Energous: Is the Time Right to Bet on Wireless Charging’s Breakthrough?

In an era where disruptive technologies often trade at discounts before their potential is realized, Energous (NASDAQ: WATT) presents a compelling case for investors willing to look beyond near-term earnings. With a portfolio of 13 new wireless charging patents (Wi-Charge technology), strategic partnerships in retail IoT, and a burn rate now under control, the company’s current valuation may be pricing in execution risks that are surmountable. Let’s dissect whether this is a “buy the dip” opportunity or a value trap.

The Financials: Negative EPS, but Cash is King

Energous reported a Q1 2025 net loss of $(0.18) per share, with revenue plummeting 33% to $8.1 million. However, this masks two critical factors:
1. Cash reserves: After a $13.4 million at-the-market (ATM) offering in early 2025, the company holds $11.7 million in cash—a stark rebound from its $1.35 million cash position at year-end 2024. Management claims this is sufficient for 12+ months of operations, even with an annualized burn rate of ~$16–$18 million.
2. Cost discipline: R&D expenses fell 30% year-over-year to $3.0 million in Q1 2025, part of a broader $6.8 million in annualized cost cuts.

This suggests the company is no longer hemorrhaging cash, buying time to scale revenue.

The Disruptive IP: Wi-Charge Tech as the “Tesla of Wireless Power”?

Energous’ crown jewel is its Wi-Charge technology, which enables long-range wireless power transfer (up to 15 meters) using infrared light—a stark contrast to competitors like Qi, which require devices to be placed on a charging pad. This makes it ideal for IoT applications, such as battery-free inventory tags in warehouses or smart sensors in 5G-enabled infrastructure.

The company has already secured:
- A Fortune 10 retailer’s commitment to deploy PowerBridge systems in 4,700+ locations.
- A partnership with an RFID leader to develop battery-free smart tags, addressing a $25 billion IoT market.

Critically, regulatory tailwinds are accelerating adoption. The Food Safety Modernization Act (2026) mandates real-time inventory tracking in food retail—a market Energous’ tech is uniquely positioned to serve.

Why the Valuation is Mispriced

Energous trades at a market cap of $91 million, despite:
- A patent portfolio that includes 13 new grants in 2024 alone.
- A $6.8 million cost runway that reduces pressure to raise dilutive capital.
- $0.8 million in 2024 revenue—a 62% jump—driven by PowerBridge transmitters, signaling a shift to recurring revenue.

The key question: Can this $91M valuation expand if Energous secures three more Fortune 500 partnerships by 2026? If so, the current price-to-sales ratio of 114x (yes, it’s high) could normalize as revenue scales.

Risks to Consider

1. Burn rate dependency: The $11.7 million cash pile must outlast execution delays. A shows improvement, but profitability remains distant.
2. Competitor pressure: Companies like Apple and Samsung are investing in wireless charging, though Energous’ long-range tech offers a unique angle.
3. Regulatory delays: If the Food Safety Act is postponed, near-term demand could evaporate.

The Bull Case: A 2026 Inflection Point

Assume Energous secures two major retailer contracts by late 2025, leveraging its existing Fortune 10 deal as a reference. By 2026:
- Revenue could hit $20 million, driven by IoT adoption and 5G infrastructure needs.
- Gross margins could expand to 60%+, as fixed costs are spread over higher volumes.
- A $500 million market cap would imply a P/S of ~25x—still reasonable for a disruptive tech firm.

Final Call: Buy the Discount, but Set a Watchlist

Energous is a high-risk, high-reward bet for investors with a 2–3 year horizon. The stock’s current valuation is a discount to its IP and strategic partnerships, but it requires faith in management’s ability to convert backlog into revenue.

Action Items:
1. Monitor Q3 2025 updates for new partnership announcements.
2. Track cash burn to ensure it stays below $18 million annually.
3. Look for regulatory milestones tied to the Food Safety Act.

For now, this is a speculative long—but one with asymmetric upside if Wi-Charge tech becomes the IoT standard.

The question isn’t whether wireless charging is the future—it’s whether Energous can monetize it first. The answer, by 2026, could redefine this stock’s trajectory.