📊 ACFN Key Takeaways
Is Acorn Energy, Inc.. (ACFN) a Good Investment?
Acorn Energy exhibits explosive revenue growth (+9386% YoY) from an extremely small base ($2.2M), but remains unprofitable with deteriorating earnings per share (-60.6% YoY). While the company boasts an impressive 80.2% gross margin and a fortress balance sheet with minimal debt, operational losses of $129K and negative net income indicate the business has not yet achieved profitable scale, raising questions about cost structure efficiency and growth sustainability.
Acorn Energy shows strong current fundamentals, with high gross margins, positive operating leverage, solid free cash flow generation, and a very clean balance sheet supported by cash and minimal debt. However, the extreme revenue surge did not translate into comparable bottom-line growth, while diluted EPS fell sharply, which raises questions about growth quality, share count dilution, or earnings normalization. The company looks financially healthy, but the durability and quality of recent growth need confirmation before a more aggressive view is warranted.
Acorn Energy, Inc.. Key Strengths (ACFN)
- Exceptional revenue growth trajectory (+9386% YoY) demonstrates strong market demand
- Fortress balance sheet with 0.01x debt-to-equity, $4.3M cash, and robust liquidity (1.90x current ratio)
- Extraordinary gross margin of 80.2% indicates strong pricing power and favorable unit economics at the product level
- High profitability with 76.8% gross margin, 17.3% operating margin, and 21.9% net margin
- Strong financial health with $4.45M cash, very low long-term debt, 1.83x current ratio, and 0.01x debt/equity
- Positive cash generation with $2.09M operating cash flow and $2.06M free cash flow on modest capex
ACFN Stock Risks: Acorn Energy, Inc.. Investment Risks
- Persistent unprofitability with negative operating income (-$129K) and net loss (-$77K) despite massive revenue growth
- Deteriorating diluted EPS (-$0.03, down 60.6% YoY) signals worsening financial performance and potential shareholder dilution
- Micro-cap revenue base ($2.2M) with high operating expense ratio suggests unsustainable cost structure and significant execution risk to reach profitable scale
- Revenue growth quality is uncertain because reported sales surged 9386% while net income was roughly flat
- Diluted EPS fell 60.6% year over year despite positive earnings, suggesting dilution or weaker per-share economics
- Small asset and equity base may make results more volatile and more sensitive to customer concentration or one-off contracts
Key Metrics to Watch
- Operating income trend—must turn positive within 2-3 quarters to validate business model at scale
- Operating expense as percentage of revenue—assess whether overhead growth moderates relative to revenue expansion
- Free cash flow sustainability—verify positive FCF continues despite path to profitability
- Diluted share count and EPS conversion versus net income
- Revenue retention and operating cash flow consistency over the next few filings
Acorn Energy, Inc.. (ACFN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.9% FCF margin may limit capital allocation flexibility.
ACFN Profit Margin, ROE & Profitability Analysis
ACFN vs Services Sector: How Acorn Energy, Inc.. Compares
How Acorn Energy, Inc.. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Acorn Energy, Inc.. Stock Overvalued? ACFN Valuation Analysis 2026
Based on fundamental analysis, Acorn Energy, Inc.. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Acorn Energy, Inc.. Balance Sheet: ACFN Debt, Cash & Liquidity
ACFN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Acorn Energy, Inc..'s revenue has grown significantly by 69% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.51 reflects profitable operations.
ACFN Revenue Growth, EPS Growth & YoY Performance
ACFN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.2M | -$77.0K | $-0.03 |
| Q3 2025 | $2.5M | $252.0K | $0.10 |
| Q2 2025 | $2.3M | $271.0K | $0.11 |
| Q1 2025 | $2.1M | $65.0K | $0.03 |
| Q3 2024 | $2.1M | $24.0K | $0.01 |
| Q2 2024 | $2.0M | $11.0K | $0.00 |
| Q1 2024 | $1.7M | $65.0K | $-0.03 |
| Q3 2023 | $1.8M | $24.0K | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Acorn Energy, Inc.. Dividends, Buybacks & Capital Allocation
ACFN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Acorn Energy, Inc.. (CIK: 0000880984)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ACFN
What is the AI rating for ACFN?
Acorn Energy, Inc.. (ACFN) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ACFN's key strengths?
Claude: Exceptional revenue growth trajectory (+9386% YoY) demonstrates strong market demand. Fortress balance sheet with 0.01x debt-to-equity, $4.3M cash, and robust liquidity (1.90x current ratio). ChatGPT: High profitability with 76.8% gross margin, 17.3% operating margin, and 21.9% net margin. Strong financial health with $4.45M cash, very low long-term debt, 1.83x current ratio, and 0.01x debt/equity.
What are the risks of investing in ACFN?
Claude: Persistent unprofitability with negative operating income (-$129K) and net loss (-$77K) despite massive revenue growth. Deteriorating diluted EPS (-$0.03, down 60.6% YoY) signals worsening financial performance and potential shareholder dilution. ChatGPT: Revenue growth quality is uncertain because reported sales surged 9386% while net income was roughly flat. Diluted EPS fell 60.6% year over year despite positive earnings, suggesting dilution or weaker per-share economics.
What is ACFN's revenue and growth?
Acorn Energy, Inc.. reported revenue of $2.2M.
Does ACFN pay dividends?
Acorn Energy, Inc.. does not currently pay dividends.
Where can I find ACFN SEC filings?
Official SEC filings for Acorn Energy, Inc.. (CIK: 0000880984) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ACFN's EPS?
Acorn Energy, Inc.. has a diluted EPS of $-0.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ACFN's fundamental grade?
Based on our AI fundamental analysis in June 2026, Acorn Energy, Inc.. has a C grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ACFN stock overvalued or undervalued?
Valuation metrics for ACFN: ROE of -0.9% (sector avg: 16%), net margin of -3.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is ACFN's AI grade for 2026?
Our dual AI analysis gives Acorn Energy, Inc.. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ACFN's free cash flow?
Acorn Energy, Inc..'s operating cash flow is $53.0K, with capital expenditures of $33.0K. FCF margin is 0.9%.
How does ACFN compare to other Services stocks?
Vs Services sector averages: Net margin -3.5% (avg: 10%), ROE -0.9% (avg: 16%), current ratio 1.90 (avg: 1.5).