Technology

CBAK Energy Reports Second Quarter and First Half 2024 Unaudited Financial Results

Published

2 years ago

August 9, 2024

DALIAN, China, Aug. 9, 2024 /PRNewswire/ — CBAK Energy Technology, Inc. (NASDAQ: CBAT) (“CBAK Energy,” or the “Company”) a leading lithium-ion battery manufacturer and electric energy solution provider in China, today reported its unaudited financial results for the second quarter and the first half of 2024 ended June 30, 2024.

First Half of 2024 Financial Highlights

Net revenues from sales of batteries were $80.4 million, an increase of 55% from $51.8 million in the same period of 2023.

– Net revenues from batteries used in light electric vehicles were $3.3 million, an increase of 7% from $3.1 million in the same period of 2023.

– Net revenues from batteries used in electric vehicles were $0.7 million, a decrease of 65% from $2.0 million in the same period of 2023.

– Net revenues from residential energy supply & uninterruptible supplies were $76.4 million, an increase of 63% from $46.8 million in the same period of 2023.

Gross margin for the battery business was 39.0%, an increase of 26.2 percentage points from 12.8% in the same period of 2023.Net income from the battery business was $19.6 million, compared to net loss of $1.0 million in the same period of 2023.

Yunfei Li, Chairman and Chief Executive Officer of the Company, commented, “We are thrilled to share with our shareholders and investors that we have achieved a remarkable 55% increase in net revenues from our battery business, reaching $80.4 million for the first half of the year. This significant growth is particularly notable given the broader industry challenges and declining sales volumes faced by our competitors. Our strategic pivot towards residential energy solutions and diverse energy storage applications has been a key driver of this success, with the bulk of our revenue increase coming from these sectors. Our major clients remain highly satisfied with the performance of our products and continue to show strong loyalty. We are confident that this exceptional sales momentum will continue to drive our success in the future.”

Jiewei Li, Chief Financial Officer and Secretary of the Board of the Company, added, “In addition to the remarkable surge in net revenues from our battery business, we are thrilled to report an impressive gross margin of 39% for the first half of the year. This outstanding performance not only highlights our efficiency but also places us ahead of all our competitors in battery manufacturing. Consequently, our net income from the battery sector has reached $19.6 million, surpassing the figures from the previous fiscal year.

We are confident that our gross margin will remain robust due to high client satisfaction with our battery products, and we anticipate continued growth in net income in the upcoming quarters. Furthermore, we are engaged in discussions with several private equity investors regarding both our sodium and lithium battery segments. These investors are showing interest in contributing capital at a significantly higher valuation. We expect to finalize these transactions and deliver positive news to the market.”

Second Quarter of 2024 Business Highlights & Recent Developments

In June, CBAK Energy announced that its subsidiary, CBAK Power, had secured an order valued at almost USD7.0 million from a Renowned European Client.In June, CBAK Energy unveiled a significant advancement in fast-charging technology with the enhanced model 32140 battery, achieving a full charge in just 35 minutes.

Second Quarter of 2024 Financial Results

Net revenues[1] were $47.8 million, representing an increase of 13% compared to $42.4 million in the same period of 2023. This increase was primarily attributable to an increase in revenue from the Company’s battery business.

Among these revenues, detailed revenues from our battery business are:

Battery Business

2023

Second

Quarter

2024
Second

Quarter

% Change
YoY

Net Revenues ($)

22,232,003

35,598,124

Gross Profits ($)

3,425,147

12,912,293

276

Gross Margin

15.4

36.3

–

Net (Loss) Income ($)

(1,126,224)

7,892,641

–

Net Revenues from Battery Business on
Applications ($)

Electric Vehicles

135,731

199,258

Light Electric Vehicles

1,147,902

1,825,501

Residential Energy Supply &
Uninterruptable supplies

20,948,370

33,573,365

Total

22,232,003

35,598,124

[1] Net revenues consist of the Company’s self-operated battery business and Hitrans, which was acquired in 2021, an independently managed raw materials business.

Cost of revenues was $35.1 million, representing a slightly decrease of 9% from $38.5 million in the same period of 2023. The decrease in the cost of revenues corresponds to the Company’s higher gross profit from the battery business.

Gross profit was $12.7 million, representing an increase of 227% from $3.9 million in the same period of 2023. Gross margin was 26.6%, compared to 9.2% in the same period of 2023.

Total operating expenses were $6.8 million, representing a decrease of 12% from $7.7 million in the same period of 2023.

Research and development expenses was $3.0 million for the three months ended June 30, 2024 and 2023.Sales and marketing expenses were $1.4 million, an increase of 42% from $1.0 million in the same period of 2023.General and administrative expenses were $3.1 million, a slightly decrease of 14% from $3.6 million in the same period of 2023.Recover of doubtful accounts was $0.67 million, compared to a provision of doubtful accounts of $0.13 million in the same period of 2023.

Operating income amounted to $5.9 million, compared to an operating loss of $3.8 million in the same period of 2023.

Finance income, net amounted to $0.7, compared to $0.3 million in the same period of 2023.

Change in fair value of warrants was nil, compared to $0.04 million in the same period of 2023.

Net income attributable to shareholders of CBAK Energy was $6.45 million, compared to net loss attributable to shareholders of CBAK Energy of $2.6 million in the same period of 2023.

