Executive Summary

Q3 print was mixed: ESS reported $0.21M revenue vs $5.65M consensus, a large top-line miss, but EPS of $(0.73) beat consensus of $(1.01) on tighter OpEx and improving cost discipline. Management emphasized execution over revenue during the 18-month Energy Base ramp, with SRP’s 50 MWh pilot a key validation and financing steps extending liquidity . EPS/Revenue consensus from S&P Global.*
Operating metrics improved: Adjusted EBITDA loss narrowed to $(7.17)M from $(7.77)M in Q2 and $(14.95)M in Q1; cost of revenue trended down sequentially despite very low Q3 revenue, reflecting ongoing reset and focus on Energy Base productization .
Balance sheet: Post-quarter financing of $40M with Yorkville and an announced $75M ATM provide flexibility; company repaid $15M of the $30M note drawn and completed a $25M SEPA, with ~“$30M in cash on hand” at the call and an optional remaining $10M note tranche .
Catalyst path: 2026 manufacturing start and SRP delivery/validation are the near-term stock drivers; management plans an Investor Day in January 2026 to detail roadmap and milestones .

What Went Well and What Went Wrong

What Went Well

Energy Base commercial validation: Announced a 5 MW/50 MWh SRP pilot, the first large-scale deployment of ESS’s next-gen platform; design underway, manufacturing to begin in 2026, with delivery by Dec 2027 under a 10-year storage agreement .
Cost discipline and EBITDA trajectory: Adjusted EBITDA losses improved to $(7.17)M in Q3 from $(7.77)M in Q2 and $(14.95)M in Q1, as OpEx remained controlled at ~$5.1M and cost of revenue declined sequentially .
Liquidity optionality: Closed $40M Yorkville financing post-quarter, repaid $15M of the $30M draw, completed a $25M SEPA, and announced a $75M ATM to access capital opportunistically; CFO indicated ~“$30M” cash on hand at the time of the call and $10M remaining note capacity .

Quote: “Our focus is now squarely on execution—delivering the Energy Base platform and demonstrating the performance and reliability that customers are demanding.” — Interim CEO Kelly Goodman .

What Went Wrong

Revenue collapse amid pivot: Q3 revenue fell to $0.21M from $2.36M in Q2 and $0.60M in Q1, reflecting the transition away from prior products and toward Energy Base; total revenue also down YoY from $0.36M in Q3’24 .
Massive gross losses at minimal scale: Q3 gross loss of $(4.73)M on $0.21M revenue resulted in extremely negative gross margin; similar dynamic persisted in prior quarters, underscoring the need for scale and Energy Base cost curves to normalize unit economics .
Large revenue miss vs consensus: Q3 revenue of $0.21M vs $5.65M consensus; consensus depth thin but the gap is material. EPS beat was driven by cost control rather than commercial volume conversion; near-term revenues likely remain volatile through pilot phase.*

Financial Results

P&L and Profitability (USD Millions unless noted)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue (Actual)	$0.599	$2.358	$0.214
Revenue Consensus*	$3.454*	$2.400*	$5.650*
EPS (GAAP, Actual)	$(1.50)	$(0.90)	$(0.73)
EPS Consensus*	$(1.205)*	$(0.88)*	$(1.005)*
Cost of Revenue	$8.746	$7.459	$4.939
Gross Profit (Loss)	$(8.147)	$(5.101)	$(4.725)
Gross Margin %	(−1,360%)	(−216%)	(−2,208%)
Adjusted EBITDA	$(14.954)	$(7.774)	$(7.170)

Notes: Gross margin % computed from cited Revenue and Gross Profit.

YoY Snapshot (Q3 only)

Metric	Q3 2024	Q3 2025
Total Revenue (USD M)	$0.359	$0.214
Net Loss (USD M)	$(22.493)	$(10.375)
EPS (GAAP)	$(1.90)	$(0.73)
Adjusted EBITDA (USD M)	$(18.870)	$(7.170)

Balance Sheet / Liquidity Highlights

Cash & cash equivalents at quarter-end: $3.539M (excludes post-quarter financing) ; CFO reiterated $3.5M cash and short-term investments “at quarter-end” and ~“$30M in cash on hand” at the time of the call, plus ability to draw a remaining $10M under the note .
Stockholders’ equity turned negative at $(1.8)M as of 9/30/25, from $28.9M at 12/31/24, reflecting accumulated deficit and liabilities growth .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quantitative financial guidance (revenue, margins, OpEx)	FY/Q4 2025	None provided	None provided	Maintained (no guidance)
Capital plan	Near-term	SEPA up to $25M	Completed $25M SEPA; launched $75M ATM	Increased flexibility
Liquidity	Near-term	N/A	Closed $40M Yorkville; repaid $15M of $30M drawn; ~$30M cash on hand at call; $10M remaining available	Improved optionality
Operational roadmap	18–24 months	Energy Base launch	SRP 50 MWh pilot in execution; mfg start 2026; delivery by Dec 2027	Execution-focused

Management reiterated focus on execution milestones rather than near-term revenue guidance.

