Ideal Power Inc ((IPWR)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Ideal Power Inc’s recent earnings call presented a slightly positive sentiment, driven by strategic partnerships and technological advancements, despite facing financial challenges. The company’s expansion in automotive collaborations and progress in solid-state circuit breaker technology were key highlights, showcasing a promising future despite current financial hurdles.
Expansion of Automotive Partnerships
Ideal Power has significantly expanded its automotive partnerships, now collaborating with five automakers, including four of the top 10 global automotive giants. This strategic move underscores the company’s growing influence and potential in the automotive sector, positioning it as a key player in the industry.
Solid-State Circuit Breaker Development
The company has made strides in its solid-state circuit breaker development, shipping updated prototypes to its first design win customer. These prototypes integrate additional capabilities, and the customer plans to launch a B-TRAN-enabled solid-state circuit breaker product later this year, marking a significant milestone in Ideal Power’s technological journey.
Stellantis Purchase Order
Ideal Power received promising news from Stellantis, which informed them of an upcoming purchase order for custom development and packaged devices targeting multiple EV applications. This order signifies a strong vote of confidence from a major automotive player.
Partnership with Kaimei Electronic Corp.
The company has also forged a partnership with Kaimei Electronic Corp. to distribute its products throughout Asia, a crucial market for power electronics. This partnership is expected to enhance Ideal Power’s market reach and influence in the region.
Successful Testing and Reliability
Ideal Power successfully completed third-party automotive prequalification and reliability testing of its B-TRAN devices with zero failures. The company anticipates completing full third-party automotive qualification later this year, further solidifying its product reliability.
Increasing Interest in B-TRAN Technology
There is growing interest in Ideal Power’s B-TRAN technology, particularly for industrial and automotive applications like solid-state circuit breakers. This increasing demand highlights the technology’s potential impact on the market.
Financial Stability
Despite financial challenges, Ideal Power maintains financial stability with no debt and a clean capital structure. As of June 30, 2025, the company held $11.1 million in cash and cash equivalents, providing a solid financial foundation.
Increased Cash Burn
The company’s cash burn increased to $2.5 million in Q2 2025, up from $2.2 million in Q2 2024. This rise reflects ongoing investments in technology and partnerships, crucial for future growth.
Modest Revenue
Ideal Power recorded modest revenue for Q2 2025, as customers continue to evaluate its technology. Initial orders are expected to be small, but the company remains optimistic about future revenue growth.
Net Loss
The net loss for Q2 2025 was $3 million, compared to $2.7 million in Q2 2024, indicating ongoing financial losses. However, the company remains focused on strategic growth and technological advancements.
Forward-Looking Guidance
Looking ahead, Ideal Power anticipates an increase in cash burn to $2.7 to $2.9 million in Q3 2025, with a full-year cash burn of just over $10 million. The company expects to start its sales ramp in the latter half of 2025, driven by product development and the launch of the first B-TRAN-enabled breaker. Guidance suggests potential revenue in millions or even exceeding $10 million annually from single design wins, alongside significant milestones like completing third-party automotive qualification and increasing product power ratings.
In summary, Ideal Power’s earnings call reflects a slightly positive sentiment, with strategic partnerships and technological advancements offering a promising outlook. Despite financial challenges, the company’s robust cash position and forward-looking guidance indicate potential for significant growth and revenue in the coming years.