Net income attributable to shareholders of CBAK Energy (after deducting the change in fair value of warrants) was $6.45 million, compared to a net loss of $2.7 million in the same period of 2023, mainly due to the strong performance of our battery business.

Basic and diluted income per share were both $0.07, compared to basic and diluted loss per share of $0.03 in 2023.

First Half of 2024 Financial Results

Net revenues[1] were $106.6 million, representing an increase of 26% compared to $84.8 million in the same period of 2023. This increase was primarily attributable to an increase in revenue from the Company’s battery business.

Among these revenues, detailed revenues from our battery business are:

Battery Business

2023

First

Half

2024
First

Half

% Change
YoY

Net Revenues ($)

51,835,386

80,435,993

Gross Profits ($)

6,638,505

31,375,815

372

Gross Margin

12.8

39.0

–

Net (Loss) Income ($)

(1,017,300)

19,575,070

–

Net Revenues from Battery Business on
Applications ($)

Electric Vehicles

1,955,979

679,439

-65

Light Electric Vehicles

3,115,959

3,335,793

Residential Energy Supply &
Uninterruptable supplies

46,763,448

76,420,761

Total

51,835,386

80,435,993

[1] Net revenues consist of the Company’s self-operated battery business and Hitrans, which was acquired in 2021, an independently managed raw materials business.

Cost of revenues was $75.0 million, representing a slightly decrease of 4% from $78.0 million in the same period of 2023. The increase in the cost of revenues corresponds to the Company’s higher gross profit from the battery business.

Gross profit was $31.5 million, representing an increase of 22% from $6.8 million in the same period of 2023. Gross margin was 29.5%, compared to 8.0% in the same period of 2023.

Total operating expenses were $15.3 million, representing an increase of 14% from $13.4 million in the same period of 2023.

Research and development expenses were $5.8 million, an increase of 6% from $5.4 million in the same period of 2023.Sales and marketing expenses were $3.1 million, an increase of 8.4% from $1.7 million in the same period of 2023.General and administrative expenses were $7.2 million, an increase of 19% from $6.1 million in the same period of 2023.Recover of doubtful accounts was $0.8 million, compared to a provision of doubtful accounts of $0.26 million in the same period of 2023.

Operating income amounted to $16.2 million, compared to an operating loss of $6.7 million in the same period of 2023.

Finance income, net amounted to $0.7, compared to $0.3 million in the same period of 2023.

Change in fair value of warrants was nil, compared to $0.12 million in the same period of 2023.

Net income attributable to shareholders of CBAK Energy was $16.3 million, compared to net loss attributable to shareholders of CBAK Energy of $4.0 million in the same period of 2023.

Net income attributable to shareholders of CBAK Energy (after deducting the change in fair value of warrants) was $16.3 million, compared to a net loss of $4.1 million in the same period of 2023, mainly due to the strong performance of our battery business.

Basic and diluted income per share were both $0.18, compared to basic and diluted loss per share of $0.05 in 2023.

Conference Call

CBAK Energy’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Friday, August 9, 2024 (8:00 PM Beijing/Hong Kong Time on August 9, 2024).

For participants who wish to join our call online, please visit:

https://edge.media-server.com/mmc/p/etm9tt44

Participants who plan to ask questions during the call will need to register at least 15 minutes prior to the scheduled call start time using the link provided below. Upon registration, participants will receive the conference call access information, including dial-in numbers, a unique pin, and an email with detailed instructions.

Participant Online Registration:

https://register.vevent.com/register/BI88cb5143d85b4257ac2ba1e1f0e4d8e2

Once completing the registration, please dial-in at least 10 minutes before the scheduled start time of the conference call and enter the personal pin as instructed to connect to the call.

A replay of the conference call may be accessed within seven days after the conclusion of the live call at the following website: https://edge.media-server.com/mmc/p/etm9tt44

The earnings release and the link for the replay are available at ir.cbak.com.cn.

About CBAK Energy

CBAK Energy Technology, Inc. (NASDAQ: CBAT) is a leading high-tech enterprise in China engaged in the development, manufacturing, and sales of new energy high power lithium and sodium batteries, as well as the production of raw materials for use in manufacturing high power lithium batteries. The applications of the Company’s products and solutions include electric vehicles, light electric vehicles, energy storage and other high-power applications. In January 2006, CBAK Energy became the first lithium battery manufacturer in China listed on the Nasdaq Stock Market. CBAK Energy has multiple operating subsidiaries in Dalian, Nanjing, Shaoxing and Shangqiu, as well as a large-scale R&D and production base in Dalian.

For more information, please visit ir.cbak.com.cn.

Safe Harbor Statement

This press release contains “forward-looking statements” that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. We have attempted to identify forward-looking statements by terminology including “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “should,” or “will” or the negative of these terms or other comparable terminology. Our actual results may differ materially or perhaps significantly from those discussed herein, or implied by, these forward-looking statements.

