ESS Tech (GWH) AI Stock Analysis

• Market Cap: $33.42M
• Dividend Yield: N/A
• Average Volume (3M): 18.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -3.53%
• EPS Growth: 24.37%
• Country: US
• Employees: 240
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -1.20
• Shares Outstanding: 27,173,758
• 10 Day Avg. Volume: 821,393
• 30 Day Avg. Volume: 18,511,647
• PEG Ratio: 0.01
• Price to Book (P/B): 3.19
• Price to Sales (P/S): 17.34
• P/FCF Ratio: -0.51
• Enterprise Value/Market Cap: 0.15
• Enterprise Value/Revenue: 3.07
• Enterprise Value/Gross Profit: -0.15
• Enterprise Value/Ebitda: -0.10
• 1Y Price Target: $2.50
• Price Target Upside: 103.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.68
• Revenue Forecast (FY): $4.70M

• Rating: 45 Neutral
• Price Target: $1.50 ▲(21.95% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is primarily constrained by weak financial performance (sharp revenue decline, persistent losses, and heavy cash burn) and bearish technicals (price below key moving averages with negative MACD). The earnings call provides some offset through cost reductions and commercialization progress, but delayed revenue timing and ongoing capital needs remain significant risks, while valuation metrics provided are not strong enough to materially improve the score.

Positive Factors

Durable product design — Energy Base LDES

Energy Base’s 10–22 hour duration, engineered unlimited cycling and 0% capacity degradation over 25 years create a durable product differentiation for multi‑hour grid and industrial use. This structural technical profile suits renewable integration and long-duration demand, supporting lasting revenue opportunities from utilities, data centers and defense procurement.

Strategic commercial wins and reference projects

Confirmed SRP/Google offtaker and a U.S. Air Force award provide high-quality reference customers and multiyear testing that materially de-risks commercialization. These anchors increase the likelihood of follow-on contracts, support long-term revenue visibility for 2027–28 deliveries, and strengthen ESS’s credibility with utilities and institutional buyers.

Strengthened IP, leadership and structural cost cuts

VoltStorage IP acquisition deepens patent coverage and technical talent while permanent CFO/CCO appointments consolidate commercial and financial execution. Combined with structural operating expense reductions (R&D, S&M, G&A cuts), these moves improve the company’s ability to commercialize at lower burn and better execute manufacturing and sales scale-up over the medium term.

Negative Factors

Severe recent revenue decline and delayed ramp

A ~75% revenue collapse reflects winding down legacy lines and limited current Energy Base shipments. This materially reduces near-term self-funding ability, limits validation of repeatable sales, and leaves the company dependent on achieving multi-year ramp in 2027–28 to reach sustainable revenue — a significant execution and timing risk.

Persistent heavy cash burn and negative free cash flow

Consistently negative operating and free cash flows indicate the business is not self‑funding and must rely on external capital to complete commercialization and manufacturing scale‑up. Persistent burn increases financing frequency and dilution risk, constrains strategic flexibility, and raises execution risk if capital markets tighten before revenue materializes.

Compressed equity base reduces financial cushion

A sharply reduced equity base dramatically lowers the company’s loss-absorbing capacity and financial flexibility. With limited retained capital, ESS faces higher probability of additional dilutive financings or constrained investment choices, making it harder to weather further setbacks during the multi‑year commercialization and delivery cycle.

ESS Tech Business Overview & Revenue Model

Company Description

ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.

How the Company Makes Money

ESS Tech generates revenue primarily through the sale of its iron flow battery systems and related services. The company targets utility operators and large-scale energy providers, creating long-term contracts that ensure a steady revenue stream from both product sales and system installations. Additionally, ESS Tech engages in partnerships with renewable energy developers and utilities, which can lead to collaborative projects and funding opportunities. The company may also benefit from government incentives and subsidies aimed at promoting clean energy technologies, further enhancing its financial performance.

