HAMBURG, Germany and AUSTIN, Texas, Sept. 18, 2026 (GLOBE NEWSWIRE) -- XCHG Limited ("XCharge" or the "Company") (Nasdaq: XCH), a global provider in high-power EV charging solutions, today reported its unaudited financial results for the six months ended June 30, 2026.
Mr. Yifei ("Simon") Hou, Co-Chief Executive Officer of XCharge, commented, "While customer procurement timing and changes in project schedules affected the pace of revenue and deliveries in the first half of 2026, we remained focused on executing our long-term growth strategy. We made important commercial and product progress during the period. Our long-term partnership with EnBW marked a significant commercial milestone in Europe, while the introduction of the new-generation C7 and the launch of GridOne expanded our ability to address customers' evolving charging and energy management needs. Looking ahead, we expect business activity to accelerate meaningfully in the second half of the year as we fulfill scheduled customer deliveries and advance existing customer programs and projects. We believe the commercial progress we have made, together with our expanded product portfolio, positions us well to capture the opportunities ahead."
Mr. Joel A. Gallo, Chief Financial Officer, added, "The financing completed in June provided additional liquidity to support our operations. As we prepare for higher anticipated activity in the second half, we will continue to maintain disciplined cost and working capital management, improve operational efficiency, and allocate resources to customer programs and areas with the clearest commercial potential. Our priority is to support renewed revenue growth while continuing to improve the underlying financial performance of the business."
For the Six Months Ended
June 30,
----------------------------
2026 2025
----------- ---------
(dollars in thousands)
Revenues $ 10,271 $ 12,451
Gross margin 38.8% 51.3%
Operating loss $ (11,184) $ (7,436)
Net loss $ (11,126) $ (7,338)
Loss per Class A and Class B
ordinary share--Basic and diluted $ (0.004) $ (0.003)
Outlook
The Company expects business performance to improve significantly in the second half of 2026, driven primarily by scheduled deliveries under existing customer orders. The Company expects full-year 2026 revenue to be in the range of $32.9 million to $38.2 million, representing year-over-year growth of approximately 31% to 52%. This outlook reflects management's current expectations regarding customer orders, production and delivery schedules, market conditions and other factors as of the date of this press release, and is subject to change.
Operating Highlights and Recent Announcements
-- Deliveries: Total EV charger deliveries were 262 units in the first half
of 2026, representing a decrease of 44.5% year over year. This included
253 DC fast chargers, representing a decrease of 44.3%, and 9 NZS and
GridLink chargers, representing a decrease of 50%.
-- Entered the Energy Storage Market with the Launch of GridOne. In June,
XCharge launched GridOne, an all-in-one photovoltaic and energy storage
system for commercial and industrial applications, at ees Europe, a
leading European exhibition for batteries and energy storage systems.
GridOne combines 125 kW of power conversion capacity, a 215 kWh lithium
iron phosphate battery and optional 50 kW photovoltaic maximum power
point tracking in an integrated system designed for applications
including peak shaving, solar self-consumption, EV charging load
buffering and backup power.
-- Unveiled the New Generation of the C7 DC Fast-Charging Station. In June,
XCharge presented the new generation of its C7 DC fast-charging station
at Power2Drive Europe. Offering charging power of up to 480 kW, the
upgraded C7 is designed to provide greater reliability, scalability and
serviceability across public charging, commercial fleet, retail and other
high-traffic applications.
-- Appointed Albina Iljasov as Co-Chief Executive Officer. Effective as of
June 1, 2026, XCharge appointed Albina Iljasov as Co-Chief Executive
Officer to serve alongside Simon Hou. Ms. Iljasov primarily oversees the
Company's European operations and related strategic initiatives and has
primary responsibility for its information security and cybersecurity
initiatives.
-- Entered into a Long-Term Partnership with EnBW. In March, XCharge entered
into a multi-year framework agreement with EnBW, Germany's largest
fast-charging network operator, covering the supply and joint development
of fast-charging hardware and software. The partnership followed a field
test involving ten XCharge C7 ultra-fast chargers across four EnBW
locations, which completed more than 20,000 charging sessions.
-- Entered into a Registered Direct Offering. In June, XCharge entered into
a securities purchase agreement with a global institutional investor for
the sale of 7.0 million ADSs in a registered direct offering, generating
gross proceeds of approximately $4.4 million before deducting placement
agent fees and estimated offering expenses. The Company intends to use
the net proceeds for working capital and general corporate purposes.