Any forward-looking statements contained in this press release are only estimates or predictions of future events based on information currently available to our management and management’s current beliefs about the potential outcome of future events. Whether these future events will occur as management anticipates, whether we will achieve our business objectives, and whether our revenues, operating results, or financial condition will improve in future periods are subject to numerous risks. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: significant legal and operational risks associated with having substantially all of our business operations in China, that the Chinese government may exercise significant oversight and discretion over the conduct of our business and may intervene in or influence our operations at any time, which could result in a material change in our operations and/or the value of our securities or could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and could cause the value of such securities to significantly decline or be worthless, the effects of the global Covid-19 pandemic or other health epidemics, changes in domestic and foreign laws, regulations and taxes, the volatility of the securities markets; and other risks including, but not limited to, the ability of the Company to meet its contractual obligations, the uncertain markets for the Company’s products and business, macroeconomic, technological, regulatory, or other factors affecting the profitability of our products and solutions that we discussed or referred to in the Company’s disclosure documents filed with the U.S. Securities and Exchange Commission (the “SEC”) available on the SEC’s website at www.sec.gov, including the Company’s most recent Annual Report on Form 10-K as well as in our other reports filed or furnished from time to time with the SEC. You should read these factors and the other cautionary statements made in this press release. If one or more of these factors materialize, or if any underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially from any future results, performance or achievements expressed or implied by these forward-looking statements. The forward-looking statements included in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law.

For further inquiries, please contact:

In China:

CBAK Energy Technology, Inc.
Investor Relations Department
Phone: +86-18675423231
Email: ir@cbak.com.cn

CBAK Energy Technology, Inc. and Subsidiaries

Condensed consolidated Balance Sheets

As of December 31, 2023 and June 30, 2024

(Unaudited)

(In US$ except for number of shares)

December 31,
2023

June 30,
2024

(Unaudited)

Assets

Current assets

Cash and cash equivalents

4,643,267

9,709,059

Pledged deposits

54,179,549

10,418,508

Short-term deposits

–

34,342,812

Trade and bills receivable, net

28,653,047

32,710,720

Inventories

33,413,422

31,226,831

Prepayments and other receivables

7,459,254

5,017,982

Receivables from a former subsidiary, net

74,946

12,620

Total current assets

128,423,485

123,438,532

Property, plant and equipment, net

91,628,832

86,966,492

Construction in progress

37,797,862

36,086,788

Long-term investments, net

2,565,005

2,256,386

Prepaid land use rights

11,712,704

11,281,490

Intangible assets, net

841,360

599,350

Deposit paid for acquisition of long-term investments

7,101,492

15,934,172

Operating lease right-of-use assets, net

1,084,520

3,053,819

Total assets

281,155,260

279,617,029

Liabilities

Current liabilities

Trade and bills payable

82,429,575

71,644,150

Short-term bank borrowings

32,587,676

35,077,469

Other short-term loans

339,552

338,623

Accrued expenses and other payables

41,992,540

33,431,784

Payables to a former subsidiary, net

411,111

418,499

Deferred government grants, current

375,375

482,714

Product warranty provisions

23,870

17,888

Operating lease liability, current

691,992

994,562

Finance lease liability, current

1,643,864

1,424,535

Income tax payable

–

798,715

Total current liabilities

160,495,555

144,628,939

Deferred government grants, non-current

6,203,488

5,700,353

Product warranty provisions

522,574

434,724

Operating lease liability, non-current

475,302

2,326,064

Total liabilities

167,696,919

153,090,080

Commitments and contingencies

Shareholders’ equity

Common stock $0.001 par value; 500,000,000 authorized; 90,063,396
issued and 89,919,190 outstanding as of December 31, 2023 and
90,083,396 issued and 89,939,190 outstanding as of June 30, 2024

90,063

90,083

Donated shares

14,101,689

Additional paid-in capital

247,465,817

247,674,563

Statutory reserves

1,230,511

Accumulated deficit

(134,395,762)

(118,113,850)

Accumulated other comprehensive loss

(11,601,403)

(14,326,079)

116,890,915

130,656,917

Less: Treasury shares

(4,066,610)

Total shareholders’ equity

112,824,305

126,590,307

Non-controlling interests

634,036

(63,358)

Total equity

113,458,341

126,526,949

Total liabilities and shareholder’s equity

281,155,260

279,617,029

CBAK Energy Technology, Inc. and Subsidiaries

Condensed consolidated Statements of Operations and Comprehensive Income (Loss)

For the three and six months ended June 30, 2023 and 2024

(Unaudited)

(In US$ except for number of shares)

Three months ended
June 30,

Six months ended
June 30,

2023

2024

2023

2024

Net revenues

42,420,870

47,793,045

84,817,571

106,615,477

Cost of revenues

(38,536,228)

(35,065,019)

(78,027,185)

(75,106,404)

Gross profit

3,884,642

12,728,026

6,790,386

31,509,073

Operating expenses:

Research and development expenses

(2,980,718)

(2,955,509)

(5,436,046)

(5,771,027)

Sales and marketing expenses

(963,588)

(1,368,373)

(1,684,592)

(3,092,405)

General and administrative expenses

(3,582,893)

(3,129,994)

(6,062,028)

(7,222,521)

Recovery of (provision for) doubtful
accounts

(130,493)

673,330

(261,660)

787,343

Total operating expenses

(7,657,692)

(6,780,546)

(13,444,326)

(15,298,610)

Operating income (loss)

(3,773,050)

5,947,480

(6,653,940)

16,210,463

Finance (expenses) income, net

252,472

688,721

257,783

698,384

Other income, net

238,040

141,975

421,253

509,413

Share of loss of equity investee

–

18,824

–

Gain on disposal of equity investee

–

26,912

–

26,912

Change in fair value of warrants

36,000

–

121,000

–

Income before income tax

(3,246,538)

6,823,912

(5,853,904)

17,445,172

Income tax credit (expenses)

307,311

(800,727)

710,195

(1,849,513)

Net income (loss)

(2,939,227)

6,023,185

(5,143,709)

15,595,659

Less: Net (income) loss attributable
to non-controlling interest

304,237

422,277

1,128,364

686,253

Net income (loss) attributable to
CBAK Energy Technology, Inc.

