Secured up to $31 million in new capital, strengthening balance sheet and extending operational runway
Proposal activity exceeding 1.1 GWh following Energy Base launch
Strengthened our leadership team to advance the company vision with the appointment of Jigish Trivedi as COO
Operating cash burn reduced by ~80% in June compared to Q1 average.
ESS Tech, Inc. (“ESS,” “ESS, Inc.” or the “Company”) (NYSE: GWH), a leading manufacturer of long-duration energy storage systems (LDES) for commercial and utility-scale applications, today announced financial results for its second quarter ended June 30, 2025.
The second quarter marked a pivotal period in ESS’s strategic reset, with significant progress on both commercial execution and capital discipline. During July, the Company secured up to $31 million in new capital through a combination of immediate cash inflows and a $25 million Standby Equity Purchase Agreement, providing flexibility to scale deployments. Further, commercial momentum accelerated following launch of the Energy Base, ESS’s proprietary long-duration, non-flammable iron flow battery platform. The Company closed its first Energy Base sale, has entered into contracting for additional Energy Base projects and submitted proposals totaling over 1.1 GWh during the quarter. ESS’s Made in the USA manufacturing model—with over 98% domestically sourced components—continues to provide a competitive edge in navigating evolving trade policy and tariff environments. Recent federal legislation, including the One Big Beautiful Bill Act, maintains key Section 45X Production Tax Credits while expanding incentives for domestically manufactured energy storage, positioning ESS products as even more attractive to customers seeking long-duration solutions with minimal supply chain risk.
Operationally, ESS continued to enhance efficiency and reduce costs while maintaining delivery readiness. “Q2 reflects the early results of the operational reset we began earlier this year,” said Kelly Goodman, Interim CEO of ESS. “We are building a business with sharper focus, disciplined execution, and a stronger financial foundation. We are excited to welcome Jigish Trivedi as our new Chief Operating Officer and Kate Suhadolnik as interim Chief Financial Officer – two proven leaders who will help drive the next phase of our growth. We continue to see growing demand from Tier 1 customers and with a robust pipeline, ESS is well-positioned to deliver safe, sustainable, long-duration storage solutions at scale while creating long-term value for our customers and shareholders.”
Financial Highlights for Q2 2025
- GAAP revenue of $2.4 million, up 294% from Q1 2025
- GAAP cost of revenues of $7.5 million, down 15% from Q1 2025
- GAAP operating expenses of $6.5 million, down 35% quarter-over-quarter
- GAAP net loss and adjusted EBITDA improved 50% year-over year
In addition, the Company ended July with $7.2 million in cash and cash equivalents, up from $0.8 million at the end of Q2.
Conference Call Details
ESS will hold a conference call on Thursday, August 14, 2025 at 5:00 p.m. EDT to discuss financial results for its second quarter 2025 ended June 30, 2025. Interested parties may join the conference call beginning at 5:00 p.m. EDT on Thursday, August 14, 2025 via telephone by calling (833) 470-1428 in the U.S., or for international callers, by calling +1 (404) 975-4839 and entering conference ID 271308. A telephone replay will be available until August 21, 2025, by dialing (866) 813-9403 in the U.S., or for international callers, +1 (929) 458-6194 with conference ID 482125. A live webcast of the conference call will be available on ESS’ Investor Relations website at http://investors.essinc.com/.
A replay of the call will be available via the web at http://investors.essinc.com/.
About ESS, Inc.
ESS (NYSE: GWH) is the leading manufacturer of long-duration iron flow energy storage solutions. ESS was established in 2011 with a mission to accelerate decarbonization safely and sustainably through longer lasting energy storage. Using easy-to-source iron, salt, and water, ESS iron flow technology enables energy security, reliability and resilience. We build flexible storage solutions that allow our customers to meet increasing energy demand without power disruptions and maximize the value potential of excess energy. For more information visit www.essinc.com.
