market in the world for our products—would at some point outstrip revenue contributions from the United States, not at the expense of growth in the United States. Accretively. Well, Europe is now producing as much revenue as the United States is. I suppose time will tell who will win the race.

But of course we will continue pushing for growth in both markets and also in the Middle East, where we believe we will see significant activity as soon as things settle down in the Gulf. At any rate, Europe continues to generate significant revenues for us, but even more importantly, very large opportunities. And no matter which market comes out on top, Beam Glb wins the race. I'll come back to the European opportunities in a few minutes.

Our battery business is also making significant contributions with some of the most exciting technology and solutions that we've ever had. We generated revenues from our diverse set of new products during the quarter and also continued to bring in recurring revenue through innovative business models that we've uniquely developed. We've continued to grow our intellectual property portfolio with two new patents being issued to us during the period, one in Europe for battery solutions and one in the United States for our innovative, robust, and reliable energy generation technology.

These new patents expand the moat around Beam Glb and cement our competitive advantage in the most active markets and technologies of the day. The batteries that we are producing for drones, robotics, AI data centers, and weapons systems are state of the art. And we continue to make extensive breakthroughs in that area of the business while protecting the intellectual property that we're developing with these patents. While I'm on intellectual property, we just recently announced that a breakthrough battery technology which we've developed for AI data centers was accepted for a presentation at IECON 2026 in Qatar from amongst 1,800 submissions.

This new technology will allow us to provide large amounts of power very rapidly for certain vital data center applications. Interestingly, this is technology that we developed for defense systems that have similar requirements in terms of rapid discharge capabilities. Batteries generally don't like doing that kind of stuff. It's a real testament to the prowess of our battery scientists and engineers that they've come up with a safe, efficient, and effective way of doing this.

Clearly, the intellectual property that we've developed is important enough to those people who understand these things that they, as I said, selected us among 1,800 submissions for presentation at this very esteemed event. And we'll go on to actually demonstrate that technology, or present that technology, at The Battery Show in the United States this year as well. There were weeks in the second quarter when we brought in over half a million dollars of orders for batteries for applications like drones. Now, drone batteries are not very large, so you can imagine what this means in terms of orders.

Also, be clear that we don't make cheap, commoditized, off-the-shelf solutions. We make highly specialized, complex, reliable, energy-dense, and robust batteries in form factors which actually suit drone manufacturers. While other companies try to get those manufacturers to build their drones around large squares and rectangles, we're uniquely able to create batteries in form factors which allow the manufacturers to create specialized airframes without the burden of having to design around a cheap battery solution. Beyond that, because our batteries are more energy dense, the cost per stored energy is lower.

Because of our robust and safe technologies around preventing thermal runaway and just generally managing battery cells better than the cheap options do, we're able to provide a highly engineered and complex solution in the long run that costs drone manufacturers less, but most importantly, it allows them to execute on their missions with a bespoke solution rather than trying to make something off the shelf work. The additional layers of safety that our batteries deliver to these companies are also a very important factor in their decision-making process.

You don't have to think very hard to consider how damaging it is for a drone operator to have one of their systems fail because a battery has caught fire or fail to deliver energy to the motors. That's an expensive error, not just in terms of replacing the drone itself, but also in reputational cost and potential risk on the ground. Our battery solutions are complex and highly safe, and so we significantly reduce the risk for the manufacturers and the operators. Our BeamFlight drone recharging platform, which is patented, does for drones what EV ARC does for electric vehicles.

We're able to deploy charging for drones in locations without construction and without any connection to the electrical grid. This means that drones can fly their missions and recharge without returning to an operator. Clearly, that's a very significant advantage in a contested environment where an enemy might follow a drone back to an operator while it needs to be recharged. With BeamFlight, the drone can recharge without ever returning to the operator, thus denying the enemy the opportunity to locate that operator.

We also believe that BeamFlight will be very important in terms of the scaling of drone operations around industries like package delivery, where drones with limited range can touch down and refuel en route, thus extending their range and capabilities significantly. It should be apparent that we are increasingly becoming a vital and vertically integrated platform for the drone industry through our ability to provide pieces of the puzzle which are absolutely vital to their success: high-quality, energy-dense, and safe batteries, and innovative, robust, and scalable means to recharge drones so that they can be more effective on their missions.

This is clearly a market with a great deal of growth ahead, and Beam Glb is already playing a role in its success. I'm confident that we will be reporting more and more significant contributions to the drone industry as we continue to evolve. But it's not only drones. We're also producing batteries for robotics, AI-controlled devices, and even wildfire detection.

Obviously, wildfires have been in the news a lot recently. Our ability to provide safe and energy-dense batteries for devices which can be deployed in remote locations and detect fires long before humans might do so is clearly very relevant at a time when wildfires seem to be growing in intensity and in their destructive nature. Fighting wildfires is an extremely expensive business, and the damage that they cause, of course, is very much more expensive. Providing solutions to an industry that can reduce or prevent wildfires is another excellent market vertical for us, and it fits very well with our existing technology and superb engineering prowess.

Similarly, our ability to generate electricity and deliver it to our customers in a manner which is more reliable and robust than that which you get from the utility grid is another highly current topic, and one for which we're continuing to receive new patents and recognition. We've long been recognized for our almost unique ability to create products which deliver rapidly deployed and highly scalable energy generation and storage infrastructure for the electrification of transportation. But the days of our being a single-product, single-country, single-customer company are long over.

We're now a vertically integrated platform, and a platform for solutions serving the most exciting and vibrant technologies and industries of today. Beam Glb is focused on energy, mobility, and intelligence. And we're producing patented products for those verticals and selling them to excellent customers globally. We've often been branded, as I said, as an electric vehicle charging company.

But if you look at what we actually provide to the electrification of transportation, what you'll see is that we don't provide charging services or even the appliances which charge the vehicles. What we provide are rapidly deployed, highly scalable, highly robust, and very dependable sources of electrical energy for the electrification of transportation. We just do it in really innovative and patent-protected manners—without construction, without electrical work, and without the requirement to extend the utility grid, and of course, without vulnerability to blackouts and brownouts.

Much of what we've learned from manufacturing these products and deploying them in the harshest environments in the world—the hottest, the coldest, the wettest, the windiest places you can imagine—has informed the way we design our other energy infrastructure products and also played a role in advancing our battery technologies. Our off-grid products are adding capacity at a time when data centers, AI, the electrification of industry, and the electrification of transportation are making demands on the existing utility grid for which it was never intended.

The EV industry is certainly out of favor with public markets at the moment, and yet it continues to drive significant amounts of revenue for us. That lack of market favor is primarily in the United States. In Europe and in the Middle East, we're seeing tremendous appetite for products like ours. But even here in the United States, we've seen encouraging new developments in the second quarter.

S. federal government, which was recently renewed by the way, and our Sourcewell procurement channel make it easy for customers like the City of Dallas, Stanislaus County, the City of Long Beach, and many others to make multiple EV ARC acquisitions from us.