(2,634,990)

6,445,462

(4,015,345)

16,281,912

Net income (loss)

(2,939,227)

6,023,185

(5,143,709)

15,595,659

Other comprehensive loss

– Foreign currency translation
adjustment

(6,639,109)

(829,769)

(5,890,330)

(2,735,817)

Comprehensive (loss) income

(9,578,336)

5,193,416

(11,034,039)

12,859,842

Less: Comprehensive (loss) income
attributable to non-controlling
interest

643,620

423,171

1,373,641

697,394

Comprehensive (loss) income
attributable to CBAK Energy
Technology, Inc.

(8,934,716)

5,616,587

(9,660,398)

13,557,236

Income (loss) per share

– Basic

(0.03)*

0.07

(0.05)

0.18

– Diluted

(0.03)*

0.07

(0.05)

0.18

Weighted average number of shares of common stock:

– Basic

89,029,399

89,931,617

89,021,424

89,931,727

– Diluted

89,029,399

90,111,613

89,021,424

90,289,544

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SOURCE CBAK Energy Technology, Inc.

Technology

Media advisory – Minister Hodgson to make energy announcement

Published

43 minutes ago

November 12, 2026

VANCOUVER, BC, Nov. 12, 2026 /CNW/ — The Honourable Tim Hodgson, Minister of Energy and Natural Resources, will make a funding announcement for a liquefied natural gas project that will strengthen Canada’s energy sector and exports. He will be joined by Premier Designate Lorne Doerkson. Media availability will follow.

Date: Friday, November 13, 2026

Time: 10:30 a.m. PT

All accredited media are asked to pre-register by emailing media@nrcan-rncan.gc.ca. Details on how to participate will be provided upon registration.

Follow Natural Resources Canada on LinkedIn

SOURCE Natural Resources Canada

Technology

Tellus Raises Reserve Account Rate to 8.00% APY to Help Savers Fight Inflation

Published

43 minutes ago

November 12, 2026

The new rate is more than twice the latest 12-month inflation rate, 3.7%.

MOUNTAIN VIEW, Calif., Nov. 12, 2026 /PRNewswire/ — Tellus App, Inc. (“Tellus”), the proptech company behind the Tellus savings app, today raised the annual percentage yield (APY) on its Reserve Account from 7.75% to 8.00%. That equals its highest Reserve rate, paid from November 2023 to December 2025.

Consumer prices rose 3.7% in the 12 months to September, up from 3.4% in August, according to the U.S. Bureau of Labor Statistics. Energy prices rose 20.4%. October added another 0.4%.

“You can’t control what prices do, but you can control what you save,” said Jeromee (JJ) Johnson, President of Tellus. “Set money aside in Reserve and you earn 8.00% APY on it. Make it a payday habit, and you fight rising prices one deposit at a time.”

How the account works:

Reserve Account. A sub-account where savers earn more than the Boost base rate, up to a balance limit. Money above the limit flows to the saver’s Boost Account. Boosts do not apply to Reserve.

What changes:

Reserve Account. APY rises from 7.75% to 8.00%, effective Nov. 12, 2026. The rate may change.Who gets it. Existing and new Reserve Accounts. Limits start at $2,500.What stays the same. No fees, no lock-up. The Boost base rate is unchanged.

Tellus is on the App Store and Google Play, and on the web at web.tellusapp.com.

About Tellus
Tellus App, Inc. is a proptech company headquartered in Silicon Valley. The Tellus savings app helps people save with cash accounts powered by real estate, and gives independent landlords property management software. Tellus also offers business-purpose residential lending.

Tellus is not a bank. Tellus is not FDIC-insured. The FDIC-insured Deposit Account is provided by Central Bank of Kansas City, Member FDIC. Eligible deposits held at Central Bank of Kansas City are insured by the FDIC up to applicable limits in the event of the bank’s failure. FDIC insurance does not apply to Tellus itself or to non-deposit products or services.

The Boost Account, Reserve Account and Vaults are not deposit accounts and are not FDIC-insured.

Rewards on Tellus’s non-deposit accounts vary and are determined by each customer’s actions and choices in the app.

See www.TellusApp.com for full terms and conditions.

View original content to download multimedia:https://www.prnewswire.com/news-releases/tellus-raises-reserve-account-rate-to-8-00-apy-to-help-savers-fight-inflation-302938399.html

SOURCE Tellus

Technology

HawkEye 360 Announces Third Quarter 2026 Financial Results

Published

43 minutes ago

November 12, 2026

Revenue of $59.3 million, up 84% compared to the prior-year period of $32.2 million

Achieved record international revenue of 23.3 million, up 76% compared to the prior-year period

Backlog of $300.3 million as of September 30, 2026

Raising full year revenue guidance to $225-$227 million and non-GAAP Adjusted EBITDA guidance to $38-$40 million

HERNDON, Va., Nov. 12, 2026 /PRNewswire/ — HawkEye 360, Inc. (NYSE: HAWK) (“HawkEye 360” or “the Company”), a global leader in signals intelligence data and analytics, today announced its financial results for the third quarter ended September 30, 2026.

