ESS Tech, Inc. Q1 FY2026 earnings call

Corporate overview, operational updates, and technology validation discussed. Technology validation: iron flow technology independently validated at Burbank Water and Power and successfully commissioned at Turlock Irrigation District. Signed letter of intent for strategic partnerships with Alsem Energy. Acquired intellectual property and assets of Volt Storage. Appointed Randy Selesky as Chief Commercial Officer. Announced Project New Horizon collaboration. Secured $9.9 million contract. Strengthened balance sheet with $15 million registered direct offering. Engaged with MZ Group for IR program.

Revenue for the first quarter of 2026 was $128,000 compared with $599,000 in the prior year period due to fewer deliveries of equipment to customers. Cost of revenue decreased $1.6 million or 18% to $7.2 million compared with $8.7 million in the prior year period. Total operating expenses decreased $3.3 million or 33% to $6.7 million compared with $10 million in the prior year period. Net loss for the first quarter of 2026 was $15.9 million compared to $18 million in the prior year period, an improvement of $2.1 million or 12%. Adjusted EBITDA improved by 4.7 million, or 31%, to a loss of 10.3 million compared with a loss of 15 million in the prior year period. Ended the first quarter with $15.5 million in unrestricted cash and cash equivalents and $6 million in short-term investments for a total of $21.5 million in liquidity.

Over the next 18 months, watch important de-risking milestones across roadmap including new commercial wins, pilot systems generating data, progress on 200 kilowatt and 800 kilowatt development path, and progress on SRP project. Focus on execution, capital discipline, and scalable commercial opportunities as advancing into next phase.

Barriers in producing energy storage products, projects in early stages of commercialization, technology not fully field tested, inability to develop business and commercialize products, dependence on third-party suppliers, delays in manufacturing operations, ability to control costs and achieve cost reduction strategy, history of losses, ability to raise capital in near future, and other risks described in SEC filings.

There are no further questions at this time