Expion360 Inc. (XPON) experienced a significant boost in its stock value, with shares climbing by over 28% during after-hours trading. This notable increase followed the release of the company's robust third-quarter financial results, which highlighted impressive revenue growth and substantial operational advancements.
The Oregon-based manufacturer of lithium-ion batteries showcased remarkable performance for the quarter ending September 30. Net sales for the period soared to $2.4 million, marking a 72% increase compared to the same quarter in the previous year. This strong sales performance was complemented by an even more impressive surge in gross profit, which more than tripled to $0.5 million. Furthermore, the company's gross margins expanded significantly, rising from 12% to 23% year-over-year, indicating enhanced efficiency and profitability.
Expion360's financial health saw a dramatic turnaround, moving from a net loss of $8.8 million in the previous year's third quarter to a net profit of $0.7 million. This $9.5 million improvement underscores the company's successful efforts in optimizing its operations and revenue streams. Alongside these financial achievements, the company also made strategic leadership changes, appointing veteran financial executive Joseph Hammer as CEO and Board Chairman. This leadership transition, coupled with the company regaining Nasdaq listing compliance on September 17, signals a period of renewed stability and strategic direction.
The company's financial position strengthened considerably by the end of the third quarter. Cash and cash equivalents stood at $4.3 million, an increase of $3.7 million since the close of 2024. Working capital also saw a substantial rise, from $2 million to $8.5 million, while stockholders' equity grew from $2.5 million to $9 million. Despite a 63.2% decline over the past year, Expion360's stock has shown resilience, gaining 25.7% in the last six months, with a 52-week trading range between $0.60 and $5.50 and a market capitalization of $5.19 million. These metrics collectively paint a picture of a company on an upward trajectory, driven by solid financial results and strategic leadership.
Expion360's recent financial disclosures have evidently rekindled investor confidence, leading to a substantial appreciation in its stock value. The impressive growth in sales and profitability, alongside strategic organizational enhancements, positions the company for continued success in the competitive lithium-ion battery market.