Use of Non-GAAP Financial Measures
In this press release and the accompanying earnings call, the Company includes Non-GAAP Operating Expenses and Adjusted EBITDA, which are non-GAAP performance measures that the Company uses to supplement its results presented in accordance with U.S. GAAP. As required by the rules of the Securities and Exchange Commission (“SEC”), the Company has provided herein a reconciliation of the non-GAAP financial measures contained in this press release and the accompanying earnings call to the most directly comparable measures under GAAP. The Company’s management believes Non-GAAP Operating Expenses and Adjusted EBITDA are useful in evaluating its operating performance and are similar measures reported by publicly-listed U.S. companies, and regularly used by securities analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. By providing these non-GAAP measures, the Company’s management intends to provide investors with a meaningful, consistent comparison of the Company’s profitability for the periods presented. Adjusted EBITDA is not intended to be a substitute for net income/loss or any U.S. GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry. Further, Non-GAAP Operating Expenses are not intended to be a substitute for GAAP Operating Expenses or any U.S. GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.
The Company defines and calculates Non-GAAP Operating Expenses as GAAP Operating Expenses adjusted for stock-based compensation. The Company defines and calculates Adjusted EBITDA as net loss before interest, other non-operating expense or income, and depreciation and amortization, and further adjusted for stock-based compensation and other special items determined by management, including, but not limited to, fair value adjustments for certain financial liabilities associated with debt and equity transactions as they are not indicative of business operations.
Forward-Looking Statements
This communication contains certain forward-looking statements, including statements regarding ESS and its management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. The words “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intends”, “may”, “might”, “plan”, “possible”, “potential”, “predict”, “project”, “should”, “will” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Examples of forward-looking statements include, among others, statements regarding the Company’s manufacturing plans, the development and launch of the Energy Base product, the Company’s order and sales pipeline, the Company’s ability to successfully bid on projects and execute on orders, the Company’s ability to effectively manage costs, the Company’s partnerships with third parties, relationships with current and potential customers, and potential capital raising measures, including under the Company’s Standby Equity Purchase Agreement. These forward-looking statements are based on ESS’ current expectations and beliefs concerning future developments and their potential effects on ESS. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication. There can be no assurance that the future developments affecting ESS will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond ESS control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, which include, but are not limited to, delays, disruptions, or quality control problems in the Company’s manufacturing operations; issues related to the development and launch of the Energy Base product; failure to successfully bid on projects and acquire customers; issues related to the Company’s partnerships with third parties; risk of loss of government funding for customer projects; failure to raise additional capital, including under the Company’s Standby Equity Purchase Agreement, on acceptable terms or at all; and the Company’s need to achieve significant business growth to achieve sustained, long-term profitability. Except as required by law, ESS is not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
