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Ideal Power Inc. (IPWR)·Q1 2025 Earnings Summary

Executive Summary

  • Revenue was $12,003, up sequentially from $5,408 in Q4 and $554 in Q3, and above Wall Street consensus of $10,000; diluted EPS was $(0.30), in line with consensus of $(0.30). Consensus counts were thin (1 estimate each). Revenue beat; EPS inline.* *
  • Operational execution accelerated: SSCB prototypes for the first design win were completed three months ahead of schedule; the company added a third Global 500 power management customer order and secured internal approval at Stellantis for a new EV contactor program in addition to the drivetrain inverter work. These actions underpin management’s expectation for an initial sales ramp in 2H 2025.
  • Cash burn of $2.1M came in below Q1 guidance ($2.2–$2.4M); CFO guided Q2 cash burn to $2.5–$2.7M and full-year 2025 cash burn to “over $10M,” reflecting staffing and commercialization spend from 2024–2025 hiring. Cash ended Q1 at $13.7M; no debt.
  • Management expects minimal impact from recently enacted tariffs (power semiconductors largely exempt) and highlighted asset-light, dual-sourced wafer fabrication and packaging with no China exposure as supply-chain risk mitigants. Near-term stock catalysts include a Stellantis purchase order, additional SSCB/EV contactor design wins, and the targeted completion of automotive qualification in Q4 2025.

What Went Well and What Went Wrong

What Went Well

  • Completed solid-state circuit breaker (SSCB) prototypes tied to the first design win three months ahead of schedule; initial customer testing “went well,” supporting commercial introduction in coming months. “We completed the solid-state circuit breaker prototypes… three months ahead of schedule.”
  • Added commercial engagements: order from a third Forbes Global 500 power management leader for SSCB evaluation; Sekorm distributor secured orders for discrete B-TRAN, SymCool modules and SSCB boards; a new Quest Semi sales rep partnership expands reach in Europe/Asia.
  • Automotive traction strengthened: Stellantis internally approved a high-priority EV contactor program (in addition to drivetrain inverter), expected to move faster than inverter phase work; multiple Tier 1s and a second/third global automaker are engaged across EV contactors and SSCB concepts.

What Went Wrong

  • Commercial revenue remains de minimis despite sequential growth: $12,003 in Q1 versus $5,408 in Q4 and $554 in Q3; gross profit remained negative due to low volume and cost absorption at early commercialization stage.
  • Year-over-year decline in commercial revenue: $12,003 vs. $78,739 in Q1 2024, while operating expenses rose to $2.8M (from $2.5M), driven by higher R&D as the company advances programs.
  • Cash burn is set to rise as scaling continues: CFO guided Q2 cash burn to $2.5–$2.7M and full-year over $10M (vs. $9.2M in 2024 excluding warrant proceeds), signaling continued investment ahead of the expected 2H sales ramp.

Financial Results

Core P&L and Margins (Actuals)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD)$554 $5,408 $12,003
Diluted EPS ($USD)$(0.31) $(0.29) $(0.30)
Gross Profit ($USD)$(957) $(518) $(18,859)
Gross Margin (%)-172.7% -9.6% -157.1%
Net Loss ($USD)$(2,690,348) $(2,595,774) $(2,703,024)
Net Income Margin (%)-485,516% -48,000% -22,501%

Note: Percentage margins are derived from reported revenue and profit/loss figures in the cited statements.

Actual vs. Consensus (Q1 2025)

MetricQ1 2025 ActualQ1 2025 Consensus# of Estimates
Revenue ($USD)$12,003 $10,000*1*
Primary EPS ($USD)$(0.30) $(0.30)*1*

*Values retrieved from S&P Global.

KPIs and Cash

KPIQ3 2024Q4 2024Q1 2025
Cash and Cash Equivalents ($USD)$18,655,922 $15,842,850 $13,696,852
Operating Expenses ($USD)$2,898,674 $2,758,062 $2,805,973
Cash Used in Operating Activities ($USD)$(6,192,707) (9M) $(8,742,580) (FY) $(2,066,774) (Q1)
Weighted Avg. Shares (Basic & Diluted)8,767,251 9,043,901 9,101,851
Total Debt$0 $0 $0

Segment Breakdown

SegmentQ1 2025 Revenue
Not disclosed/applicableN/A (company reports consolidated figures)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash Burn ($USD)Q2 2025Not previously specified~$2.5M–$2.7M New
Cash Burn ($USD)FY 2025Not previously specified“Over $10M” New
Initial Sales Ramp2H 2025Anticipated ramp in 2H 2025 Start initial sales ramp in 2H 2025 Maintained
Automotive QualificationQ4 2025 targetTesting initiated; completion expected later in 2025 Target completion in Q4 2025 Clarified timing
Product Ratings (SymCool)2025Increased to 200A in 2024 Plan to increase ratings further in 2025 Incremental (planned)

