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Expion360 Reports Second Quarter 2026 Financial and Operational Results

Gross Margin Expands to 32.4% from 20.8% in Prior-Year Period

Expanded OEM Relationship with Forest River to Include Two Additional Motorized RV Brands

REDMOND, OR –

August 7, 2026 – Expion360 Inc. (Nasdaq: XPON) (“Expion360” or the “Company”), an industry leader in lithium-ion battery power storage solutions, today reported its financial and operational results for the second quarter and six months ended June 30, 2026.

Second Quarter and First Half 2026 Financial and Operational Highlights

•Q2 2026 net sales totaled $2.0 million, down 32% from Q2 2025, and up 30% from Q1 2026.

•First half 2026 net sales of $3.6 million, down 29% from the first half of 2025.

•Q2 2026 gross profit increased 6% compared to Q2 2025, despite lower net sales.

•First half 2026 gross profit decreased 6% compared to the first half of 2025.

•Q2 2026 gross margin expanded to 32% of sales, compared to 21% in Q2 2025.

•First half 2026 gross margin of 29% of sales, compared to 22% in the first half of 2025.

•Q2 2026 net loss improved 6% compared to Q2 2025.

•First half 2026 cash used for operations of $2.6 million, compared to $1.6 million in the first half of 2025.

•Cash and cash equivalents of $1.5 million as of June 30, 2026.Working capital of $4.4 million and stockholders’ equity of $4.8 million as of June 30, 2026.

•Expanded existing supply relationship with Forest River, Inc.

•Regained compliance with Nasdaq minimum bid price requirement.

Management Commentary

“Our second quarter results reflect meaningful progress on the margin improvement initiatives we have been executing throughout 2026,” said Joseph Hammer, Chief Executive Officer and Chairman of the Board of Directors of Expion360. “Gross profit increased 6% year over year to $0.7 million even as net sales declined, and gross margin expanded more than 11 percentage points to 32.4% from 20.8% in the prior-year period. This is the direct result of our decision to discontinue the resale of certain low-margin accessories and to maintain disciplined pricing across our core battery product lines. We believe a higher-quality revenue base positions the Company for an improved earnings profile as volumes recover.

“Second quarter net sales of $2.0 million were impacted by the discontinuation of low-margin accessory resales and elevated battery inventory levels held by certain OEM customers entering the year. Encouragingly, second quarter net sales increased 30% sequentially from the first quarter, while selling, general, and administrative expenses remained essentially flat year-over-year and decreased sequentially from the first quarter.

“During the quarter, we expanded our supply relationship with Forest River, a subsidiary of Berkshire Hathaway and one of the largest RV manufacturers in North America. Following our existing programs with Forest River’s Dynamax and East to West brands, Forest River selected our UL 1973-certified lithium-ion battery systems for two additional motorized brands: Georgetown and Dynamax Grand Sport. We believe this expansion reflects continued progress in growing our OEM customer base within the motorized RV market.

“We remain on track to launch the first next-generation lithium battery in the second half of 2026. This product incorporates our VHC™ internal heating technology, SmartTalk™ Bluetooth connectivity, and CANBus communication, while also being designed to improve manufacturing efficiency and support further margin expansion.

“Subsequent to the quarter, we completed a 1-for-12 reverse stock split and regained compliance with Nasdaq’s listing rules. We also announced leadership transitions in our Chief Operating Officer and Chief Financial Officer roles and are focused on ensuring continuity as we execute on these priorities. Looking ahead, our focus remains on converting expanded OEM relationships into revenue growth, executing our next-generation product launches, sustaining margin improvements, and maintaining disciplined capital and operating expense management,” concluded Mr. Hammer.

Second Quarter 2026 Financial Summary

Net sales in the second quarter of 2026 totaled $2.0 million, a decrease of 32% from $3.0 million in the prior year period. The decrease in net sales was primarily attributable to discontinuing the resale of certain low-margin accessories in order to increase profit margins.

Gross profit in the second quarter of 2026 totaled $0.7 million, or 32.4% as a percentage of net sales, compared to gross profit of $0.6 million, or 20.8% as a percentage of net sales, in the prior year period. The increase in gross profit and gross profit as a percentage of net sales was primarily attributable to a change in product mix that excluded low-margin items, combined with the maintenance of healthy pricing models across the Company’s core battery product lines.

Selling, general, and administrative expenses were $2.0 million in

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