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Ideal Power Inc. (IPWR)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 was a commercially incremental quarter: modest revenue ($0.0013M) amid expanding OEM and Tier-1 automotive engagements; net loss widened modestly YoY given higher R&D and hiring for commercialization .
  • Estimates context: IPWR missed Wall Street consensus on revenue and EPS in Q2; Revenue $0.0013M vs $0.020M consensus and EPS -$0.33 vs -$0.25; prior quarter Q1 revenue beat $0.0120M vs $0.010M, EPS in line with low expectations*.
  • Operational highlights strengthen the medium-term ramp: Stellantis internally approved a purchase order for custom development and packaged B-TRAN devices across multiple EV applications, plus added collaborations/orders with a fourth and fifth global Tier-1 auto supplier, and a new Asian distribution partner (Kaimei) to accelerate adoption .
  • Liquidity remains sufficient to fund operations through at least mid-2026 with $11.1M cash and no debt; Q3 cash burn guided to ~$2.7–$2.9M and full-year just over ~$10M, reflecting sales and engineering hiring supporting the ramp .
  • Potential stock reaction catalyst: confirmation and sizing of the Stellantis PO, initial SSCB product launch later this year, and additional design wins—each could validate the commercialization path and expand visible revenue pipeline .

What Went Well and What Went Wrong

  • What Went Well

    • Stellantis broadened collaboration: internal approval for a purchase order targeting multiple EV applications (drivetrain inverter, EV contactors), enabling B-TRAN use across platforms .
    • Automotive traction expanded: collaboration with a fourth global Tier-1 supplier and an order from a fifth Tier-1 for numerous B-TRAN-enabled devices/modules for innovative solid-state EV contactor designs .
    • Asia go-to-market strengthened: Kaimei distribution agreement to sell Ideal Power’s products across Asia, the largest power electronics market with faster tech adoption .
    • Quote: “This strategic win will enable multiple uses of B-TRAN® across Stellantis’ EV platforms” — Dan Brdar, CEO .

  • What Went Wrong

    • Financials remain pre-ramp: Q2 commercial revenue of $1,275 and gross loss reflect evaluation-phase demand and small initial orders; net loss widened YoY on higher R&D .
    • Cash burn trend rising: Q2 cash burn (operating + investing) $2.5M (vs $2.2M YoY) with Q3 guided higher to ~$2.7–$2.9M due to sales/engineering hiring .
    • Estimates miss in Q2: revenue materially below consensus ($0.0013M vs $0.020M) and EPS below consensus (-$0.33 vs -$0.25)*—low absolute levels magnify variance before the H2 sales ramp.

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$0.0013 $0.0120 $0.0013
Net Loss ($USD Millions)$(2.6621) $(2.7030) $(3.0368)
Net Loss per Share ($)$(0.31) $(0.30) $(0.33)
Total Operating Expenses ($USD Millions)$2.8699 $2.8060 $3.1383
Cash and Cash Equivalents ($USD Millions)N/A$13.697 $11.106
Cash Used in Ops + Investing ($USD Millions)$2.2 (Q2 prior year) $2.1 (Q1) $2.5 (Q2)

Segment breakdown: Not applicable (single-product technology company) .

KPIs

KPIQ4 2024Q1 2025Q2 2025
Issued B-TRAN Patents (Total)94 94 96
Pending B-TRAN Patents53 70 74
Tier-1 Automotive Engagements3 3 (plus progressing) 5
Stellantis Program StatusProgram review positive; new EV contactor program intended EV contactor program internally approved to proceed through PO process PO internally approved; Ideal Power’s receipt pending

Estimates vs Actuals

PeriodRevenue Actual ($)Revenue Consensus ($)EPS Actual ($)EPS Consensus ($)
Q1 202512,003 10,000*(0.30) (0.30)*
Q2 20251,275 20,000*(0.33) (0.25)*

Values with asterisk retrieved from S&P Global.

