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EC

Energous Corp (WATT)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered the third consecutive quarter of growth: revenue reached $1.272M (+30% q/q; +453% y/y), gross margin improved to 36%, and GAAP net loss narrowed to $(2.113)M, the lowest in over a decade .
  • Versus consensus, EPS beat (actual $(1.31) vs. $(1.80)) while revenue missed (actual $1.272M vs. $2.125M), with management pointing to continued backlog and phased enterprise deployments as near-term drivers .
  • Operating discipline persisted: GAAP opex fell to $2.649M (−24% y/y), and non‑GAAP net loss improved to $(2.030)M (−38% y/y; −23% q/q) .
  • Commercial traction strengthened: confirmed backlog was ~$4.1M as of Nov 11 (ships within 12 months), supported by AWS partnership referrals and Fortune 10 deployments .
  • Potential stock catalysts: continued backlog conversion, enterprise-scale rollouts, innovation cadence (battery‑free e‑Sense, PowerBridge MOD/PRO+), and operating-loss reductions; note 1‑for‑30 reverse split executed Aug 11 to maintain Nasdaq compliance .

What Went Well and What Went Wrong

What Went Well

  • Record quarterly revenue since 2015 and third straight growth quarter; sequential +30% driven by accelerating adoption of wireless power networks and enterprise deployments: “Energous is transforming from a wireless power technology pioneer into a scalable solutions provider.”
  • Gross margin expanded to 36% (up from 35% in Q2), with gross profit at $0.458M, reflecting manufacturing yield gains and operational optimization .
  • Execution and quality: zero product returns since PowerBridge Pro commercial production; backlog of ~$4.1M expected to ship within 12 months; AWS partnership driving Fortune 500 PoCs .

What Went Wrong

  • Revenue missed the single-point consensus ($1.272M actual vs. $2.125M*), suggesting analyst expectations outpaced actual shipment timing and backlog conversion cadence in Q3 .
  • Profitability remains a challenge: GAAP net loss was $(2.113)M; despite improvement, sustained investment is required to scale deployments and drive margin leverage .
  • Structural considerations: 1‑for‑30 reverse split highlights prior listing compliance pressure; comparability of EPS across quarters is affected by the split timing (Q2 figures pre‑split, Q3 post‑split) .

Financial Results

P&L, Margins, Cash (GAAP unless noted)

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Millions)$0.230 $0.975 $1.272
Gross Profit ($USD Millions)$(0.076) $0.338 $0.458
Gross Margin (%)N/A35% 36%
Operating Expenses ($USD Millions)$3.505 $3.118 $2.649
Loss from Operations ($USD Millions)$(3.581) $(2.780) $(2.191)
Net Loss ($USD Millions)$(3.412) $(2.788) $(2.113)
EPS (Basic & Diluted, $USD)$(14.98) $(0.08) $(1.31)
Cash & Equivalents ($USD Millions)$1.353 $8.662 $12.898

Note: Q2 2025 EPS is pre‑reverse split; Q3 2025 EPS is post‑reverse split, which affects comparability .

Non-GAAP Loss

MetricQ3 2024Q2 2025Q3 2025
Non-GAAP Net Loss ($USD Millions)$(3.259) $(2.622) $(2.030)
Non-GAAP Operating Expenses ($USD Millions)$3.193 $2.952 $2.576

Actuals vs. Consensus (Q3 2025)

MetricConsensusActualSurprise
Revenue ($USD)$2,125,000*$1,272,000 —$853,000 (miss)*
EPS (Primary, $USD)$(1.80)*$(1.31) +$0.49 (beat)*
# of EstimatesRevenue: 1*——
# of EstimatesEPS: 1*——

Values retrieved from S&P Global.*

KPIs

KPIQ3 2024Q2 2025Q3 2025
Confirmed Order Backlog ($USD Millions)N/A~$4.0 as of Jul 28 ~$4.1 as of Nov 11
Product Returns (PowerBridge Pro)N/AZero Zero
YTD Revenue ($USD Millions)N/A$1.318 $2.590
Patents Granted YTDN/A4 5

No segment reporting is provided.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ4 2025 / FY cadenceNone providedNone providedMaintained (no formal guidance)
Gross MarginQ4 2025 / FY cadenceNone providedFocus on enhancing margins; no numeric range Maintained (qualitative only)
OpExQ4 2025 / FY cadenceNone providedOngoing cost reductions; no numeric range Maintained (qualitative only)
Backlog ShipmentsNext 12 monthsN/A~$4.1M expected to ship within 12 months New disclosure (timing window)

The company did not issue formal quantitative revenue/EPS/margin guidance for Q4/FY.