-- Implemented an ADS Ratio Change. Effective as of August 21, 2026, XCharge
changed the ratio of its ADSs to its Class A ordinary shares from one ADS
representing 40 Class A ordinary shares to one ADS representing 800 Class
A ordinary shares. The ADS ratio change had the same effect as a
one-for-20 reverse ADS split for ADS holders. The Company's Class A
ordinary shares were not affected, and its ADSs continue to trade on the
Nasdaq Global Market under the symbol "XCH."
-- Change in Management Position. Effective as of September 7, 2026, Aatish
V Patel transitioned from President of the Company to General Manager of
XCharge Energy USA Inc., the Company's wholly-owned U.S. subsidiary, to
support the continued expansion of its U.S. operations.
-- Regained Compliance with Nasdaq Minimum Bid Price Requirement. On
September 8, 2026, the Company received confirmation from Nasdaq that it
had regained compliance with the Minimum Bid Price Requirement and that
the matter is now closed.
Financial Summary for the First Half of 2026
Unless otherwise noted, the following figures refer to the first half of 2026 and comparisons are with the first half of 2025.
-- Revenues were $10.3 million, representing a decrease of 17.5% from $12.5
million. Product revenues were $9.5 million, compared with $12.1 million,
while service revenues increased to $0.8 million from $0.4 million. The
decrease in revenue was primarily attributable to the timing of customer
procurement decisions and project deliveries, including temporary delays
beginning in late 2025 amid trade policy uncertainty and evolving
renewable energy regulations. Despite the lower level of recognized
revenue in the first half, order volume increased compared with the
prior-year period, supporting the Company's expectation for significantly
higher revenue in the second half of 2026.
-- Cost of revenues was $6.3 million, up 3.6% from $6.1 million, primarily
reflecting higher input costs for certain components and raw materials
and foreign currency exchange effects.
-- Gross margin was 38.8%, compared with 51.3%. The decrease was primarily
due to the increased proportion of lower-margin products in the sales
mix. In addition, the rise in prices of precious metals such as silver
and copper also increased the purchase cost of spare parts and led to an
increase in cost of sales and a decrease in gross profit. The Company
continues to pursue pricing, sourcing and operating initiatives intended
to mitigate these cost pressures.
-- Operating expenses were $15.2 million, up 9.2% from $13.9 million.
-- Selling and marketing expenses were $5.8 million, representing an
increase of 12.7% from $5.2 million. The increase was primarily
due to higher marketing expenses associated with the introduction
of the Company's new GridOne product, which was unveiled earlier
this year.
-- Research and development expenses were $2.3 million, representing
a decrease of 42.7% from $4.1 million. The decrease primarily
reflected the non-recurrence of certain development expenditures
incurred in the first half of 2025, including third-party
system-development costs associated with new product initiatives.
The Company continued to invest in the development and enhancement
of its charging and energy solutions during the first half of
2026.
-- General and administrative expenses were $7.0 million,
representing an increase of 51.3% from $4.6 million. The increase
primarily reflected higher professional service expenses,
including legal, audit and compliance costs, as well as other
costs associated with operating as a U.S.-listed public company,
and the shift from foreign currency exchange gain to loss. The
increase was partially offset by lower share-based compensation.
-- Operating loss was $11.2 million, compared with an operating loss of $7.4
million, primarily reflecting lower gross profit resulting from lower
revenue and gross margin, together with higher general and administrative
and selling and marketing expenses, partially offset by lower research
and development expenses.
-- Net loss was $11.1 million, compared with a net loss of $7.3 million.
Non-GAAP net loss, which excludes the effect of share-based compensation
and changes in fair value of financial instruments, was $10.4 million,
compared with a non-GAAP net loss of $4.6 million.
-- Basic and diluted loss per Class A and Class B ordinary share was $0.004,
compared with a loss per share of $0.003. Non-GAAP basic and diluted loss
per Class A and Class B ordinary share, which excludes the effect of
share-based compensation and changes in fair value of financial
instruments, was $0.003, compared with a non-GAAP loss per share of
$0.002.
-- Cash and cash equivalents plus restricted cash were $11.4 million as of
June 30, 2026, compared with $13.9 million as of December 31, 2025. The
decrease primarily reflected cash used in operating activities, partially
offset by financing activities, including proceeds from the registered
direct offering completed in June 2026. The Company continues to actively
manage liquidity and working capital while supporting anticipated higher
business activity in the second half of the year.
