Beam Global

Beam Global operates as a sustainable technology innovation company, headquartered in San Diego, California, with additional offices in Broadview, Illinois, Belgrade and Kraljevo, Serbia, and Abu Dhabi, UAE. The company specializes in developing, designing, engineering, manufacturing, and selling high-quality, rapidly-deployed, and autonomous infrastructure products. Its primary focus areas include electric vehicle (EV) and autonomous vehicle (AV) charging, energy security and disaster preparedness, and highly energy-dense battery solutions. Additionally, Beam Global manufactures structures with integrated intelligence and electronics for Smart Cities, such as streetlighting and cell towers, and produces specialized power electronics including inverters, charge controllers, power supplies, and LED lighting. The company positions itself as a provider of infrastructure solutions that bypass the need for traditional construction and electrical work typically associated with grid-tied EV charger installations, thereby offering a cost-effective, time-saving, and robust alternative.

Beam Global's core business model revolves around generating revenue through the sale of its manufactured products, complemented by maintenance fees and professional services. The company's primary customer segments include state, municipal, and federal governments and agencies, militaries, corporations, universities, retail, hospitality, Tribal Nations, and international markets. Historically, a significant portion of revenue came from U.S. governmental agencies, but the company is actively diversifying towards corporate and international customers. The company emphasizes its patented, renewably energized products that reduce installation costs and complexity, proprietary energy storage solutions, first-to-market advantage in rapidly deployed EV/AV charging infrastructure, and the ability of its products to operate during grid outages.

The company's product portfolio is diverse, with EV and AV charging infrastructure being a key segment. The EV ARC™ is a patented, transportable, solar-powered EV charging infrastructure product that fits in a parking space without reducing availability, generates and stores its own energy, and can be set up in less than an hour. It supports Level I, Level II, and DC Fast Charging (with four interconnected units) and can charge one to six EVs simultaneously, serving up to 12 parking spaces. A 2024 patent for a version of EV ARC™ will enable wireless charging for AVs. The BeamSpot™ is an EV and AV charging and emergency power product that utilizes existing streetlight foundations and a combination of solar, wind, grid connection, and onboard energy storage for curbside charging. Other products include BeamSkoot™ for electric mopeds, BeamBike™ for eBikes (supporting 12 eBikes), and BeamPatrol™ for electric motorcycles, all designed for rapid deployment without construction. The BeamWell™ system, based on the EV ARC™ platform, is a self-sufficient water treatment system that converts seawater into freshwater, provides electricity, and charges four integrated electric mopeds for disaster relief. Smart Cities Infrastructure products encompass streetlighting, street furniture, communications, and energy infrastructure with integrated electronics, renewable energy, battery storage, sensors, and IoT. The BeamFlight™ product, currently under development, is an off-grid, renewably energized, and rapidly deployed network for charging aerial drone fleets. The company also offers power electronics and energy storage solutions for telecommunications and energy infrastructure.

For the fiscal year ended December 31, 2025, Beam Global reported total revenue of $28.2 million ¹, a 42.8% decrease compared to $49.3 million ² in fiscal 2024. Gross profit for 2025 was $3.5 million ³, down from $7.3 million ⁴ in 2024, resulting in a gross margin of 12.5% ⁵ in 2025, a decrease from 14.8% ⁶ in 2024. Operating expenses totaled $31.1 million ⁷ in 2025, compared to $19.0 million ⁸ in 2024, including a non-cash goodwill impairment charge of $10.8 million ⁹ in 2025. The net loss for 2025 was $27.0 million ¹⁰, compared to $11.3 million ¹¹ in 2024. Diluted EPS for 2025 was $(1.61) ¹², compared to $(0.77) ¹³ in 2024, based on weighted average shares outstanding of 16,814 thousand ¹⁴ and 14,621 thousand ¹⁵, respectively. Cash at December 31, 2025, was $1.0 million ¹⁶, a decrease from $4.6 million ¹⁷ at December 31, 2024. Total assets were $42.7 million ¹⁸ at December 31, 2025, down from $61.5 million ¹⁹ at December 31, 2024. Total liabilities were $17.9 million ²⁰ at December 31, 2025, compared to $20.2 million ²¹ at December 31, 2024. The company had an accumulated deficit of $131.6 million ²² as of December 31, 2025.

