ACFN News & Events

Acorn Energy announced a strategic partnership with Israel-based AIO Systems to market, distribute, integrate and sell AIO's solutions for cell tower, data center and utility infrastructure asset management to customers in North America. The addition of AIO's solutions, which have been deployed in over 110,000 sites, across 15 countries outside the U.S., substantially expands Acorn's offerings and total addressable market. Acorn has secured exclusive rights to market, integrate and sell AIO's products and solutions under its OmniMetrix brand in the United States, Mexico and Canada. Acorn will invest in personnel and resources, as well as services to be provided by AIO to support the North American launch. AIO has agreed to support OmniMetrix with a dedicated account manager, marketing and R&D resources, and adaptations for the North American market, including a mobile app and business process support. Acorn will share monitoring and Software-as-a-Solution revenue on a 50/50 basis after deducting its direct costs, with the potential to increase its revenue share based on the achievement of accumulated revenue targets over the initial five-year term of the agreement. Acorn will sell AIO hardware solutions under the OmniMetrix brand under most-favored nation wholesale pricing. Acorn has also secured a right of first refusal for the future purchase of AIO's South America assets and distribution rights for Latin and/or South America. Acorn also envisions the potential for AIO to sell its monitoring technology in certain global markets.

Reports Q3 revenue $2.478M vs $3.050M last year. Jan Loeb, Acorn's CEO, commented, "Q3'25 hardware revenue decreased as we did not have any hardware sales from our cellphone provider contract during this quarter versus hardware revenue of $724,000 in Q3'24 related to sales from that contract. What was originally expected to be a two-year hardware rollout was predominantly fulfilled within 12 months as our customer requested faster hardware delivery which we were able to meet. Also impacting the year-over-year comparison was $215,000 in the amortization of deferred hardware revenue recorded in Q3'25 compared to $436,000 of amortization of deferred hardware revenue recorded in Q3'24. The amount of revenue recognized from the amortization of deferred revenue will continue to decrease as we have not deferred revenue from hardware sales since September 1, 2023 when we commenced selling hardware units that can be sold separable from our monitoring services. We expect all deferred hardware revenue to be fully amortized by August 2026. In addition, we have seen a slowdown in residential deployments in 2025 which we believe is primarily the result of relatively high interest rates, fewer weather events and economic uncertainty on consumer decision making."

Reports Q2 revenue $3.525M vs $2.275M last year. Jan Loeb, Acorn's CEO, said, "Our Q2 results reflect the strength of our technology and solutions as well as the operating leverage of our high-margin business model. Our business is fueled by hardware sales that create recurring revenue streams from annual monitoring contracts, 90% or more of which typically renew each year. Given the modest incremental investment required to scale our business, we expect approximately 50% of each incremental revenue dollar to drop to our operating income line for the foreseeable future.