ESS Tech, Inc. Q3 FY2025 earnings call

• ESS Tech is a technology leader in long-duration energy storage with an iron flow battery platform that is safe, sustainable, and can cycle over 20,000 times without capacity fade. • Built strong relationships with tier-one customers like SB Energy, Honeywell, etc. Announced a 50 megawatt-hour energy-based pilot project with Salt River Project. • Completed a $40 million financing with Yorkville Advisors and launched a $75 million at-the-market equity program. • Focus over next 18 months is on execution, building, delivering, and validating performance in the field; driving operational discipline and scaling manufacturing capability. • Plan to host an investor day in early 2026 to provide in-depth look at progress, energy-based program, and roadmap.

In 2025, ESS Tech, Inc. reported revenue of $200,000 in the third quarter compared to $2.4 million in the second quarter. The year-to-date trend reflects the ongoing transition to the energy-based platform. GAAP cost of revenues totaled $4.9 million, operating expenses were $5.1 million. Net loss for the quarter was $10.4 million or $0.73 per share. Cash, cash equivalents, and short-term investments ended the quarter at $3.5 million, not including the $30 million proceeds from the Yorkville financing which closed after quarter-end. Revenue contribution is from the transition from energy warehouse and energy deliveries to the energy-based platform which will be the foundation of commercial activity going forward.

• Focus over next 18 months is on execution, building, delivering, and validating performance in the field, driving operational discipline and scaling manufacturing capability. • Launching a $75 million at-the-market equity program to provide efficient access to capital to support growth and execution. • Funds from financing provide solid runway to continue advancing manufacturing readiness and support early project execution.

• Forward-looking statements subject to known and unknown risks and uncertainties that could cause actual results to differ materially, including risk factors in recent periodic filings, uncertainty and unpredictability in business, challenges with raising capital, issues with partnerships, markets, economy, geopolitical situation, and development and launch of energy base.

Q: Talk about the scale of projects with energy-based product, duration customers might be looking for, and technologies competing against in RFPs A: Scale strategy is to deliver projects similar in size to SRP's 5 megawatt, 50 megawatt-hour project with follow-on opportunities. Current duration is ten hours, targeting sixteen-hour battery by 2029. In RFPs targeting long duration, competing against technologies offering more than ten hours; in storage agnostic RFPs, competing against lithium and others offering four-hour storage Q: Types of customers issuing RFPs and if engaged in behind the meter with data centers A: Customers in RFP space are utilities or IPPs acting on behalf of utilities; not engaged in RFPs behind the meter, but have bilateral conversations with data centers and hyperscalers Q: Use of proceeds for capital, runway, and liquidity ahead A: As of today, roughly $30 million in cash on hand, can draw remaining $10 million from Yorkville's promissory note; have significant flexibility to manage liquidity on terms, focused on execution and delivering on SRP project and pursuing new opportunities