NeoVolta (NASDAQ:NEOV) held its third-quarter earnings conference call on Friday. Below is the complete transcript from the call.

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Summary

NeoVolta reported a revenue of approximately $2 million for Q3 2026, consistent with the same period last year, with a nine-month revenue increase of 262% year-over-year to $13.3 million.

The company is transitioning into a vertically integrated energy solutions platform, with significant progress at the Georgia manufacturing facility, including equipment arrival and installation set for June.

NeoVolta increased its ownership in NeoVolta Power LLC to 80% and is enhancing commercial agreements, aiming to capitalize on the US Clean energy sector growth opportunities.

Despite near-term headwinds due to the expiration of the Federal Solar Investment Tax Credit, the company is optimistic about the residential storage market and is preparing for the NV Wave Modular platform launch.

NeoVolta was recognized as the 2026 Energy Storage Company of the Year by Cleantech Breakthrough, affirming its market position and strategic direction.

Full Transcript

OPERATOR

Greetings and welcome to NeoVolta third quarter fiscal 2026 earnings conference call. At this time, all participants are on a listen only mode. A question and answer will follow the formal presentation. If anyone should require operator assistance during the conference, please press Star 0 on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Artis Johnson. Thank you. You may begin.

Artis Johnson (Chief Executive Officer)

