Beam Global 10-K Summary: Fiscal Year Ended December 31, 2025
Business Context and Reporting Period
This Form 10-K covers the fiscal year ended December 31, 2025 for Beam Global (Nasdaq: BEEM), a sustainable technology innovation company headquartered in San Diego, California. The company designs, manufactures, and sells renewable energy infrastructure products, including off-grid EV charging stations (EV ARC™), smart city street furniture, and energy storage solutions. Beam operates globally with facilities in the U.S., Serbia, and the UAE. The company is classified as a non-accelerated filer and a smaller reporting company.
Key Financial Metrics
| Metric | 2025 | 2024 |
|---|---|---|
| Total Revenue | $28.2 million | $49.3 million |
| Gross Profit | $3.5 million | $7.3 million |
| Gross Margin | 12.5% | 14.8% |
| Net Loss | $(27.0) million | $(11.3) million |
| Operating Cash Flow | $(10.5) million | $(2.2) million |
| Cash and Equivalents (Year End) | $1.0 million | $4.6 million |
| Working Capital | $8.9 million | $13.8 million |
| Backlog (Dec 31, 2025) | $6.0 million | $5.6 million |
Note: The 2025 Net Loss includes a non-cash goodwill impairment charge of $10.8 million.
Material Changes vs. Prior Period
- Revenue Decline: Revenue decreased 42.8% year-over-year, primarily driven by a near-total cessation of orders from U.S. Federal government agencies (dropping from 32% of revenue in 2024 to 4% in 2025) due to shifts in federal executive priorities and the reversal of electrification incentives.
- Customer Diversification: Despite the revenue drop, the company successfully diversified its customer base. Non-government revenue increased from 38.2% of total revenue in 2024 to 72.0% in 2025. International revenue grew to 42% of total revenue in 2025, up from 25% in 2024.
- Goodwill Impairment: The company recorded a $10.8 million non-cash goodwill impairment charge in Q1 2025. This was triggered by a decline in the company's stock price and market capitalization falling below the carrying value of the reporting unit, rather than operational failure of the acquired entities.
- Margin Pressure: Gross margin declined 2.3 percentage points to 12.5%, attributed to lower sales volume reducing the absorption of fixed overhead costs. However, adjusted gross margin (excluding non-cash depreciation and amortization) improved to 23.0% from 21.2%.
Guidance, Outlook, and Risks
Management Commentary & Strategy: Management is pivoting away from reliance on U.S. federal contracts toward commercial, municipal, and international markets. The company is leveraging its Serbian acquisitions (Amiga and Telcom) to expand manufacturing and sales in Europe, the Middle East, and Africa. New product launches include BeamSpot™ (curbside charging), BeamBike™, and BeamWell™ (disaster preparedness water treatment).
Liquidity: As of December 31, 2025, the company held $1.0 million in cash. Management believes current working capital ($8.9 million) and accounts receivable ($8.2 million) are sufficient to fund operations for the next 12 months. The company has an At-The-Market (ATM) equity facility and has raised approximately $7.8 million in proceeds under this facility in 2025.
Risks and Contingencies:
- Internal Controls: The company identified material weaknesses in internal controls over financial reporting, including ineffective IT general controls, insufficient inventory accounting controls, and inadequate segregation of duties. Remediation efforts are underway, including the implementation of a new ERP system.
- Capital Needs: There is no guarantee that the company will achieve profitability or that additional capital will be available on favorable terms if needed.
- Geopolitical & Trade: Operations in Serbia and the Middle East expose the company to foreign currency fluctuations, trade tariffs, and geopolitical instability.
- Market Adoption: Future growth remains dependent on the broader adoption of electric vehicles and the willingness of consumers and governments to invest in off-grid charging infrastructure.
Key Facts for Investor Verification
- Revenue Concentration Shift: Verify the sustainability of the shift from federal to commercial/international revenue streams and the timing of order conversions in the new pipeline.
- Cash Burn Rate: Monitor the $10.5 million cash used in operating activities against the $1.0 million cash balance to assess the runway before additional financing is required.
- Goodwill Impairment Context: Confirm that the $10.8 million impairment was driven by stock price volatility rather than a fundamental deterioration in the value of the acquired Serbian businesses.
- Internal Control Remediation: Track progress on remediation of material weaknesses in internal controls, specifically regarding inventory accounting and IT general controls.
- Backlog Composition: Note that only 11% of the $6.0 million backlog is for the core EV ARC™ product, with the majority attributed to Smart Cities and energy storage products, indicating a strategic product mix shift.