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Eos Energy Enterprises Q2 2025 Financial Results July 31, 2025
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2 Forward-Looking Statements: This presentation includes “forward-looking statements” within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding our expected revenue, for the fiscal year ended December 31, 2025, our path to profitability and strategic outlook, statements regarding orders backlog, and opportunity pipeline, statement regarding our expectation that we can continue to increase product volume on our state-of-the-art manufacturing line, statements regarding our future expansion and its impact on our ability to scale up operations, statements regarding our expectation that we can continue to strengthen our overall supply chain, statements that refer to the delayed draw term loan with Cerberus, milestones thereunder and the anticipated use of proceeds, statements that refer to outlook, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are based on our management's beliefs, as well as assumptions made by, and information currently available to, them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: changes adversely affecting the business in which we are engaged; our ability to forecast trends accurately; our ability to generate cash, service indebtedness and incur additional indebtedness; our ability to raise financing in the future; risks associated with the credit agreement with Cerberus, including risks of default, dilution of outstanding common stock, consequences for failure to meet milestones and contractual lockup of shares; our customer’s ability to secure project financing; the amount of final tax credits available to our customers or to Eos pursuant to the Inflation Reduction Act; the timing and availability of future funding under the Department of Energy Loan Facility; our ability to continue to develop efficient manufacturing processes to scale and to forecast related costs and efficiencies accurately; fluctuations in our revenue and operating results; competition from existing or new competitors; our ability to convert firm order backlog and pipeline to revenue; risks associated with security breaches in our information technology systems; risks related to legal proceedings or claims; risks associated with evolving energy policies in the United States and other countries and the potential costs of regulatory compliance; risks associated with changes to the U.S. trade environment; our ability to maintain the listing of our shares of common stock on NASDAQ; our ability to grow our business and manage growth profitably, maintain relationships with customers and suppliers and retain our management and key employees; risks related to adverse changes in general economic conditions, including inflationary pressures and increased interest rates; risk from supply chain disruptions and other impacts of geopolitical conflict; changes in applicable laws or regulations; the possibility that Eos may be adversely affected by other economic, business, and/or competitive factors; other factors beyond our control; risks related to adverse changes in general economic conditions; and other risks and uncertainties indicated in the company's most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K, including those under the heading “Risk Factors” therein, and other factors identified in Eos's prior and future SEC filings with the SEC, available at www.sec.gov. Eos cautions that the foregoing list of factors is not exclusive and not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Eos does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Industry and Market Data In this presentation, we rely on and refer to information and statistics regarding market participants in the sectors in which Eos competes and other industry data. We obtained this information and statistics from third party sources, including reports by market research firms and company filings. We have not independently verified the accuracy or completeness of, and disclaim and liability with respect to, such third-party sources and the data therein that have been included in this presentation. Trademarks This presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this presentation may be listed without the TM, SM © or ® symbols, but Eos will assert, the fullest extent under applicable law, the rights of the applicable owners, if any, to these trademarks, service marks, trade names and copyrights. Znyth, Eos Znyth, and Eos Z3 are trademarks of Eos Energy Technology Holdings, LLC, wholly owned subsidiary of Eos Energy Enterprises, Inc. Key Metrics Backlog. Our backlog represents the amount of revenue that we expect to realize from existing agreements with our customers for the sale of our battery energy storage systems