ESS Tech Financial Statement Overview

Summary

Financials are very weak: revenue fell sharply in 2025 (-73.7% YoY), profitability is structurally negative (gross losses and large operating losses), and cash burn remains heavy with deeply negative operating/free cash flow. The balance sheet shows relatively modest leverage, but equity has compressed materially, reducing the cushion against ongoing losses.

Income Statement

Revenue has been volatile and deteriorating recently, with 2025 revenue down sharply versus 2024 (-73.7% year-over-year). Profitability is very weak: gross profit is negative in most years (except 2022), and operating losses remain large (2025 EBIT of -$57.4M on only $1.6M of revenue). While 2025 net income is shown as breakeven, the underlying operating performance is still deeply loss-making, indicating the income statement quality and earnings power remain poor.

Balance Sheet

Leverage is modest overall, with low-to-moderate debt relative to equity in recent years (debt-to-equity ~0.06 in 2024 and ~0.45 in 2025). However, the equity base has compressed materially over time (from $205.2M in 2021 to $8.6M in 2025), reducing the cushion against continued losses and raising financial flexibility risk. Returns on equity are negative/weak across most of the period, reflecting an inability to generate shareholder value despite the generally low debt load.

Cash Flow

Cash burn remains heavy and persistent. Operating cash flow is strongly negative each year (e.g., -$50.3M in 2025 and -$72.2M in 2024), and free cash flow is also deeply negative (e.g., -$53.7M in 2025). Free cash flow deterioration in 2025 (down 12.7%) and consistently negative operating cash flow relative to reported earnings indicate the business is not self-funding and likely relies on external capital to sustain operations.

Breakdown	Dec 2025	Mar 2025	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.58M	6.29M	7.54M	894.00K	0.00
Gross Profit	-33.41M	-45.36M	-12.96M	894.00K	-572.00K
EBITDA	-49.96M	-85.07M	-79.39M	-103.97M	-474.66M
Net Income	-63.44M	-86.22M	-77.58M	-77.97M	-477.12M
Balance Sheet
Total Assets	51.17M	71.81M	143.23M	173.55M	250.20M
Cash, Cash Equivalents and Short-Term Investments	22.03M	31.60M	108.06M	139.81M	238.94M
Total Debt	3.84M	1.69M	2.54M	5.87M	3.77M
Total Liabilities	42.55M	42.93M	39.88M	36.58M	45.04M
Stockholders Equity	8.62M	28.88M	103.36M	136.97M	205.16M
Cash Flow
Free Cash Flow	-53.67M	-79.51M	-60.69M	-95.80M	-54.62M
Operating Cash Flow	-50.28M	-72.22M	-54.90M	-81.62M	-51.85M
Investing Cash Flow	7.53M	64.76M	15.07M	-117.88M	-2.77M
Financing Cash Flow	43.46M	174.00K	25.65M	-4.07M	288.45M

ESS Tech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GWH, the sentiment is Negative. The current price of 1.23 is below the 20-day moving average (MA) of 1.39, below the 50-day MA of 1.56, and below the 200-day MA of 2.07, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 35.15 is Neutral, neither overbought nor oversold. The STOCH value of 33.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GWH.

ESS Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SDST	51 Neutral	$24.18M	-1.45	209.00%	―	―	61.78%
FCEL	48 Neutral	$349.12M	-4.17	-26.54%	―	41.05%	-1.02%
FLUX	46 Neutral	$25.82M	10.40	365.40%	―	2.14%	5.01%
GWH	45 Neutral	$33.42M	-0.43	-265.36%	―	-3.53%	24.37%
EOSE	45 Neutral	$1.76B	-3.08	73.98%	―	324.10%	-214.91%
NVX	42 Neutral	$160.49M	-1.85	-75.11%	―	-14.27%	-28.56%

ESS Tech Corporate Events

ESS Tech Reports 2025 Results Amid Strategic Reset

ESS Tech reported fourth-quarter and full-year 2025 results on March 5, 2026, highlighting a leadership and organizational reset, tighter financial discipline and an expansion of its technology base through the acquisition of VoltStorage’s iron-salt battery intellectual property and assets. The company strengthened its commercial pipeline with an updated collaboration with Google on Project New Horizon, a $9.9 million U.S. military storage award and a 5 MW/50 MWh deployment at Salt River Project’s Copper Crossing facility, with manufacturing for New Horizon slated to begin in 2026 and deliveries targeted for December 2027.