Thank you Operator and good morning everyone. Welcome to NeoVolta's third quarter fiscal 2026 earnings call. I am Artis Johnson, Chief Executive Officer and I'm joined today by our Chief Financial Officer, Steve Bond. Before we begin, I would like to remind everyone that our remarks today will include forward looking statements within the meaning of federal securities laws. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from what we discussed today. For more information, please refer to the full Safe harbor statement on Slide 2 of our Investor presentation, as well as the risk factors Described in our Form 10K for the year ended June 30, 2025 and our Form 10Q for for the quarter ending March 31, 2026 filed with the SEC. We do not undertake any obligation to update these forward looking statements except as required by law. With that, let me turn to the quarter. On our last earnings call in February, we spent a significant amount of time walking investors through our strategy and vision the transformation of NeoVolta from a residential focused storage provider into a vertically integrated energy solutions platform spanning residential, C&I and utility scale markets. We laid out the roadmap in detail. We explained why we believe this is the right moment to build this platform and why Neo Volta is uniquely positioned to capture the opportunity. This quarter the story shifts from vision to execution and I'm pleased to report that the progress has been real and meaningful across every dimension of our platform. Before I walk through that progress, I want to address an important leadership announcement we made this week alongside our earnings release. We have appointed Gene Nealis as NeoVolta's new Chief financial officer, effective May 18. Gene brings more than 20 years of financial leadership experience with deep expertise in the energy transition technology and manufacturing sectors. Most recently, she served as a CFO of SES AI Corporation where she led the company through a period of significant transformation and growth, raising substantial capital, expanding operations and establishing multiple revenue generating business units. Jing joins at exactly the right moment, we are ramping a domestic manufacturing platform, expanding commercial operations across multiple verticals, and pursuing one of the most significant growth opportunities in the US Clean energy sector. Her experience navigating this kind of complexity is precisely what the phase of NeoVolta's growth requires. I want to take a moment to recognize Steve Bond. Steve has been a cornerstone of NeoVolta since the beginning. As co founder and CFO, he helped build the financial foundation that has made everything we are doing today possible and I'm grateful for his contributions. Steve is not going anywhere. He is stepping into a critical new role as Executive Vice President and President of NeoVolta Power LLC where he will lead our Georgia manufacturing facility through the production ramp and into mass output. Getting that plant to commercial production on time is mission critical for NeoVolta and there is no one I would rather have running it. Steve, thank you for everything and I know the best is still ahead. Now let me turn to the key highlights from the quarter and our progress since. Let me start where I believe the focus belongs the Georgia facility. Our manufacturing joint venture, NeoVolta Power LLC is on track. This is what the investment community has been watching closely and I want to be direct about where we stand. I am pleased to report that our manufacturing equipment has started to arrive on site at our Georgia facility. Installation is targeted for June and we expect initial production to begin ramping in Q3 of this calendar year. I want to put this into perspective. We formed this joint venture in January of this year. In less than six months we have secured a facility, finalize our production design, accepted equipment, and are weeks away from installing that equipment and commissioning our production line. That is a significant pace of execution. I also want to remind investors of something that is increasingly important in this market. NeoVolta Power is being structured to be fully FIAC compliant. We are one of only a handful of best suppliers in the United States that can offer FIAC compliant domestically assembled systems that qualify for the IRS Section 45X Advanced Manufacturing Production Credits and Section 48E Investment Tax Credits, including potential domestic content bonus treatment. As BEST demand continues to ramp and as procurement decisions increasingly turn on incentive qualification and supply chain compliance, this is a meaningful and durable competitive advantage. In April, we further strengthened that platform by increasing our ownership interest in neovolta power from 60 to 80% at no new cash cost while retaining full board and operational control. At the same time, we expanded our commercial agreement with POTUS Edge to support business development and customer engagement as we approach production. These are deliberate steps to deepen our economic stake and commercial reach as we near first output. Turning to our C&I platform, this quarter marked a defining commercial milestone. In March we received our first purchase order from Luminia LLC. The initial order, valued at approximately 1.9 million for 40 units of our NVGain 125K261 commercial industrial battery storage system, is the first concrete transaction under the Strategic Supply Collaboration framework we announced in December of 2025. Luminia is one of the most active C&I energy storage developers in the United States with contracted demand for approximately 160 megawatt hours and an additional pipeline of approximately 640 megawatt hours. This initial purchase order is the first step in what we expect to be a sustained multi year commercial relationship representing approximately 39 million in potential equipment revenue under the broader collaboration framework. On the utility scale front, we are in active discussions with prospective customers and partners as we build out our commercial pipeline. In this market, we are encouraged by the early engagement we are seeing and believe our integrated platform and domestic manufacturing capabilities position us well to compete. We will provide updates as this business develops further. Residential remains our foundation. We continue to expand our national installer and distributor network during the quarter with activity across Texas, Puerto Rico and additional new markets. Demand in the quarter was affected by the expiration of the Federal Solar Investment Tax Credit for individuals at the end of December 2025 which created a near term headwind across the residential, solar and storage market. We believe this is a temporary dynamic. The underlying drivers of residential storage adoption, resiliency, energy independence and cost savings remain firmly in place. We continue to prepare for the commercial launch of NV Wave Modular platform which we expect to improve the persystem economics and installer throughput as it ramps into the market. In parallel, we are advancing a third party ownership or TPO financing model for the residential market in collaboration with Lumenia. This structure will enable homeowners to deploy NV Wave systems with little to no upfront cost lowering barriers to adoption and generate recurring revenue streams for NeoVolta over time. We will share further updates on this initiative as it develops. Before I turn it over to Steve, I want to highlight an important external validation of the platform we are building. In April, NeoVolta was named the 2026 Energy Storage Company of the Year by Cleantech Breakthrough, selected from thousands of nominations across more than 16 countries. This recognition reflects the progress we have made in building a differentiated product portfolio and expanding our market reach and reinforces what we hear directly from our channel partners and customers. With that, I will turn the call over to Steve to review the financial results.

Steve Bond (Chief Financial Officer)