and performance of services. The backlog is calculated by adding new orders in the current fiscal period to the backlog as of the end of the prior fiscal period and then subtracting the shipments in the current fiscal period. If the amount of an order is modified or cancelled, we adjust orders in the current period and our backlog accordingly, but do not retroactively adjust previously published backlogs. There is no comparable US-GAAP financial measure to backlog. We believe that the backlog is a useful indicator regarding the future revenue of our Company. Pipeline. Our pipeline represents projects for which we have submitted technical proposals or non-binding quotes plus customers with letters of intent (“LOI”) or firm commitments. Pipeline does not include lead generation projects. Booked Orders. Booked orders are orders where we have legally binding agreements with a Purchase Order (“PO”) or Master Supply Agreement (“MSA”) executed by both parties. 2 Disclaimer
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3 Non – GAAP Financial Measures To provide investors with additional information regarding our financial results, we have disclosed in this earnings presentation non-GAAP financial measures, including adjusted EBITDA and adjusted earnings per share (EPS), which are non-GAAP financial measures as defined under the rules of the SEC. These non-GAAP financial measures should be considered supplemental to, not a substitute for, or superior to, the financial measures of the Company’s calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes adjusted EBITDA, and adjusted EPS are useful measures in evaluating its financial and operational performance distinct and apart from financing costs, certain non-cash expenses and non-operational expenses. We believe that non-GAAP financial information, when taken collectively may be helpful to our investors in assessing its operating performance. There are a number of limitations related to the use of these non-GAAP financial measures and their nearest GAAP equivalents. For example, the Company’s definitions of non-GAAP financial measures may differ from non-GAAP financial measures used by other companies. Below is a description of the non-GAAP financial information included herein as well as reconciliations to the most directly comparable GAAP measure. You should review the reconciliations below but not rely on any single financial measure to evaluate our business. Adjusted EBITDA is defined as earnings (net loss) attributable to Eos adjusted for interest expense, income tax, depreciation and amortization, non-cash stock-based compensation expense, change in fair value of debt and derivatives, debt extinguishment, and other non-cash or non-recurring items as determined by management which it does not believe to be indicative of its underlying business trends. Adjusted EPS is defined as GAAP net loss per common share as adjusted for non-cash stock-based compensation expense change in fair value of debt and derivatives and debt extinguishment per common share.
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4 Operating Highlights Commercial Pipeline1 $ 18.8 billion Representing ~77 GWh Orders Backlog1 $672.5 million Representing ~2.6 GWh Total Cash3 $183.2 million 218% increase vs. Q2 ‘24 Q2 Revenue2 $15.2 million Nearly equivalent to FY24 (1) Numbers shown as of 6/30/2025 (2) For the three months ended 6/30/2025 (3) Includes cash equivalents and restricted cash Modern grid requires bulk stationary energy storage Ease congestion Limit curtailment Record Q2 revenue 122% QoQ shipment growth Scaling Operations Subassembly ramp Line 2 ordered 4
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5 Commissioning Process Durable Design Eos Systems Built for Resiliency Peak performance, engineered safety, and strong initial performance < 1 hour from incident to remediation with no fire, explosion, or toxic fume risk Edison Proving Ground Strong Z3 Field Data Consistent 87- 89% RTE sub 4-hour discharge Achieved 40% discharge energy improvement from launch Abuse Testing No hazardous materials identified in facility or surrounding area 5.5 GWh discharge energy; Over 5 GWh in the field
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6 8.1 25.7 2H 24 1H 25 -597% -216% -1,119% -369% Revenue Gross Margin Adjusted EBITDA Margin 3x Revenue 4x factory shipments 381 pt Improvement 750 pt Improvement 50% lower product cost 2x operating leverage Transitioning to CM positive cubes Increased throughput drives improved utilization 4.8x increase daily throughput with full subassembly automation 2H 2025 + 2H 24 1H 25 1H 252H 24 Positioning For Scale & Profitability Continued scale to drive margin improvements 6
