Ideal Power Inc.

Performance Summary

Ideal Power Inc. reported a net loss of $10.6 million for the fiscal year ended December 31, 2025, representing a slight increase from the $10.4 million net loss in 2024. Revenue declined significantly to $37,728 from $86,032 in the prior year, while cost of revenue was $60,408, resulting in a gross loss of $22,680 compared to a $7,377 gross loss in 2024. The company's loss from operations was $10.9 million, essentially flat year-over-year. Total operating expenses remained elevated at $10.9 million, with research and development expenses of $6.0 million and general and administrative expenses of $3.8 million. The company ended the year with $6.1 million in cash and cash equivalents, down from $15.8 million at the end of 2024, reflecting net cash used in operating activities of $9.1 million.

Revenue Analysis

Revenue for FY 2025 was $37,728, derived from development agreements and low-volume product sales of the company's B-TRAN® technology products. This represents a 56% decrease from the $86,032 in revenue reported for FY 2024. The company noted that revenue in both years related to development agreements and low-volume product sales, with expectations for modest revenue from both product sales and development agreements in 2026. The company has launched two commercial products: the discrete B-TRAN® and the SymCool® Power Module, targeting solid-state circuit protection and electric vehicle contactor markets.

Margins & Profitability

The company reported a gross loss of $22,680 for FY 2025, representing a gross margin of -60.1%, compared to a gross loss of $7,377 (gross margin of -8.6%) in the prior year. The increased gross loss was attributed to higher costs associated with initial low-volume production and costs exceeding revenue under a development agreement with the company's first design win customer. Operating expenses totaled $10.9 million, with research and development expenses decreasing by 3% to $6.0 million due to lower stock-based compensation, partly offset by higher semiconductor foundry costs. General and administrative expenses increased by 4% to $3.8 million, while sales and marketing expenses decreased by 12% to $1.1 million.

Cash Flow & Balance Sheet

Net cash used in operating activities was $9.1 million for FY 2025, compared to $8.7 million in the prior year. The company's cash position declined significantly from $15.8 million at December 31, 2024, to $6.1 million at December 31, 2025. Total assets were $10.0 million, with current assets of $6.5 million primarily consisting of cash and cash equivalents. Total liabilities were $2.2 million, resulting in stockholders' equity of $7.9 million. The company's accumulated deficit increased to $118.0 million. In February 2026, subsequent to the fiscal year-end, the company completed an equity offering with estimated net proceeds of $12.6 million to fund further commercialization and development activities.

Outlook

The company expects to recognize modest revenue from both product sales and development agreements in 2026, though it does not expect to achieve a gross profit due to higher costs associated with low-volume production. Research and development expenses are expected to increase in 2026 due to lower expected stock unit forfeitures and higher spending to further develop B-TRAN® technology. General and administrative expenses are expected to be moderately higher, while sales and marketing expenses are expected to increase as the company adds sales personnel and expands customer engagement. The company's liquidity needs are expected to be met by cash on hand and the proceeds from the February 2026 offering for at least the next 12 months.