ESS Tech (GWH) AI Stock Analysis

• Market Cap: $50.42M
• Dividend Yield: N/A
• Average Volume (3M): 18.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: -3.53%
• EPS Growth: 24.37%
• Country: US
• Employees: 240
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.73
• Shares Outstanding: 19,617,070
• 10 Day Avg. Volume: 821,393
• 30 Day Avg. Volume: 18,511,647
• PEG Ratio: >-0.01
• Price to Book (P/B): 35.95
• Price to Sales (P/S): 164.96
• P/FCF Ratio: -13.06
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 4.67
• Enterprise Value/Gross Profit: -0.90
• Enterprise Value/Ebitda: -0.49
• 1Y Price Target: $3.50
• Price Target Upside: 62.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $2.00 ▼(-7.41% Downside)

ESS Tech's overall stock score is primarily impacted by its poor financial performance, with significant challenges in profitability and cash flow. While technical analysis and valuation also reflect a negative outlook, recent corporate events and strategic initiatives provide some optimism for future improvements.

Positive Factors

Strategic Partnerships

These partnerships validate ESS Tech's technology and enhance its market position, potentially leading to increased adoption and revenue growth over time.

Product Innovation

The launch of the Energy Base platform marks a significant step in product innovation, enhancing ESS Tech's competitive edge in long-duration energy storage solutions.

Capital Raising

Successful capital raising strengthens the balance sheet, providing financial flexibility to support strategic growth initiatives and operational improvements.

Negative Factors

Revenue Decline

The significant revenue decline indicates challenges in scaling operations and generating consistent sales, impacting the company's financial stability and growth prospects.

Negative Profit Margins

Persistent negative profit margins reflect operational inefficiencies and high costs, which can hinder profitability and long-term financial health.

Cash Flow Issues

Negative cash flow trends limit ESS Tech's ability to fund operations and growth initiatives, posing a risk to its financial sustainability and strategic execution.

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

ESS Tech is facing significant financial challenges, including negative gross and net profit margins, declining revenue, and negative equity. The company's cash flow is also negative, indicating severe financial instability.

Income Statement

ESS Tech's income statement reveals significant challenges, with negative gross and net profit margins indicating a lack of profitability. The company has experienced declining revenue growth, with a negative trajectory over the TTM period. The EBIT and EBITDA margins are also deeply negative, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet shows a concerning financial position with negative stockholders' equity, indicating potential solvency issues. The debt-to-equity ratio is negative, which is unusual and highlights financial instability. Return on equity is also negative, suggesting that the company is not generating returns for shareholders. The equity ratio is not calculable due to negative equity.

Cash Flow

Cash flow analysis indicates negative operating and free cash flows, with a declining free cash flow growth rate. The operating cash flow to net income ratio is negative, suggesting cash flow issues relative to reported earnings. The free cash flow to net income ratio is slightly positive, but this is overshadowed by the overall negative cash flow trends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.02M	6.29M	7.54M	894.00K	0.00	0.00
Gross Profit	-31.16M	-45.36M	-12.96M	894.00K	-572.00K	-436.00K
EBITDA	-57.13M	-85.07M	-79.39M	-103.97M	-474.66M	-29.85M
Net Income	-62.94M	-86.22M	-77.58M	-77.97M	-477.12M	-30.42M
Balance Sheet
Total Assets	36.15M	71.81M	143.23M	173.55M	250.20M	9.02M
Cash, Cash Equivalents and Short-Term Investments	3.54M	31.60M	108.06M	139.81M	238.94M	4.90M
Total Debt	439.00K	1.69M	2.54M	5.87M	3.77M	5.70M
Total Liabilities	37.91M	42.93M	39.88M	36.58M	45.04M	10.67M
Stockholders Equity	-1.77M	28.88M	103.36M	136.97M	205.16M	-1.65M
Cash Flow
Free Cash Flow	-61.45M	-79.51M	-60.69M	-95.80M	-54.62M	-17.15M
Operating Cash Flow	-56.91M	-72.22M	-54.90M	-81.62M	-51.85M	-16.64M
Investing Cash Flow	38.21M	64.76M	15.07M	-117.88M	-2.77M	-502.00K
Financing Cash Flow	8.99M	174.00K	25.65M	-4.07M	288.45M	4.72M

ESS Tech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2.16 is below the 20-day moving average (MA) of 2.94, below the 50-day MA of 3.48, and below the 200-day MA of 2.42, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 37.16 is Neutral, neither overbought nor oversold. The STOCH value of 12.39 is Positive, 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%
EOSE	54 Neutral	$4.86B	―	―	―	324.10%	-214.91%
FCEL	45 Neutral	$399.05M	―	-29.51%	―	78.82%	-20.81%
GWH	43 Neutral	$50.42M	―	-265.36%	―	-3.53%	24.37%
FLUX	41 Neutral	$33.72M	―	―	―	2.14%	5.01%
NVX	41 Neutral	$274.35M	-2.47	-45.13%	―	-14.27%	-28.56%
SDST	26 Underperform	$34.46M	-0.91	―	―	―	61.78%

ESS Tech Corporate Events

ESS Tech Amends Promissory Note Agreement with Yorkville

On December 4, 2025, ESS Tech, Inc. and YA II PN, LTD., managed by Yorkville Advisors Global, L.P., amended their promissory note agreement. The amendment extends the deadline for the second tranche payment from December 12, 2025, to February 28, 2026, and adjusts the conditions for the payment, requiring the principal amount under Tranche One to be $7 million or less.

ESS Tech Launches ‘At the Market’ Offering Program

On November 13, 2025, ESS Tech, Inc. announced the launch of an ‘at the market offering’ program, entering into a Sales Agreement with several financial agents to sell shares of its common stock. The company plans to use the proceeds primarily to satisfy obligations under a Promissory Note with YA II PN, LTD., with remaining funds allocated for working capital and general corporate purposes. This strategic move aims to enhance ESS Tech’s financial flexibility and support its operational needs.

ESS Tech Secures $40M Financing for U.S. Expansion

On October 14, 2025, ESS Tech, Inc. announced the closing of a $40 million financing transaction with YA II PN, Ltd., managed by Yorkville Advisors Global, L.P. This financing, structured as a one-year promissory note, strengthens ESS’s cash position and supports its strategic pivot to U.S.-manufactured energy solutions. The transaction reflects ESS’s continued momentum, following significant customer agreements and projects, such as the 50 MWh New Horizon project for Salt River Project. With this funding, ESS is well-positioned to focus on executing existing commitments and securing new contracts for its long-duration energy storage solutions.

ESS Tech Holds Successful Annual Stockholders Meeting

On October 13, 2025, ESS Tech, Inc. successfully reconvened its 2025 Annual Meeting of Stockholders online after an initial adjournment on October 6, 2025, due to a lack of quorum. During the meeting, stockholders elected a Class I director, ratified KPMG LLP as the independent auditor for 2025, and approved a significant issuance of common stock to comply with NYSE listing rules, indicating strategic financial maneuvers to bolster the company’s market position.