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Ideal Power Inc. (IPWR)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue was $24,450, up from $1,275 in Q2 and $554 in Q3 2024, while net loss was $2.94M and EPS was $(0.32) . Versus consensus, revenue was above a minimal estimate ($0.00*) and EPS was modestly below (consensus $(0.30)*), resulting in a small EPS miss and revenue beat .
  • Cash used in operating and investing activities was $2.7M (at the low end of prior guidance) and cash balance ended at $8.4M with no debt; management guided Q4 cash burn to ~$2.5–$2.7M and FY 2025 to ~ $10M .
  • Commercial traction accelerated: first design-win SSCB customer completed testing of updated prototypes; Ideal Power secured a purchase order from Stellantis and completed the first of five deliverables; engagement expanded to a sixth global automaker .
  • Catalysts: Stellantis EV contactor program scope decision, AI data center SSCB rollout timing, and continued B‑TRAN® qualification progress (1,000+ devices tested with no failures to date) .

Note: Estimates marked with * are values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Secured a purchase order from Stellantis for custom development and packaged B‑TRAN® devices targeting multiple EV applications; first of five deliverables completed in late September .
  • First design-win customer completed testing of updated SSCB prototype breakers; now working on finalizing product design ahead of launch targeting AI data centers .
  • Increased discrete B‑TRAN® product power rating by 50% (to 75 amps) and commenced sampling; broader interest observed across the pipeline; automotive qualification testing shows positive results with no failures to date .

What Went Wrong

  • EPS of $(0.32) missed the Wall Street consensus of $(0.30)*, and net loss widened year over year ($2.94M vs $2.69M) driven in part by higher wafer fabrication costs and R&D spending .
  • Operating expenses rose to $3.0M (vs $2.9M YoY), reflecting higher semiconductor fabrication costs at the second foundry and continued commercialization investment .
  • Initial orders remain modest as large customers continue evaluations; revenue is still very small and lumpy pending OEM product rollouts and design cycles .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($USD)$554 $12,003 $1,275 $24,450
Net Loss ($USD)$(2,690,348) $(2,703,024) $(3,036,765) $(2,940,650)
EPS (basic & diluted) ($)$(0.31) $(0.30) $(0.33) $(0.32)
Total Operating Expenses ($USD)$2,898,674 $2,805,973 $3,138,291 $3,018,698
Cash and Cash Equivalents ($USD)$18,655,922 $13,696,852 $11,105,553 $8,394,113
Gross Profit Margin (%)N/A-157.1%*-172.7%*-6.6%*

Note: Margin values marked with * are retrieved from S&P Global.

Segment breakdown: N/A (company does not report segments) .

KPIs

KPIQ3 2024Q1 2025Q2 2025Q3 2025
Cash Burn (Operating + Investing) ($USD)N/A$2.1M $2.5M $2.7M
Patents Issued (B‑TRAN®)N/A94 96 97
Patents Pending (B‑TRAN®)N/A70 74 73
Automotive Qualification StatusN/AN/AN/A>1,000 devices tested; no failures

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash Burn (Operating + Investing)Q3 2025$2.7–$2.9M (provided prior to Q3) Actual at low end of range ($2.7M) Achieved at low end
Cash Burn (Operating + Investing)Q4 2025N/A~$2.5–$2.7M New
Cash Burn (Operating + Investing)FY 2025N/A~ $10M New
Operating ExpensesNear termN/AExpected to increase modestly due to hiring and development/commercialization costs Directional update
Liquidity RunwayThroughN/A“Through at least mid-2026” given no debt and planned burn New
Initial Sales Ramp2H 2025“Start initial sales ramp in second half of year” (Q1/Q2 milestones) In progress; timing update pending follow-up call Maintained (timing TBD)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3 2025)Trend
AI/Data Center SSCBQ1: SSCB prototypes completed three months early; expect earliest sales ramp from SSCB in 2H 2025 . Q2: Customer nearing completion of testing, product launch “later this year” .Updated SSCB prototypes tested successfully; finalizing product design ahead of AI data center launch .Progressing toward commercialization; timing clarity improving.
Automotive EV Contactors (Stellantis)Q1: Advancing new high-priority EV contactor program with Stellantis . Q2: Stellantis internal purchase order approval pending .Purchase order secured; first deliverable completed; expectation of multi-year EV contactor program and test vehicles as early as late 2026 .Material step forward; scope could broaden across EV platforms.
Sixth Global Automaker EngagementQ2: Added 4th and 5th Tier-1 collaborations [11] [12].Engaged with a sixth global automaker evaluating B‑TRAN® for next-gen high-voltage applications .Pipeline broadening across OEMs.
Product Power RatingQ1: Milestone to increase power rating in 2025 . Q2: Emphasis on higher ratings and shipments .Discrete B‑TRAN® rating raised 50% to 75A; tested to 150A long-term continuous; sampling commenced .Performance validated; competitiveness improved.
Tariffs/MacroQ1: Minimal impact expected; power semis largely exempt .Minimal impact anticipated; power semiconductors often exempt; mitigation plans in place .Stable; manageable risk.
Asia Go-to-MarketQ1/Q2: Partnerships in Asia (Quest Semi; Kaimei distribution) [14] .First direct salesperson added in Asia; face-to-face meetings underway .Execution strengthening in largest power electronics market.
Qualification & ReliabilityOngoing in 2025 milestones .>1,000 packaged devices in third-party automotive qualification; zero failures to date .Confidence increasing among industrial and automotive customers.

