Energous 2025 Q1 Earnings Misses Targets, Net Loss Reduces by 49%

Energous Corporation (NASDAQ: WATT) reported its fiscal 2025 Q1 earnings on May 13th, 2025. Energous has missed market expectations, as the company continues to navigate financial challenges despite improvements. However, Energous reported a reduction in net losses by 49% compared to the previous year, and anticipates steady revenue growth in upcoming quarters. The company raised guidance, projecting sustained growth driven by strategic partnerships and innovative product introductions.

Revenue

Energous reported a substantial increase in revenue for Q1 2025, rising by 435.9% to $343,000 from $64,000 in Q1 2024, primarily driven by the successful commercialization of its PowerBridge transmitter systems. This marks a significant turning point for the company as it continues to enhance its technological offerings and expand its market presence.

Earnings/Net Income

Energous achieved an 89.2% improvement in earnings per share (EPS), reducing losses to $0.12 per share in 2025 Q1 from a loss of $1.11 per share in 2024 Q1. This positive momentum reflects the company's strategic initiatives aimed at cost reduction and revenue growth, although ongoing financial headwinds persist.

Post-Earnings Price Action Review

Investors who adopted the strategy of purchasing Energous (WATT) shares after the revenue drop on the earnings release date and held for 30 days faced significant losses. This approach resulted in an annualized return of -26.7%, notably underperforming the broader market by 19.42%. The investment's final value of $411.55 marked a 61.45% depreciation over a five-year period, underscoring the strategy's failure to capture potential rebounds and leading to disappointing returns.

CEO Commentary

“As the Company enters the second quarter of 2025, we have continued to focus on executing the strategic initiatives established during 2024, including creating an efficient infrastructure and fortifying partner relationships... Reducing the Company’s cash burn remains a priority... We experienced revenue increases of over 430% in the first quarter of 2025 compared to the first quarter of the prior year... A key strategic milestone for the Company was securing $13.8 million of net proceeds from our at-the-market offering program in the first quarter of 2025...,” said Mallorie Burak, CEO and CFO of Energous Wireless Power Solutions.

Guidance

The Company expects continued steady growth of revenue in the coming quarters as it strengthens relationships with key customers, secures new customers, and continues to introduce innovative products. The CEO noted that the actions taken to reduce cash burn have resulted in annualized cost savings of approximately $7.3 million. Additionally, the Company aims to leverage its recent capital raise of $13.8 million to fund growth initiatives and fulfill customer orders, which will support ongoing operational efficiency.

Additional News

Recently, Energous announced its partnership with a Fortune 10 multinational retailer to deploy its PowerBridge PRO transmitters across 4,700 U.S. locations, marking a significant step towards modernizing retail operations. Furthermore, the company unveiled two new products, the AI-driven PowerBridgeMOD and PowerBridge PRO+ with integrated gateway, aimed at enhancing asset tracking solutions and operational efficiency. Energous also joined the Amazon Web Services Partner Network, expanding its reach in supply chain visibility and compliance, focusing on real-time metrics tracking through IoT infrastructure.