Ideal Power (IPWR) Q4 2025 earnings summary

Executive summary

• Announced multi-year strategic cooperation agreements with Lasin/Lazzen for B-TRAN enabled circuit protection products targeting AI data centers, renewables, and EVs.

• Signed a letter of intent with a leading Asian power module manufacturer to develop B-TRAN based modules.

• Advanced relationship with Stellantis, completing the first of five deliverables for custom B-TRAN devices for EVs, with remaining deliverables expected by mid-2026.

• Appointed David Somo as CEO, President, and board director, bringing extensive business leadership experience.

• Expanded global sales efforts, adding leadership in Asia and planning hires in Europe and Asia to accelerate commercialization.

Financial highlights

• Raised $12.6 million in net proceeds from a public offering and private placement in February 2025/2026, strengthening the balance sheet with no debt.

• Q4 2025 cash burn was $2.2 million, below guidance, and full year 2025 cash burn was $9.6 million, also below guidance.

• Cash and cash equivalents were $6.1 million at December 31, 2025, down from $15.8 million a year earlier.

• Operating expenses in Q4 2025 were $1.9 million, down from $2.8 million in Q4 2024, mainly due to lower stock-based compensation and personnel costs.

• Net loss for Q4 2025 was $1.9 million, compared to $2.6 million in Q4 2024; full year 2025 net loss was $10.6 million, up slightly from $10.4 million in 2024.

Outlook and guidance

• Q1 2026 cash burn expected to rise to $2.6–$2.8 million, with full year 2026 cash burn projected at $10.5 million, reflecting planned hiring.

• Focused on converting sales opportunities to design-ins and production orders to drive initial revenue ramp.

• Automotive reliability testing for B-TRAN expected to complete by summer 2026.

• Exploring strategic investment opportunities with global market leaders.

• Strategic priorities include expanding the sales funnel, securing production orders, and advancing EV contactor and battery disconnect unit opportunities.