Ess Tech (GWH) Q2 2026 earnings summary

Executive summary

• Accelerated expansion into sodium-ion battery energy storage, launching the Bridge™ modular system and targeting early-stage opportunities nearing $1 billion across data centers, critical infrastructure, and utilities.

• Signed letters of intent with Alsym Energy for 8.5 GWh of U.S.-made sodium-ion cells and with Juniper Energy for 500+ MWh of deployments, including a 10 MW, 80 MWh California utility project.

• Announced a non-binding LOI for a business combination with a private energy company, aiming for a definitive agreement by September and close by year-end, with an implied combined enterprise value of $515 million.

• Streamlined operations, reducing operating expenses by 12% in the first half of 2026 and reallocating capital to high-return, near-term opportunities.

• Revenue for Q2 2026 was $73K, down 97% year-over-year, reflecting a wind-down of legacy contracts and a focus on new sodium-ion and iron flow battery products.

Financial highlights

• Q2 2026 revenue was $73,000, down from $2.4 million year-over-year, with a net loss of $15.6 million ($0.46/share) and adjusted EBITDA loss of $7.9 million.

• Gross loss increased to $7.4 million from $5.1 million, with operating expenses up 19% to $7.7 million, mainly due to legal and R&D costs.

• For the first half, operating expenses declined 12% to $14.5 million, and net cash used in operations fell 27% to $22.4 million.

• Cash and cash equivalents at June 30, 2026: $10.8 million; $5.6 million as of July 31, 2026.

• Accumulated deficit as of June 30, 2026: $877.3 million.

Outlook and guidance

• Focused on commercializing Bridge and Energy Base platforms, with first full-scale Bridge system targeted for late 2026 and a major 80 MWh California project for 2027.

• Early-stage pipeline for sodium-ion solutions is robust, with high demand from data centers and utilities.

• Actively pursuing additional financing, including the proposed business combination, to support liquidity and growth.

• Management is evaluating additional funding options; cost reduction and cash conservation measures have been expanded.

• Substantial doubt remains about the ability to continue as a going concern for the next 12 months.