Earnings Call Themes & Trends

Topic	Q1 2025 (May)	Q2 2025 (Aug)	Q3 2025 (Nov)	Trend
Energy Base commercialization	Award in contracting for 50 MWh with AZ utility; proposal activity ~1.2 GWh	First Energy Base sale; proposals >1.1 GWh; Made-in-USA, 98% domestic content	SRP 50 MWh pilot announced; 100% of active opportunities on Energy Base	Building pipeline to first large-scale deployments
Liquidity/capital	Managing runway; raising capital options	Up to $31M package incl. $25M SEPA; cost burn reduced	$40M Promissory Note; $15M repayment; $25M SEPA completed; $75M ATM launched	Improved flexibility
Cost discipline	Early operational reset	OpEx down 35% QoQ; gross loss narrowing	OpEx ~$5.1M; Adj. EBITDA improving	Continued discipline
Market focus (utilities/data centers)	Targeting utility-scale LDES	US manufacturing advantages; policy tailwinds (45X)	Emphasis on digital infrastructure need for 10+ hours; bilateral DC discussions	Rising LDES recognition
Policy/tariffs/domestic content	Well positioned vs tariff volatility	Notes “One Big Beautiful Bill Act” and 45X PTC benefits	Made-in-America narrative continues	Supportive policy backdrop
Product roadmap	Energy Base launch	Energy Base productization, vendor optimization	10-hour today; targeting 16-hour by 2029	Longer duration roadmap

Management Commentary

Strategic focus: “Our focus is now squarely on execution—delivering the Energy Base platform and demonstrating the performance and reliability that customers are demanding.” — Kelly Goodman, Interim CEO .
Pipeline quality: “Since launching the Energy Base earlier this year, 100% of our active opportunities are centered on this platform, with RFP activity and proposal volume continuing to increase.” — Kelly Goodman .
Liquidity posture: “We are launching a $75 million at-the-market program… an additional tool, not a requirement for accessing capital… flexibility to time any use… strategically.” — Kate Suhadolnik, Interim CFO .
Addressable demand: “Our technology is well-positioned to support the fast-growing digital infrastructure sector, where long-duration storage is essential to enabling a resilient, decarbonized grid.” — Kelly Goodman .

Q&A Highlights

Scale and duration: Near-term projects sized similarly to SRP (5 MW/50 MWh), with follow-on opportunities envisaged at 100–200 MW; Energy Base offers 10-hour duration today, with a 16-hour target by 2029 .
Customer mix and channels: RFPs primarily from utilities and IPPs; data center/hyperscaler engagements handled bilaterally rather than via RFPs .
Liquidity runway: As of the call, ~“$30M” cash on hand, with $10M undrawn capacity on the Yorkville note and a new $75M ATM providing added flexibility .

Estimates Context

Q3 2025 vs S&P Global consensus: Revenue $0.214M vs $5.650M consensus (miss); EPS $(0.73) vs $(1.005) consensus (beat). Consensus depth thin (2 estimates for both revenue and EPS in Q3), limiting reliability.*
Trajectory: Q2 revenue modestly missed ($2.358M vs $2.400M), EPS slightly worse than consensus ($(0.90) vs $(0.88)); Q1 saw larger misses on both revenue ($0.599M vs $3.454M) and EPS ($(1.50) vs $(1.205)).*
Implication: Street likely to reduce near-term revenue expectations and shift focus to 2026 execution milestones; EPS path remains driven by cost control until Energy Base volumes scale.*

Financial Comparisons vs Estimates (S&P Global)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue Actual (USD M)	$0.599	$2.358	$0.214
Revenue Consensus (USD M)*	$3.454*	$2.400*	$5.650*
EPS Actual (GAAP)	$(1.50)	$(0.90)	$(0.73)
EPS Consensus*	$(1.205)*	$(0.88)*	$(1.005)*
EPS – # of Estimates*	2*	1*	2*
Revenue – # of Estimates*	3*	1*	2*

Values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

Execution, not revenue, is the 2025–2026 story: expect lumpy/low revenues until Energy Base ramps; stock likely trades on SRP milestones, manufacturing readiness, and pipeline conversion .
Liquidity improved but remains a focus: $40M Yorkville financing, $15M repaid, $25M SEPA completed, and a $75M ATM provide optionality; dilution risk should be weighed against execution funding needs .
Cost discipline is working: Sequential improvement in Adjusted EBITDA (Q1 → Q3) and declining cost of revenue despite minimal Q3 revenue indicate operating reset traction .
Large revenue miss vs consensus underscores pivot: Street models should de-emphasize near-term revenue and focus on 2026 delivery cadence and cost curve normalization; EPS beats may stem from OpEx control rather than commercial scale.*
Market receptivity rising for 10+ hour LDES: Utilities and data centers increasingly see 10+ hour storage as essential; Energy Base positioned with domestic content and safety profile .
Product roadmap offers upside optionality: 16-hour target by 2029 could expand TAM and competitive differentiation if execution meets reliability/cost targets .

Sources:

Q3 2025 8-K press release and financials
Q3 2025 earnings call transcript and duplicate transcript
Q3 2025 other press releases: SRP 50 MWh pilot , $40M financing , call scheduling
Prior quarters: Q2 2025 8-K and press release ; Q1 2025 8-K
Estimates are from S&P Global; consensus values and estimate counts marked with * were retrieved via GetEstimates (S&P Global).

ESS Tech, Inc. (GWH)·Q3 2025 Earnings Summary