Remote Monitoring and Control Provider Acorn’s Q1’25 EPS Rose to $0.19 vs. $0.03 on 45% Higher Revenue; Investor Call Today at 11am ET

About this update from Acorn Energy, Inc.

WILMINGTON, Del., May 08, 2025 (GLOBE NEWSWIRE) -- Acorn Energy, Inc. (OTCQB: ACFN), a provider of remote monitoring and control solutions for backup generators, gas pipelines and other critical infrastructure assets, announced results for its first quarter ended March 31, 2025 (Q1’25). Acorn will hold an investor call today at 11am ET (details below). (1) All of Acorn’s revenue is derived from its 99%-owned operating subsidiary, OmniMetrix™, LLC. CEO Commentary Jan Loeb, Acorn’s CEO, said, “Our results continue to benefit from a large contract to provide monitoring equipment and an initial year of monitoring services for 5,000 to 10,000 cell tower backup generators. The rollout is progressing well, and we expect to complete hardware deliveries in 2025. The contract contributed $945,000 in revenue in Q1’25 and $2.6M since inception in Q3’24, primarily hardware revenue related to monitor shipments. “Our selection by one of the nation’s largest cell phone providers confirms OmniMetrix’s technology and service leadership. We have been working hard to make the rollout a success and believe we are well-positioned for future opportunities with this customer as well as others with large scale remote monitoring needs. “We also remain focused on a variety of initiatives to support our objective of achieving long-term revenue growth of 20% or more. Our sales team is focused on larger commercial and industrial customer opportunities, while at the same time we are working to support growth opportunities in the residential market through our network of approximately 600 generator dealers in North America. Additionally, we are working to build strategic relationships with power generator and other key original equipment manufacturers to bundle our respective solutions to greatly enhance their customer offering. We also remain active in our pursuit of strategic M&A opportunities that align with our business model and can be meaningfully accretive. “We continue to see a variety of factors that we expect to create greater commercial and consumer demand for backup power generation and remote monitoring and control in the coming years. These include more frequent severe weather incidents that can disrupt electricity access over long periods—highlighting the urgent need for reliable backup power solutions. Added to this is aging grid infrastructure and rising peak demand that are straining electrical grids that are already struggling to support the expansion of energy-intensive technologies like cloud computing, quantum computing, artificial intelligence, and the expanding demand for data. Given these scenarios, we expect continued growth in the currently modest penetration of standby power systems across commercial, industrial and residential applications. To meet this growing need, OmniMetrix is dedicated to advancing and developing cutting-edge, industry-leading solutions that deliver high-ROI value to our customers. I am grateful to the OmniMetrix team for their hard work and dedication to delivering a best-in-class experience to our customers each day. “We have built a compelling business model at OmniMetrix, with high-margin, annually-recurring monitoring revenue, and growth supported by hardware sales. Our Q1’25 results reflect our strong operating leverage, with 54% of incremental revenue dropping to the operating income line. Q1’25 revenue rose $966,000 over Q1’24 and delivered $526,000 in additional operating income. Driven by cash flow from operations, our cash position improved by $265,000 to $2.6M in Q1’25 from $2.3M at year-end 2024, and our Q1’25 working capital increased to $1.7M from $1.1M at year-end. “Finally, I did want to confirm that we have initiated discussions with Nasdaq regarding our intention to apply to list our common stock on the Nasdaq Capital Market exchange. We believe that we currently meet all the requirements for uplisting and we have submitted our initial application, commencing what we expect to be a process that typically takes a couple of months. In conjunction with the Nasdaq uplisting, we are also considering a change in our corporate name to better reflect our operational focus.” Financial Review Q1’25 revenue rose 45% vs. Q1’24 to $3,098,000, driven by a 78% increase in hardware revenue and a 15% increase in monitoring revenue. Hardware growth was primarily driven by $876,000 of TrueGuard generator monitor equipment revenue under the cell phone provider contract. Monitoring revenue, which is amortized over the term of the service period (typically one year), grew 15% in Q1’25, reflecting continued growth in the number of monitored end points. Driven by revenue expansion, Q1’25 gross profit grew 46% vs. Q1’24 to $2,326,000, reflecting a gross margin of approximately 75% in both periods. Operating expenses increased 14% to $1,722,000 in Q1’25 vs. $1,513,000 in Q1’24, due to a $156,000 increase in selling, general and administrative (SG&A) expense and a $53,000 increase in research and development (R&D) expense. The increase in SG&A was due to higher corporate audit and tax fees, as well as increased operating expenses for compensation, commissions and software/technology expenses. The increase in R&D expense reflected an increases in salaries, including the hiring of a new senior-level engineer in November 2024, and third-party expenses for continued development of next-generation monitoring products and exploration of new product lines. Q1’25 total operating expenses decreased to 56% of revenue from 71% in Q1’24, due to operating efficiencies. Reflecting revenue growth and operating leverage, Q1’25 net income attributable to Acorn stockholders improved to $464,000, or $0.19 per diluted share, up from $65,000, or $0.03 per diluted share, in Q1’24. Note that when comparing Acorn’s EPS to prior-year quarters that the Company now reports on a fully-taxable basis, although its earnings are largely shielded from federal taxes on a cash basis due to its substantial NOLs. In Q1’25 Federal income tax expense was $131,000, or $0.05 per share. Also, in what is typically a seasonal low-revenue quarter, the Company incurred an increase of $67,000, or $0.03 per share, in audit and tax professional fees in Q1’25, related to the work performed to derive the partial release of income tax valuation allowance against its deferred tax assets as of December 31, 2024. Liquidity and Cash Flow Excluding deferred revenue of $3,394,000 and deferred cost of goods sold of $316,000, which have no impact on future cash flow, net working capital improved to $4,809,000 at March 31, 2025 from $4,230,000 at December 31, 2024. This included cash of $2,591,000 at March 31, 2025 versus $2,326,000 at year-end 2024. In Q1’25 Acorn generated $271,000 of cash from operating activities and used $6,000 for investments in equipment, for a net increase in cash of $265,000. Investor Call Details About Acorn ( www.acornenergy.com ) and OmniMetrix™  ( www.omnimetrix.net ) Acorn Energy, Inc. owns a 99% equity stake in OmniMetrix, a pioneer and leader in Internet of Things (IoT) wireless remote monitoring and control solutions for stand-by power generators, gas pipelines, air compressors and other industrial equipment. OmniMetrix serves tens of thousands of commercial and residential customers, including over 25 Fortune/Global 500 companies, supporting cell towers, manufacturing plants, medical facilities, data centers, retail stores, public transportation systems, energy distribution and federal, state and municipal government facilities and residential backup generators. OmniMetrix’s proven, cost-effective solutions make critical systems more reliable and also enable automated “demand response” electric grid support via enrolled backup generators. Safe Harbor Statement This press release includes forward-looking statements, which are subject to risks and uncertainties. There are no assurances that Acorn will be successful in growing its business, increasing its revenue, increasing profitability, or maximizing the value of its operating company and other assets. The Company’s plan to uplist to the Nasdaq Capital Market is subject to compliance by the Company with the listing requirements of the Nasdaq Stock Market. A complete discussion of the risks and uncertainties that may affect Acorn Energy’s business, including the business of its subsidiary, is included in “Risk Factors” in the Company’s most recent Annual Report on Form 10-K as filed by the Company with the Securities and Exchange Commission. Investor Relations Contacts Catalyst IR William Jones, 267-987-2082 David Collins, 212-924-9800 [email protected]

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