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available in our document set as of Nov 20, 2025.

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
AI/technology initiativesIntroduced AI-driven PowerBridge MOD and PowerBridge PRO+; launched battery-free e‑Sense tag and e‑Compass Reinforced end‑to‑end ambient IoT platform; new MOD/PRO+ with integrated gateway Continued innovation cadence
Supply chain / enterprise modernizationFortune 10 retailer planning deployment across >4,700 locations Backlog tied to first phases of major enterprise deployments; nationwide expansion Scaling deployments
Partnerships (AWS, HaiLa)AWS enterprise referral PoC; HaiLa alliance AWS partnership generating referrals and PoCs with Fortune 500 customers Deepening go‑to‑market
Product performance & qualityZero product returns since production began Zero product returns reiterated Stable/high quality
Regulatory/listing & capitalRaised $13.8M in Q1; retired high‑interest debt 1‑for‑30 reverse split to maintain Nasdaq compliance; total capital raised YTD $22.7M Liquidity strengthened; listing maintained
R&D execution/IP4 new U.S. patents by Q2 5 new U.S. patents YTD by Q3 Incremental IP build

Management Commentary

  • “We are building the fundamentals of the business through strategic execution… We believe these third quarter results demonstrate that Energous is transforming from a wireless power technology pioneer into a scalable solutions provider.” — Mallorie Burak, CEO & CFO .
  • “Our customers want visibility, intelligence, and automation… By powering IoT devices wirelessly and continuously, Energous is making that real — helping transform physical environments into connected, data‑driven systems.” — Mallorie Burak .
  • “Ambient IoT is quickly becoming a foundational layer of enterprise infrastructure… strongest financial results in nearly a decade.” — Mallorie Burak (preliminary Q3 release) .

Q&A Highlights

No Q3 2025 earnings call transcript available; therefore, Q&A topics and clarifications are not accessible in the current document set.

Estimates Context

  • EPS beat: $(1.31) actual vs. $(1.80)* consensus, reflecting improved opex discipline and manufacturing efficiencies that lifted gross margin to 36% .
  • Revenue miss: $1.272M actual vs. $2.125M*, likely tied to phased enterprise rollouts and backlog conversion timing (shipments expected within 12 months), with preliminary commentary citing shipments to Fortune 10 customers and expanding nationwide scope .
  • Coverage depth remains thin (only one estimate for revenue and EPS*), implying potential volatility as deployments scale.

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Sequential momentum intact: three straight quarters of revenue growth culminating in $1.272M (highest since 2015), with gross margin up to 36% and operating loss narrowing q/q and y/y .
  • Backlog visibility: ~$4.1M of confirmed orders slated for shipment over the next 12 months provides near‑term revenue pipeline; watch conversion cadence and customer rollout milestones .
  • Operating leverage path: GAAP opex declined to $2.649M; continued manufacturing yield improvements and AWS‑driven referrals could support margin expansion .
  • Estimates calibration: Single‑point consensus led to a mixed print (EPS beat, revenue miss*); as coverage broadens, expect tighter estimate ranges and reduced volatility. Values retrieved from S&P Global.*
  • Strategic proof points: Zero product returns, new patents, and battery‑free ambient IoT solutions (e‑Sense, e‑Compass) reinforce product‑market fit and durability for enterprise deployments .
  • Risk flags: Profitability still distant; reverse split underscores listing compliance pressures; watch customer concentration and timing of large‑scale shipments .
  • Trading implications: Near‑term moves likely driven by backlog conversion updates, nationwide deployment checkpoints, and further gross margin improvements; monitor press releases and 8‑Ks for shipment ramps and partnership wins .