“I am pleased with our third quarter results as we continue to see strong momentum for signals intelligence data and analytics. Importantly, growth on the international side of our business continues to gain significant traction, highlighted by revenue increasing 76% year-over-year to $23.3 million,” said Chief Executive Officer John Serafini. “We expect international expansion will continue. We are pleased with the opportunities in front of us, and that our success is translating into tangible financial results.”

“More recently, we reached another milestone in our next phase of constellation expansion with the launches of Clusters 15 and 16 in October,” he continued. “Following deployment, our space operations team successfully established communications with all six satellites across both clusters. Once commissioned, these clusters are expected to increase our revisit rate and allow us to serve a greater number of customers and mission requirements.”

Third Quarter 2026 Financial Highlights:

Revenue of $59.3 million, up 84% compared to the prior-year period of $32.2 million.Increased international revenue to $23.3 million, up 76% year-over-year and 11% sequentially from $21.0 million in the second quarter.Recorded a net loss of $(0.2) million, compared to net income of $1.7 million in the prior year period.Realized Adjusted EBITDA, a non-GAAP metric, of $13.3 million, compared to $9.6 million in the prior-year period.Recognized net cash provided by operating activities of $9.6 million and Free Cash Flow, a non-GAAP metric, of $137.0 thousand, compared to $4.0 million and $(6.0) million, respectively, in the prior-year period.Confirmed backlog of $300.3 million as of September 30, 2026, compared to $292.2 million as of June 30, 2026.

Third Quarter 2026 and Recent Business Highlights:

Signed $54 million in new multi-year contract awards with 11 allied partners and nations, reflecting the growing demand for HawkEye 360’s signals intelligence data and analytics.Announced a contract award under the National Reconnaissance Office’s Commercial Radio Frequency Capability Augmentation program to provide commercial RF data for U.S. national security missions, making HawkEye 360 the first commercial provider to progress from test-and-evaluation studies into an operational augmentation contract.Established a formal collaboration with Leonardo to integrate our RF capabilities into its space architecture, including proposed reserved capacity for European areas of interest delivered through Italian ground stations and EU-based cloud infrastructure.Partnered with ERA of the Czech Republic to serve as an international processing partner for radar products derived from our RF data.Established HawkEye 360 Luxembourg, S.à r.l., the Company’s first European subsidiary, providing a foundation for expanded operations in the European Union and closer engagement with European customers, governments and industry partners as the region strengthens its defense capabilities.Launched Clusters 15 and 16 in October, three days apart from launch sites on opposite sides of the world. They are the first HawkEye 360 satellites built for simultaneous RF collection and mission data downlink, and the Company has secured launch opportunities through 2028 to maintain constellation continuity and support future growth.Subsequent to the third quarter, signed $135 million in global contracts with more than $70 million dedicated to follow-on European contract awards, expanding Hawkeye 360’s support for European Ministries of Defense, intelligence agencies, and allied partners to strengthen sovereign defense capabilities, enhance operational awareness, and inform critical national and coalition security decisions.

Full Year 2026 Outlook

For full-year 2026, the Company is increasing its total revenue expectations to $225 million and $227 million, and non-GAAP Adjusted EBITDA of between $38 million and $40 million.

The Company has not reconciled its non-GAAP Adjusted EBITDA outlook to the most directly comparable GAAP measure because certain reconciling items, such as stock-based compensation, change in fair value of warrant liabilities, and depreciation and amortization, are uncertain or out of the Company’s control and cannot be reasonably predicted. The actual amount of these expenses will have a significant impact on the Company’s future GAAP financial results. Accordingly, a reconciliation of the Company’s non-GAAP Adjusted EBITDA outlook to the most comparable GAAP measures is not available without unreasonable efforts.

Third Quarter 2026 Earnings Conference Call:

The Company will hold a conference call today, November 12, 2026, at 4:30 PM ET. The call can be accessed by dialing 1-877-407-0792 (U.S. participants) or 1-201-689-8263 (International participants). Participants can also listen to a live webcast of the call by going to the Investors section on HawkEye’s website at https://investors.he360.com/. A replay of the call will be available starting on Friday, November 13, 2026, at 11:30 AM ET by dialing 1-844-512-2921 (U.S.) or 1-412-317-6671 (International) and entering the conference ID number:13763186. The replay will be available through Thursday, November 26, 2026, at 11:59 PM ET.

About HawkEye 360

HawkEye 360 is equipping defense, intelligence and national security leaders with mission-critical signals intelligence to enable faster, better decision-making. By detecting, geolocating and characterizing radio-frequency emissions worldwide, HawkEye 360 delivers trusted domain awareness and early-warning indicators to the US Government and allied partners. Our space-based collection, proprietary signal processing and AI-powered analytics transform knowledge of RF spectrum into a strategic advantage. Proven by operational mission success, HawkEye 360 is redefining how signals intelligence strengthens national and global security.

