Ideal Power (IPWR) AI Stock Analysis

• Market Cap: $38.81M
• Dividend Yield: N/A
• Average Volume (3M): 74.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: -69.65%
• EPS Growth: 11.41%
• Country: US
• Employees: 16
• Sector: Technology
• Sector Strength: 88
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.21
• Shares Outstanding: 12,089,389
• 10 Day Avg. Volume: 58,841
• 30 Day Avg. Volume: 74,104
• PEG Ratio: 0.28
• Price to Book (P/B): 3.58
• Price to Sales (P/S): 748.20
• P/FCF Ratio: -3.05
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 628.89
• Enterprise Value/Gross Profit: -1.05K
• Enterprise Value/Ebitda: -2.26
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -1.15
• Revenue Forecast (FY): $1.00M

• Rating: 45 Neutral
• Price Target: $3.00 ▼(-23.66% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is held down primarily by weak financial performance—tiny/declining revenue, persistent large losses, and sustained cash burn—along with a bearish technical trend (price below key moving averages and negative MACD). Partially offsetting this are constructive strategic signals from the earnings call (Stellantis and design-win progress) and improved funding runway from the recent $14M raise, while valuation provides limited support due to negative earnings and no dividend.

Positive Factors

Proprietary B-TRAN technology

Ideal Power’s proprietary B-TRAN switch is a durable competitive asset: it targets efficiency, reduced size/complexity and higher power density across EV charging, storage, and renewables. This structural differentiation supports licensing, device sales and multi-market adoption if qualification succeeds.

Strategic OEM partnership (Stellantis)

A multiyear OEM engagement with Stellantis is a durable commercial milestone: it validates B-TRAN in vehicle applications, creates a potential volume channel and shortlists Ideal Power in an OEM supply chain, accelerating design-ins and strengthening long-term revenue prospects if programs progress to production.

Improved near-term liquidity ($14M raise)

The $14M equity financing materially extends runway to fund customer design-ins, custom development and initial production ramp. This funding reduces immediate financing risk, enabling execution on partnerships and commercialization activities that are prerequisites for durable revenue growth.

Negative Factors

Tiny, declining revenue base

Revenue remains effectively negligible and declining, indicating the company is still in pre-commercial or very early-commercial stage. A tiny base limits internal funding, weakens validation of product-market fit, and makes the business highly dependent on converting design-wins into sustainable, repeatable sales.

Sustained cash burn and negative cash flow

Persistent roughly $9M annual cash outflows have materially eroded equity (from ~$24M to ~$7.9M TTM), forcing reliance on financings. Continued cash burn without revenue scale increases dilution risk and constrains investments necessary to commercialize and scale manufacturing over the medium term.

Long customer evaluation cycles; rising fab costs

B-TRAN requires lengthy customer qualification and education, slowing revenue realization. Concurrently higher wafer fabrication costs lift near-term unit costs and operating expenses. Together these structural factors lengthen the path to profitable scale and increase the capital required to reach sustainable margins.

Ideal Power Business Overview & Revenue Model

Company Description

Ideal Power Inc. (IPWR) is a technology company specializing in innovative power conversion solutions, primarily focusing on the renewable energy and electric vehicle sectors. The company develops and sells advanced power electronics, including its proprietary Power Packet Switching Architecture (PPSA) technology, which is designed to enhance the efficiency and reliability of energy management systems. Ideal Power's core products cater to applications in energy storage systems, solar power integration, and electric vehicle charging, contributing to the transition towards sustainable energy solutions.

How the Company Makes Money

Ideal Power’s revenue model centers on monetizing its B-TRAN technology through (1) technology licensing and related royalties, (2) sales of B-TRAN devices once commercially available at scale, and (3) development and commercialization agreements that may include non-recurring engineering (NRE), evaluation, or other collaboration payments depending on contract structure. In practice, the company works with potential customers and semiconductor/manufacturing ecosystem participants to evaluate B-TRAN for specific end markets (e.g., EV charging and renewable/energy storage power conversion) with the goal of converting evaluations into long-term commercial supply arrangements and/or licensing deals. Material revenue is therefore driven by successful technical validation (demonstrating performance/reliability/cost advantages in target applications), qualification cycles with customers, and the establishment of scalable manufacturing/packaging/test flows through partners or contractors; if specific partnership terms, royalty rates, unit economics, or customer-by-customer contract values are not publicly disclosed, those details are null.