Steve thanks Artis and good morning everyone. It's been an honor to help build NeoVolta from the ground up and serve as CFO through this transformational period. I'm excited about what lies ahead in my new role leading NeoVolta Power, and I have full confidence in Jing and in this team. Now let me turn to the numbers I'd like to flag at the outset that this is NeoVolta's first quarter reporting on a fully consolidated basis, which includes the financial results of NeoVolta Power LLC, our manufacturing joint venture in which we held a 60% controlling interest during the quarter and subsequently increased to 80% in April. As a result. Our income statement and balance sheet for the quarter ended March 31, 2026 reflect the consolidated operations of both the parent company and NeoVolta Power, with the minority interest reflected separately in stockholders' equity investors should keep this context in mind when reviewing current results relative to prior periods which did not include NeoVolta Power. Turning to the Results for the three months ended March 31, 2026, revenue was approximately $2 million compared to approximately $2 million in the same period last year. Revenue in the quarter was impacted by the expiration of the Federal Solar Investment Tax Credit for individuals at the end of December 2025 which created a market wide slowdown in residential, solar and storage demand. While this was a near term headwind, our nine month revenue of 13.3 million was up approximately 262% year over year from 3.7 million and reflects the strong underlying growth trajectory of the business. Gross profit for the quarter was approximately 0.9 million, representing a gross margin of approximately 46% compared to gross profit of approximately 500,000 and gross margin of approximately 26% in Q3 of last year. The improvement reflects a higher margin product mix during the quarter. I want to note for transparency that the reported Q3 margin includes a correcting entry related to inventory cost recognition in the prior quarter. Excluding that adjustment, Q3 gross margin was approximately 36%. Total operating expenses for the quarter were approximately $3.6 million compared to approximately $1.9 million in Q3 of last year. The increase reflects continued investment in commercial and operational infrastructure, R and D associated with the NV Wave Platform ramp and NeoVolta Power operating expenses as the manufacturing facility advances towards production. These are deliberate investments in our growth platform. Net loss for the quarter was $3 million or $0.08 a share compared to a net loss of 1.4 million or $0.04 a share in Q3 of last year. Turning to the balance sheet as of March 31, 2026, we had cash of approximately $11.5 million and net working capital of approximately 19.5 million. This represents a meaningful improvement from December 31, 2025 when we had cash of approximately 212,000 and working capital of approximately $3.4 million. Reflecting the equity financing transactions completed during the quarter on the joint venture funding, our phase two capital contribution of $8 million is targeted for May 31. We are actively evaluating a range of funding options including equity, debt and project financing to support this milestone and our ongoing growth capital requirements. In April we also established a revolving credit facility of up to $3 million with our depository bank providing additional near term liquidity flexibility. With approximately $11.5 million in cash and $19.5 million in net working capital as of March 31 and with the multiple financing options under active evaluation, we believe we have the financial flexibility to fund our near term obligations and support the business as we approach this major inflection point. With that, I will turn it back to Ardis for closing remarks before we open the line for questions.

Artis Johnson (Chief Executive Officer)

Thank you Steve. Let me close with a brief summary of where NeoVolta stands and why we are excited about the second half of 2026. The transformation we described on our last call is translating into real tangible progress. We received our first CNI purchase order from Luminia. We continue to have a robust pipeline for utility scale. We increased our ownership in neovolta power to 80%. We were recognized as the 2026 Energy Storage Company of the year and our Georgia manufacturing facility is on track. With equipment starting to arrive on site, installation in June and production ramp beginning in Q3 of this year, we are approaching an inflection point for this company. When that facility goes into production, NeoVolta transforms from a platform under construction into an operational, vertically integrated energy solutions provider with domestic manufacturing capacity and the ability to compete at scale across all three of our market verticals. And I want to close on this point. We are one of only a handful of companies in the United States that will be able to offer FIAC compliant domestically assembled best products qualified for ira, manufacturing and investment tax credits. That distinction is becoming a decisive factor in procurement decisions across every customer segment we serve. We built this platform with that reality in mind. I want to thank our employees, partners and shareholders for their continued support and I want to again welcome Gene Nealis to the NeoVolta team. We are ready for this next chapter. Steve and I are happy to take your questions. Operator, please open the line for Q and A.

