Ideal Power Inc Q2 2025 Earnings Call Highlights: Expanding Partnerships, Financial Challenges, and Market Potential

Ideal Power Inc (IPWR) reported Q2 2025 earnings, highlighting strategic partnerships and financial challenges. The company shipped updated solid-state circuit breaker prototypes, entered into a collaboration with a fourth global Tier 1 automotive supplier, and completed automotive pre-qualification testing. However, cash burn increased to $2.5 million, and the net loss reached $3 million. The company expects Q3 2025 cash burn to rise to $2.7-$2.9 million.

Ideal Power Inc. (IPWR) reported its Q2 2025 earnings, revealing a mixed bag of strategic partnerships and financial challenges. The company shipped updated solid-state circuit breaker prototypes to its first design win customer and entered into a collaboration with a fourth global Tier 1 automotive supplier. Additionally, it completed automotive pre-qualification testing, demonstrating the reliability of its B-TRAN technology. However, cash burn increased to $2.5 million, and the net loss reached $3.04 million [1].

The company'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. This decline signals a slowdown in top-line growth despite ongoing business developments [2]. Ideal Power'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 [2].

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 [2].

The company's stock price 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 [2].

Ideal Power's CEO, R. Daniel Brdar, highlighted the company's strategic priorities, including Asian expansion and automotive qualification. He emphasized the competitive advantages of B-TRAN technology, which offers low conduction losses and cost-effectiveness compared to silicon carbide, particularly in industrial and automotive markets [2].

The company added a partnership with Kaimie Electronic Corp. to distribute products in Asia, targeting the world's largest power electronics market. It is now collaborating with 5 automakers, including 4 of the top 10 global automakers, indicating a broad market reach and potential for growth in the automotive sector [3].

Ideal Power anticipates starting a revenue ramp in 2025, supported by initial product sales and development activities, contributing to future financial stability [3].

References:
[1] https://www.marketscreener.com/news/ideal-power-inc-reports-earnings-results-for-the-second-quarter-and-six-months-ended-june-30-2025-ce7c51deda88f723
[2] https://www.ainvest.com/news/ideal-power-2025-q2-earnings-wider-losses-revenue-decline-2508/
[3] https://www.ainvest.com/news/ideal-power-q2-2025-key-contradictions-stellantis-partnership-revenue-expectations-2508/