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Dec 31, 2025
ESS Tech Q4 2025 Earnings Report
ESS Tech Q4 2025 Earnings Report
Key Takeaways
ESS Tech reported a challenging fourth quarter with negative revenue due to contract wind-downs, though it achieved significant year-over-year improvements in operating expenses and adjusted EBITDA. The company is undergoing a leadership reset and strategic shift toward commercial-scale deployment of its iron flow long-duration energy storage systems.
Completed a leadership and organizational reset, appointing Drew Buckley as permanent CEO.
Acquired VoltStorage GmbH’s IP and assets to strengthen iron-salt battery technology and commercial capabilities.
Secured a $9.9 million award for U.S. military installations and advanced the Google 'Project New Horizon' collaboration.
Strengthened liquidity post-quarter with a $15 million registered direct offering and significant debt repayment.
Reported negative Q4 revenue of $1.59 million, primarily due to settling legacy contracts as the company shifts to its Energy Base offering.
Revenue by Segment
Forward Guidance
ESS expects an increasing pace of commercial activity over the next several years as projects progress to delivery and commissioning, with manufacturing for Project New Horizon starting in 2026.
Positive Outlook
- Increasing pace of commercial activity over the next several years.
- Project New Horizon manufacturing expected to begin in 2026.
- Three tier 1 foundational projects expected to begin delivery in 2027.
- Strong demand for domestically produced LDES in defense and data infrastructure.
- Improved liquidity and financial flexibility following post-quarter capital raises.
Challenges Ahead
- Continued history of operating losses.
- Significant reduction in working capital year-over-year.
- Dependence on successful commercialization of early-stage technology.
- Potential delays in manufacturing operations and supply chain dependence.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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