Ideal Power (IPWR) Q1 2026 earnings summary

Executive summary

• Commercial momentum is building with prototype programs advancing for key customers in Asia and the US, including projects for AI data centers, energy storage, and automotive applications.

• Focused on commercializing B-TRAN® solid-state switch technology, with first two commercial products launched and initial design wins secured.

• The sales opportunity funnel has grown to over $300 million, up from $200 million in February, with diversification across geographies and industries.

• Strategic investment discussions with global market leaders are ongoing, aiming to validate and accelerate B-TRAN adoption.

• Initiated new projects with a lead Asia customer and advanced deliverables for Stellantis, targeting EV and AI data center applications.

Financial highlights

• Q1 2026 cash burn from operating and investing activities was $2.3 million, below guidance of $2.6–$2.8 million.

• Cash and cash equivalents totaled $16.4 million as of March 31, 2026, up from $6.1 million at year-end 2025, with no debt.

• No revenue was recorded in Q1 2026; initial orders are expected to be small and grow as customers progress through development.

• Operating expenses rose to $3.7 million in Q1 2026 from $2.8 million in Q1 2025, mainly due to higher stock-based compensation and personnel costs.

• Net loss for Q1 2026 was $3.6 million, compared to $2.7 million in Q1 2025, a 34% year-over-year increase.

Outlook and guidance

• Q2 2026 cash burn is expected to be $2.5–$2.7 million; full-year 2026 cash burn is projected at $10–$10.5 million, up from $9.6 million in 2025 due to increased hiring.

• Modest revenue expected for the remainder of 2026 from product sales and development agreements.

• No change in the timeline for meaningful revenue; commercial announcements and purchase orders are anticipated in the next 3–6 months.

• Cash on hand expected to cover liquidity needs for at least the next twelve months.

• Focus on converting sales funnel opportunities into production orders and revenue growth.