Ideal Power 2025 Q2 Earnings Wider Losses Amid Revenue Decline

Ideal Power (IPWR) reported its fiscal 2025 Q2 earnings on Aug 14, 2025, with the results falling short of expectations. The company posted a 4.2% drop in total revenue and a widened net loss, indicating continued financial struggles. Management highlighted operational progress but stressed that the firm remains in a loss-making phase.

Ideal Power's total revenue for the second quarter of 2025 dropped by 4.2% to $1275 million, compared to $1331 million in the same period in 2024. The decline signals a slowdown in top-line growth despite ongoing business developments.

The company's net loss expanded to $3.04 million in 2025 Q2, a 14.1% increase from the $2.66 million loss in 2024 Q2. On a per-share basis, losses widened to $0.33 from $0.31, representing a 6.5% increase in losses. The prolonged period of losses—13 consecutive years in the same quarter—highlights persistent financial challenges.

The stock price of Ideal Power experienced significant volatility in the most recent trading periods. It surged by 34.68% on the latest trading day and increased by 27.08% during the most recent full trading week. However, the stock fell 14.58% month-to-date, indicating mixed investor sentiment.

A strategy of buying Ideal Power shares following a revenue increase quarter-over-quarter and holding for 30 days underperformed significantly over the past three years. This approach yielded a return of -41.05%, far below the benchmark return of 46.48%. While the strategy recorded a maximum drawdown of 0.00%, the overall CAGR of -16.66% and a Sharpe ratio of -0.23 suggest poor risk-adjusted returns and moderate risk exposure.

R. Daniel Brdar, CEO of Ideal Power, outlined key business advancements, including the shipment of updated solid-state circuit breaker prototypes to the first design win customer and a collaboration with a fourth Tier 1 automotive supplier. The company also secured a purchase order from Stellantis for custom EV applications. Brdar emphasized the competitive advantages of B-TRAN technology, highlighting its low conduction losses and cost-effectiveness compared to silicon carbide, particularly in industrial and automotive markets. The CEO outlined strategic priorities such as expanding partnerships in Asia, completing automotive qualification testing, and increasing power ratings. He expressed optimism about design wins and revenue ramp potential, with industrial markets expected to drive initial revenue.

Ideal Power anticipates third-quarter 2025 cash burn of $2.7 million to $2.9 million, with full-year burn just over $10 million. The company expects to generate revenue from product development, the launch of the first B-TRAN-enabled circuit breaker by its first design win customer, and increased sales as customers progress through design cycles. It also plans to complete third-party automotive qualification and raise product power ratings by year-end. Tim Burns, CFO, stated that the company has sufficient liquidity to fund operations through mid-2026, with revenue contributions anticipated from development agreements and commercial contracts.

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