Shares of Eos Energy Enterprises Inc. (NASDAQ: EOSE) cratered nearly 40% on Feb. 26, 2026, closing at $6.74 after the energy storage company reported fourth-quarter results that missed Wall Street expectations, even as full-year revenue surged more than sevenfold.

The sharp decline erased much of the stock's recent gains, pushing it well below recent highs near $19.86 in late 2025. Trading volume exploded to over 150 million shares, reflecting intense investor reaction to the earnings release and forward guidance.

Eos Energy Enterprises
Eos Energy Enterprises

Eos, which develops zinc-based aqueous battery systems for long-duration energy storage, posted record Q4 revenue of $58.0 million — up 90% sequentially and roughly eight times the $7.3 million from Q4 2024. Full-year 2025 revenue reached $114.2 million, a 632% increase from $15.6 million in 2024, driven by scaled production, automation improvements and a 609% rise in customer deliveries.

Despite the explosive top-line growth, the company reported a Q4 net loss attributable to shareholders of $120.5 million. Adjusted EBITDA loss narrowed to $71.5 million from $44.6 million a year earlier, showing operational progress with margin improvements of 492 basis points year-over-year.

Analysts had expected stronger performance. Consensus estimates called for revenue around $93 million and an EPS loss of about $0.20 to $0.24, making the results a clear miss on both metrics.

The stock's plunge stemmed largely from 2026 revenue guidance of $300 million to $400 million — below some analyst projections near $471 million. Management cited ongoing operational challenges, including quality issues that reduced near-term output, though executives emphasized backlog coverage for the lower end of the range and confidence in execution improvements.

CEO Joseph Mastrangelo highlighted progress in manufacturing efficiency and the launch of Indensity technology in January 2026, positioning the company for breakthroughs in battery energy storage density. The company also secured over $240 million in new orders in Q4, pushing the backlog to approximately $701.5 million, representing about 2.8 GWh of systems.

Liquidity strengthened significantly. Cash, equivalents and restricted cash ended the year near $625 million, up $521 million from 2024, bolstered by a major capital raise earlier in the period. The company removed going-concern language from its 10-K filing after amending its Department of Energy loan guarantee in February, easing covenants until 2027 and providing greater flexibility.

The commercial pipeline stands at $23.6 billion, equivalent to about 99 GWh, underscoring demand for zinc-based alternatives to lithium-ion in utility-scale and commercial & industrial applications amid growing renewable integration and grid resilience needs.

Despite the positive momentum in bookings and backlog, gross losses persisted at $143.8 million for the year, with adjusted gross margin still negative due to scaling costs. Operating expenses rose 26% to $115.4 million, contributing to a full-year operating loss of $259.3 million.

Non-cash items drove much of the reported net loss of nearly $970 million, including changes in derivatives and warrants. Adjusted EBITDA loss improved to $219.1 million from $156.6 million in 2024.

Analysts remain divided but largely constructive on the long-term story. Consensus price targets range from $14 to $18, implying substantial upside from current levels, with highs up to $22. Ratings include a mix of Buy and Hold, reflecting optimism around the energy transition but caution on execution risks.

Recent analyst actions include Roth Capital lowering its target to $6 from $12 post-earnings, while others like B. Riley and JPMorgan have maintained or initiated coverage with targets in the $12-$16 range.

Eos continues expanding its U.S.-based manufacturing footprint, focusing on automation to drive cost reductions and quality gains. The zinc aqueous chemistry offers advantages in safety, recyclability and supply chain independence compared to lithium-based systems.

Investors now watch for progress on backlog conversion, margin expansion and potential new contracts in a market fueled by data center power demands and renewable mandates. Volatility is likely to persist as the company transitions from development to commercial scale.

Market capitalization sits around $2.18 billion to $2.2 billion post-selloff. The stock trades at elevated multiples reflecting growth expectations rather than current profitability.

As the energy storage sector evolves rapidly, Eos's ability to capitalize on its differentiated technology amid fierce competition will determine whether the recent dip proves a buying opportunity or signals deeper challenges.