OPERATOR

Thank you. At this time we'll be conducting a question and answer session. If you'd like to ask a question, please press Star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please. While we poll for questions, Our first question comes from Steve Ferzani with Sidoti and company. Your line is now live. Afternoon, artists Steve, I know you got a lot going on, so congratulations on reaching certain milestones, but Artist Steve I mean, I think the big question here is the push out on the phase two capital contribution. You had 11.5 million on the books in cash at the end of March. What's the challenges there in meeting that Phase two capital contribution? And then behind that, Phase three is supposed to be at commissioning, which isn't that far off. What's your ability in hitting those? And you're saying targeted May 31st. If you can just provide some general color. I think it's the big question.

Steve Ferzani (Equity Analyst)

Yeah. Steve, thanks for the question. It's a great one. The way that articulated it wasn't necessarily a push out. We were working with our team and the joint venture and we were coming to closure on some documents that was actually what was a little bit pushed out and we got into a blackout period and we were working with them and said, hey guys, can we just move it from April to May? It makes it very a lot simpler for us. Our goal right now we have a lot of options that we're looking at a lot of different ways of funding, not only the next tranche, but getting all the complete funding through and we should have that in the coming days. We're working with people on that and we feel very confident that we're going to be able to reach that. But it wasn't that we weren't able to raise the money. It was more of an agreement between us and our joint venture partner, POTUS Edge and Longines, because those dates, I don't want to say they were arbitrary, but they were put in early into the negotiation process. And when we got into this, we said, hey guys, this would be easier for us to push this out a month. They fully agreed with that. Not a problem.

Artis Johnson (Chief Executive Officer)

I think that's really important point and very helpful. Thanks, Ardis, for adding that color. In terms of the quarter, we knew it obviously was going to be impacted by the temporary slowdown in residential solar. One pleasant surprise. I expected to see costs Ramping up more out of the plant, starting getting ready for NV Wave. How are you thinking about costs ahead of those two big steps? Yeah, well, we're very conscientious on any costs right now in relation to getting revenue cash in the door. So we've been very, we've had the ability to be very efficient when it comes to launching the NVWave and not only the product now, but even the further step two and three of the products in the future associated with the NVWave. Our goal right now is to get that product launched and product delivered to customers by the end of the current quarter that we're in right now. And we are, we're working right now again as well with our partner Luminia on a third party ownership model that we hopefully need to be able to get out there at some point. And we're looking at ways to help deploy that product and we want to do it in the most efficient way possible. Doing it that way will allow us to kind of have a better, easier predictor to timing of needing the product to be shipped. So we're being very efficient on the front end on finalizing that development, but we're also being very efficient in how we spend money for raw materials as well.

Steve Ferzani (Equity Analyst)

Is it tough to be launching a product like this, which obviously is significantly transformational from your previous residential products in a tepid market, a temporarily tepid market?

Artis Johnson (Chief Executive Officer)

Yeah, I think as I was speaking to before, I think the finance models that are out there, if you can get locked into that, I think it helps let you rise above the general market slowdown. And I think there's opportunity as well as just general demand in that, you know, the market has shifted with the loss of the individual investment tax credit for the homeowner. It's shifted into this third-party ownership model with the financing. Our goal is to lock into that and we've had a very strong interaction with customers saying, hey, if you can bring both those, we think we can accelerate our deployment actually. So we feel very good about that piece of it and there'll be some good news in the coming days, we think on that piece. But for us, I think that understanding that those two are definitely linked, we want to make sure that we engage that way so we don't get caught in a catch-and-see, in terms of the cash market, as they call it in our industry, the cash market is definitely slowing. I do believe in my heart that it will recover itself. It's going to take a little bit more time on that side, but at the same time, we're not going to wait around for that. So we're actively engaged on that piece.

Steve Ferzani (Equity Analyst)

Got it. That's helpful. I'll take one more in in terms of some color around the customer engagements you're currently having ahead of the plant launch in Georgia.

