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Mar 31

ESS Tech Q1 2025 Earnings Report

ESS Tech reported reduced revenue and deeper losses in Q1 2025 as it navigated a liquidity-conserving strategy and strategic pivot.

Key Takeaways

ESS Tech generated $599K in revenue in Q1 2025, reflecting lower sales activity during its transition period. The company posted a net loss of $18M and an operating loss of $18.1M, with a sharp drop in cash reserves. Despite near-term financial challenges, commercial momentum for its Energy Base platform has gained traction.

Revenue declined to $599K, down from $2.7M in Q1 2024, reflecting a slowdown in deliveries.

Net loss was $18M as the company continues investing in its Energy Base strategy.

Operating cash outflow totaled $18.2M, with cash and equivalents dropping to $8.4M.

Received a 50 MWh project award and logged proposal activity totaling ~1.2 GWh tied to Energy Base product.

Total Revenue
$599K
Previous year: $2.74M
-78.1%
EPS
-$1.5
Previous year: -$0.1
+1400.0%
Global Energy Transacted
2.5M
Proposal Pipeline
1.2M
Gross Profit
-$8.15M
Previous year: -$9.61M
-15.2%
Cash and Equivalents
$8.42M
Previous year: $36.3M
-76.8%
Free Cash Flow
-$18.2M
Previous year: -$19.9M
-8.2%
Total Assets
$53.6M
Previous year: $124M
-56.7%

ESS Tech

ESS Tech

ESS Tech Revenue by Segment

Forward Guidance

ESS is focused on cost control, strategic pivots, and capital-raising while seeing rising commercial engagement with its new Energy Base product.

Positive Outlook

  • 50 MWh Energy Base project awarded with Arizona utility.
  • Over 1.2 GWh in proposals submitted since product launch.
  • 30+ informal inquiries representing an additional 1.6 GWh.
  • Completed Energy Warehouse startup for California customer.
  • Batteries built in the U.S. seen as competitive advantage amid tariff risks.

Challenges Ahead

  • Revenue sharply decreased due to limited activity and deliveries.
  • Operating losses continue with elevated cost base.
  • Cash position declined by over $4.9M during the quarter.
  • Heavy reliance on raising additional capital to sustain operations.
  • Manufacturing and deployment pace remains a challenge.

Revenue & Expenses

Visualization of income flow from segment revenue to net income