Non-GAAP Financial Measures

In addition to the financial information prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company reports Adjusted EBITDA and Free Cash Flow, which are non-GAAP financial measures. The Company defines Adjusted EBITDA as net income (loss) before interest income, interest expense, income tax expense or benefit, depreciation and amortization, as well as significant non-cash and/or non-recurring expenses that are not considered part of the Company’s operations and revenue-generating activities, or are nonrecurring or infrequent in nature. Management believes these items are not useful in evaluating the Company’s core operating performance. These items include, but are not limited to, stock-based compensation expense; acquisition-related costs, one-time costs related to the IPO, settlements, net of related legal expenses, changes in fair value of contingent and deferred consideration, changes in fair value of warrant liabilities, and gains or losses on extinguishment of debt. The Company defines Free Cash Flow as net cash provided by (used in) operating activities less purchases of satellites, property, and equipment.

The Company uses Adjusted EBITDA and Free Cash Flow in conjunction with other GAAP measures to evaluate the effectiveness of its business strategies, make strategic decisions, and communicate with its board of directors and investors concerning its financial performance. The Company uses these non-GAAP financial measures to assess its financial performance because they allow the Company to compare its operating performance on a consistent basis across periods by removing the effects of its capital structure (such as varying levels of interest expense and income), asset base (such as depreciation and capital expenditures) and other items (such as non-recurring or non-cash costs) that impact the comparability of financial results from period to period.

The Company believes that the presentation of these non-GAAP financial measures will provide useful information to investors and analysts in assessing its financial performance and results of operations across reporting periods by excluding items it does not believe are indicative of its core operating performance. Net Income (Loss) is the U.S. GAAP measure most directly comparable to Adjusted EBITDA. Net cash provided by (used in) operating activities is the U.S. GAAP measure most directly comparable to Free Cash Flow. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are presented below under the headings “Reconciliation of Net Income (Loss) to Adjusted EBITDA” and “Reconciliation of Net Cash Provided By (Used In) Operating Activities to Free Cash Flow.” The Company’s non-GAAP financial measures should not be considered as an alternative to the most directly comparable U.S. GAAP financial measure. You are encouraged to evaluate each of these adjustments and the reasons management considers them appropriate for supplemental analysis.

In evaluating Adjusted EBITDA and Free Cash Flow, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in such presentation. The Company’s presentation of these non-GAAP financial measures should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. The Company may modify the presentation of Adjusted EBITDA and Free Cash Flow in the future, and any such modification may be material. Adjusted EBITDA and Free Cash Flow have important limitations as analytical tools, and you should not consider these non-GAAP financial measures in isolation or as a substitute for analysis of the Company’s operating results as reported under U.S. GAAP. Adjusted EBITDA and Free Cash Flow may be defined differently by other companies in the Company’s industry and may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

Other Key Metric

Backlog is a key measure of the Company’s business. The Company’s backlog supports predictable revenue expansion through a recurring model, enabling forward revenue visibility. Management uses backlog to more effectively forecast the Company’s future business and results, which supports decisions around capital allocation. It also helps the Company identify future growth or operating trends that may not otherwise be apparent. The Company also believes backlog is useful for investors in forecasting the Company’s future results and understanding the growth of its business.

The Company’s backlog represents the portion of legally binding contracts that are expected to result in future revenue. Backlog may also include change orders for any contracts that have been formally contracted. This includes firm contracts that contain remaining performance obligations, including the cancellable portion of the contract value for contracts that provide the customer with a right to terminate for convenience without incurring a substantive termination penalty. Backlog also can include up to the remaining ceiling on single award IDIQ contracts where no task orders have been issued. Backlog excludes the value of unexercised options to extend contracts, the value of multi-award IDIQ contracts, and the value of any contracts, or a portion thereof, where management deems execution to be unlikely to result in revenue due to customer-specific or other factors.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding the Company’s liquidity and financial flexibility, the Company’s financial outlook for the year ended December 31, 2026, the Company’s expected constellation growth and increased collection capacity, the Company’s expanding international presence, the Company continuing to scale the business and growing customer demand, are forward-looking statements and represent the Company’s views as of the date of this press release. The words “will,” “expects,” “plans,” “could,” “would,” “believes,” “anticipates,” “intends,” “may,” “continue,” “estimate,” or similar expressions are intended to identify forward-looking statements. The Company has based these forward-looking statements on its current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control that could affect its financial results. These risks and uncertainties are detailed in the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, to be filed with the Securities and Exchange Commission (the “SEC”) on November 12, 2026, and other filings that the Company makes from time to time with the SEC, which are available on the SEC’s website at sec.gov. Moreover, the Company operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for management to predict all risks, nor can the Company assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements the Company may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, the Company is under no obligation to update these forward-looking statements subsequent to the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

HawkEye 360, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands, except per share and share amounts)

As of September 30, 2026

As of December 31, 2025

Assets

Current assets:

Cash and cash equivalents

$ 494,850

$ 92,686

Contract accounts receivable

41,384

32,320

Contract accounts receivable from related parties

—

20,969

Other accounts receivable

1,091

Inventory

3,516

4,025

Contract assets

17,494

4,639

Contract assets from related parties

—

4,748

Prepaid expenses and other current assets

7,148

9,183

Total current assets

565,483

168,591

Long-term assets:

Satellites, property and equipment, net

139,413

110,873

Intangibles, net

30,393

35,973

Goodwill

117,958

116,866

Operating lease – right-of-use-assets

19,397

15,403

Deposits

21,104

35,932

Restricted cash

6,584

4,587

Other long-term assets

2,613

1,715

Total long-term assets

337,462

321,349

Total assets

$ 902,945

$ 489,940

Liabilities, mezzanine equity and stockholders’ equity (deficit)