Financially, ESS narrowed its net loss to $63.4 million in 2025 from $86.2 million in 2024, improved adjusted EBITDA to negative $44.3 million and cut operating expenses by 33% to $29.7 million, even as revenue remained modest at $1.6 million amid a shift to its Energy Base offering and lower sales volumes. Liquidity actions included a $40 million financing in October 2025, an at-the-market equity program raising about $8.6 million, a $15 million registered direct offering in January 2026 and substantial repayment of a Yorkville promissory note, moves that bolstered cash resources but left working capital at roughly $1 million at year-end 2025.

The most recent analyst rating on (GWH) stock is a Buy with a $3.50 price target. To see the full list of analyst forecasts on ESS Tech stock, see the GWH Stock Forecast page.

ESS Tech Announces $13.5 Million Registered Direct Offering

On January 29, 2026, ESS Tech, Inc. entered into a securities purchase agreement with institutional investors for a registered direct offering of 3,471,428 shares of common stock and pre-funded warrants for 5,100,000 additional shares at approximately $1.75 per share or per warrant, with closing expected around January 30, 2026 and anticipated net proceeds of about $13.5 million to be used for general corporate purposes and working capital. The deal, arranged with Aegis Capital Corp. as exclusive placement agent, includes customary fees and expense reimbursement, a 60-day restriction on additional equity issuance or new registration statements (subject to limited exceptions), and standard warrant terms and ownership limits, underscoring ESS Tech’s continued reliance on equity-linked financing while temporarily constraining further capital-raising flexibility in the near term.

The most recent analyst rating on (GWH) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on ESS Tech stock, see the GWH Stock Forecast page.

ESS Tech expands board, appoints CEO Drew Buckley

On January 23, 2026, ESS Tech’s board of directors expanded its size from seven to eight members and elected Chief Executive Officer Drew Buckley as a Class I director, with a term running until the company’s 2028 annual meeting of stockholders unless he departs earlier. Buckley’s appointment involved no special arrangements, family relationships, or related‑party transactions, and he will not receive additional compensation for his board service beyond his CEO pay, underscoring a straightforward governance change that consolidates leadership without altering the company’s compensation or conflict‑of‑interest profile.

The most recent analyst rating on (GWH) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on ESS Tech stock, see the GWH Stock Forecast page.

ESS Tech Overhauls Executive Team With New Leadership

On January 6, 2026, ESS Tech, Inc. announced a broad leadership reshuffle effective January 1, 2026, appointing former Head of Capital Markets Strategy Drew Buckley as chief executive officer, elevating interim CEO Kelly Goodman to chief strategy officer and general counsel, and naming interim CFO Kate Suhadolnik as permanent chief financial officer. Buckley, a former William Blair partner with nearly two decades of experience investing in small- and mid-cap technology companies, signed an employment agreement that includes a $425,000 base salary, performance-based cash bonus eligibility and options on 550,000 shares, reflecting the board’s emphasis on capital discipline, investor credibility and equity-linked incentives as ESS moves into manufacturing and delivery of its first Energy Base projects and broader commercialization. Goodman, an energy-sector legal veteran who previously advanced key customer programs and secured a 50 MWh Energy Base pilot agreement with Salt River Project while serving as interim CEO, will oversee corporate strategy and legal affairs with an increased base salary and heightened bonus opportunity, while Suhadolnik’s confirmation as CFO, alongside a higher base salary and performance-linked bonus, consolidates financial leadership after she steered the company through a recent $40 million financing, signaling a bid to stabilize the executive team and strengthen execution as ESS scales operations and deepens strategic partnerships.

The most recent analyst rating on (GWH) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on ESS Tech stock, see the GWH Stock Forecast page.