The significant year-over-year decline in revenue was primarily due to a material reduction in orders from U.S. Federal government agencies, which accounted for less than 5% ²³ of total revenue in 2025, down from 32% ²⁴ in 2024. Conversely, non-government revenue grew from 38.2% ²⁵ of total revenue in 2024 to 72.0% ²⁶ in 2025, reflecting a strategic shift towards commercial customers. International sales comprised 42% ²⁷ of revenues in 2025, up from 25% ²⁸ in 2024, driven by the integration of Serbian acquisitions. Gross margin decreased by 2.3 percentage points ²⁹ year-over-year, primarily due to lower sales volume and reduced absorption of fixed overhead costs. Excluding non-cash depreciation and intangible amortization, adjusted gross margin improved to 23.0% ³⁰ in 2025 from 21.2% ³¹ in 2024.

During the reported period, Beam Global significantly expanded its product portfolio in the second half of 2024 with rapidly deployed charging infrastructure for electric bicycles, scooters, and motorcycles, and introduced de-salination capabilities with the BeamWell™ system. In 2024, the company received a patent for a wireless charging version of the EV ARC™ for AVs. A key operational development was the deployment of the first sponsorship-funded network of EV ARC™ systems at Belgrade International Airport in Serbia in 2024, with Globos Osiguranje as the sponsor, marking the company's entry into an owner-operator business model with recurring payments. The company also entered into an agreement with Vinci Airports, which does not require rent payments due to the amenity value provided. On June 20, 2025, Beam Global entered into a Joint Venture Agreement with The Platinum Group to establish Beam Middle East Limited in Abu Dhabi, UAE, for marketing, selling, manufacturing, and distributing products across the Middle East and African regions, with each party holding a 50% ³² equity interest.

Beam Global anticipates future revenue growth to be driven by the expansion of its product offerings, increased geographic reach, and growing demand for EV charging infrastructure, electrified transportation, mobility energy storage, and smart cities infrastructure products. The company believes that increased demand, coupled with its cost-reduction initiatives, will contribute to continued improvement in gross margins over time. Management expects to continue incurring losses for a period but aims to achieve profitable growth through strategic evolution.

A major growth area for Beam Global is geographic expansion. Prior to 2023, revenues were primarily from the U.S. market. Following acquisitions in Serbia and the establishment of Beam Middle East in Abu Dhabi, the company is now selling into the U.S., North and South America, Europe, the Middle East, and Africa. The company has observed similar market needs across these regions and believes its products are universally applicable. Sales in Europe began in Q4 2023, including EV ARC™ sales to the British Army in Cyprus and a sponsored network at Belgrade International Airport. In Q2 2025, the company expanded into the Middle East with EV ARC™ and BeamBike™ deployments. Beam Global has sales representatives in many countries in Europe, the Middle East, and Africa, expecting significant sales and revenue increases as sales cycles mature in these new markets. The European market, with 420 million ³³ cars, is larger than the U.S. market with 290 million ³⁴ cars, and the EU has mandated a transition to zero-emission vehicles by 2035. The Middle East and Africa region is projected to invest over $1 trillion ³⁵ in renewable energy by 2030, presenting significant opportunities.

Another key growth vector is product and technology portfolio expansion. Historically, the majority of revenue came from the EV ARC™. In Q4 2024, Beam Global introduced several new products targeting energy security and transportation electrification, including BeamSkoot™, BeamBike™, BeamPatrol™, and BeamWell™. The company is also enhancing its product portfolio through the addition of software, power electronics, and sensors, with a belief that customers will increasingly value data delivered from its products. Further developments in combining machine learning with AI in sensor-rich environments are expected to create significant revenue opportunities. The BeamSpot™ product, which leverages Beam Europe's streetlight manufacturing capabilities, is currently being installed and received its first order within two months of launch, with management believing it has the potential to become the largest selling product. BeamFlight™, an off-grid, renewably energized drone charging product, is also under development.

