Second Quarter 2026
Filed Aug 13, 2026Ideal Power Reports Second Quarter 2026 Financial Results
Ideal Power reported very small revenue and a wider net loss while advancing customer prototypes, a foundry supply agreement, and its cash position through equity financing.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $ 5,800 | – | – |
| Cost of revenueGAAP | $ 4,008 | – | – |
| Gross profit (loss)GAAP | $ 1,792 | – | – |
| Research and development expenseGAAP | $ 1,430,134 | – | – |
| General and administrative expenseGAAP | $ 1,657,972 | – | – |
| Sales and marketing expenseGAAP | $ 536,834 | – | – |
| Total operating expensesGAAP | $ 3,624,940 | – | – |
| Loss from operationsGAAP | $ (3,623,148 ) | – | – |
| Interest income, netGAAP | $ 210,222 | – | – |
| Net lossGAAP | $ (3,412,926 ) | – | – |
| Net loss per share – basic and fully dilutedGAAP | $ (0.20 ) | – | – |
| Weighted average number of shares outstanding – basic and fully dilutedGAAP | 16,934,431 | – | – |
| Revenue, six months ended June 30GAAP | $ 5,800 | – | – |
| Gross profit (loss), six months ended June 30GAAP | $ 1,792 | – | – |
| Total operating expenses, six months ended June 30GAAP | $ 7,316,962 | – | – |
| Net loss, six months ended June 30GAAP | $ (7,044,431 ) | – | – |
| Net loss per share – basic and fully diluted, six months ended June 30GAAP | $ (0.50 ) | – | – |
| Cash used in operating and investing activitiesother | $2.5 million | – | – |
| Net cash used in operating activities, six months ended June 30GAAP | $ (4,473,167 ) | – | – |
| Net cash used in investing activities, six months ended June 30GAAP | $ (364,048 ) | – | – |
| Net cash provided by (used in) financing activities, six months ended June 30GAAP | $ 40,002,654 | – | – |
What drove it
- The Company is finalizing low current SSCB prototype units for shipment to its lead Asia customer later in August 2026 for internal testing.
- B-TRAN®-enabled SSCB prototypes are expected to be available from the lead Asia customer for 800V AI data center and energy grid end-customers in Q4 2026.
- The Company delivered a second shipment of next generation B-TRAN® custom packaged samples and development kits to Stellantis for EV applications.
- Ideal Power entered into a long-term supply agreement with a high-volume wafer foundry in Asia and achieved functional B-TRAN® first silicon.
- A distribution partner placed its first stocking order for the new 800-volt SSCB reference design kits.
- The Company is collaborating with an industry partner on an intelligent SSCB prototype planned for evaluation by a U.S. hyperscaler, with prototype delivery targeted for the end of Q4 2026.
Concerns
- Second-quarter revenue was $ 5,800.
- Net loss was $ (3,412,926 ) compared with $ (3,036,765 ) in the second quarter of 2025.
- Total operating expenses were $ 3,624,940 compared with $ 3,138,291 in the second quarter of 2025, driven primarily by higher stock-based compensation expense, personnel costs, and non-cash patent impairment charges.
- The Company's stated commercial milestones remain prototype shipments, customer evaluation, remaining purchase-order deliverables, and potential production orders.
What to watch
- Shipment and internal testing of low current SSCB prototype units by the lead Asia customer later in August 2026.
- Availability of the lead Asia customer's SSCB prototypes for its 800V AI data center and energy grid end-customers in Q4 2026.
- Prototype delivery targeted for the end of Q4 2026 under the co-development effort for evaluation by a U.S. hyperscaler.
- Completion of remaining deliverables under the Stellantis purchase order.
- Conversion of sales-funnel opportunities into design-ins, custom development agreements, and production orders.
Balance sheet and cash flow
- Cash and cash equivalents were $ 41,294,488 at June 30, 2026, compared with $ 6,129,049 at December 31, 2025.
- Accounts receivable were $ 29,800 at June 30, 2026, compared with $ 24,000 at December 31, 2025.
- Inventory was $ 62,425 at June 30, 2026, compared with $ 9,700 at December 31, 2025.
- Total current assets were $ 41,595,051 at June 30, 2026, compared with $ 6,540,650 at December 31, 2025.
- Total assets were $ 45,047,653 at June 30, 2026, compared with $ 10,046,689 at December 31, 2025.
- Total current liabilities were $ 1,493,003 at June 30, 2026, compared with $ 973,162 at December 31, 2025.
