NEW YORK, June 3, 2026, 15:51 EDT
- Expion360 shares dropped 6.6% late Wednesday, trailing broader U.S. market trackers.
- Zacks downgraded XPON to Underperform on Tuesday, pointing to weaker sales, ongoing losses and going-concern issues.
- The battery maker is still under Nasdaq’s $1 minimum bid, with the deadline for compliance set for July 28.
Expion360 Inc. dropped 6.6% to $0.5036 late Wednesday after a new underperform rating landed on the stock and weak Q1 numbers dragged it closer to its 52-week low. Investors also have a Nasdaq listing deadline in play. Shares last changed hands at 15:32 EDT, with the company’s market cap at about $5.3 million.
XPON is still trading under Nasdaq’s $1 minimum bid rule, so the move is significant for the stock. The exchange requires shares to stay above that price or risk delisting. Expion360 said in its quarterly filing that Nasdaq has given it until July 28, 2026, to fix the price. A reverse split, which would cut share count and push up the stock price, is still on the table.
Expion360 shares came under pressure after Zacks Equity Research cut its rating to Underperform from Neutral in a note Tuesday, citing falling revenue, bigger losses, and doubts over whether the company can turn a profit for the long term. Zacks also flagged customer concentration and dependence on Asian suppliers as risks, especially with tariffs that could boost costs.
Expion360 makes lithium iron phosphate batteries, known as LiFePO4, that are used in RVs, boats and off-grid setups where weight and durability are important. Net sales dropped 24% in the first quarter to $1.6 million, down from $2.0 million a year ago. The company reported its net loss grew to $1.8 million from $1.2 million.
Chief Executive Joseph Hammer said first-quarter sales took a hit from dropping some low-margin accessory resales and from OEM customers with higher battery stock. Original equipment manufacturers, or OEMs, use parts from other firms in their own products.
The wider market was little support. The SPDR S&P 500 ETF Trust, which tracks the S&P 500, slipped 0.6%. The Invesco QQQ Trust, a stand-in for the Nasdaq-100, dropped 0.2%. The iShares Russell 2000 ETF, tied to small-caps, lost 1.4%. XPON sank more than any of them.
Dragonfly Energy Holdings, a lithium-battery and energy-storage supplier working with RV, marine, off-grid and commercial markets, dropped 10.9% to $1.96 late Wednesday. The stock traded lower, joining Expion360 under pressure.
Management is still pitching the business case. Last month, Expion360 said Forest River picked its batteries for the Georgetown and Dynamax Grand Sport motorized brands, adding to their existing RV deal. Brian Clemens, group general manager at Forest River Motorized, said Expion360 “demonstrated consistent performance” with current Forest River brands. Expion360
The filing spells out the trouble for Expion360. The company said it has never turned a profit or posted positive operating cash flow. As of March 31, it had $3.1 million in cash and an accumulated deficit of $42.6 million. Expion360 said these issues cast substantial doubt on its ability to stay in business over the next year without more progress or new financing.
Cash burn is still a key issue for the stock. Expion360 used $1.1 million in operating cash in Q1 and brought in roughly $1.2 million from selling common stock. That strategy can help support a small company, but selling more shares can dilute current holders.
Risk comes if customer inventory takes longer to clear, new product launches get delayed, or Forest River’s ramp doesn’t feed into revenue soon. If the share price falls further, raising capital could get pricier. Staying on Nasdaq could also mean a reverse split before investors see firm signs of a turnaround in the core business.
