Ideal Power — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for the three months ended September 30, 2026, was $7,000, down from $24,450 in the same period in 2025; revenue for the nine months ended September 30, 2026, was $12,800, down from $37,728 in the prior year period.
• Gross loss for the third quarter of 2026 was $2,768, compared to a gross loss of $1,619 in the third quarter of 2025; gross loss for the first nine months of 2026 was $976, compared to $22,680 in the prior year period.
• Net loss for the third quarter of 2026 was $3.6 million, compared to $2.9 million in the third quarter of 2025; net loss for the first nine months of 2026 was $10.6 million, compared to $8.7 million in the prior year period.
• Net loss per share (basic and diluted) for the third quarter of 2026 was $0.18, compared to $0.32 in the prior year period; for the first nine months of 2026, it was $0.66, compared to $0.95 in the prior year period.
• Operating expenses for the third quarter of 2026 were $3.9 million, up from $3.0 million in the third quarter of 2025, driven by higher personnel costs, stock-based compensation, and non-cash patent impairment charges.
• Cash and cash equivalents totaled $38.3 million at September 30, 2026, an increase from $6.1 million at December 31, 2025.
• Cash used in operating and investing activities was $2.9 million in the third quarter of 2026, compared to $2.7 million in the third quarter of 2025; for the first nine months of 2026, cash used was $7.7 million, compared to $7.4 million in the prior year period.
• No long-term debt was outstanding at September 30, 2026.
• Financing activities provided $39.9 million in net cash for the first nine months of 2026, primarily from the issuance of common stock and pre-funded warrants.

Business Segments and Product Lines:

• Announced a collaboration with Power Integrations to develop a self-powered, intelligent, ultra-fast solid-state circuit breaker (SSCB) for 800-volt DC data centers, with a working prototype demonstrated and a joint reference design progressing.
• Finalizing a statement of work with a global industrial technology company for an NRE-funded 800-volt DC 125-amp SSCB development project planned to begin in the fourth quarter.
• Initiated a new engagement with a large potential customer evaluating B-TRAN® in an 800-volt DC 63-amp SSCB for battery energy storage systems and data center applications.
• Finalizing a statement of work for an NRE-funded project with an industry partner to conduct an engineering study and modeling work providing a simulation platform for a U.S. hyperscaler, expected to begin in the fourth quarter.
• Expanded distribution of the 800-volt SSCB Reference Design Kits (RDKs), with Richardson Electronics now stocking the kits and accepting orders, with additional stocking and direct orders expected in coming months.
• Continued advancing the solid-state EV contactor opportunity with Stellantis, supporting the evaluation of Gen 2 B-TRAN® custom-packaged samples and development kits, with system-level specifications work ongoing.
• Advanced manufacturing readiness with functional B-TRAN® first silicon achieved at a high-volume, automotive-qualified semiconductor wafer foundry in Asia, with JEDEC qualification expected to be completed by year-end.
• The B-TRAN® patent estate currently consists of 108 issued patents, with 52 issued outside the United States, covering North America, China, Taiwan, Japan, South Korea, India, and Europe.

Market and Competitive Landscape:

• Customer engagements expanded as the transition to higher-voltage DC architectures accelerates demand for solid-state circuit protection.
• The company has expanded its sales funnel to approximately $450 million.
• The company is expanding its broader automotive pipeline with additional global automakers and Tier 1 suppliers.
• The Advisory Board's first member, Dr. Sanjai Parthasarathi, is facilitating introductions to leading companies in data centers, AI infrastructure, and related technology markets.

Risks and Challenges:

• Forward-looking statements regarding market acceptance, commercialization timing, and product performance are subject to risks including the success of B-TRAN® technology, patent protection adequacy, and global health pandemics.
• Risks include supply chain disruptions, the rate of market acceptance for B-TRAN®, and uncertainties regarding the performance of future products incorporating the technology.
• The company faces the challenge of converting opportunities across its expanding sales funnel into volume production orders and revenue growth.

Management Commentary and Tone:

• CEO David Somo stated that the company is "materially better positioned" to advance customer opportunities through the sales funnel and into production orders following his first year as CEO.
• Management highlighted the assembly of an experienced semiconductor leadership and engineering team, the release of new RDKs, and the signing of a long-term supply agreement with a high-volume, automotive-qualified power semiconductor foundry.
• Management emphasized a continued focus on converting opportunities into volume production orders, revenue growth, and long-term shareholder value.

Other Key Points:

• The company signed a long-term supply agreement with a high-volume, automotive-qualified power semiconductor foundry.
• The company formed an Advisory Board, with Dr. Sanjai Parthasarathi as its first member.
• A conference call and webcast were held on November 12, 2026, to discuss the results.
• The company reported a significant increase in cash reserves from $6.1 million to $38.3 million over the first nine months of 2026, largely due to equity financing.