ESS Tech, Inc. |
||||||||||||||||
Condensed Statements of Operations and Comprehensive Loss |
||||||||||||||||
(unaudited) |
||||||||||||||||
(in thousands, except share and per share data) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
$ |
56 |
|
|
$ |
342 |
|
|
$ |
627 |
|
|
$ |
2,556 |
|
Revenue - related parties |
|
|
2,302 |
|
|
|
6 |
|
|
|
2,330 |
|
|
|
530 |
|
Total revenue |
|
|
2,358 |
|
|
|
348 |
|
|
|
2,957 |
|
|
|
3,086 |
|
Cost of revenue |
|
|
7,459 |
|
|
|
11,748 |
|
|
|
16,205 |
|
|
|
22,874 |
|
Gross profit (loss) |
|
|
(5,101 |
) |
|
|
(11,400 |
) |
|
|
(13,248 |
) |
|
|
(19,788 |
) |
Operating expenses |
|
|
|
|
|
|
|
|
||||||||
Research and development |
|
|
1,424 |
|
|
|
2,836 |
|
|
|
3,902 |
|
|
|
6,382 |
|
Sales and marketing |
|
|
1,304 |
|
|
|
2,711 |
|
|
|
3,254 |
|
|
|
4,745 |
|
General and administrative |
|
|
3,728 |
|
|
|
6,178 |
|
|
|
9,299 |
|
|
|
11,704 |
|
Total operating expenses |
|
|
6,456 |
|
|
|
11,725 |
|
|
|
16,455 |
|
|
|
22,831 |
|
Loss from operations |
|
|
(11,557 |
) |
|
|
(23,125 |
) |
|
|
(29,703 |
) |
|
|
(42,619 |
) |
Other income, net |
|
|
|
|
|
|
|
|
||||||||
Interest income, net |
|
|
30 |
|
|
|
1,052 |
|
|
|
246 |
|
|
|
2,291 |
|
Gain on revaluation of common stock warrant liabilities |
|
|
459 |
|
|
|
115 |
|
|
|
344 |
|
|
|
115 |
|
Other income (expense), net |
|
|
12 |
|
|
|
18 |
|
|
|
31 |
|
|
|
(37 |
) |
Total other income, net |
|
|
501 |
|
|
|
1,185 |
|
|
|
621 |
|
|
|
2,369 |
|
Net loss and comprehensive loss to common stockholders |
|
$ |
(11,056 |
) |
|
$ |
(21,940 |
) |
|
$ |
(29,082 |
) |
|
$ |
(40,250 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net loss per share - basic and diluted |
|
$ |
(0.90 |
) |
|
$ |
(1.87 |
) |
|
$ |
(2.39 |
) |
|
$ |
(3.45 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares used in per share calculation - basic and diluted |
|
|
12,271,587 |
|
|
|
11,717,238 |
|
|
|
12,152,245 |
|
|
|
11,675,770 |
|
ESS Tech, Inc. |
||||||||
Condensed Balance Sheets |
||||||||
(unaudited) |
||||||||
(in thousands, except share data) |
||||||||
|
June 30, 2025 |
|
December 31, 2024 |
|||||
Assets |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
797 |
|
|
$ |
13,341 |
|
|
Restricted cash, current |
|
906 |
|
|
|
906 |
|
|
Accounts receivable, net |
|
148 |
|
|
|
215 |
|
|
Short-term investments |
|
— |
|
|
|
18,263 |
|
|
Inventory |
|
4,672 |
|
|
|
5,641 |
|
|
Prepaid expenses and other current assets |
|
4,644 |
|
|
|
4,998 |
|
|
Total current assets |
|
11,167 |
|
|
|
43,364 |
|
|
Property and equipment, net |
|
21,891 |
|
|
|
20,582 |
|
|
Intangible assets, net |
|
4,523 |
|
|
|
4,656 |
|
|
Operating lease right-of-use assets |
|
772 |
|
|
|
1,503 |
|
|
Restricted cash, non-current |
|
618 |
|
|
|
948 |
|
|
Other non-current assets |
|
646 |
|
|
|
760 |
|
|
Total assets |
$ |
39,617 |
|
|
$ |
71,813 |
|
|
Liabilities and stockholders' equity |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable |
$ |
10,629 |
|
|
$ |
8,070 |
|
|
