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SES AI Corporation Class A (SES)
NYSE:SES
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SES AI Corporation Class A (SES) AI Stock Analysis

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SES

SES AI Corporation Class A

(NYSE:SES)

Rating:54Neutral
Price Target:
SES AI Corporation has a score of 54, driven by rapid revenue growth and strategic initiatives, yet challenged by significant financial and profitability issues. Despite technical indicators showing short-term momentum, the negative P/E ratio and potential volatility limit its attractiveness. The company's strong liquidity and strategic focus are positives, but addressing operational losses is crucial for future improvement.
Positive Factors
Acquisition Strategy
SES continues its transition to 'AI first' and its search for application of its software by entering the energy stationary storage (ESS) market by acquiring UZ Energy.
Financial Performance
SES reported $5.8 million in revenue, almost triple expectations, with the full-year guide of $15 million to $20 million maintained.
Stock Repurchase
The board approved a $30 million share repurchase program, signaling management's belief that the company is undervalued and aiming to bolster the stock price.
Negative Factors
Competition and Risk
Investor risks include technology risk with SES's Li-metal anode and electrolyte formulations, scaling risks and timeline shifts in manufacturing, and competition risks from incumbents.
Technology and Product Differentiation
Little is known about UZ Energy or what the product differentiation will be, leaving more questions than answers about the business and the ramp-up.

SES AI Corporation Class A (SES) vs. SPDR S&P 500 ETF (SPY)

SES AI Corporation Class A Business Overview & Revenue Model

Company DescriptionSES AI Corporation Class A (SES) is a technology company focused on the development and commercialization of high-performance lithium-metal rechargeable batteries. These batteries are designed for use in electric vehicles and other applications that require high energy density and safety. SES combines advanced materials, cell design, and manufacturing processes to deliver innovative battery solutions that aim to enhance the performance and efficiency of electric vehicles.
How the Company Makes MoneySES AI Corporation generates revenue primarily through the development and licensing of its lithium-metal battery technologies to automotive manufacturers and other partners in the electric vehicle industry. The company collaborates with major automotive companies to integrate its battery solutions into their production lines, thus earning revenue from licensing agreements, joint development projects, and potentially from the sale of battery cells and systems. Partnerships with industry leaders and ongoing research and development efforts play a crucial role in advancing SES's technology and securing its position in the market.

SES AI Corporation Class A Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
SES AI showcased strong quarterly performance with significant revenue growth, strategic acquisition of UZ Energy, and improved cash flow. The Molecular Universe platform is gaining traction, although challenges in AI adoption and uncertainties in the ESS market timeline persist. Overall, the company is well-positioned with strong liquidity and no debt.
Q2-2025 Updates
Positive Updates
Strong Quarterly Performance
SES AI achieved significant progress in product revenue development and profitability milestones in the second quarter of 2025. Revenue for the quarter was $3.5 million with a 74% gross margin.
Acquisition of UZ Energy
SES AI announced an agreement to acquire UZ Energy, which provides a foothold in the fast-growing global ESS market, with projected revenue growth from $10 million to $15 million for the full year 2025.
Significant Cash Flow Improvement
Cash usage in operations decreased by 51% from Q2 2024 and 53% from Q1 2025, demonstrating operational discipline and effective capital deployment.
Molecular Universe Platform Success
Over 30 companies have begun trial testing the Molecular Universe platform, which is being leveraged for material discovery and battery management.
Strong Liquidity Position
SES AI concluded the quarter with $229 million in liquidity and no debt, positioning the company for scalable long-term growth.
Revenue from Drones and UAM
Revenue from drones and UAM has increased this year, with plans to update and certify the Korea line to meet customer supply chain requests.
Negative Updates
Uncertain Timeline for ESS Market Expansion
While the acquisition of UZ Energy positions SES AI in the ESS market, the actual integration and revenue growth timeline remain uncertain.
Challenges in AI Adoption
The adoption of AI in the battery industry is still in its early stages, with companies testing Molecular Universe's ability to solve complex problems that human scientists cannot.
Share Repurchase Delay
No share repurchases were completed during the second quarter, although some were conducted in the third quarter.
Company Guidance
During the SES AI Second Quarter 2025 earnings call, guidance highlighted a strong performance with a revenue of $3.5 million and a 74% gross margin. The company reaffirmed its full-year 2025 revenue guidance, projecting between $15 million and $25 million. A significant reduction in cash usage was noted, with $10.8 million utilized for operations—a 51% decrease from Q2 2024. The quarter ended with $229 million in liquidity and no debt. The acquisition of UZ Energy is expected to enhance SES's position in the $300 billion global energy storage systems (ESS) market, with UZ Energy's revenue projected at $10 million to $15 million for 2025. Additionally, SES AI repurchased 871,754 shares for $1.1 million in Q3. The company is focused on expanding its Molecular Universe platform and is actively exploring further M&A opportunities to augment its capabilities across various sectors such as drones, ESS, and more.

