ESS Tech 2025 Q3 Earnings Narrowed Losses Amid Revenue Decline

ESS Tech (GWH) reported fiscal 2025 Q3 results on Nov 14, 2025, with revenue declining 40.4% year-over-year to $214,000 and net losses narrowing by 53.9% to $10.38 million. The company reiterated its focus on the Energy Base platform and secured $40 million in financing to support strategic initiatives.

Revenue

ESS Tech’s total revenue dropped sharply to $214,000 in Q3 2025, a 40.4% decline from $359,000 in the prior-year period. This included $189,000 in core revenue and $25,000 from related-party transactions, reflecting ongoing challenges in scaling operations. The decline aligns with the company’s strategic shift from legacy Energy Warehouse and Energy Center deliveries to the Energy Base platform, which will dominate future commercial activity.

Earnings/Net Income

The company narrowed its quarterly loss to $0.73 per share, a 61.6% improvement from $1.90 in 2024 Q3. Net losses decreased to $10.38 million from $22.49 million, driven by disciplined cost control. However, ESS Tech has posted losses for four consecutive years, underscoring persistent financial challenges.

Price Action

ESS Tech’s stock fell 3.63% on the day of the earnings report, with a 43.93% month-to-date decline. Despite a 1.67% weekly rebound, the stock remains under pressure amid revenue misses and operational uncertainties.

Post-Earnings Price Action Review

Historical data shows ESS Tech’s stock volatility following earnings releases, with a 1.75% one-day gain noted after the prior quarter’s report. While the recent revenue miss and improved EPS beat may attract speculative buyers, the company’s four-quarter revenue underperformance and reliance on capital raises pose risks. Strategic initiatives like the 50 MWh Energy Base pilot with Salt River Project and a $75 million ATM program aim to bolster long-term growth, but execution risks and market skepticism could delay recovery. Investors should weigh near-term volatility against the company’s pivot to long-duration energy storage and recent financing progress.

CEO Commentary

Interim CEO Kelly Goodman highlighted ESS Tech’s leadership in long-duration storage, emphasizing the safety and scalability of its iron flow battery platform. The company’s $40 million Yorkville financing and $75 million ATM program are positioned to fund Energy Base manufacturing and delivery by 2026. Goodman expressed confidence in operational discipline and customer validation over the next 18 months.

Guidance

ESS Tech outlined $75 million in at-the-market equity proceeds and $30 million in post-quarter financing to support manufacturing readiness. The company prioritizes cost control, supply chain optimization, and Energy Base deployment but did not provide explicit revenue or EPS targets.

Additional News

1. Capital Raising: ESS secured $40 million in financing with Yorkville Advisors, repaying $15 million of a $30 million promissory note and launching a $75 million ATM program.

2. Strategic Shift: The company announced a 50 MWh Energy Base pilot with Salt River Project, its first commercial-scale deployment of the next-generation platform.

3. Leadership Focus: Interim CFO Kate Suhadolnik emphasized disciplined cost management, with operating expenses at $5.1 million and cash reserves of $3.5 million (excluding Yorkville proceeds).

ESS Tech’s strategic pivot to the Energy Base platform and recent capital raises signal long-term growth potential, but near-term execution risks and revenue challenges remain critical concerns for investors.