Operationally, Beam Global expects its costs of goods sold to continue to decline over time through lean manufacturing process improvements, engineering design changes, and operational efficiencies, as well as synergies from acquisitions. The company is evaluating opportunities to outsource additional components and sub-assemblies for cost-effectiveness, which could further reduce manufacturing costs, improve gross margins, and increase production output. Beam Europe's manufacturing capabilities in Serbia, combined with a lower operating cost environment, are expected to enable lower production costs for certain products compared to the U.S. The company also anticipates increased interest in its highly specialized energy storage products, which often yield higher gross profits, positively impacting overall gross profit as volumes increase.

Regarding capital allocation, Beam Global's cash used in investing activities for 2025 was $0.5 million ³⁶, which included $0.4 million ³⁷ for equipment purchases to increase throughput and $0.1 million ³⁸ for patent costs. The company has a supply chain line of credit with OCI Limited for up to $100 million ³⁹ with a five-year term, which it has not yet drawn upon. As of December 31, 2025, the company had received gross proceeds of $8.0 million ⁴⁰ from sales of common stock under its at-the-market (ATM) facility. The 2021 Equity Incentive Plan has 3.9 million ⁴¹ shares remaining available for grant as of December 31, 2025.

Management explicitly flagged several structural headwinds and execution risks. The decline in U.S. Federal government orders due to shifts in executive priorities and the reversal of prior electrification incentives significantly impacted 2025 revenues. The expiration of federal tax credits and other purchase incentives for electric vehicles further constrained domestic demand. The company's ability to convert its increased pipeline of prospective customer orders into realized revenue remains subject to inherent market risks and timing uncertainties. Geopolitical conflicts and instability, including tensions in the Middle East, may disrupt supply chains, increase costs, and adversely affect business, particularly given Beam Global's operations and growth initiatives in international markets. The company also faces intense competition from traditional grid-tied charging stations and other solar-powered solutions, with many competitors having substantially greater resources.

Beam Global faces several material risks, including a reliance on a few large customers, with the City of Dallas, Upscale Developers, and the US Department of State generating 4% ⁴², 3% ⁴³, and 3% ⁴⁴ of revenues, respectively, in 2025, making the company vulnerable to a significant decline in sales if any of these customers are lost. The company's revenue growth is highly dependent on the widespread adoption of EVs, which is an emerging and rapidly evolving market, and slower-than-expected adoption could harm the business. International expansion, particularly following the acquisitions of Amiga and Telcom in Serbia and the joint venture in the UAE, exposes the company to foreign currency exchange rate risks, compliance with foreign regulatory requirements, trade relations, difficulties in managing foreign operations, and political and economic instability. Geopolitical conflicts, such as those in Ukraine and the Middle East, could disrupt supply chains, increase commodity, freight, insurance, and component costs, and contribute to broader economic and market volatility. The company has sustained recurring losses since inception, with net losses of $27.0 million ⁴⁵ in 2025 and an accumulated deficit of $131.6 million ⁴⁶, and requires additional funding to continue operations, with no guarantee of profitability or timely access to capital on favorable terms. There are also identified material weaknesses in internal controls over financial reporting, including ineffective IT General Controls, insufficient controls over inventory accounting, inadequate segregation of duties, and insufficient oversight of international operations, which could adversely affect financial reporting accuracy and timeliness.

Management's message to shareholders emphasizes a strategic pivot and diversification in response to challenging market conditions. They acknowledge a material reduction in orders from U.S. Federal government agencies, attributing it to a shift in federal executive priorities and the reversal of prior electrification initiatives, alongside the expiration of federal tax credits. In response, the company has realigned its sales and marketing infrastructure to target corporate, municipal, and international markets, successfully increasing non-government revenue from 38.2% ⁴⁷ in 2024 to 72.0% ⁴⁸ in 2025 and international sales from 25% ⁴⁹ to 42% ⁵⁰ over the same period. Management remains focused on a diversified growth strategy, implementing new marketing protocols to capture broader market share, and believes that increased global EV adoption, continued expansion into international markets, and the marketing of new products will reduce the impact of variability in individual order timing. They anticipate that the company's continued investment in sales and marketing has strengthened its market presence and expanded its pipeline of prospective opportunities, expecting revenue growth, improved gross profit, and leveraged overhead costs to lead to profitable growth in the future.