XCHG Limited (NASDAQ: XCH) reported a $11.1 million net loss for the first half of FY26, widening from a $7.3 million loss in the same period last year. Revenue fell 17.5% year-over-year to $10.3 million, reflecting delayed customer procurement and project schedules.

The EV charging solutions provider attributed the revenue decline to temporary delays beginning in late 2025 amid trade policy uncertainty and evolving renewable energy regulations. Despite the lower top-line performance, management noted that order volume increased compared with the prior-year period.

Financial Performance

Revenue declined primarily due to product revenues falling to $9.5 million from $12.1 million in H1FY25. Service revenues, however, doubled to $0.8 million from $0.4 million. Cost of revenues rose 3.6% to $6.3 million, driven by higher input costs for components and raw materials, including precious metals like silver and copper.

Gross margin contracted significantly to 38.8% from 51.3%, largely due to an increased proportion of lower-margin products in the sales mix. Operating expenses rose 9.2% to $15.2 million, with general and administrative expenses surging 51.3% to $7.0 million due to higher professional service costs associated with operating as a US-listed public company. Research and development expenses fell 42.7% to $2.3 million, excluding non-recurring development expenditures incurred in the prior year.

What the Numbers Show

The divergence between rising inventory levels and declining revenue warrants attention. Inventories increased by nearly 47% to $13.8 million from $9.4 million at year-end 2025, while revenue fell 17.5%. This accumulation of stock, combined with a 44.5% drop in unit deliveries (262 units vs prior year), suggests that production or procurement may have outpaced immediate sales execution during the period of delayed project schedules.

Balance Sheet and Liquidity

Cash and cash equivalents plus restricted cash stood at $11.4 million as of June 30, 2026, down from $13.9 million at December 31, 2025. The decrease reflected cash used in operating activities, partially offset by proceeds from a registered direct offering completed in June 2026, which generated gross proceeds of approximately $4.4 million. Short-term borrowings increased to $8.1 million from $6.4 million.

Outlook and Strategic Updates

XCharge expects business performance to improve significantly in the second half of 2026, driven by scheduled deliveries under existing customer orders. Full-year 2026 revenue is projected to range between $32.9 million and $38.2 million, representing year-over-year growth of approximately 31% to 52%.

Strategic developments during the period included:

• Launch of GridOne, an all-in-one photovoltaic and energy storage system for commercial applications.
• Introduction of the new-generation C7 DC fast-charging station, offering up to 480 kW charging power.
• A multi-year framework agreement with EnBW, Germany’s largest fast-charging network operator.
• Appointment of Albina Iljasov as Co-Chief Executive Officer effective June 1, 2026.

XCharge North America ("XCharge NA"), the North American subsidiary of XCHG Limited (NASDAQ: XCH), has deployed its ultra-fast C7 charging unit to power the world's first fully electric Aircraft Rescue and Firefighting (ARFF) vehicle at Dallas Love Field Airport (DAL). The partnership with Dallas Fire-Rescue (DFR) marks a significant step in electrifying heavy-duty public safety apparatus.

The deployment centers on the Rosenbauer Panther 6x6 Electric, which DFR selected after rigorous operational standards were applied to the adoption of heavy-duty electric vehicles. XCharge NA provided the necessary infrastructure to meet these standards, ensuring the vehicle remains mission-ready for the airport's annual traffic of almost 18 million passengers.

Technical Specifications and Operational Impact

The core of this initiative is the C7AM unit, which delivers 400 kW of output through advanced liquid-cooled cables. This specification was engineered to support the long-duration, high-speed charging cycles required by the Panther. The relationship between DFR and XCharge NA emerged from DFR's existing fleet of Rosenbauer-built vehicles; when Rosenbauer sought partners to pioneer the Panther Electric, DFR identified an opportunity to shape the technology, contingent on the charging infrastructure meeting equivalent performance standards.

Chief of Dallas Fire-Rescue Justin Ball stated that the charging solution supports the introduction of next-generation airport firefighting technology while ensuring rapid and safe response capabilities. Aatish Patel, Co-Founder and President of XCharge North America, noted that transitioning frontline emergency response vehicles to electric mitigates logistical and environmental hazards associated with liquid fuel on tarmacs, creating a safer environment for ground operations and aircraft.

What the Numbers Show

The 400 kW charging capacity is critical given the operational demands of an ARFF vehicle at a major hub like DAL. Unlike standard passenger EVs, ARFF vehicles require rapid turnaround times to maintain readiness for emergency response. The use of liquid-cooled cables in the C7AM unit suggests a design focus on sustaining high power delivery over longer periods without thermal throttling, addressing the specific energy density and recharge speed requirements of heavy-duty electric apparatus.

XCharge NA specializes in high-power EV charging and battery-integrated solutions tailored to the North American electrical grid. The company positions itself as the first scalable open-access EV charging solution designed to strengthen the country's electrical grid and broader energy infrastructure. XCHG Limited maintains headquarters in Hamburg, Germany, and Austin, TX.