Management Commentary

  • “We are delighted to announce securing the purchase order from Stellantis for custom development and packaged B‑TRAN® devices… We completed our first of five deliverables under the purchase order. The remaining deliverables are expected to be completed next year.” — David Somo, CEO .
  • “We expect Stellantis to award us with a multi-year EV contactor program… install B‑TRAN‑based contactors in Stellantis test vehicles potentially as early as late 2026.” — Tim Burns, CFO .
  • “Our first design win customer successfully completed testing of the updated prototype SSCBs… ahead of the B‑TRAN‑enabled product launch targeting AI data center customers.” — David Somo, CEO .
  • “We increased the power rating of our discrete B‑TRAN product by 50% and commenced shipment… sparked greater interest from both existing customers and new prospects.” — Tim Burns, CFO .
  • “We have sufficient liquidity on our balance sheet to fund operations through at least mid‑2026.” — Tim Burns, CFO .

Q&A Highlights

  • EV architecture shift to 800‑volt systems is driving demand for low‑loss, bidirectional solutions; B‑TRAN® targets contactors, battery disconnect units, charging systems, and inverters .
  • SSCB commercialization timing: product not yet for sale; customer finalizing design following successful prototype testing; timing update to be provided on a future call .
  • Manufacturing: two foundries (Asia and Europe) with the Asian foundry ahead on yields; two packaging houses (primary in Asia, secondary in U.S. for potential government programs) .
  • Barriers to closing sales: customer education on new device architecture, cautious engineering adoption cycles, and desire for automotive qualification to accelerate industrial uptake .
  • Tariffs: minimal impact anticipated; power semiconductors often exempt; company prepared to mitigate policy shifts .

Estimates Context

MetricQ1 2025Q2 2025Q3 2025
Revenue Consensus Mean ($USD)$10,000*$20,000*$0*
Revenue Actual ($USD)$12,003 $1,275 $24,450
SurpriseBeatMissBeat
Primary EPS Consensus Mean ($)$(0.30)*$(0.25)*$(0.30)*
EPS Actual ($)$(0.30) $(0.33) $(0.32)
SurpriseIn lineMissMiss

Note: Estimates marked with * are values retrieved from S&P Global.

Where estimates may need to adjust:

  • Revenue estimates should begin to reflect small, lumpy initial orders and potential SSCB launch timing, raising near-term revenue assumptions off de minimis levels .
  • EPS estimates should account for modest OpEx increases tied to hiring and wafer fabrication runs and for quarter-to-quarter variability in R&D and stock-based compensation timing .

Key Takeaways for Investors

  • Commercial traction is building: SSCB design-win customer finalized prototype testing; Stellantis PO underway with first deliverable completed; early discussions with a sixth automaker broaden the pipeline .
  • Near-term financial profile remains pre‑scale: Q3 revenue $24k, EPS $(0.32); expense increases reflect strategic investment in fabrication and commercialization; cash burn guided tighter for Q4 (approx. $2.5–$2.7M) and FY 2025 (~$10M) .
  • Liquidity runway through at least mid‑2026 with no debt provides time to execute on industrial SSCB and automotive contactor opportunities; potential upfront payments from development agreements could supplement cash .
  • Product competitiveness improved: 50% power rating increase to 75A for discrete B‑TRAN® and evidence of reliability (>1,000 devices tested, zero failures) should bolster adoption in high‑power applications, including AI data centers and EVs .
  • Watch for catalysts: Stellantis multi‑year program scope and test vehicle timing; SSCB launch and end‑customer sampling; Asia sales expansion and additional design wins/custom development agreements .
  • Risk framing: adoption cycles are lengthy and cautious; initial orders are small; quarterly variability in OpEx and stock‑based comp likely; tariff risk appears manageable given exemptions for power semiconductors .
  • CEO transition adds go‑to‑market focus: new CEO (ex‑onsemi SVP) emphasizes revenue acceleration and plans a follow‑up call to share commercialization outlook once customer meetings and internal reviews are complete .