Accrued and other current liabilities |
|
8,875 |
|
|
|
9,315 |
|
|
Accrued product warranties |
|
2,198 |
|
|
|
3,288 |
|
|
Operating lease liabilities, current |
|
872 |
|
|
|
1,692 |
|
|
Deferred revenue, current |
|
1,383 |
|
|
|
5,237 |
|
|
Total current liabilities |
|
23,957 |
|
|
|
27,602 |
|
|
Deferred revenue, non-current - related parties |
|
11,815 |
|
|
|
14,400 |
|
|
Common stock warrant liabilities |
|
458 |
|
|
|
802 |
|
|
Other non-current liabilities |
|
83 |
|
|
|
125 |
|
|
Total liabilities |
|
36,313 |
|
|
|
42,929 |
|
|
Stockholders' equity: |
|
|
|
|||||
Preferred stock ($0.0001 par value; 200,000,000 shares authorized, none issued and outstanding as of June 30, 2025 and December 31, 2024) |
|
— |
|
|
|
— |
|
|
Common stock ($0.0001 par value; 1,000,000,000 shares authorized, 12,896,146 and 11,986,516 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively) |
|
1 |
|
|
|
1 |
|
|
Additional paid-in capital |
|
814,764 |
|
|
|
811,262 |
|
|
Accumulated deficit |
|
(811,461 |
) |
|
|
(782,379 |
) |
|
Total stockholders' equity |
|
3,304 |
|
|
|
28,884 |
|
|
Total liabilities and stockholders' equity |
$ |
39,617 |
|
|
$ |
71,813 |
|
|
ESS Tech, Inc. |
||||||||
Condensed Statements of Cash Flows |
||||||||
(unaudited) |
||||||||
(in thousands) |
||||||||
|
Six Months Ended June 30, |
|||||||
|
2025 |
|
2024 |
|||||
Cash flows from operating activities: |
|
|
|
|||||
Net loss |
$ |
(29,082 |
) |
|
$ |
(40,250 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
3,085 |
|
|
|
2,521 |
|
|
Non-cash interest income |
|
(155 |
) |
|
|
(1,573 |
) |
|
Non-cash lease expense |
|
731 |
|
|
|
658 |
|
|
Stock-based compensation expense |
|
2,699 |
|
|
|
5,880 |
|
|
Inventory write-down and losses on noncancellable purchase commitments |
|
(744 |
) |
|
|
1,530 |
|
|
Change in fair value of common stock warrant liabilities |
|
(344 |
) |
|
|
(115 |
) |
|
Other non-cash expenses, net |
|
199 |
|
|
|
25 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|||||
Accounts receivable, net |
|
86 |
|
|
|
1,526 |
|
|
Inventory |
|
1,025 |
|
|
|
(2,875 |
) |
|
Prepaid expenses and other assets |
|
468 |
|
|
|
(555 |
) |
|
Accounts payable |
|
1,268 |
|
|
|
1,925 |
|
|
Accrued and other liabilities |
|
(1,465 |
) |
|
|
(1,962 |
) |
|
Accrued product warranties |
|
(1,090 |
) |
|
|
1,111 |
|
|
Deferred revenue |
|
(6,458 |
) |
|
|
(1,209 |
) |
|
Operating lease liabilities |
|
(820 |
) |
|
|
(768 |
) |
|
Net cash used in operating activities |
|
(30,597 |
) |
|
|
(34,131 |
) |
|
|
|
|
|
|||||
Cash flows from investing activities: |
|
|
|
|||||
Purchases of property and equipment |
|
(1,491 |
) |
|
|
(1,565 |
) |
|
Maturities and purchases of short-term investments, net |
|
18,411 |
|
|
|
51,752 |
|
|
Net cash provided by investing activities |
|
16,920 |
|
|
|
50,187 |
|
|
|
|
|
|
|||||
Cash flows from financing activities: |
|
|
|
|||||
Proceeds from issuance of common stock, net of commission fees |
|
721 |
|
|
|
— |
|
|
Proceeds from stock options exercised |
|
6 |
|
|
|
21 |
|
|
Proceeds from contributions to Employee Stock Purchase Plan |
|
103 |
|
|
|
214 |
|
|
Repurchase of shares from employees for income tax withholding purposes |
|
(27 |
) |
|
|
(178 |
) |
|
Net cash provided by financing activities |
|
803 |
|
|
|
57 |
|
|
|
|
|
|
|||||
Net change in cash, cash equivalents and restricted cash |
|
(12,874 |
) |
|
|
16,113 |
|
|
Cash, cash equivalents and restricted cash, beginning of period |
|
15,195 |
|
|
|
22,483 |
|
|
Cash, cash equivalents and restricted cash, end of period |
