Expion360 Inc. (NASDAQ:XPON) shares are trading higher premarket on Monday as traders lean into a sharp rebound attempt after a deeply weak 12-month trend.
This month, the company reported mixed second-quarter earnings.
Earnings Snapshot
The company reported second-quarter 2026 net sales of $2.0 million, down 32% year over year, mainly due to the discontinuation of certain low-margin accessory resales to improve profitability.
Sales were also affected by elevated battery inventories at certain OEM customers.
Gross profit increased 6% year over year to $0.7 million, while gross margin expanded to 32.4% from 20.8%, driven by a better product mix and disciplined pricing across core battery products.
Net loss narrowed to $1.3 million, or $1.34 per basic and diluted share, from $1.4 million, or $4.93 per share, in the prior-year quarter.
CEO and Chairman Joseph Hammer added that Expion360 expanded its supply relationship with Forest River, adding Georgetown and Dynamax Grand Sport to existing programs with Dynamax and East to West.
The company remains on track to launch its first next-generation lithium battery in the second half of 2026, featuring VHC internal heating, SmartTalk Bluetooth connectivity and CANBus communication, with improvements aimed at manufacturing efficiency and margins.
After the quarter, Expion360 completed a 1-for-12 reverse stock split, regained compliance with Nasdaq listing requirements and announced COO and CFO leadership changes.
Critical Levels To Watch for XPON Stock
From a trend perspective, XPON is still trying to climb out of a longer-term downtrend: it’s trading 48.6% below its 200-day SMA ($8.56) and 27.7% below its 100-day SMA ($6.09). The stock is also 3.3% below its 50-day SMA ($4.55), which makes the $4.50–$4.55 area an immediate “prove it” zone for this bounce.
Near-term, the stock is acting stronger, trading 25.5% above its 20-day SMA ($3.51) and above its 20-day EMA ($3.70), which often signals that the most recent selling pressure has eased. Even so, the 20-day SMA remains below the 50-day SMA (bearish), and the death cross (50-day SMA below the 200-day SMA) that formed in December 2025 keeps the bigger-picture trend tilted lower until price can reclaim more overhead levels.
For momentum, MACD is the cleaner read right now: it’s above its signal line and the histogram is positive, which points to improving upside pressure versus the prior downswing. In plain English, when MACD is above its signal line, it suggests sellers are losing control, and buyers are starting to push back, even if the longer-term trend hasn’t fully flipped.
- Key Resistance: $4.55 — this lines up with the 50-day SMA and is a nearby technical “line in the sand” for confirming a breakout attempt
- Key Support: $3.51 — this matches the 20-day SMA, a level bulls typically want to hold during a short-term rebound
How Expion360 Makes Money in Battery Solutions
Expion360 Inc focuses on the design, assembly, manufacturing, and sale of lithium iron phosphate (LiFePO4) batteries and related accessories for RV, marine, and industrial applications.
Its products emphasize high energy density in a compact footprint, with engineering and intellectual property aimed at improving safety, quality, and performance.
The company sells through dealers, wholesalers, private-label customers, and OEM partners that ultimately reach end users.
In practice, that means the stock can be sensitive to shifts in demand for RV/marine activity and broader spending on energy storage solutions, which can amplify volatility when the chart is already stretched.
XPON Price Action: Expion360 shares were up 21.70% at $4.43 during premarket trading on Monday. The stock is trading near its 52-week low of $2.77, according to Benzinga Pro data.
Photo by Juan Roballo via shutterstock
