Shares dropped 6.5% after results disappointed investors due to a steep 51% revenue decline driven by order timing issues and a cautious outlook amid geopolitical disruption. Gross margin compression and ongoing net losses despite cost controls also weighed on sentiment.

• Q1 2026 revenue fell 51% year-over-year to $3.1 million, chiefly due to two large EV ARC orders deferred to Q2, seasonal softness in Europe, and reduced federal EV spending.
• Gross margin declined sharply, with an adjusted non-GAAP gross margin of 9.4% versus 20.6% a year ago, impacted by fixed overhead on lower volumes.
• Net loss improved nominally from $15.5 million to $6.9 million but included $3.5 million in noncash charges; adjusted net loss widened slightly to $3.7 million from $3 million.
• Operationally, backlog increased 50% sequentially to $9 million, and early Q2 revenue bookings already exceed Q1, signalling potential acceleration.
• Geopolitical headwinds in the Middle East dampened near-term momentum, but management highlighted ongoing strategic initiatives and first sales in new markets like Abu Dhabi.