- Long-term lease liability was $ 259,253 at June 30, 2026, compared with $ 309,900 at December 31, 2025.
- Other long-term liabilities were $ 824,559 at June 30, 2026, compared with $ 886,538 at December 31, 2025.
- Total liabilities were $ 2,576,815 at June 30, 2026, compared with $ 2,169,600 at December 31, 2025.
- Total stockholders’ equity was $ 42,470,838 at June 30, 2026, compared with $ 7,877,089 at December 31, 2025.
- No long-term debt was outstanding at June 30, 2026.
- During the second quarter, the Company raised $27.7 million in net proceeds in a registered direct offering of common stock and pre-funded warrants.
- Net proceeds from issuance of common stock and pre-funded warrants were $ 40,259,375 for the six months ended June 30, 2026.
- Purchase of property and equipment was $ (151,728 ) for the six months ended June 30, 2026, compared with $ (41,128 ) for the six months ended June 30, 2025.
- Acquisition of intangible assets was $ (212,320 ) for the six months ended June 30, 2026, compared with $ (179,209 ) for the six months ended June 30, 2025.
- Net increase (decrease) in cash and cash equivalents was $ 35,165,439 for the six months ended June 30, 2026, compared with $ (4,737,297 ) for the six months ended June 30, 2025.
- Cash and cash equivalents at end of the period were $ 41,294,488 for the six months ended June 30, 2026, compared with $ 11,105,553 for the six months ended June 30, 2025.
Analysis
Ideal Power remained at an early commercial stage in the second quarter. Revenue was $ 5,800, while net loss was $ (3,412,926 ) and loss from operations was $ (3,623,148 ). Revenue was $ 1,275 in the second quarter of 2025, but the release does not report a percentage growth rate. Gross profit was $ 1,792, compared with a gross loss of $ (2,202 ) in the prior-year quarter.
Expense growth drove the wider loss. Total operating expenses were $ 3,624,940 versus $ 3,138,291 in the second quarter of 2025. General and administrative expense was $ 1,657,972, research and development expense was $ 1,430,134, and sales and marketing expense was $ 536,834. The Company attributed the increase in operating expenses primarily to higher stock-based compensation expense, personnel costs, and non-cash patent impairment charges associated with rationalizing its pending patent portfolio.
Commercial activity centered on moving B-TRAN® products through prototype and evaluation stages. The Company is finalizing low current SSCB prototype units for its lead Asia customer, delivered a second shipment of custom packaged samples and development kits to Stellantis, and introduced an 800-volt SSCB reference design kit. It also entered a long-term supply agreement with a high-volume wafer foundry in Asia and reported functional B-TRAN® first silicon. These developments support future commercialization, but the quarter's reported revenue remained $ 5,800.
Liquidity increased substantially through financing. Cash and cash equivalents totaled $41.3 million at June 30, 2026, and the Company reported $27.7 million of net proceeds during the second quarter from a registered direct offering of common stock and pre-funded warrants. No long-term debt was outstanding. Cash used in operating and investing activities was $2.5 million in the second quarter, flat compared with $2.5 million in the second quarter of 2025.
The release provided no quantitative financial outlook. The operational schedule instead points to customer prototype activity: the lead Asia customer's SSCB prototypes are expected to be available in Q4 2026, and delivery of an intelligent SSCB prototype for planned U.S. hyperscaler evaluation is targeted for the end of Q4 2026. The principal execution measure is conversion of these and other sales-funnel opportunities into design-ins, custom development agreements, production orders, and revenue growth.
Management, verbatim
We continued to execute across our commercial priorities in the second quarter. We advanced our low current solid-state circuit breaker (“SSCB”) project with our lead customer in Asia and our co-development effort with an industry partner on a B-TRAN®-enabled SSCB prototype for a planned evaluation by a U.S. hyperscaler supporting the new NVIDIA Rubin Ultra 800V DC AI data center power distribution architecture.
David Somo, President and Chief Executive Officer of Ideal Power
We also achieved an important operational milestone by entering into a long-term supply agreement with a high-volume wafer foundry. Initial discussions with this foundry started in the first quarter and they’ve already successfully fabricated functional B-TRAN® first silicon.
David Somo, President and Chief Executive Officer of Ideal Power
Not in the filing
stated, not guessed- Quantitative forward guidance for revenue, gross margin, operating expenses, tax rate, or other financial metrics
- Previous-quarter comparisons for reported financial metrics
- Reported gross margin
- Non-GAAP financial measures
- Segment revenue and segment operating metrics
- Share repurchases or dividend information
- Free cash flow
- CFO commentary
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.