Use of Non-GAAP Financial Measures
We consider non-GAAP net loss and non-GAAP basic and diluted loss per Class A and Class B ordinary share as supplemental measures to review and assess our operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of these non-GAAP measures facilitates investors' assessment of our operating performance.
These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expense that affect our operations. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. We compensate for these limitations by reconciling these non-GAAP financial measures to the nearest U.S. GAAP performance measures, all of which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.
We define non-GAAP net loss as net loss excluding share-based compensation and changes in fair value of financial instruments. We define non-GAAP basic and diluted loss per Class A and Class B ordinary share as non-GAAP net loss divided by the weighted average number of Class A and Class B ordinary shares outstanding during the period. For more information on these non-GAAP financial measures, please see the tables captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this release.
Exchange Rate Information
This release contains translations of certain Euro and Renminbi amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, translations were made at EUR0.8759 to $1.00 and RMB6.7851 to $1.00, based on the exchange rates as of June 30, 2026 published in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that any amounts could have been, or could be, converted into another currency, as the case may be, at any particular rate or at all.
Safe Harbor Statement
This press release contains forward-looking statements. Such statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "objective," "target," "aim," "estimate," "intend," "plan, " "believe," "potential," "continue," "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the United States Securities and Exchange Commission.
All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.
About XCharge
XCharge (Nasdaq: XCH) is a global provider in high-power electric vehicle charging solutions. The Company has headquarters in Hamburg, Germany and Austin, TX, working with a globally networked team to drive innovation in the field of energy and help its customers achieve long-term success.
For investor and media inquiries, please contact:
XCHG Limited
IR Department
Email: ir@xcharge.com
Water Tower Research Asia
Feifei Shen, CFA
Tel: +86 134-6656-6136
Email: feifei@watertowerresearch.com
XCHG LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31, As of June 30,
------------------- --------------
2025 2026
------------------- --------------
US$ US$
ASSETS
Current assets
Cash and cash equivalents 11,385,381 8,855,514
Restricted cash 2,522,898 2,557,464
Accounts receivable, net 7,005,396 6,452,834
Amounts due from related
parties 2,517,833 1,734,333
Inventories, net 9,432,929 13,832,492
Prepayments and other
current assets 4,246,959 3,023,022
------------------ --------------
Total current assets 37,111,396 36,455,659
------------------ --------------
Non-current assets
Property and equipment, net 1,972,396 2,008,436
Long-term investments 106,704 110,536
Operating lease right-of-use
assets, net 1,766,194 1,524,016
Other non-current assets 1,711,830 1,101,478
------------------ --------------
Total non-current assets 5,557,124 4,744,466
------------------ --------------
Total assets 42,668,520 41,200,125
================== ==============
LIABILITIES
Current liabilities
Short-term borrowings 6,402,231 8,105,997
Accounts payable 6,727,086 8,320,524
Contract liabilities 4,074,505 6,510,896
Operating lease
liabilities--current 592,989 468,274
Financial liability 63,593 24,192
Amounts due to a related
party 164,046 159,996
Accrued expenses and other
current liabilities 5,513,404 6,068,318
------------------ --------------
Total current liabilities 23,537,854 29,658,197
------------------ --------------
Non-current liabilities
Operating lease
liabilities--non-current 1,175,413 1,075,871
Other non-current
liabilities 88,898 28,089
------------------ --------------
Total non-current
liabilities 1,264,311 1,103,960
------------------ --------------
Total liabilities 24,802,165 30,762,157
================== ==============
COMMITMENTS AND
CONTINGENCIES
SHAREHOLDERS' EQUITY
Class A ordinary shares
(USD0.00001 par value;
4,258,745,553 shares
authorized; 2,160,310,915
and 2,799,892,915 shares
issued, and 2,160,310,915
and 2,459,892,915 shares
outstanding, as of December
31, 2025 and June 30, 2026,
respectively; the shares
issued as of June 30, 2026
include 340,000,000
escrowed reserve shares
under the ATM Program.) 21,603 27,999
Class B ordinary shares
(USD0.00001 par value;
741,254,447 shares
authorized, issued and
outstanding as of December
31, 2025 and June 30,
2026) 7,413 7,413
Additional paid - in capital 100,820,027 105,035,759
Accumulated other
comprehensive income 1,893,379 1,369,044