Artis Johnson (Chief Executive Officer)

Yeah, yeah. So we're having, you know, historically speaking there was opportunities with our, with our partner POTUS Edge in the United States prior to the transformation to NeoVolta Power LLC. So we've been engaging with those clients, working with our team members from POTUS Edge on that. We've obviously engaged with Longy and what they're doing on their side of the equation. So we've been having some very deep conversations. When it comes to utility scale, we've had some natural opportunities come our way just from the announcements of the factory. So we're working with that. On the C&I side of the business, we've got some. The industry itself is clamoring for a US made product. So we've had a lot of generation of opportunities. But a bigger, even bigger piece of that equation is our partnership with Luminia. Luminia has got a programmatic way to go to market and they've got tons of opportunities. We talked about it in the report that they've got several megawatt hours of pipeline as well as backlog that they're getting in right now and we're working with them to do that. Those opportunities also will be benefit from a third party ownership model as well, which we are again engaged with Luminia on that. So we feel very confident on the C&I piece and even more confident about the utility scale. We've got opportunities right now that we're looking at for reference projects and we've got some internal numbers where we think we can hit this year and we feel very confident that we'll move all that product that we've got in there.

OPERATOR

Excellent. Thanks so much, Artis. Our next question comes from Sean Milligan with Needham and Company. Your line is now live.

Sean Milligan (Equity Analyst)

Hey Artis, thanks for taking the questions. On the utility scale side, you hit on the funding and the demand piece, but can you talk a little bit about some of the other things maybe you have to do between now and in first order, whether that's like getting some sign off on, you know, the ability to get the tax credits there, UL certification or like just bankability of those products?

Artis Johnson (Chief Executive Officer)

Yeah. So from a UL certification we're where we need to be. Have full confidence that any changes there on the plant and whatnot in the product. The product is something that, you know, we're bringing over in and of itself. We're not changing too much of the design at this point so that we feel very confident in from the, from the other piece of it. You know, when you're doing utility scale, what you look for is a few partners that are going to support you on some reference projects. At the beginning, that's what we're working towards. But we know over the next coming months that we're going to continue to have individual engineering reports. We're going to have a lot of people in the factory looking at our QA/QC and that development. And that's all on pace for us to kind of get towards the end of this year to lock in those long term supply agreements going into next year. So what we're doing is we're working with the big developers, the ones who have multi gigawatt-offtake requirements and we're working with them on what we need to do to satisfy them, not only financially, but from a bankability perspective and a QA qc. It's all part of the system and I don't want to say the game, but it is part of the process that that has to happen. And we feel very confident right now that we've got not only that reference opportunity lineup, a few of those, but also going into next year what, what it looks like from a projection on a month by month and quarterly basis of supplying product to fulfill at the minimum the 2 gigawatt hours that we have.

Sean Milligan (Equity Analyst)

Okay, that's great. And then on cell supply, can you just remind us like what you're eyeing for cell supply more specifically for next year? Like do you have access to enough non fiat cells? Are you looking in the US like kind of, what's your outlook there?

Artis Johnson (Chief Executive Officer)

Yeah, it's a combination. Right. Obviously we know going into next year there's going to be a need to change from the Chinese cell capacity, but we're looking at non Chinese options in places like Southeast Asia to support us that are fiat compliant. And we're starting to have, and we not even starting, we have been having conversations with a few of the US suppliers, some that are just US supply of the product that we need and some who are doing some conversion processes over from EV to stationary storage to look at certain meeting certain requirements in the pipeline. We look at it as and as everyone is starting to look at as the new IRS guidelines came out this year or the beginning guidelines looking at a mix of FIAC and domestic-content-capable product to meet not only the FIAC requirements, but the domestic content requirements.

Sean Milligan (Equity Analyst)

Great. Thank you.

OPERATOR

We have reached the end of the question and answer session. I'd now like to turn the call back over to to Artis Johnson for brief closing comments.

Artis Johnson (Chief Executive Officer)

Thank you. I would just like to say at the end of the day that we were very excited about where we're going. Again, want to thank Steve for all that he's done for us and all that he will do for us. It's been very important for us at this point to transition ourselves into a company that we could only imagined a year and a half ago. And at this time, I would just like to say I'm excited about where we're at and where we're going and looking forward to the coming quarters and what we're going to be coming into next year. Thank you, everyone.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.