Ideal Power 2025 Q3 Earnings Widening Losses as Net Loss Surges 9.3%

Ideal Power (IPWR) reported its fiscal 2025 Q3 earnings on Nov 14, 2025, with results that missed expectations on earnings per share but exceeded revenue forecasts. The company posted a net loss of $2.94 million, a 9.3% increase from the $2.69 million loss in 2024 Q3, while revenue surged 4313.4% to $24.45 million. CEO David Somo emphasized strategic progress in silicon carbide manufacturing and partnerships, though the company warned of ongoing margin pressures and cash burn challenges.

Revenue

The total revenue of Ideal Power increased by 4313.4% to $24.45 million in 2025 Q3, up from $554,000 in 2024 Q3. This sharp growth was driven by expanded SiC module shipments and new customer engagements, including a significant order from Stellantis for electric vehicle applications.

Earnings/Net Income

Ideal Power's losses deepened to $0.32 per share in 2025 Q3 from a loss of $0.31 per share in 2024 Q3 (3.2% wider loss). Meanwhile, the company's net loss widened to $-2.94 million in 2025 Q3, representing a 9.3% increase from the $-2.69 million loss recorded in 2024 Q3. The Company has sustained losses for 13 years over the corresponding fiscal quarter, highlighting ongoing financial headwinds. The EPS of -$0.32 reflects deteriorating profitability, with net losses expanding for the 13th consecutive year.

Price Action

The stock price of Ideal Power has edged up 2.01% during the latest trading day, has plummeted 19.25% during the most recent full trading week, and has plummeted 22.48% month-to-date.

Post-Earnings Price Action Review

Ideal Power’s stock reacted negatively to the earnings report, with a 3.75% decline in pre-market trading, reflecting investor concerns over the company’s widening losses and increased cash burn. The stock closed at $3.71, down 29.20% in the last three months and 43.19% in the past year. Despite a revenue beat, the miss on EPS and guidance for continued losses contributed to the downward pressure. Analysts noted that the company’s liquidity, while sufficient to fund operations through mid-2026, remains a key risk for investors.

CEO Commentary

Ideal Power CEO David Somo highlighted Q3 performance reflected "significant progress in scaling our silicon carbide (SiC) manufacturing capabilities, despite supply chain disruptions and elevated R&D costs." He emphasized strategic investments in automation and workforce expansion to meet growing demand for power conversion systems in renewable energy markets. Somo noted, "Our long-term positioning in the clean energy transition remains robust, with 65% of current orders tied to solar and wind infrastructure projects." However, he acknowledged near-term margin pressures due to raw material price volatility and cautioned that achieving breakeven cash flow would require disciplined cost management. The tone was cautiously optimistic, with Somo stating, "We are confident in our technology leadership and are accelerating partnerships to capture 2026 growth opportunities."

Guidance

For Q4 2025, Somo guided to revenue of $26–28 million, a 7–12% increase from Q3, driven by higher SiC module shipments. He reiterated a focus on R&D investment, allocating 22% of operating expenses to advance next-gen semiconductor designs, while targeting a 15% reduction in production costs by year-end. Qualitative expectations included expanding into European energy markets through a new partnership announced in October 2025. Somo stated, "We expect to achieve positive operating cash flow by Q1 2026, supported by our 2025 CAPEX of $18 million for facility upgrades."

Additional News

Ideal Power secured a key order from Stellantis for custom B-TRAN devices, signaling growing interest in its EV technology. The CEO transition from Dan Brdar to David Somo was confirmed as planned, with Somo’s semiconductor expertise expected to bolster revenue generation. Additionally, the company expanded its sales operations in Asia, targeting the world’s largest power electronics market. These developments underscore Ideal Power’s strategic focus on EV adoption and global expansion, despite ongoing financial challenges.