What caused GWH's EPS to drop in 2024?

The earnings per share (EPS) of ESS Tech, Inc. (GWH) declined in 2024 primarily due to a combination of factors related to operational challenges and revenue shortfalls: 1. **Revenue Shortfalls**: The company's revenue fell significantly in Q2 and Q3 of 2024 compared to the previous year. For instance, in Q2, revenue was $348,000, which was a 90.39% decrease from the estimated $3.62 million. In Q3, revenue was $359,000, down from $1.55 million a year ago. These reductions in revenue contributed to the overall decrease in EPS. 2. **Cost Increases**: The cost of revenue increased to $12.7 million in Q3 2024, resulting in a gross loss of $12.4 million. This increase in costs, coupled with lower revenues, negatively impacted the company's profitability and EPS. 3. **Operating Expenses**: ESS Tech's operating expenses also rose, reaching $11.3 million in Q3 2024, up from $9.5 million in the previous year. These increased expenses further squeezed the company's profit margins. 4. **Partner Funding Delays**: The company's financial performance was affected by delays in customer funding and project approvals, which led to a revenue miss in 2024. These delays likely had a direct impact on the company's ability to generate revenue and, consequently, its EPS. 5. **Strategic Transitions**: ESS Tech is undergoing a strategic pivot, which includes transitioning from research and development to commercial inventory accounting. This transition has impacted the company's financials, including its EPS, as it adjusts to new accounting practices. In summary, the drop in GWH's EPS in 2024 was primarily due to a combination of revenue shortfalls, cost increases, operating expenses, partner funding delays, and strategic transitions. These factors collectively contributed to the company's financial challenges and reduced profitability.