Energy Focus, Inc. (NASDAQ:EFOI), a leader in energy-efficient lighting and control system products, announced its financial results for the second quarter of 2025. The company reported net sales of $1.1 million, marking a 26.4% decrease compared to the same period in 2024. This decline was primarily due to a 71.0% decrease in military sales, amounting to a $0.9 million reduction, which was partially offset by a 117.7% increase in commercial sales, contributing an additional $0.4 million. Sequentially, net sales rose by 85.6%, driven by a $0.6 million increase in commercial sales, despite a $0.1 million decrease in military sales from the first quarter of 2025. The reduction in military sales was attributed to ongoing federal budget uncertainties and delays in new defense contract activity, while the commercial sales boost was largely due to a significant uninterruptible power supply project for a new customer in Taiwan. The adjusted EBITDA showed a loss of $0.3 million for the second quarter of 2025, an improvement from the $0.6 million loss in the second quarter of 2024, and consistent with the first quarter of 2025. This improvement was driven by higher variable margins. The gross profit margin increased to 12.9% from 8.1% in the second quarter of 2024 but decreased from 31.5% in the first quarter of 2025, influenced by lower-margin projects in Taiwan. The company reported a net loss of $0.2 million, compared to a net loss of $0.6 million in the second quarter of 2024 and a net loss of $0.3 million in the first quarter of 2025. Energy Focus, Inc. continues to navigate challenges within the military segment while capitalizing on opportunities in commercial markets.