Ideal Power 2025 Q1 Earnings Misses Targets as Net Loss Widens 9.5%

Ideal Power (IPWR) reported its fiscal 2025 Q1 earnings on May 15th, 2025. Ideal Power missed revenue expectations in Q1 2025, posting $12,003 compared to the forecast of $900,000. The company's guidance remains in-line, with expectations for modest commercial revenue from product sales in Q2 2025 and a revenue ramp starting in the second half of the year. Ideal Power forecasts a full-year 2025 cash burn exceeding $10 million due to planned hiring efforts.

Revenue
The total revenue of Ideal Power decreased by 84.8% to $12,003 in 2025 Q1, down from $78,739 in 2024 Q1.

Earnings/Net Income
Ideal Power narrowed losses to $0.30 per share in 2025 Q1 from a loss of $0.39 per share in 2024 Q1, marking a 23.1% improvement. However, the company's net loss widened to $2.70 million in 2025 Q1, a 9.5% increase from the $2.47 million loss recorded in 2024 Q1. Despite the improvement in EPS, the overall financial performance remains challenging.

Post-Earnings Price Action Review
Ideal Power's strategy of buying IPWR when revenue beats and holding for 30 days shows potential, although risks and broader market context must be considered. Despite beating revenue expectations, IPWR's stock experienced a slight decline in pre-market trading, possibly due to market reactions or broader conditions. This highlights the importance of monitoring company-specific news and overall market trends. Although Ideal Power has strong liquidity with a current ratio of 29.06, weak gross profit margins and increased operating expenses are concerning factors. Strategic advancements like new sales partnerships and product innovation may positively influence the stock's long-term trajectory, but these may not impact the price during the holding period. This strategy can be viable for short-term investors, but they should be prepared for potential volatility and risks associated with holding a non-profitable company.

CEO Commentary
Dan Brdar, President & Chief Executive Officer, highlighted that Ideal Power completed solid-state circuit breaker prototypes ahead of schedule, driving initial revenue growth expected in the second half of 2025. Brdar emphasized the strategic significance of securing partnerships with major Global 500 companies, which could lead to substantial annual revenue. He noted, "We expect solid-state circuit breaker customers... to drive our initial revenue ramp." The CEO expressed optimism, stating, "We think 2025 is shaping up to be a pretty exciting year for us," reflecting confidence in future design wins and market demand for B-TRAN technology in various applications.

Guidance
Ideal Power expects to see modest volume in commercial revenue from product sales in Q2 2025, with a revenue ramp starting in the second half of 2025. The company forecasts full-year 2025 cash burn to exceed $10 million, driven largely by planned hiring efforts. Brdar mentioned, "For us, it depends on the mix, but it's really just a few key design wins," indicating that achieving profitability hinges on securing additional significant contracts.

Additional News
Ideal Power has made significant strides in product development and customer traction during the first quarter of 2025. The company completed its Symmetrical Super Current Breaker (SSCB) prototypes three months ahead of schedule, setting the stage for a commercial ramp in the industrial SSCB market expected in the second half of 2025. Additionally, Ideal Power's proprietary B-TRAN® technology is gaining momentum across multiple verticals, as seen in the positive feedback from automotive giant Stellantis. Stellantis has encouraged continued advancement of the existing drivetrain inverter program and the launch of a new high-priority initiative focused on electric vehicle contactors. Ideal Power also secured a new order from a third Forbes Global 500 company interested in B-TRAN® for circuit protection solutions targeting DC microgrids supporting solar and wind power distribution systems.