Factorial Energy (NASDAQ:FAC) Issues Earnings Results

Key Points

• Factorial reported Q3 EPS of $0.07, beating analyst expectations for a loss of $0.10 per share.
• The company generated its first customer revenue—about $26,000 from initial drone-cell shipments—earlier than planned. Its aerospace cells now reach 450 Wh/kg, and management expects more meaningful commercial revenue in 2027.
• Q3 gross loss was $1.8 million as early production and high material costs kept manufacturing costs above expected selling prices. Factorial lowered its 2026 operating-expense and capital-expenditure outlooks.

Factorial Energy (NASDAQ:FAC - Get Free Report) announced its earnings results on Tuesday. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.10) by $0.17, Zacks reports.

Here are the key takeaways from Factorial Energy's conference call:

• Factorial recorded its first customer revenue in Q3 2026—about $26,000 from initial drone-cell shipments—beating its prior 2027 timeline. Management expects more meaningful commercial revenue in 2027, though it has not provided a specific forecast.
• The company said its aerospace cells reached 450 Wh/kg, about 15% above the cells used in its record-setting drone flight. It is qualifying products with additional customers and sees demand potential as U.S. restrictions on certain foreign battery suppliers approach.
• Factorial is expanding manufacturing capacity and pursuing a capital-light model with industrial partners, including an MOU with SK On to evaluate production across its network. The company also said its pilot-line yield reached about 85%, while acknowledging that the figure excludes coating and that gigafactory-scale yields would need to be higher.
• Q3 gross loss was $1.8 million, largely reflecting an inventory write-down, and management said early production volumes and high material costs mean cells currently cost more to make than expected selling prices. Revenue is expected to remain modest and fluctuate until production programs ramp.
• Factorial lowered its 2026 non-GAAP operating-expense outlook to $36 million–$38 million from about $40 million and cut its capital-expenditure outlook to $10 million–$12 million from about $13 million. Some equipment payments may shift into early 2027, and the company expects higher spending in Q4 as costs move between periods.

Factorial Energy Price Performance

Shares of NASDAQ:FAC traded down $0.21 during trading on Tuesday, reaching $4.26. The company had a trading volume of 257,584 shares, compared to its average volume of 303,208. The company has a fifty day moving average price of $5.13. The stock has a market cap of $455.91 million, a PE ratio of -6.45 and a beta of 1.17. Factorial Energy has a 12 month low of $3.87 and a 12 month high of $25.33.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the company. Wall Street Zen lowered Factorial Energy from a "sell" rating to a "strong sell" rating in a research note on Sunday, August 16th. Weiss Ratings raised Factorial Energy from a "sell (e)" rating to a "sell (d)" rating in a report on Friday, September 25th. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $18.00 target price on shares of Factorial Energy in a report on Wednesday, August 12th. Finally, Oppenheimer assumed coverage on Factorial Energy in a research report on Tuesday, August 25th. They set an "outperform" rating and a $8.00 price target on the stock. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Factorial Energy has a consensus rating of "Hold" and a consensus price target of $13.00.

Factorial Energy Company Profile

Factorial Energy is a U.S.-based battery technology company developing solid-state batteries for electric vehicles and other energy-storage applications. Its technology is designed to improve energy density, safety and charging performance compared with conventional lithium-ion batteries. The company's core platform, known as FEST (Factorial Electrolyte System Technology), uses a proprietary solid electrolyte and is intended to be compatible with existing lithium-ion battery manufacturing infrastructure.

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