“Sales and Marketing Three Months Ended March 31, 2025 to 2026 2026 2025 Change (In thousands) Sales and marketing $ 27,449 $ 31,657 % (4,208 ) (13.3 )% Sales and marketing expenses decreased by $4.2 million, or 13.3%, in the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to: • a decrease in personnel-related costs of $2.3 million resulting from our workforce reduction plan designed to reduce operating expenses and align our cost structure to current market dynamics; • a decrease in travel and hospitality costs of $0.8 million; and • a decrease in depreciation and amortization of $0.5 million.”
“The megawatt hours of batteries recognized as revenues increased by approximately 154 megawatt hours, or 86.8% from approximately 177 in the three months ended March 31, 2025 to approximately 331 megawatt hours in the three months ended March 31, 2026 as a result of increase in demand.”
“Our product costs are affected by technological innovations, such as advances in semiconductor integration and new product introductions, economies of scale resulting in lower component costs, improvements in production processes and automation, the volume of products subject to import tariffs (for example, for imports from China to the U.S.) and the volume of products for which manufacturing credits are available (for example, for products made in the U.S.).”