Energy Focus, Inc. Reports Third Quarter 2026 Financial Results (Form 8-K)

Energy Focus, Inc. Reports Third Quarter 2026 Financial Results

SOLON, Ohio, November 10, 2026 -- Energy Focus, Inc. (NASDAQ:EFOI) (the "Company" or "Energy Focus"), a leader in sustainable, energy-efficient lighting and control system products for the commercial market and military maritime market ("MMM"), today announced its financial results for the third quarter ended September 30, 2026.

Third Quarter 2026 Financial Highlights:

•Net sales of $4.8 million, an increase of 481.2% compared with the third quarter of 2025, reflecting an increase of $4.3 million, or 2115.8% in commercial sales period-over-period. Sequentially, net sales increased 28.1% compared with the second quarter of 2026, primarily reflecting increases of approximately $2.2 million in commercial sales, partially offset by a decrease of $1.4 million in military sales. The net sales increase in commercial sales was primarily driven by the expansion of the Company's Uninterruptible Power Supply ("UPS") business with a new customer in Taiwan during the third quarter of 2026, including related installation and setup services.

•Gross profit margin was 20.5% in the third quarter of 2026, compared with 17.8% in the third quarter of 2025 and (6.8)% in the second quarter of 2026. The increase was primarily driven by higher commercial sales resulting from the expansion of the Company's UPS business with a new customer in Taiwan, as well as a more favorable product mix. In addition, during the third quarter of 2026, the Company received a refund of approximately $184 thousand from U.S. Customs and Border Protection ("CBP") related to customs duties previously paid, which was recorded as a reduction to cost of goods sold and positively impacted gross profit.

•Income from operations of $0.5 million in the third quarter of 2026, compared with a loss from operations of $0.2 million in the third quarter of 2025 and a loss from operations of $0.9 million in the second quarter of 2026. The increase was primarily driven by higher commercial sales resulting from the expansion of the Company's UPS business with a new customer in Taiwan.

•Net income was $0.5 million, or $0.08 per basic and diluted share of common stock, in the third quarter of 2026, compared with a net loss of $0.2 million, or $(0.03) per basic and diluted share, in the third quarter of 2025 and net loss of $0.9 million, or $(0.14) per basic and diluted share, in the second quarter of 2026.

•Cash was $3.3 million as of September 30, 2026, compared with $1.1 million and $0.9 million as of December 31, 2025 and September 30, 2025, respectively. The increase was primarily due to proceeds of $0.9 million from short-term borrowings and the timing difference between customer collections and payments to suppliers, as certain customer payments had been received while the related supplier payments remained outstanding as of September 30, 2026.

Third Quarter 2026 Financial Results:

Net sales were $4.8 million in the third quarter of 2026, an increase of $4.0 million, or 481.2%, compared with $0.8 million in the third quarter of 2025. The increase in commercial sales of $4.3 million, or 2115.8% was driven by higher commercial sales resulting from the expansion of the Company's UPS business with a new customer in Taiwan. Sequentially, net sales increased $1.1 million, or 28.1%, compared with $3.7 million in the second quarter of 2026. Setup

32000 Aurora Road, Solon, OH 44139 • www.energyfocus.com • 800.327.7877

service revenue also increased from $4 thousand in the second quarter of 2026 to $254 thousand in the third quarter of 2026, primarily attributable to installation and related services associated with the same UPS project in Taiwan.

Gross profit was $1.0 million, representing a gross margin of 20.5% of net sales in the third quarter of 2026, compared with gross profit of $0.1 million, representing a gross margin of 17.8% of net sales in the third quarter of 2025. The year-over-year increase in gross profit margin was driven mainly by higher commercial sales resulting from the expansion of the Company's UPS business with a new customer in Taiwan, as well as a more favorable product mix. In addition, during the third quarter of 2026, the Company received a refund of approximately $184 thousand from U.S. CBP related to customs duties previously paid, which was recorded as a reduction to cost of goods sold and positively impacted gross profit.

Adjusted gross margin, as defined under "Non-GAAP Measures" below, was 37.2% for the third quarter of 2026, compared with 27.2% in the third quarter of 2025. The increase was primarily attributable to higher variable margins in the third quarter of 2026. Sequentially, adjusted gross margin increased from 4.5% in the second quarter of 2026 to 37.2% in the third quarter of 2026, representing an increase of 32.7 percentage points. The increase was driven by higher commercial sales resulting from the expansion of the Company's UPS business with a new customer in Taiwan, as well as a more favorable product mix during the quarter.

Operating income was $0.5 million for the third quarter of 2026, an increase of $0.7 million compared with an operating loss of $0.2 million in the third quarter of 2025, and an increase of $1.4 million compared with an operating loss of $0.9 million in the second quarter of 2026. Net income was $0.5 million, or $0.08 per basic and diluted share of common stock in the third quarter of 2026, compared with a net loss of $0.2 million, or $(0.03) per basic and diluted share, in the third quarter of 2025 and net loss of $0.9 million, or $(0.14) per basic and diluted share, in the second quarter of 2026.

Adjusted EBITDA, as defined under "Non-GAAP Measures" below, was $0.5 million in the third quarter of 2026, compared with $(0.1) million in the third quarter of 2025 and $(0.9) million in the second quarter of 2026. The improvement was primarily driven by higher commercial sales resulting from the expansion of the Company's UPS business with a new customer in Taiwan, partially offset by inventory provisions and write-offs.

Net cash provided by operating activities was $1.5 million in the nine months ended September 30, 2026. Net loss in the nine months ended September 30, 2026 was $0.5 million, adjusted for non-cash items, including depreciation, provisions for inventory, warranty, accounts receivable reserves and working capital changes. During the nine months ended September 30, 2026, major adjustments included a $1.8 million change in accounts receivable caused by specific timing of collecting accounts receivable, which was offset by a $2.1 million change in related party accounts payable due to timing of inventory receipts and payments.

About Energy Focus

Energy Focus is a leader in energy-efficient light-emitting diode ("LED") lighting and energy infrastructure solutions. As the creator of the first flicker-free LED lamps, Energy Focus develops high quality LED lighting products and controls that provide extensive energy and maintenance savings, as well as aesthetics, safety, health and sustainability benefits over conventional lighting. Energy Focus is headquartered in Solon, Ohio. For more information, visit our website at www.energyfocus.com. The Company routinely posts important updates on its website.

32000 Aurora Road, Solon, OH 44139 • www.energyfocus.com • 800.327.7877