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what it is
Applied Energetics builds laser and high-voltage systems for defense and industrial uses, then tries to turn lab physics into revenue.
how it gets paid
Last year Applied Energetics made $2M in revenue. high-voltage solutions was the main engine at $0.7M, or 35% of sales.
what just happened
Latest filed quarter is Q3 2025 (ended Sep 30, 2025): revenue ~$109K and net loss $(0.02)/share. Nine months 2025 revenue ~$389K — do not confuse YTD revenue with a single quarter.
At a glance
B balance sheet — gets the job done, barely
micro-revenue — numbers swing quarter to quarter
-$0.04 fy2024 eps est
$2M fy2024 rev est
n/a operating margin
xvary composite: 51/100 — below average
What they do
Applied Energetics builds laser and high-voltage systems for defense and industrial uses, then tries to turn lab physics into revenue.
This company has 21 employees and 28 patents tied to laser-guided energy and ultrashort pulse systems, based on company profile and third-party coverage. If you want this exact mix of directed-energy and plasma-channel work, your list of alternatives is short. The real edge is not scale yet; it is being early enough to win contracts like the $1.99 million Navy award while bigger players watch from a safer distance.
How they make money
$2M
annual revenue
high-voltage solutions
$0.7M
flat
ultrashort pulse optical systems
$0.5M
up
laser guided energy programs
$0.4M
up
plasma channel applications
$0.2M
flat
counter-IED and other contracts
$0.2M
dn
The products that matter
directed energy defense systems
UltraShort Pulse Laser systems
28 patents · $1.15M trailing revenue
this is the headline technology. it targets a projected $10.1B global market by 2026, but the company generated only $1.15M in trailing revenue. that gap is the entire bull case and the entire risk case.
28 patents
precision energy delivery
Laser Guided Energy
~$109K Q3 2025 revenue (filed)
this is the core commercial pitch, but the latest filed quarter produced only ~$109K of revenue against ~$4.0M net loss. the science may be real. the business still needs proof.
commercialization bet
Key numbers
n/a
operating margin
Prior margin KPI failed sanity check — verify in filings. Operating margin → profit after running the business → at -378.2%, each $1 of sales is buried under nearly $3.78 of operating loss.
$2M
annual revenue
Revenue → money coming in → a $286 million market cap against $2 million of sales means you are paying for hope, not scale.
$1M
long-term debt
Long-term debt → money due years from now → only $1 million and 0% of capital means debt is not the problem; funding future losses is.
57.6%
gross margin
Gross margin → money left after direct costs → 57.6% says the product can price well, but overhead is still crushing the business.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
- long-term debt $1M (0% of capital)
Numeric footnotes above trace to the linked 10-Q.
Total return vs. market
Return history isn't available for AERG right now.
source: institutional data · return history unavailable
What just happened
deep losses
Q3 2025 revenue ~$109K with net loss $(0.02)/share; nine months 2025 revenue ~$389K and YTD loss $(0.05)/share.
Versus Q3 2024 (~$748K revenue), Q3 2025 revenue was lower — the story is still sub-$1M quarterly scale and multi-million operating expenses, not a clean growth trend.
~$109K
Q3 revenue
$(0.02)
Q3 EPS
57.6%
gross margin
the number that mattered
The number is ~$109K for the quarter — still nowhere near operating self-sufficiency versus multi-million quarterly opex.
Q3 2025 Form 10-Q (filed Nov 2025): sec.gov
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What could go wrong
the main risk is specific and brutal: commercialization keeps taking longer than the valuation implies. This company is priced for adoption well ahead of what the reported revenue base has earned.
med
valuation outruns the business
A $286M market cap against $1.15M of trailing revenue is a 249x price-to-sales multiple. You are paying a rich multiple for a company still proving it can sell the product at all.
If commercialization slips, there is not much current operating scale underneath the stock to defend that valuation.
med
cash burn keeps dwarfing revenue
Q3 2025 produced ~$109K of revenue and ~$4.0M net loss per the 10-Q. Any extreme ROE screen is a ratio artifact on a tiny equity base — read the filing, not the headline.
If losses stay in the millions while revenue stays around the current level, future funding pressure becomes part of your thesis whether you want it or not.
med
the projected market stays theoretical
The company points to a projected $10.1B market by 2026. That sounds compelling because it is large. The catch is that large category forecasts do not guarantee purchase orders for one small company with $1.15M in trailing revenue.
A big category can still leave most of the value with companies that already have scale, procurement access, or both.
A forced reset from concept valuation toward current fundamentals would hurt a stock priced on 249x sales, especially when the latest quarter already showed a $4.3M loss on $210K of revenue.
source: institutional data · regulatory filings · risk analysis
Pay attention to
key metric
whether quarterly revenue stabilizes above a few hundred $K
The latest filed quarter was ~$109K. If revenue stays at micro levels while losses stay in the millions, the commercialization story weakens fast.
calendar
Q4 2025 and full-year 2025 earnings
This is the next hard checkpoint. You want to see whether revenue improves from the $1.15M trailing figure and whether losses narrow from the recent $4.3M quarterly pace.
trend
contract R&D momentum versus other revenue
Contract R&D Services grew 56%, but it was still only $210K versus $940K of other revenue. You want more of the former and less reliance on the latter.
risk
funding pressure if commercialization stays delayed
Low debt helps, but low debt does not fund operating losses forever. If revenue stays this small, future capital raises become part of the story.
Analyst rankings
earnings predictability
100 / 100
in human-speak, the reported numbers have been consistent and easy to model — but consistency at this scale does not equal business quality.
beta
0.75
Beta measures how much the stock tends to move with the market. At 0.75, AERG has moved less than the index. That says more about stock-specific trading than operating stability.
source: institutional data
Institutional activity
institutional ownership data for AERG is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$2
current price
n/a
target midpoint · n/a from current
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