📊 EFOI Key Takeaways
Is Energy Focus, Inc./de (EFOI) a Good Investment?
Energy Focus faces severe operational challenges with sharply declining revenue (-26.7% YoY) and persistent unprofitability, generating only $949K in quarterly revenue while posting negative operating margins of -14.9%. The absence of capital expenditures combined with minimal free cash flow margin (7.3%) signals capital starvation and unsustainable business dynamics despite recent improvements in net loss trajectory.
Energy Focus shows weak fundamentals: revenue is declining, gross margin is thin at 18.9%, and the business remains deeply unprofitable with negative operating income, net income, and free cash flow. While the balance sheet is not heavily levered and the current ratio is acceptable, sub-1.0 quick liquidity, ongoing cash burn, and poor interest coverage suggest limited financial flexibility unless operating performance improves materially.
Energy Focus, Inc./de Key Strengths (EFOI)
- Positive free cash flow of $69K despite net losses, indicating non-cash charge mitigation and working capital management
- Conservative debt-to-equity ratio of 0.28x with total liabilities at only 33% of assets, reducing financial distress risk
- Strong current ratio of 2.85x providing adequate short-term liquidity cushion for operational continuity
- Net loss improving 163.2% YoY, demonstrating tightening of operating structure despite revenue headwinds
- Current ratio of 2.50x indicates manageable near-term balance sheet obligations
- Debt/equity of 0.36x is moderate and equity remains positive at $3.14M
- Gross profit remains positive, providing a base for recovery if scale and cost structure improve
EFOI Stock Risks: Energy Focus, Inc./de Investment Risks
- Revenue collapsing at -26.7% YoY on micro-scale operations ($949K base), with no stabilization signals or growth recovery plan evident
- Negative operating margin of -14.9% and operating losses of $141K indicate core business is economically unviable without revenue recovery
- Zero capital expenditure signals capital starvation and complete absence of growth investments, suggesting management priorities focused purely on survival
- Quick ratio of 0.95x falls below critical 1.0x threshold, indicating potential short-term liquidity stress if inventory cannot convert rapidly
- Minimal absolute cash generation ($69K FCF quarterly) insufficient to fund operations given ongoing losses, creating runway concerns
- Zero insider Form 4 filings in past 90 days suggests absence of management confidence and potential information asymmetry
- Revenue fell 15.0% year over year, indicating weak demand or poor business momentum
- Operating margin of -25.8% and net margin of -26.0% show an unsustainable earnings profile
- Negative operating cash flow and free cash flow are pressuring a small cash balance of $897K
Key Metrics to Watch
- Sequential and year-over-year revenue trend stabilization—declining trajectory is existential threat
- Operating cash flow sustainability and margin—currently positive but minimal relative to burn rate
- Operating margin recovery toward breakeven—must demonstrate path out of -14.9% structure
- Capital expenditure resumption—zero capex unsustainable for long-term competitive viability
- Quick asset conversion ratio and inventory days—critical given low quick ratio of 0.95x
- Revenue growth and gross margin trend
- Operating cash flow and ending cash balance
Energy Focus, Inc./de (EFOI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.85x current ratio provides a solid financial cushion.
EFOI Profit Margin, ROE & Profitability Analysis
EFOI vs Utilities Sector: How Energy Focus, Inc./de Compares
How Energy Focus, Inc./de compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Energy Focus, Inc./de Stock Overvalued? EFOI Valuation Analysis 2026
Based on fundamental analysis, Energy Focus, Inc./de has mixed fundamental signals relative to the Utilities 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.
Energy Focus, Inc./de Balance Sheet: EFOI Debt, Cash & Liquidity
EFOI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Energy Focus, Inc./de's revenue has declined by 71% over the 5-year period, indicating business contraction. The most recent EPS of $-0.32 indicates the company is currently unprofitable.
EFOI Revenue Growth, EPS Growth & YoY Performance
EFOI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $616.0K | -$140.0K | N/A |
| Q3 2025 | $826.0K | -$172.0K | $-0.03 |
| Q2 2025 | $1.1M | -$231.0K | $-0.04 |
| Q1 2025 | $616.0K | -$268.0K | N/A |
| Q3 2024 | $1.2M | -$316.0K | N/A |
| Q2 2024 | $1.1M | -$418.0K | N/A |
| Q1 2024 | $833.0K | -$418.0K | N/A |
| Q3 2023 | $1.3M | -$944.0K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Energy Focus, Inc./de Dividends, Buybacks & Capital Allocation
EFOI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Energy Focus, Inc./de (CIK: 0000924168)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EFOI
What is the AI rating for EFOI?
Energy Focus, Inc./de (EFOI) has a Combined AI Grade of C from Claude (C) and ChatGPT (D) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EFOI's key strengths?
Claude: Positive free cash flow of $69K despite net losses, indicating non-cash charge mitigation and working capital management. Conservative debt-to-equity ratio of 0.28x with total liabilities at only 33% of assets, reducing financial distress risk. ChatGPT: Current ratio of 2.50x indicates manageable near-term balance sheet obligations. Debt/equity of 0.36x is moderate and equity remains positive at $3.14M.
What are the risks of investing in EFOI?
Claude: Revenue collapsing at -26.7% YoY on micro-scale operations ($949K base), with no stabilization signals or growth recovery plan evident. Negative operating margin of -14.9% and operating losses of $141K indicate core business is economically unviable without revenue recovery. ChatGPT: Revenue fell 15.0% year over year, indicating weak demand or poor business momentum. Operating margin of -25.8% and net margin of -26.0% show an unsustainable earnings profile.
What is EFOI's revenue and growth?
Energy Focus, Inc./de reported revenue of $949.0K.
Does EFOI pay dividends?
Energy Focus, Inc./de does not currently pay dividends.
Where can I find EFOI SEC filings?
Official SEC filings for Energy Focus, Inc./de (CIK: 0000924168) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EFOI's EPS?
Energy Focus, Inc./de has a diluted EPS of $-0.18.
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 EFOI's fundamental grade?
Based on our AI fundamental analysis in June 2026, Energy Focus, Inc./de has a C grade with 81% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is EFOI stock overvalued or undervalued?
Valuation metrics for EFOI: ROE of -3.5% (sector avg: 10%), net margin of -14.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is EFOI's AI grade for 2026?
Our dual AI analysis gives Energy Focus, Inc./de a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EFOI's free cash flow?
Energy Focus, Inc./de's operating cash flow is $69.0K, with capital expenditures of $0.0. FCF margin is 7.3%.
How does EFOI compare to other Utilities stocks?
Vs Utilities sector averages: Net margin -14.8% (avg: 12%), ROE -3.5% (avg: 10%), current ratio 2.85 (avg: 0.8).