Editor’s note: This story has been updated to include a statement from Energous ( WATT ) CEO and CFO Mallorie Burak.

Energous Corp ( WATT ) shares are trading lower Tuesday afternoon after Fugazi Research published a bearish report that raised fresh concerns about the company's dilution history, weak revenue base and long-term business model. Here’s what investors need to know.

Energous ( WATT ) shares are sliding. What’s weighing on WATT shares?

Fugazi Report Targets Dilution and Cash Burn

The report argued that Energous ( WATT ) remains a low-revenue, cash-burning business that has relied heavily on equity issuance to fund operations rather than internally generated cash flow.

Fugazi said the company raised capital through equity-related actions 21 times since 2019 and still has roughly $64 million in remaining at-the-market, or ATM, capacity, which it described as significant relative to the company's size.

Energous ( WATT ) CEO and CFO Mallorie Burak told Benzinga that the company remains focused on executing, highlighting the company’s 2025 financial results.

“We are aware that there are a range of external perspectives on our company, which is not uncommon for emerging technology businesses. Our focus, however, remains on execution and delivering measurable progress,” Burak said.

“We believe the most important measure of our business is our performance and customer adoption over time, and we remain focused on building a sustainable, scalable business over the long term.”

Low Revenue, Customer Risk and Governance Issues Highlighted

Fugazi also pointed to Energous' ( WATT ) financial profile, noting that for the nine months ended Sept. 30, 2025, the company reported $2.6 million in revenue and an $8.3 million net loss. The report further highlighted customer concentration risk, saying two customers accounted for more than 81% of revenue during that period.

The short report also raised governance concerns, including the company's CEO simultaneously serving as CFO, and argued that Energous ( WATT ) has yet to demonstrate a self-sustaining commercial model despite years of commercialization efforts.

WATT Stays In Overbought Territory As Momentum Cools

WATT's RSI has spent most of the past year in the neutral range, with periodic spikes into overbought territory above 70 and only brief dips near or below the 30 oversold level.

Recently, RSI has pushed back toward the upper end of the range, approaching overbought conditions, which may signal strengthening momentum but also raises the risk of a near-term pullback on Tuesday.

WATT Shares Slide Tuesday Afternoon

WATT Price Action: Energous ( WATT ) shares were down 3.77% at $18.11 at the time of publication on Tuesday. The stock is approaching its 52-week high of $20.31, according to Benzinga Pro data.

Image: Shutterstock