Key Highlights

  • Second-quarter Revenue reached $68.8 million, up 351% year over year, with a record order Backlog of $807 million, up 25% sequentially.
  • Gross Margin improved by 132 percentage points year over year, part of a broader trend toward narrowing the gap to profitability.
  • The company announced an August 24 software Partnership with WATTMORE pairing its platform with Eos's Z3 zinc-based battery technology for energy storage deployments.
  • Eos closed a rights offering in late July that raised approximately $37.7 million, part of a broader roughly $263 million Capital package supporting its Frontier Power USA joint venture.

Eos Energy Enterprises (NASDAQ:EOSE), a maker of zinc-based, non-lithium battery storage systems, reported record second-quarter revenue and backlog growth as it continues to expand its commercial and defense partnerships.

The company makes battery storage systems aimed at long-duration, stationary grid and industrial applications, a niche it argues is safer and less supply-chain-constrained than lithium-ion alternatives.

Eos has been active on multiple fronts recently: it closed a rights offering in late July, landed a defense-related storage contract tied to the Golden Dome for America initiative, and announced a software partnership with WATTMORE.

Second-Quarter Results

Eos reported second-quarter 2026 revenue of approximately $68.8 million, up 351% year over year, alongside a full-year 2026 revenue guidance range tightened to $300 million to $350 million and a record order backlog of $807 million, up 25% sequentially.

Gross margin improved by 132 percentage points year over year, though it remained negative, reflecting the company's continued work toward Manufacturing cost efficiency as it scales production.

The WATTMORE Partnership and Capital Activity

On August 24, Eos announced a strategic partnership with WATTMORE, pairing WATTMORE's software platform with Eos's Z3 zinc-based battery technology for energy storage deployments, extending the company's commercial reach into software-integrated storage solutions.

In July, Eos also completed a rights offering that raised approximately $37.7 million, part of a broader roughly $263 million capital package supporting its Frontier Power USA joint venture, and separately disclosed a contract tied to a U.S. Department of War initiative to deploy Z3 storage systems built with roughly 91% domestic content.

Financial Position

The company reported a net loss of $275.7 million for the quarter, driven largely by non-cash Liability and warrant-related adjustments rather than core operations. Eos has been actively raising capital throughout the summer, including the rights offering, Frontier Power USA Equity commitments from Hudson Bay and Cerberus, and an additional $125 million commitment announced in late June.

These capital raises have bolstered Liquidity to support the company's growth plans, including new warrants now trading on Nasdaq under the ticker EOSEW.

The Growth Story

The bull case for Eos rests on the company's rapidly growing backlog, improving manufacturing yields, and a widening set of partnerships spanning commercial energy storage, defense applications, and now software integration through the WATTMORE deal.

The company's backlog of $807 million represents contracted but not yet delivered business, meaning the pace of backlog-to-revenue conversion will be a critical Factor in translating this pipeline into recognized financial results.

What Comes Next

Investors tracking Eos Energy should watch third-quarter Earnings for further evidence that gross margins are continuing to narrow toward breakeven, and execution on the Frontier Power USA joint venture to see whether committed equity translates into deployed projects and revenue.

Progress on the Golden Dome defense-related contract and any additional government or commercial orders, along with backlog conversion given the $807 million figure, are all worth monitoring closely.

Record Growth Backed by Expanding Partnerships

Eos Energy's record revenue growth, expanding backlog, and new partnerships in both commercial and defense storage markets reflect a company scaling its zinc-based battery technology across multiple end markets simultaneously.

Whether Eos can continue converting its growing backlog into recognized revenue while narrowing its path to profitability will likely depend on execution over the next several quarters.