Earnings Call Themes & Trends

TopicQ3 2024 (Previous Mentions)Q4 2024 (Previous Mentions)Q1 2025 (Current Period)Trend
Stellantis programsPhase III expected post Tier-1 selection; inverter focus New high-priority EV contactor program discussed; positive program review EV contactor program internally approved; faster timeline than inverter Accelerating
Solid-state circuit breakers (SSCB)Tier-1 orders; distributors added; evaluation boards shipped First SSCB design win announced; prototypes due late Mar/early Apr SSCB prototypes completed 3 months early; third Global 500 order Accelerating
Distribution channelsAdded RYOSHO and Sekorm; quoting and orders initiated SymCool IQ multi-unit order; broader channel engagement Sekorm secured orders; Quest Semi sales rep added Expanding
Tariffs/supply chainNot highlighted Not highlighted Minimal tariff impact; dual-sourced, no China exposure Newly addressed; de-risking
R&D/Next-gen B-TRAN diePower module rating increased; auto qual started Auto qualification and reliability testing initiated; no failures to date Next-gen die halves size, ~2x die/wafer; ongoing engineering runs Advancing cost curve/capacity
Patents/IP90 issued, 42 ex-US, 50 pending 94 issued, 45 ex-US, 53 pending 94 issued, 45 ex-US, 70 pending Building pipeline
Revenue trajectory$554 revenue; gross loss $5,408 revenue; ramp anticipated 2H 2025 $12,003 revenue; 2H ramp reiterated Improving sequentially

Management Commentary

  • “We completed the solid-state circuit breaker prototypes related to our first design win 3 months ahead of schedule… and continue collaborating with them on their first B-TRAN-enabled solid-state circuit breaker product.”
  • “The EV contactor program has been approved internally at Stellantis up through and including their Chief Technology Officer… expected to move faster than the drivetrain program.”
  • “We expect minimal impact from tariffs… Power semiconductors are exempt from most tariffs currently in effect.”
  • “The first engineering run of our next-generation B-TRAN die was successfully completed… roughly half the size… more than twice as many die per wafer… part of our long-term cost reduction road map.”

Q&A Highlights

  • Distributor order timing: Sekorm order began shipping; partial fulfillment across Q1–Q2/Q3, positioning for potential design wins later in 2025.
  • Stellantis PO timeline: “Several weeks” expected to complete purchase order approval; program likely released as a single phase given priority and lower complexity versus drivetrain.
  • Platform approach: Wins with Stellantis would span multiple models/brands via platform designs; Ideal Power supplies semiconductors, not full contactors/inverters.
  • Breakeven and pipeline durability: No lost engagements; a few key design wins could drive “millions or even in excess of $10 million” annual revenue and achieve cash-flow breakeven.
  • Auto qualification: Target Q4 2025 completion; not gating EV opportunities and could accelerate industrial adoption given higher test standards.

Estimates Context

  • Q1 2025 revenue beat consensus ($12,003 vs. $10,000*), while EPS was in line ($(0.30) vs. $(0.30)); both had 1 estimate. Sequential revenue inflected, supporting the 2H ramp narrative, but low estimate breadth limits confidence.* *
  • With Q2 cash burn guided higher and commercialization activities ramping, near-term EPS estimates may drift modestly more negative until revenue scale offsets OpEx; revenue estimates for 2H should reflect initial SSCB/EV contactor commercialization.

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue inflected sequentially and beat a thin consensus; EPS inline, consistent with early commercialization. Expect limited visibility until order sizes from OEM evaluations expand. *
  • Execution is strong: SSCB prototypes delivered early; third Global 500 power management engagement; Stellantis EV contactor program internally approved, potentially accelerating automotive revenue timing.
  • Liquidity is adequate for near-term milestones (Q1 cash $13.7M; no debt), but burn rises in Q2 and FY 2025 as commercialization ramps—watch for design wins to narrow losses.
  • Supply-chain/tariff risk is currently muted (exemptions for power semiconductors; dual-sourced fabrication/packaging with no China exposure), supporting scalability.
  • Near-term catalysts: Stellantis purchase order issuance, additional SSCB/EV contactor design wins, next-gen B-TRAN die progress, and auto qualification completion by Q4 2025.
  • Medium-term thesis hinges on SSCB adoption (industrial/utility/data center) where B-TRAN’s ultra-low conduction losses enable performance and cost advantages versus SiC, and EV contactors as an earlier/faster auto win vs. drivetrain platforms.
  • Trading implications: Headlines on OEM PO approvals or design wins could be stock-positive; conversely, extended timelines or slower customer conversions could pressure sentiment given low current revenue base.