Eos Energy Enterprises (NASDAQ: EOSE) released preliminary third-quarter 2026 financial results, reporting revenue of $82 million to $83 million, representing approximately 19% to 21% sequential growth and approximately 169% to 172% growth compared to the same period in 2025.

Shipments increased approximately 23% quarter over quarter, supported by production scaling at the company's second manufacturing line at its Thorn Hill facility. Line 2 contributed approximately 17% of total battery production during the quarter and exited the period with first-pass yield aligned to Line 1 performance.

GAAP gross margin came in at (55)% to (53)%, an improvement of approximately 16 to 18 percentage points compared to the second quarter of 2026, which the company attributed to higher production volumes and lower conversion costs per unit. Eos stated this marks its eighth consecutive quarter of gross margin improvement.

Total cash, including restricted cash, was approximately $344 million as of September 30, 2026, down from $364 million at the end of the second quarter. The quarter included approximately $114 million in operating cash inflows and an $87 million advance under the Department of Energy loan facility. Capital expenditures totaled approximately $35 million, primarily related to Line 2 automation.

Backlog stood at approximately $765 million, representing approximately 3.2 GWh, as of September 30, 2026. Six purchase orders were received from six different customers during the quarter. Eos noted commercial activity across defense, commercial and industrial, and data center markets.

The company now expects full-year 2026 revenue in the lower half of its $300 million to $350 million range, citing the addition of a final shift to bring Thorn Hill to 24-hour operation during the fourth quarter.

"We delivered our highest revenue to date and improved gross margin by roughly 17 points as volume begins to ramp at Thorn Hill," said Alessandro Lagi, Chief Financial Officer of Eos.

Eos will report full third-quarter results before U.S. markets open on November 5, 2026, with a conference call scheduled for 8:30 a.m. Eastern Time the same day.