SES AI Corporation Class A Financial Statement Overview

Summary
SES AI Corporation is experiencing rapid revenue growth but faces significant profitability challenges. Despite a strong balance sheet with low leverage and high equity, continuous net losses and negative cash flow raise concerns about long-term financial sustainability.
Income Statement
45
Neutral
SES AI Corporation's income statement reveals a challenging financial period. The TTM (Trailing-Twelve-Months) data shows a dramatic revenue increase from $2.04 million to $7.83 million, indicating significant growth. However, the company remains unprofitable with a net loss of $97.06 million, leading to a negative net profit margin. High EBIT and EBITDA losses further suggest operational inefficiencies. The gross profit margin is relatively strong, which indicates efficient cost management in production, but overall profitability remains a concern.
Balance Sheet
50
Neutral
SES AI Corporation's balance sheet displays a mixed financial health picture. The equity ratio is high at about 88%, suggesting a solid capital structure with limited reliance on debt. However, the company operates with significant net losses affecting return on equity negatively. The debt-to-equity ratio is low, which is positive, but the declining stockholders' equity may signal financial instability if losses continue. Overall, strong liquidity is a positive, but sustained losses could erode equity over time.
Cash Flow
40
Negative
The cash flow statement indicates operational challenges, given the negative operating cash flow of $79.79 million. The free cash flow remains negative, with a slight deterioration, highlighting liquidity risks and the need for external funding. Although the company has managed its capital expenditures efficiently, the cash flow to net income ratios underscore difficulties in converting revenue to cash, necessitating improvements in cash generation.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.83M2.04M0.000.000.000.00
Gross Profit7.57M1.29M-5.54M-2.60M-1.66M0.00
EBITDA-102.15M-100.94M-72.62M-76.98M-30.34M-12.20M
Net Income-97.06M-100.19M-53.40M-50.38M-31.25M-13.89M
Balance Sheet
Total Assets305.98M329.79M406.81M442.32M193.35M24.59M
Cash, Cash Equivalents and Short-Term Investments239.76M262.54M332.45M390.08M160.50M14.73M
Total Debt9.53M10.56M13.72M12.06M0.00840.00K
Total Liabilities36.13M51.48M47.86M50.17M281.68M86.66M
Stockholders Equity269.86M278.31M358.95M392.15M-88.32M-62.07M
Cash Flow
Free Cash Flow-86.11M-78.29M-72.17M-61.15M-38.97M-11.99M
Operating Cash Flow-79.79M-66.09M-56.41M-46.50M-29.99M-11.01M
Investing Cash Flow5.11M108.19M32.72M-296.01M3.31M-13.27M
Financing Cash Flow1.00M1.01M3.27M289.93M184.76M840.00K

SES AI Corporation Class A Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.09
Price Trends
50DMA
1.06
Positive
100DMA
0.96
Positive
200DMA
0.87
Positive
Market Momentum
MACD
<0.01
Positive
RSI
49.06
Neutral
STOCH
44.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SES, the sentiment is Neutral. The current price of 1.09 is below the 20-day moving average (MA) of 1.11, above the 50-day MA of 1.06, and above the 200-day MA of 0.87, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.06 is Neutral, neither overbought nor oversold. The STOCH value of 44.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SES.

SES AI Corporation Class A Risk Analysis

SES AI Corporation Class A disclosed 53 risk factors in its most recent earnings report. SES AI Corporation Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

SES AI Corporation Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$17.64B14.17-5.23%3.04%1.43%-15.09%
54
Neutral
$398.64M-34.37%-63.15%
50
Neutral
$110.68M-64.97%-13.37%-75.09%
46
Neutral
$4.49B-42.03%9.21%
45
Neutral
$605.44M102.04%12.52%22.68%
44
Neutral
$833.93M-1441.64%111.39%-74.39%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SES
SES AI Corporation Class A
1.09
0.06
5.83%
AEVA
Aeva Technologies
14.80
12.04
436.23%
QS
QuantumScape
7.93
2.41
43.66%
GGR
Gogoro
0.38
-0.74
-66.07%
ECX
ECARX Holdings
1.62
0.00
0.00%

SES AI Corporation Class A Corporate Events

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
SES AI Corporation Announces $30 Million Stock Buyback
Positive
Apr 24, 2025

On April 24, 2025, SES AI Corporation announced a stock repurchase program to buy back up to $30 million of its Class A common stock, signaling confidence in its financial health and future prospects. The company reported a record revenue of $5.8 million for Q1 2025 and maintained its annual revenue outlook of $15 million to $25 million. SES AI is strategically positioned for growth with its Molecular Universe platform, which has attracted interest from numerous companies even before its official release. The company aims to exit 2025 with over $200 million in liquidity, focusing on scalable growth and commercial readiness, particularly in the EV and robotics sectors.

Spark’s Take on SES Stock

According to Spark, TipRanks’ AI Analyst, SES is a Underperform.

SES AI Corporation’s stock is rated low due to significant challenges in financial performance, including ongoing losses and cash flow issues. While the company has achieved early-stage revenue generation and strategic expansion, these positives are overshadowed by the negative financial metrics and the recent NYSE delisting notice. The technical indicators show mixed signals, and the valuation remains unattractive due to a negative P/E ratio. The company must address these financial and operational challenges to improve its stock performance.

To see Spark’s full report on SES stock, click here.

Delistings and Listing ChangesStock Split
SES AI Corporation Faces NYSE Delisting Notice
Negative
Mar 12, 2025

On March 7, 2025, SES AI Corporation received a notice from the New York Stock Exchange (NYSE) indicating non-compliance with the listing standards due to its Class A common stock’s average closing price falling below $1.00 over 30 consecutive trading days. The company plans to address this issue within a six-month period by potentially implementing measures such as a reverse stock split, which would require stockholder approval. Despite the notice, SES AI’s stock will continue to trade on the NYSE, and the company remains committed to regaining compliance, ensuring minimal impact on its operations and stakeholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 03, 2025