Summary of HYLN Q2 2026 Earnings Call

1Key Financial Results and Metrics

Revenue: Q2 revenue was $4.9 million, up from $1.5 million in Q2 2025 and $2.8 million in Q1 2026. Year-to-date revenue reached $7.8 million, significantly higher than $2 million in the same period last year.

Gross Profit: Gross profit for Q2 was $366,000, with a cost of revenue of $4.6 million.

Operating Expenses: Total operating expenses were $15.7 million, roughly flat year-over-year. R&D expenses decreased to $9.5 million from $10.1 million.

Net Loss: The net loss for Q2 was $13.9 million, slightly higher than the $13.4 million loss in Q2 2025. Year-to-date net loss was $25.7 million, an improvement from $30.7 million in the first half of 2025.

Cash Position: Ended Q2 with $132 million in cash and investments. Expect to finish the year with $115-$120 million, reflecting improved cash outlook due to higher revenue and lower capital spending.

2Strategic Updates and Business Highlights

Military Contracts: Awarded a $41.7 million contract with the US Navy, the largest in company history, and anticipate additional military contracts totaling near $50 million for 2026.

Product Development: Progressing towards initial customer deployments with enhancements to the KARNO power module, including upgrades for airflow, cooling, and software.

Additive Manufacturing: Identified potential improvements that could triple printing speed and throughput. Current capacity is estimated at 15 megawatts per year with existing printers.

Customer Demand: Strong interest from data centers, with 750 non-binding Letters of Intent (LOIs) representing approximately $400 million in potential revenue.

3Forward Guidance and Outlook

Revenue Guidance: Raised full-year revenue guidance from $10 million to approximately $15 million, a 50% increase.

Future Deployments: Expect to complete early adopter units and initiate customer site deployments in the next quarter, with a focus on military and data center opportunities.

Long-term Outlook: Anticipate ramping up production and commercialization of the 200-kilowatt power module in 2027, with multi-megawatt systems targeted for 2028.

4Bad News, Challenges, or Points of Concern

Net Loss: Continued net losses raise concerns about profitability and cash burn, although improvements were noted.

Dependence on Military Contracts: Revenue growth is heavily reliant on military contracts, which may present risks if future contracts do not materialize as expected.

Supply Chain Risks: Potential delays in acquiring additional printers could impact production scaling, despite assurances of manageable lead times.

5Notable Q&A Insights

Printer Capacity Clarification: Current capacity of 30 printers is confirmed at 15 megawatts per year, with plans to increase production capacity as new printers are acquired.

Data Center Engagements: Significant interest from data centers is noted, with ongoing discussions about scaling production to meet demand.

Capital Expenditure Plans: While capital spending is expected to remain low in 2026, there are plans to restart printer acquisitions in 2027, contingent on production scaling.

Revenue Recognition: Early units deployed to customer sites will not recognize revenue until commercialization, raising questions about short-term revenue visibility. Overall, Hyliion Holdings demonstrated strong progress in Q2 2026, with significant military contract wins and positive developments in product and manufacturing capabilities, while also facing challenges related to ongoing net losses and reliance on military contracts for revenue growth.