Ideal Power Financial Statement Overview

Summary

Overall fundamentals are weak: revenue is very small and declining, profitability is deeply negative with persistent ~$10–11M annual losses, and operating/free cash flow remain materially negative (TTM OCF about -$9.1M; FCF about -$9.4M). The main offset is low leverage/no meaningful debt, but equity has fallen sharply over time, signaling ongoing operating pressure.

Income Statement

TTM (Trailing-Twelve-Months) revenue is very small ($37.7K) and down meaningfully versus the prior year (about -12.5% growth). Profitability is deeply negative: gross profit is negative and operating and net margins are extremely weak, with net losses around $10–11M per year across 2021–TTM. While losses have been relatively steady in size, the combination of shrinking revenue and persistently large losses drives a low income statement quality score.

Balance Sheet

Leverage is modest with low debt relative to equity (debt-to-equity remains very low), which is a clear balance-sheet strength. However, equity has declined materially from 2021 to TTM (roughly $24.1M to $7.9M), reflecting ongoing losses and weakening capital cushion. Returns on equity are consistently negative, highlighting that the balance sheet is being pressured by unprofitable operations despite low debt.

Cash Flow

Cash generation is a major weakness: operating cash flow and free cash flow are consistently negative, including TTM operating cash flow of about -$9.1M and free cash flow of about -$9.4M. Free cash flow has also deteriorated versus the prior year. A partial positive is that free cash flow broadly tracks net loss (cash burn is not massively worse than reported losses), but the sustained and increasing cash outflows keep the cash-flow score low.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.73K	86.03K	198.87K	203.27K	576.40K
Gross Profit	-22.68K	-7.38K	38.26K	0.00	0.00
EBITDA	-10.48M	-10.65M	-10.08M	-7.16M	-4.69M
Net Income	-10.58M	-10.42M	-9.95M	-7.19M	-4.77M
Balance Sheet
Total Assets	10.05M	19.83M	12.25M	19.40M	25.88M
Cash, Cash Equivalents and Short-Term Investments	6.13M	15.84M	8.47M	16.35M	23.17M
Total Debt	403.33K	486.02K	202.99K	267.58K	326.45K
Total Liabilities	2.17M	1.97M	2.19M	1.49M	1.73M
Stockholders Equity	7.88M	17.86M	10.06M	17.91M	24.15M
Cash Flow
Free Cash Flow	-9.25M	-9.25M	-7.37M	-6.57M	-4.52M
Operating Cash Flow	-9.14M	-8.74M	-7.13M	-6.38M	-4.28M
Investing Cash Flow	-449.49K	-506.43K	-522.95K	-312.74K	-236.94K
Financing Cash Flow	-128.83K	16.62M	-216.26K	-127.87K	24.53M

Ideal Power Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPWR, the sentiment is Negative. The current price of 3.93 is above the 20-day moving average (MA) of 3.36, above the 50-day MA of 3.65, and below the 200-day MA of 4.49, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 42.81 is Neutral, neither overbought nor oversold. The STOCH value of 30.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IPWR.

Ideal Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PPSI	55 Neutral	$38.50M	-6.78	96.55%	―	―	―
SDST	51 Neutral	$28.13M	-1.45	209.00%	―	―	61.78%
FLUX	46 Neutral	$27.53M	10.40	365.40%	―	2.14%	5.01%
IPWR	45 Neutral	$38.81M	-2.67	-91.56%	―	-69.65%	11.41%
GWH	45 Neutral	$35.33M	-0.43	-265.36%	―	-3.53%	24.37%
DFLI	44 Neutral	$35.27M	-0.75	219.79%	―	18.24%	24.49%

Ideal Power Corporate Events

Ideal Power Raises $14 Million in Equity Offering

On February 23, 2026, Ideal Power Inc. entered an underwriting agreement for an underwritten public offering of 3,505,855 common shares and pre-funded warrants for up to 952,881 shares, alongside a concurrent private placement of additional pre-funded warrants. The combined transactions, which closed on February 25, 2026, are expected to raise about $14 million in gross proceeds to support the company’s operations.

The registered offering, conducted via a previously effective shelf registration, and the unregistered private placement both feature pre-funded warrants with a nominal exercise price of $0.001 per share. Ideal Power has stated it plans to use the net proceeds primarily to advance commercialization of its B-TRAN® power-switch technology, including customer design-ins, custom development programs and initial production ramp with strategic partners, as well as for general corporate and working capital needs.

The most recent analyst rating on (IPWR) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Ideal Power stock, see the IPWR Stock Forecast page.