Expion360 Inc. (NASDAQ: XPON) shares are getting a nice premarket pop on Monday, as traders pile into what looks like a rebound attempt after a rough year. The stock was up 21.7% at $4.43 in premarket trading, according to market data. That's a big move, but it's worth putting in context: the stock is still hovering near its 52-week low of $2.77, so this is more of a bounce than a breakout.

The catalyst? The company reported its second-quarter earnings earlier this month, and while the headline numbers were mixed, there are some encouraging signs under the hood.

Earnings Snapshot

Expion360 reported net sales of $2.0 million for the second quarter of 2026, down 32% year-over-year. That sounds bad, but the company says the decline was mainly due to discontinuing certain low-margin accessory resales to improve profitability. Sales were also hit by elevated battery inventories at some OEM customers.

Here's the brighter side: gross profit actually increased 6% year-over-year to $0.7 million, and gross margin expanded to 32.4% from 20.8%. That's a big jump, driven by a better product mix and disciplined pricing across core battery products. So while they're selling less, they're making more on what they do sell.

The 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 same quarter last year. That per-share improvement is partly due to a reverse stock split, but the underlying loss reduction is real.

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. That's a nice vote of confidence from a major RV manufacturer.

Looking ahead, the company says it's on track to launch its first next-generation lithium battery in the second half of 2026. The new battery will feature VHC internal heating, SmartTalk Bluetooth connectivity, and CANBus communication, with improvements aimed at manufacturing efficiency and margins. That could be a meaningful catalyst if it lands well.

After the quarter, Expion360 also completed a 1-for-12 reverse stock split, regained compliance with Nasdaq listing requirements, and announced COO and CFO leadership changes. So there's been a lot of housekeeping going on.

Critical Levels To Watch for XPON Stock

Now let's get to the charts, because that's where the story gets interesting. 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. It's 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

If you're not familiar with Expion360, here's the quick rundown: the company designs, assembles, manufactures, and sells lithium iron phosphate (LiFePO4) batteries and related accessories for RV, marine, and industrial applications. Their products emphasize high energy density in a compact footprint, with engineering and intellectual property aimed at improving safety, quality, and performance.

They sell 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.

So, what's the takeaway? Expion360 is making progress on the fundamentals, but the stock is still in a precarious technical position. The premarket pop is encouraging, but it's going to take more than one good day to reverse a year-long downtrend. Keep an eye on that $4.55 resistance level — if the stock can break above it, the bounce might have legs. If not, the $3.51 support level becomes the line in the sand.