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7 Sub-Assembly Automation Enabling Scale & Cost-Out Driving faster throughput and improved consistency and product performance Sub - Assembly Operational E fficiency Faster throughput & repeatable, high-quality assemblies ~3.3% Energy Efficiency Bi-polar cell spacing yields increased energy per module Improved Quality Enhanced consistency and repeatability Terminal cells in production Bi-polar cells starting production Critical to FY25 Revenue Guidance of $150 -$190 Million 32 parts per 18 seconds ~ ½ second per bipolar 10 seconds per battery Consistent parts with 1.4 CpK 64% improvement in part flatness
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8 Section 45X (PTC) Sections 45Y & 48E (ITC) Stackable Credits Maintained under IRA Eos Impact Executed Bill ✓ 35 $/kWh battery cells ✓ 10 $/kWh battery module ✓ 10% electrode active materials Transferability Remains through period of credit Currently monetizing at 10% discount Indications at 4 - 6% for larger volumes ✓ Full credit through 2029 ✓ Phase out begins in 2030 2 GWh = ~$90M+ 4 GWh = ~$180M+ Credit Availability Maintained under IRA $14.3m Generated to date 1 $6.3m Sold to date 2 2023 & 2024 1) Production tax credits generated from 2023 through Q2 2025 2) 2023 and 2024 production tax credits monetized at 10% discount; 2025 tax credits to be sold One Big Beautiful Bill Act (OBBBA) Preserves Eos PTC; FEOC creates new demand for American – made LDES Credit Availability Wind and solar projects: Beginning of construction before July 2026 or Placed in service December 31, 2027 BESS explicitly excluded from these changes FEOCs Restriction Eos directly/indirectly sources, manufactures, or procures greater than 90+% of its materials, components or finished products from non - FEOC entities
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9 Orders Backlog 1 Opportunity Pipeline 1 $15.1B ~61 GWh $672.5M ~2.6 GWh Lead Generation 1 12% 21% QoQ Change $ 18.8B ~ 77 GWh 50% Standalone storage (1) Numbers shown as of 6/30/25 +$6.9M 2 new orders 9 Surging QoQ Demand Fuels Growth in American-Made LDES Commercial pipeline up $3.2 billion from prior quarter, 21% quarter over quarter growth UK Cap & Floor submission of over 10 GWh versus 5 GWh MOU Emerging Data Center demand adding large project volume to pipeline OBBBA creating new demand due to FEOC compliance and timing pressure +6.8B New adds in Q2 Market Drivers
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10 Second Quarter 2025 Financials Q2 ‘25 Q1 ‘25 % Change Q2 ‘24 % Change Revenue 15.2 10.5 46% 0.9 F Gross Profit (Loss) (31.0) (24.5) (26%) (13.2) (134%) Margin % (203%) (235%) +32 pts (1,472%) +1269 pts Operating Expenses 32.9 28.4 16% 15.8 108% Operating Profit (Loss) (63.9) (52.9) (21%) (29.0) (120%) Net Income (Loss) Attributable to Shareholders (222.9) 15.1 U (28.2) U EBITDA Gain / (Loss) (213.4) 23.8 U (18.4) U Adjusted EBITDA (Loss) (51.6) (43.2) (19%) (29.1) (77%) Margin % (339%) (413%) +75 pts (3,238%) +2899 pts ($ in millions) Highlights Q2 revenue nearly equivalent to FY24 122% increase in shipments QoQ 50% of Q2 shipments for strategic customer Opex down vs. prior quarter excluding $5.4M one-time items 22% non - cash items 1 + 75 pt AEBITDA margins with lower priced Q2 deliveries Increased volume drives operating leverage F = Favorable; U = Unfavorable (1) Represents stock-based compensation, depreciation, and amortization
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11 Sources Amount ($M) New Convertible Notes due 2030 $250 New Common Stock 86 Total $336 Uses Amount ($M) Redeem 2021 Convertible Notes $131 Cerberus Term Loan Prepayment 50 Gross Cash1 155 Total $336 June 2025 Offering Sources and Uses Investing in American-Made Energy Storage Simplified capital structure bolsters ability to rapidly meet customer demand, reduce interest expense & increase liquidity 1) Approximately $139 million in cash to the balance sheet net of purchaser discounts and prior to the deduction of expenses June 2025 Offering Benefits Department of Energy Reduced Cerberus Interest Rate 15% to 7% Significantly lowering the Company’s cost of capital Extended Cerberus Lock - Up Period by One Year June 21, 2026 Further aligning long - term shareholder interests Deferred Lender Financial Covenants Begin March 2027 Flexibility to focus on scaled growth $22.7M Second Advance Received Tranche 1 fully drawn $91M Funded to Date December 2024 & July 2025
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APPENDIX 12
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13 Appendix GAAP to Non-GAAP Reconciliations UNAUDITED RECONCILATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (LOSS) (In thousands)
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14 Appendix GAAP to Non-GAAP Reconciliations UNAUDITED RECONCILATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS) PER SHARE (In thousands, except share and per share amounts)