Accumulated deficit (84,876,067) (96,002,247)
------------------ --------------
Total shareholders' equity 17,866,355 10,437,968
================== ==============
Total liabilities and
shareholders' equity 42,668,520 41,200,125
================== ==============
XCHG LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
For the Six Months Ended June 30,
--------------------------------------
2025 2026
----------------- ---------------
US$ US$
Revenues (including sales to
a related party of
US$753,827 and US$226 for
the six months ended June
30, 2025 and 2026,
respectively) 12,451,126 10,270,989
Cost of revenues (including
purchase from a related
party of US$147,611 and
US$526 for the six months
ended June 30, 2025 and
2026, respectively) (6,069,788) (6,290,301)
Gross profit 6,381,338 3,980,688
---------------- ---------------
Operating expenses:
Selling and marketing
expenses (5,186,741) (5,843,734)
Research and development
expenses (4,084,917) (2,339,474)
General and administrative
expenses (4,619,965) (6,989,407)
---------------- ---------------
Total operating expenses (13,891,623) (15,172,615)
---------------- ---------------
Government grants 73,825 8,181
---------------- ---------------
Operating loss (7,436,460) (11,183,746)
---------------- ---------------
Changes in fair value of
financial instruments 106,289 41,217
Interest expenses (75,149) (64,515)
Interest income 67,190 80,864
---------------- ---------------
Loss before income taxes (7,338,130) (11,126,180)
Income tax expense -- --
---------------- ---------------
Net loss (7,338,130) (11,126,180)
---------------- ---------------
Other comprehensive income
(loss)
Foreign currency translation
adjustment, net of nil
income taxes (52,090) (524,335)
---------------- ---------------
Comprehensive loss (7,390,220) (11,650,515)
================ ===============
Loss per Class A and Class B
ordinary share--Basic and
diluted (0.003) (0.004)
Weighted average number of
Class A and Class B
ordinary shares -- Basic
and diluted 2,544,609,189 3,128,519,848
XCHG LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
For the Six Months Ended June 30,
------------------------------------
2025 2026
------------------ ---------------
US$ US$
Cash flows from operating
activities:
Net cash used in operating
activities (6,815,957) (7,470,588)
Cash flows from investing
activities:
Cash paid for purchase of
property and equipment and
intangible assets (311,025) (273,477)
Loans provided to a third
party -- (29,144)
----------------- ---------------
Net cash used in investing
activities (311,025) (302,621)
----------------- ---------------
Cash flows from financing
activities:
Proceeds from short-term
bank borrowings 1,391,999 4,371,674
Repayment of short-term bank
borrowings (3,945,105) (2,914,449)
Proceeds from sale of
ordinary shares through
follow-up offering, net of
placement agent fees and
other reimbursable expenses
$480,312 -- 3,894,688
Payments of follow-up
offering cost (956,248) (230,389)
Net cash (used in) provided
by financing activities (3,509,354) 5,121,524
----------------- ---------------
Effect of foreign currency
exchange rate changes on
cash and cash equivalents
and restricted cash 199,983 156,384
----------------- ---------------
Net increase (decrease) in
cash, cash equivalents and
restricted cash (10,436,353) (2,495,301)
----------------- ---------------
Cash, cash equivalents and
restricted cash at the
beginning of the period 26,773,902 13,908,279
----------------- ---------------
Cash, cash equivalents and
restricted cash at the end
of the period 16,337,549 11,412,978
----------------- ---------------
Supplemental cash flow
information:
Interest paid 73,886 63,655
Non-cash investing and
financing activities:
Accrual of ATM program cost -- 5,385
Offering costs charged
against additional paid-in
capital -- 894,379
Operating right-of-use
assets obtained in
exchange for operating
lease liabilities 874,106 --
Property and equipment
transferred from
inventories 874,663 --
ROU assets disposed as
reduction of operating
lease liabilities due to
lease termination -- 26,029
Reconciliation of the
amount for cash, cash
equivalents and restricted
cash:
Cash and cash equivalents 16,337,549 8,855,514
Restricted cash -- 2,557,464
Total cash, cash equivalents
and restricted cash 16,337,549 11,412,978
XCHG LIMITED
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
For the Six Months Ended
June 30,
---------------------------
2025 2026
------------ ------------
US$ US$
Net loss (7,338,130) (11,126,180)
Add: share-based compensation 2,843,701 741,506
Less: changes in fair value of
financial instruments 106,289 41,217
----------- ------------
Non-GAAP net loss (4,600,718) (10,425,891)
Loss per Class A and Class B ordinary
share--Basic and diluted (0.003) (0.004)
Add: share-based compensation 0.001 0.001
Less: changes in fair value of
financial instruments -- --
------------ ------------
Non-GAAP Loss per Class A and Class B
ordinary share -- Basic and diluted (0.002) (0.003)