Key interpretation:

  • Q2 revenue miss and EPS miss; Q1 revenue beat and EPS aligned with weak expectations.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash Burn (Ops + Investing)Q3 2025Not previously quantified~$2.7–$2.9M Introduced (higher vs Q2 levels)
Cash Burn (Ops + Investing)Full-Year 2025“Over $10M” (Q1) “Just over $10M” (Q2) Maintained
Sales Ramp TimingH2 2025Start in H2 2025 Start in H2 2025 (confirmed) Maintained
Product Power Rating Increase2025“Increase current rating of products” “Increase power rating later this year” Maintained (timing reiterated)
Automotive Qualification2025Complete later this year Complete later this year; prequalification passed key tests with zero failures; >50,000 power cycles Maintained; confidence strengthened

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Stellantis EV programsProgram review positive; intend EV contactor program; inverter program ongoing PO internally approved for custom development and packaged devices across multiple EV applications; receipt pending Strengthening; scope broadening
Tier-1 auto supplier engagements3 Tier-1s engaged Added 4th (collaboration) and 5th (order) Tier-1 suppliers Expanding pipeline
Asia commercializationDistributor relationships (Ryosho, Sekorm) Kaimei distribution in Asia to accelerate adoption GTM acceleration
Data centers/industrial SSCBFirst design win ahead of schedule; industrial customers fastest to revenue Customer nearing completion of SSCB prototype testing; product launch later this year; B-TRAN reduces losses vs SiC by ~60% in benchmarks Execution to launch
Tariffs/supply chainMinimal expected impact; dual-sourced, independent of China Minimal impact reiterated; flexibility via asset-light model and dual sourcing Stable risk posture
R&D execution/auto qualificationInitiated; zero die failures to date Prequalification completed with zero failures; >50,000 power cycles; full qualification later year Confidence improving

Management Commentary

  • Strategic focus: “We are now collaborating with our fourth and fifth global Tier 1 automotive suppliers… Stellantis has internally approved a purchase order for custom development and packaged B-TRAN® devices targeting multiple electric vehicle applications.” — Dan Brdar, CEO .
  • EV platform leverage: “They clearly plan on it being multiple brands… work is to converge on the semiconductor and packaging design… same solution in both drivetrain and contactor” — CEO, on Stellantis .
  • Data center opportunity: “Waste heat is a critical issue… B-TRAN-enabled switchgear… generate significantly less waste heat relative to competing solid-state solutions.” — CEO .
  • Liquidity and funding: “We have sufficient liquidity on our balance sheet to fund operations through at least mid‑2026” — CFO .

Q&A Highlights

  • Stellantis exposure: Management expects common semiconductor and packaging design across EV drivetrain and contactor programs, enabling usage across multiple Stellantis brands (excluding ultra-premium niches likely to use SiC) .
  • EV content per vehicle: Total power semiconductor content estimated at ~$1,100 per EV; contactor ~$200–$300; drivetrain inverter is largest component — supports large TAM in platforms .
  • Sales pipeline depth: Automotive opportunities are discrete (fewer players), while industrial SSCB/transfer switch prospects span many large firms; initial revenue expected to be driven by SSCB market .
  • Technology adoption challenges: Primarily educational with engineers; technical hurdles minimal; automotive prequalification data (zero failures, 50k power cycles) aims to accelerate adoption .
  • Tariffs and supply chain: Minimal impact; asset-light model and dual-sourcing; independent of China .

Estimates Context

  • Q2 2025: Revenue MISS — $1,275 actual vs $20,000 consensus; EPS MISS — -$0.33 actual vs -$0.25 consensus*.
  • Q1 2025: Revenue BEAT — $12,003 actual vs $10,000 consensus; EPS in line with weak expectations (-$0.30 vs -$0.30)*.
  • Implications: Consensus models likely to push out commercialization timing and lower near-term revenue assumptions, while maintaining/increasing outer-year probabilities tied to Stellantis PO confirmation, SSCB product launch, and incremental design wins*.

Values with asterisk retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term: Expect continued low absolute revenue and elevated cash burn as customer evaluations transition to prototypes; trading likely sensitive to confirmation of the Stellantis PO, SSCB product launch timing, and any additional design wins .
  • Medium-term thesis: Expanded automotive and industrial engagements plus Asian distribution lay groundwork for a multi-year ramp; EV platform commonality could magnify unit economics and content-per-vehicle opportunities .
  • Risk management: Asset-light, dual-sourced supply chain and independence from China mitigate tariff and geopolitical risks, supporting scalability of commercialization .
  • Validation milestones: Automotive qualification later this year (prequalification results already strong) and uprated product power ratings should improve customer confidence and pricing/margins .
  • Capital position: $11.1M cash and no debt provide runway through at least mid‑2026; potential additional funding from product/development agreements and capital markets optionality if needed .
  • Stock catalysts: Stellantis PO receipt/size, SSCB product launch, added Tier‑1 wins, power rating increase; each event can re-rate commercialization probability and compress time-to-revenue .
  • Execution focus: Converting deep pipeline into contracted design wins in SSCB and EV contactors; leveraging Asia distribution to accelerate industrial adoption .