ESS Tech 2025 Q2 Earnings Narrowed Losses Despite Strong Revenue Growth

ESS Tech (GWH) reported its fiscal 2025 Q2 earnings on August 15, 2025. The company delivered a strong revenue performance but still posted a net loss, with significant improvements in cost efficiency and operational cash burn reported. The company did not provide specific revenue guidance for the remainder of 2025.

ESS Tech reported a 577.6% year-over-year increase in total revenue, reaching $2.36 million in 2025 Q2 compared to $348,000 in 2024 Q2. This growth was driven primarily by revenue from related parties, which accounted for $2.30 million, while other revenue contributions totaled $56,000. The substantial increase in related-party revenue indicates progress in securing strategic partnerships and commercial opportunities.

The company reduced its net loss to $11.06 million in Q2 2025, representing a 49.6% reduction from the $21.94 million loss in Q2 2024. On a per-share basis, the loss narrowed from $1.87 to $0.90, a 51.9% improvement. Despite these improvements, ESS Tech has posted losses for four consecutive years in this quarter, underscoring ongoing financial challenges.

The narrowed losses indicate positive strides in cost management and operational efficiency. However, the continued losses highlight the need for sustained improvements and execution to achieve profitability.

The stock price of ESS Tech has experienced mixed performance recently. It dropped 3.39% during the latest trading day and 7.07% over the most recent full trading week. However, it surged 33.59% month-to-date, reflecting investor interest amid earnings volatility.

A post-earnings trading strategy involving a 30-day holding period after the report delivered poor returns, with a CAGR of -73.96% and an excess return of -144.46% compared to the benchmark. The strategy exhibited high volatility at 114.37% and a Sharpe ratio of -0.65%, indicating a lack of risk-adjusted returns and significant drawdowns during backtesting.

Kelly F. Goodman, Interim CEO of ESS Tech, highlighted the company’s progress in strengthening its balance sheet, including $31 million in new capital and a significant reduction in operating cash burn by 80% in June compared to Q1. The company also made technological advancements with improvements in extended duration and cost efficiency. A key milestone was securing its first commercial Energy Base order, an 8-megawatt-hour project with a U.S. strategic partner expected in 2026, which validates the company’s value proposition.

The CEO emphasized disciplined execution and cost control, with cost of goods sold (COGS) down 37% year-over-year and operating expenses reduced by 45%. ESS Tech has outlined three strategic priorities: fulfilling customer commitments, scaling operations with discipline, and converting commercial momentum into long-term growth. Goodman expressed cautious optimism about future opportunities but underscored the need for continued cost management and operational execution.

ESS Tech has not provided specific revenue guidance for the remainder of 2025. However, Kelly Goodman expressed confidence in converting its 1.1 gigawatt-hour Energy Base proposal pipeline into backlog by year-end. Kate Suhadolnik, another company representative, noted plans to maximize capital access via a Standby Equity Purchase Agreement to extend the company’s operational runway. The company expects to deliver its first Energy Base order in 2026 and aims to scale deployments while maintaining cost discipline and rightsizing operations.

Additional News
Recent news from Nigeria’s Punch newspaper highlights a range of developments. A notable focus is on Roche and the National Health Insurance Authority (NHIA) slashing cancer drug costs by 80% for UPTH insured patients, a significant relief for healthcare users. Meanwhile, there has been political discourse regarding electoral integrity and governance. Additionally, Nigeria’s inflation rate dropped to 21.88% in July, reported by the National Bureau of Statistics (NBS). In business, the Dangote Group pledged full medical support for BBNaija’s Phyna’s injured sister, showcasing corporate social responsibility.