Current liabilities:

Accounts payable

8,638

18,486

Accrued expenses and other current liabilities

8,408

5,017

Accrued compensation payable

11,376

10,511

Contract liabilities

10,798

3,262

Current tax payable

311

—

Current portion of operating lease liabilities

4,334

3,437

Total current liabilities

43,865

40,713

Long-term liabilities:

Long-term debt, net of unamortized debt issuance cost

—

46,315

Long term contract liabilities

19,112

19,892

Other liabilities

17,553

23,800

Deferred tax liabilities

1,071

977

Warrant liabilities

—

4,267

Operating lease liabilities, net of current portion

16,059

12,893

Total long-term liabilities

53,795

108,144

Total liabilities

$ 97,660

$ 148,857

Commitments and contingencies – Note 15

Mezzanine equity:

Redeemable, convertible preferred stock Series A – $0.0001 par value, 0 and 24,947,154
shares authorized at September 30, 2026, and December 31, 2025, respectively,
and 0 and 24,947,154 shares issued and outstanding at September 30, 2026, and
December 31, 2025, respectively

$ —

$ 34,174

Redeemable, convertible preferred stock Series B – $0.0001 par value, 0 and 11,574,841
shares authorized at September 30, 2026, and December 31, 2025, respectively, and 0
and 11,574,841 shares issued and outstanding at September 30, 2026, and
December 31, 2025, respectively

—

66,442

Redeemable, convertible preferred stock Series C – $0.0001 par value, 0 and 6,960,439
shares authorized at September 30, 2026, and December 31, 2025, respectively, and, 0 and
6,960,439 shares issued and outstanding at September 30, 2026, and December 31,
2025, respectively

—

48,761

Redeemable, convertible preferred stock Series D – $0.0001 par value, 0 and 12,857,720
shares authorized at September 30, 2026, and December 31, 2025, respectively, and 0
and 12,857,720 shares issued and outstanding at September 30, 2026, and
December 31, 2025, respectively

—

136,715

Redeemable, convertible preferred stock Series D-1 –$0.0001 par value, 0 and 6,085,161
shares authorized at September 30, 2026, and December 31, 2025, respectively, and 0
and 6,085,161 shares issued and outstanding at September 30, 2026, and December 31,
2025, respectively

—

58,894

Redeemable, convertible preferred stock Series E – $0.0001 par value, 0 and 14,578,457
shares authorized at September 30, 2026, and December 31, 2025, respectively, and 0
and 5,567,364 shares issued and outstanding at September 30, 2026, and December 31,
2025, respectively

—

102,600

Total mezzanine equity

$ —

$ 447,586

Stockholders’ equity (deficit):

Common stock – $.0001 par value, 2,000,000,000 and 111,000,000 shares authorized at
September 30, 2026 and December 31, 2025, respectively and 99,091,643 and
4,168,374 shares issued and outstanding at September 30, 2026, and December 31,
2025, respectively

$ 10

$ 2

Additional paid-in-capital

975,546

39,336

Accumulated deficit

(170,271)

(145,841)

Total stockholders’ equity (deficit)

805,285

(106,503)

Total liabilities, mezzanine equity, and stockholders’ equity

$ 902,945

$ 489,940

HawkEye 360, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per share and share amounts)

Three months ended September 30,

Nine months ended September 30,

2026

2025

2026

2025

Revenue

$ 59,336

$ 27,405

$ 152,718

$ 68,458

Revenue from related parties

—

4,791

6,226

13,366

Total revenue

59,336

32,196

158,944

81,824

Operating expenses:

Direct cost of sales, excluding depreciation and amortization

17,110

5,453

48,040

15,312

Indirect cost of sales and other expenses, excluding depreciation and amortization

4,973

398

13,921

1,067

Selling, general and administrative

24,308

10,505

67,430

27,245

Research and development

8,040

8,175

25,455

20,941

Depreciation and amortization

9,275

5,934

25,631

16,790

Total operating expenses

63,706

30,465

180,477

81,355

Income (loss) from operations

(4,370)

1,731

(21,533)

469

Other income (expense):

Interest income

4,377

853

8,046

2,707

Interest expense

(139)

(17)

(2,390)

(52)

Loss from changes in fair value of financial liabilities

—

(886)

(5,701)

(1,423)

Loss from extinguishment of debt

—

(2,729)

—

Other income, net

121

—

284

—

Total other income (expense), net

4,359

(50)

(2,490)

1,232

Income (loss) before tax

(11)

1,681

(24,023)

1,701

Income tax expense

(152)

—

(407)

—

Net income (loss)

$ (163)

$ 1,681

$ (24,430)

$ 1,701

Preferred stock dividend

—

(561)

10,376

(1,663)

Income allocated to participating securities

—

(1,000)

—

(34)

Net income (loss) attributable to common shareholders

$ (163)

$ 120

$ (14,054)

$ 4

Net income (loss) per share of common stock, basic

$ —

$ 0.02

$ (0.25)

$ —

Net income (loss) per share of common stock, diluted

$ —

$ 0.01

$ (0.25)

$ —

Weighted-average shares outstanding, basic

98,251,708

7,535,397

56,507,890

7,387,613

Weighted-average shares outstanding, diluted

98,251,708

14,362,624

56,507,890

12,633,530

HawkEye 360, Inc. and Subsidiaries

Consolidated Statement of Cash Flows (Unaudited)

