Energous (NASDAQ:WATT) reported third-quarter 2026 revenue of $3.4 million, up 167% from a year earlier, as the wireless power company said it expects sequential revenue growth to accelerate in the fourth quarter and gross margins to continue recovering.
Revenue rose approximately 10% from $3.1 million in the second quarter. Gross margin improved to 14% from 3% sequentially, helped primarily by a price increase implemented in July, according to CEO and CFO Mallorie Burak.
The company’s products combine wireless power, battery-free sensors and data infrastructure for tracking assets, inventory and operations. Burak said Energous had shipped more than 69,500 PowerBridge transmitters from the product’s 2024 launch through September 30, 2026, primarily its 2-watt PowerBridge Pro model.
Margin Recovery and Cash Position
Burak said all units sourced in the third quarter came from Energous’ U.S. contract manufacturer because production-line upgrades at its overseas manufacturer were still being completed. Both manufacturers are producing at volume in the fourth quarter, she said.
The company expects fourth-quarter gross margin to improve sequentially and estimates a return to historical hardware margins in the mid-30% range during the first half of 2027. Its longer-term objective is gross margin of at least 40%.
For the first nine months of 2026, revenue was $9.6 million, compared with $2.6 million in the same period of 2025. The nine-month net loss narrowed to $7.1 million from $8.3 million, Chief Accounting Officer Greg Sadikoff said.
Energous ended September with $28.8 million in cash and cash equivalents. Burak said the company had not used its at-the-market share-sale facility since the first quarter and had no plans to use it again in 2026. She said management believes its cash is sufficient to support commercial programs without additional equity financing.
Retail and E-Commerce Deployments
Chief Strategy and Growth Officer Giampaolo Marino said Energous is working with its largest retail customer, an unnamed Fortune 10 company, on additional uses that the customer intends to begin rolling out across its superstores in 2027. The customer has more than 500 U.S. superstores, each requiring more than 125 PowerBridge units, compared with roughly 10 to 15 for a standard store, Marino said.
The customer’s warehouse club division plans to deploy the technology across approximately 550 locations, at about 15 units per location. Energous expects that rollout to begin in early 2027 and continue throughout the year. A potential expansion into Canada is under evaluation and would require regulatory approval for PowerBridge Pro.
For a separate Fortune 10 e-commerce customer, Marino said deployments are continuing in Europe and are expected to accelerate in the United States. Energous also is exploring opportunities in Brazil and expects 2027 revenue from the customer to exceed 2026 levels.
During the question-and-answer session, Marino said the company expects the number of active paying customers in deployment to rise from two currently to four during 2027. Burak noted that five customers accounted for 74% of revenue in the second quarter of 2026 and said she expects the broader customer base to grow.
Proof-of-Concept Pipeline
Marino said an end-to-end proof of concept with a large semi-perishable consumer product manufacturer is nearing completion, with a potential deployment expected in the first quarter of 2027. If it proceeds as planned, he said, it would be Energous’ first end-to-end proof-of-concept program to convert to deployment and would generate recurring revenue tied to its e-Compass software platform.
A second program, with a regional supercenter and grocery chain in the Midwestern United States, is moving toward a phase focused on outcomes including reducing inventory shrinkage and improving labor efficiency. A Fortune 10 healthcare retailer has also chosen to reengage directly to test Energous’ full solution after an earlier proof of concept through a channel partner, Marino said.
Marino said the company’s sales cycle has shortened to approximately six to nine months from 18 to 24 months historically. He also cautioned that planned software and data-service initiatives remain at an early stage, with no assurance they will result in agreements or revenue.
About Energous (NASDAQ:WATT)
Energous Corporation develops wireless power-at-a-distance technology and related semiconductor solutions. Its WattUp platform is designed to transmit radio frequency (RF) energy wirelessly to compatible devices, reducing or eliminating the need for traditional charging cables and charging pads. The company’s products include wireless power transmitters, receivers, reference designs and software intended for integration into connected devices and commercial systems. Its technology is aimed at applications across the Internet of Things, consumer electronics, healthcare, industrial equipment, retail and logistics, including sensors, wearables, asset-tracking devices and other low-power electronics.