$ |
2,321 |
|
|
$ |
38,596 |
|
|
ESS Tech, Inc. |
||||||
Condensed Statements of Cash Flows (continued) |
||||||
(unaudited) |
||||||
(in thousands) |
||||||
|
Six Months Ended June 30, |
|||||
|
2025 |
|
2024 |
|||
Supplemental disclosures of cash flow information: |
|
|
|
|||
Cash paid for operating leases included in cash used in operating activities |
$ |
887 |
|
$ |
874 |
|
Non-cash investing and financing transactions: |
|
|
|
|||
Purchase of property and equipment included in accounts payable and accrued and other current liabilities |
|
4,277 |
|
|
1,970 |
|
Adjustment to right-of-use assets from lease modification |
|
— |
|
|
686 |
|
Transfers between inventory and property and equipment, net |
|
668 |
|
|
1,051 |
|
|
|
|
|
|||
Cash and cash equivalents |
$ |
797 |
|
$ |
36,744 |
|
Restricted cash, current |
|
906 |
|
|
906 |
|
Restricted cash, non-current |
|
618 |
|
|
946 |
|
Total cash, cash equivalents and restricted cash shown in the condensed statements of cash flows |
$ |
2,321 |
|
$ |
38,596 |
|
ESS Tech, Inc. |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Operating Expenses |
||||||||||||||||
(unaudited) |
||||||||||||||||
(in thousands) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Research and development |
|
$ |
1,424 |
|
|
$ |
2,836 |
|
|
$ |
3,902 |
|
|
$ |
6,382 |
|
Less: stock-based compensation |
|
|
(127 |
) |
|
|
(908 |
) |
|
|
(502 |
) |
|
|
(1,309 |
) |
Non-GAAP research and development |
|
$ |
1,297 |
|
|
$ |
1,928 |
|
|
$ |
3,400 |
|
|
$ |
5,073 |
|
|
|
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
$ |
1,304 |
|
|
|
2,711 |
|
|
$ |
3,254 |
|
|
$ |
4,745 |
|
Less: stock-based compensation |
|
|
(316 |
) |
|
|
(163 |
) |
|
|
(922 |
) |
|
|
(258 |
) |
Non-GAAP sales and marketing |
|
$ |
988 |
|
|
$ |
2,548 |
|
|
$ |
2,332 |
|
|
$ |
4,487 |
|
|
|
|
|
|
|
|
|
|
||||||||
General and administrative |
|
$ |
3,728 |
|
|
$ |
6,178 |
|
|
$ |
9,299 |
|
|
$ |
11,704 |
|
Less: stock-based compensation |
|
|
(697 |
) |
|
|
(1,540 |
) |
|
|
(1,151 |
) |
|
|
(2,974 |
) |
Non-GAAP general and administrative |
|
$ |
3,031 |
|
|
$ |
4,638 |
|
|
$ |
8,148 |
|
|
$ |
8,730 |
|
|
|
|
|
|
|
|
|
|
||||||||
Total operating expenses |
|
$ |
6,456 |
|
|
$ |
11,725 |
|
|
$ |
16,455 |
|
|
$ |
22,831 |
|
Less: stock-based compensation |
|
|
(1,140 |
) |
|
|
(2,611 |
) |
|
|
(2,575 |
) |
|
|
(4,541 |
) |
Non-GAAP total operating expenses |
|
$ |
5,316 |
|
|
$ |
9,114 |
|
|
$ |
13,880 |
|
|
$ |
18,290 |
|
ESS Tech, Inc. |
||||||||||||||||
Reconciliation of GAAP Net Loss to Adjusted EBITDA |
||||||||||||||||
(unaudited) |
||||||||||||||||
(in thousands) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Net loss |
|
$ |
(11,056 |
) |
|
$ |
(21,940 |
) |
|
$ |
(29,082 |
) |
|
$ |
(40,250 |
) |
Interest income, net |
|
|
(30 |
) |
|
|
(1,052 |
) |
|
|
(246 |
) |
|
|
(2,291 |
) |
Stock-based compensation |
|
|
1,670 |
|
|
|
3,026 |
|
|
|
2,904 |
|
|
|
5,880 |
|
Depreciation and amortization |
|
|
1,545 |
|
|
|
1,302 |
|
|
|
3,085 |
|
|
|
2,521 |
|
Gain on revaluation of common stock warrant liabilities |
|
|
(459 |
) |
|
|
(115 |
) |
|
|
(344 |
) |
|
|
(115 |
) |
Financing costs |
|
|
568 |
|
|
|
— |
|
|
|
986 |
|
|
|
— |
|
Other income (expense), net |
|
|
(12 |
) |
|
|
(18 |
) |
|
|
(31 |
) |
|
|
37 |
|
Adjusted EBITDA |
|
$ |
(7,774 |
) |
|
$ |
(18,797 |
) |
|
$ |
(22,728 |
) |
|
$ |
(34,218 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250814625091/en/
Contacts
Investors:
Erik Bylin
investors@essinc.com