(in thousands)

Nine months ended September 30,

2026

2025

Cash flows from operating activities

Net income (loss)

$ (24,430)

$ 1,701

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

25,631

16,790

Amortization of debt issuance costs and other noncash debt costs

577

Fair value loss on revaluation of warrants

4,471

1,423

Fair value loss on revaluation of deferred consideration

1,500

—

Fair value gain on revaluation of contingent consideration

(270)

—

Loss from extinguishment of debt

2,729

—

Stock-based compensation

17,193

3,147

Amortization of operating lease right-of-use assets

3,894

2,971

Realized gain (loss) on short-term investments

—

(12)

Changes in operating assets and liabilities, net of effect of acquisitions:

Contract accounts receivable

(9,064)

(11,149)

Contract accounts receivable from related parties

20,969

Other accounts receivable

(1,070)

Contract assets

(7,427)

(200)

Contract assets from related parties

(1,212)

(3,571)

Prepaid expenses and other assets

(11,791)

(3,312)

Operating lease liabilities

(3,825)

(2,974)

Accounts payable

(11,039)

(6,299)

Current tax payable

311

—

Accrued expenses and other liabilities

3,114

(764)

Deferred tax liabilities

—

Accrued compensation payable

865

—

Contract liabilities

6,756

3,220

Net cash provided by (used in) operating activities

17,976

1,097

Cash flows from investing activities

Proceeds from redemption of short-term investments

—

39,716

Purchase of satellites, property and equipment

(19,779)

(19,086)

Net cash provided by (used in) investing activities

(19,779)

20,630

Cash flows from financing activities

Payment of debt issuance cost

(85)

—

Payment of deferred acquisition consideration

(7,500)

—

Exercise of warrants

202

—

Exercise of stock options

6,933

Proceeds from common stock in initial public offering

478,400

—

Payment of offering costs, including underwriting commissions

(40,601)

—

Repayment of term loans

(49,453)

—

Proceeds from issuance of preferred stock

18,774

—

Payment of preferred stock issuance costs

(706)

—

Net cash provided by (used in) financing activities

405,964

Net increase in cash, cash equivalents and restricted cash

404,161

21,785

Cash, cash equivalents and restricted cash, beginning of period

97,273

71,766

Cash, cash equivalents and restricted cash, end of period

$ 501,434

$ 93,551

Reconciliation of cash, cash equivalents and restricted cash

Cash and cash equivalents

494,850

88,964

Restricted cash

6,584

4,587

Total cash, cash equivalents and restricted cash at the end of the period

$ 501,434

$ 93,551

Nine months ended September 30,

2026

2025

Supplemental disclosures of cash flow information

Cash paid for interest

$ 1,235

$ —

Operating cash outflows – payment on operating leases

5,042

2,626

Operating lease right-of-use assets obtained in exchange for lease liabilities

7,888

1,322

Non-cash investing and financing activities

Conversion of warrant liabilities to additional paid-in-capital, including those settled in the IPO

8,737

—

Conversion of redeemable convertible preferred stock to common stock

465,654

—

Reclassification of deposits to satellites, property and equipment

28,345

—

Fixed assets in accounts payable at period end

468

—

Payment of offering costs, including underwriting commissions, in accounts payable at period end

300

—

Interest paid in kind

189

—

Reconciliation of Net Income (Loss) to Adjusted EBITDA

The following table presents a reconciliation of Net Income (loss), the most directly comparable financial measure presented in accordance with U.S. GAAP, to Adjusted EBITDA:

Three months ended September 30,

Nine months ended September 30,

(in thousands)

2026

2025

2026

2025

Net income (loss)

$ (163)

$ 1,681

$ (24,430)

$ 1,701

Adjusted for:

Interest income

(4,377)

(853)

(8,046)

(2,707)

Interest expense

139

2,390

Income tax expense

152

—

407

—

Depreciation and amortization

9,275

5,934

25,631

16,790

Stock-based compensation

7,384

1,317

17,233

3,147

Acquisition costs(1)

350

—

1,942

—

One-time costs related to IPO(2)

515

4,100

Settlements, net of related legal expenses(3)

—

494

751

Change in fair value of contingent and deferred consideration

—

1,230

—

Change in fair value of warrant liabilities

—

886

4,471

1,423

Loss on extinguishment of debt

—

2,729

—

Adjusted EBITDA

$ 13,275

$ 9,557

$ 27,707

$ 21,238

(1) Represents costs for legal and advisory fees, key employee retention incentives, integration, and other costs incurred in connection with acquisitions.
(2) Represents costs incurred related to the IPO that do not meet the direct and incremental criteria per SEC Staff Accounting Bulletin Topic 5.A to be netted against the gross proceeds of the offering and that are not expected to recur in the future, which such costs include accounting and advisory fees, SOX readiness and internal control implementation costs, and other professional fees.
(3) Represents costs for legal fees and settlement related to litigation initiated by us against a third party, which are not part of our ordinary legal expenses and not reflective of our core operating performance.

Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow

The following table presents a reconciliation of net cash (used in) provided by operating activities, the most directly comparable financial measure presented in accordance with U.S. GAAP, to Free Cash Flow:

Three months ended September 30,

Nine months ended September 30,

(in thousands)

2026

2025

2026

2025

Net cash provided by (used in) operating activities

9,621

$ 3,978

17,976

$ 1,097