Beam Global announced that preliminary unaudited revenue for the second quarter of 2026 exceeded $8.5 million, an increase of more than 20% compared to the second quarter of 2025 and more than 170% over the first quarter of 2026. The revenue growth was driven by the expansion of Beam Global's diversified portfolio of proprietary products and increasing international market penetration, including its first commercial sale in the Middle East. This performance marks a shift from reliance on a single product to revenue generation across multiple sectors and geographies.

The company's diversification strategy resulted in Q2 2026 revenues being derived from sales of drone battery systems, defense and military applications, AI-driven robotics, and wildfire detection technologies. Additional revenue streams included battery energy storage systems, off-grid electric vehicle charging infrastructure, and smart city infrastructure deployed across more than 30 cities in 5 countries. Sales also came from public lighting, telecommunications infrastructure, and traffic, safety, and transportation infrastructure.

Preliminary unaudited GAAP gross margin for the second quarter of 2026 was approximately 15% to 18%. The improvement in gross margin was primarily driven by higher revenue volumes absorbing fixed overhead, alongside ongoing cost-reduction and international efficiency initiatives. The company recently announced future savings of $2.7M in reduced lease payments over a five-year lease term following the relocation of manufacturing operations to Yuma, Arizona.

Management expects additional labor and operational savings from the relocation, which are anticipated to further improve gross and operating margins. The company's growing portfolio of proprietary technologies and expanding international operations validate its growth strategy, according to CEO Desmond Wheatley. He emphasized that the diversification efforts are working, with products now reaching active markets in the United States, Europe, and the Middle East.

Beam Global expects to file its complete unaudited financial results for the second quarter of 2026 in its Quarterly Report on Form 10-Q on or before August 14, 2026. These figures remain subject to change upon completion of quarter-end closing procedures and the review of financial statements.

Beam Global is relocating its California manufacturing and production operations to a new campus in Yuma, Arizona, to improve gross margins and reduce operating costs. The company expects rent savings of approximately $400,000 in 2026 and $2.7 million over the five-year lease term compared to its current San Diego facility. The move is part of a broader strategy to achieve higher gross profit and cash flow positive operations by leveraging Arizona's more affordable cost environment, including labor, benefits, insurance, and utilities.

The new Yuma campus comprises two adjacent industrial buildings totaling approximately 55,000 square feet of office and manufacturing space. Beam Global will occupy the first building on July 15, 2026, and the second on January 1, 2027, under lease terms extending through July 31, 2031. The company retains the right to purchase the property at a favorable fixed price during the lease term. Production will continue without interruption during the transition, and the company's corporate headquarters will remain in San Diego.

Financial and Operational Benefits

The relocation is expected to yield significant financial benefits beyond rent savings. Beam Global anticipates reduced shipping costs due to the facility's location in a manufacturing zone with favorable access to road and rail connections. The company also plans to insource several procedures currently outsourced in California, citing the state's expensive and arduous permitting and compliance environment. This vertical integration is projected to further reduce costs, risks, and complexity in the manufacturing process.

Strategic Advantages

The Yuma facility offers strategic advantages for workforce and growth. Employees will benefit from lower state income taxes and a reduced cost of living, particularly in housing. The proximity to Yuma Marine Corps Air Station will enable the company to continue sourcing veteran employees, while local data indicates improved access to manufacturing talent compared to the San Diego region. Management views this as critical for supporting anticipated sales growth.

Beam Global's existing facilities in Chicago, Illinois; Belgrade and Kraljevo, Serbia; and Abu Dhabi will continue to operate without change. The company may also realize additional financial benefits through incentive programs offered by the city of Yuma and the state of Arizona.