📊 EFOI Key Takeaways
Is EFOI a Good Investment? Thesis Analysis
Energy Focus exhibits severe operational deterioration with negative operating margins (-25.8%), negative free cash flow (-596K), and declining revenue (-15% YoY), indicating fundamental business model failure. The company is consuming cash despite maintaining adequate liquidity, and negative interest coverage suggests inability to service debt from operations. Without clear evidence of turnaround execution, continued losses will erode the modest equity base and create solvency concerns.
Why Buy EFOI? Key Strengths
- Current ratio of 2.50x provides near-term liquidity cushion
- Stockholders equity of 3.1M still exceeds long-term debt of 1.1M
- Cash position of 897K provides runway for operational adjustments
EFOI Investment Risks to Consider
- Negative free cash flow of -596K indicates unsustainable cash burn at current operations
- Revenue declining 15% YoY while operating losses widen, showing deteriorating unit economics
- Negative interest coverage of -133.4x demonstrates inability to cover debt service from operations
- Gross margin of only 18.9% provides insufficient buffer to absorb operating expenses
- Operating cash flow negative at -542K indicates core business is not generating cash
Key Metrics to Watch
- Revenue stabilization and return to growth trajectory
- Path to operating profitability and positive operating cash flow
- Cash burn rate and runway until liquidity crisis
- Gross margin expansion through pricing or cost reduction
- Customer concentration and retention metrics
EFOI Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.50x current ratio provides a solid financial cushion.
EFOI Profitability Ratios
EFOI vs Default Sector
How ENERGY FOCUS, INC/DE compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EFOI Overvalued or Undervalued?
Based on fundamental analysis, ENERGY FOCUS, INC/DE has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
EFOI Balance Sheet & Liquidity
EFOI 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: ENERGY FOCUS, INC/DE's revenue has declined by 66% over the 5-year period, indicating business contraction. The most recent EPS of $-0.45 indicates the company is currently unprofitable.
EFOI Growth Metrics (YoY)
EFOI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $826.0K | -$172.0K | $-0.03 |
| Q2 2025 | $1.1M | -$231.0K | $-0.04 |
| Q1 2025 | $616.0K | -$268.0K | N/A |
| Q3 2024 | $1.2M | -$316.0K | N/A |
| Q2 2024 | $1.1M | -$418.0K | N/A |
| Q1 2024 | $833.0K | -$418.0K | N/A |
| Q3 2023 | $1.3M | -$944.0K | N/A |
| Q2 2023 | $1.1M | -$1.2M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
EFOI Capital Allocation
EFOI SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for ENERGY FOCUS, INC/DE (CIK: 0000924168)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EFOI
What is the AI rating for EFOI?
ENERGY FOCUS, INC/DE (EFOI) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are EFOI's key strengths?
Claude: Current ratio of 2.50x provides near-term liquidity cushion. Stockholders equity of 3.1M still exceeds long-term debt of 1.1M.
What are the risks of investing in EFOI?
Claude: Negative free cash flow of -596K indicates unsustainable cash burn at current operations. Revenue declining 15% YoY while operating losses widen, showing deteriorating unit economics.
What is EFOI's revenue and growth?
ENERGY FOCUS, INC/DE reported revenue of $2.6M.
Does EFOI pay dividends?
ENERGY FOCUS, INC/DE does not currently pay dividends.
Where can I find EFOI SEC filings?
Official SEC filings for ENERGY FOCUS, INC/DE (CIK: 0000924168) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EFOI's EPS?
ENERGY FOCUS, INC/DE has a diluted EPS of $-0.12.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EFOI a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, ENERGY FOCUS, INC/DE has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is EFOI stock overvalued or undervalued?
Valuation metrics for EFOI: ROE of -21.4% (sector avg: 15%), net margin of -26.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy EFOI stock in 2026?
Our dual AI analysis gives ENERGY FOCUS, INC/DE a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EFOI's free cash flow?
ENERGY FOCUS, INC/DE's operating cash flow is $-542.0K, with capital expenditures of $54.0K. FCF margin is -23.1%.
How does EFOI compare to other Default stocks?
Vs Default sector averages: Net margin -26.0% (avg: 12%), ROE -21.4% (avg: 15%), current ratio 2.50 (avg: 1.8).