Energous (WATT) AI Stock Analysis

• Market Cap: $9.18M
• Dividend Yield: N/A
• Average Volume (3M): 152.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: 599.15%
• EPS Growth: 82.47%
• Country: US
• Employees: 26
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -1.31
• Shares Outstanding: 2,175,137
• 10 Day Avg. Volume: 55,610
• 30 Day Avg. Volume: 152,098
• PEG Ratio: 0.01
• Price to Book (P/B): -6.70
• Price to Sales (P/S): 9.40
• P/FCF Ratio: -0.41
• Enterprise Value/Market Cap: 0.09
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 0.77
• Enterprise Value/Ebitda: -0.07
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: $3.50 ▼(-12.06% Downside)

Energous receives a low overall stock score due to significant financial instability, negative valuation metrics, and bearish technical indicators. The company's financial performance is the most critical factor, highlighting urgent need for strategic changes to improve sustainability.

Positive Factors

Regulatory Approval

Regulatory approval for PowerBridge Pro in the EU expands Energous' market reach, enabling commercialization and potential revenue growth across EU member states.

Market Expansion

The inclusion of both PowerBridge Lite and Pro in the EU-certified portfolio enhances product offerings, supporting strategic market expansion and adoption in Europe.

Technological Innovation

Advanced features of PowerBridge Pro highlight Energous' commitment to innovation, strengthening its competitive position in wireless power solutions.

Negative Factors

Financial Instability

Persistent financial instability with declining revenues and high leverage raises concerns about Energous' ability to sustain operations and invest in growth.

Cash Flow Issues

Negative cash flows and reliance on external financing suggest unsustainable operations, limiting Energous' ability to fund innovation and expansion.

Operational Inefficiencies

Negative EBIT and EBITDA margins indicate high operational costs relative to revenue, challenging Energous' profitability and long-term viability.

Energous Business Overview & Revenue Model

Company Description

Energous Corporation (NASDAQ: WATT) is a pioneering technology company specializing in wireless power transfer and energy harvesting solutions. The company focuses on developing innovative technologies that enable the wireless charging of electronic devices over the air. Energous operates primarily in the sectors of wireless charging and power management, offering core products such as its WattUp technology, which is designed to provide efficient and safe power delivery to various consumer electronics, IoT devices, and wearables.

How the Company Makes Money

Energous generates revenue primarily through the licensing of its WattUp technology to manufacturers and developers in the electronics industry. The company typically enters into agreements that allow these partners to integrate Energous' wireless charging technology into their products, for which Energous receives licensing fees and royalties based on product sales. Additionally, Energous may generate revenue from the sale of its proprietary hardware, such as transmitters and receivers, as well as through strategic partnerships with key industry players that enhance its market reach and technological capabilities. These partnerships often involve co-development projects or joint ventures, contributing to the company's earnings by expanding its customer base and increasing the adoption of its technology in various applications.

Energous Financial Statement Overview

Summary

Energous faces significant financial challenges with declining revenues, persistent losses, and high leverage. The company struggles with cash flow management and relies heavily on external financing. Immediate strategic changes are necessary to improve financial health and sustainability.

Income Statement

Energous shows a declining revenue trend with significant negative net income, indicating persistent losses. The gross profit margin is extremely low, and the company has negative EBIT and EBITDA margins, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet reveals high leverage with negative stockholders' equity, indicating financial instability. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is negative, highlighting potential solvency issues.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, indicating cash burn. The company relies on financing activities to support operations, which is unsustainable long-term. The operating cash flow to net income ratio is negative, reflecting cash inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.02M	768.00K	474.18K	851.32K	756.79K	327.35K
Gross Profit	1.09M	12.00K	195.10K	-426.24K	756.79K	200.81K
EBITDA	-11.59M	-16.84M	-21.55M	-25.64M	-37.16M	-30.78M
Net Income	-12.40M	-18.40M	-19.37M	-26.28M	-41.43M	-31.83M
Balance Sheet
Total Assets	17.84M	3.79M	16.68M	29.75M	51.37M	53.14M
Cash, Cash Equivalents and Short-Term Investments	12.90M	1.35M	13.88M	26.29M	49.07M	50.73M
Total Debt	1.31M	1.49M	1.26M	1.97M	668.72K	1.40M
Total Liabilities	4.11M	4.87M	5.18M	5.11M	4.39M	4.09M
Stockholders Equity	13.73M	-1.08M	11.50M	24.65M	46.98M	49.05M
Cash Flow
Free Cash Flow	-12.74M	-17.70M	-19.44M	-23.80M	-29.09M	-24.93M
Operating Cash Flow	-12.69M	-17.57M	-19.25M	-23.64M	-28.72M	-24.79M
Investing Cash Flow	-43.00K	-123.00K	-187.00K	-164.99K	-365.74K	-136.63K
Financing Cash Flow	24.18M	5.11M	7.08M	1.02M	27.43M	53.97M

Energous Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WATT, the sentiment is Negative. The current price of 3.98 is below the 20-day moving average (MA) of 5.59, below the 50-day MA of 6.90, and below the 200-day MA of 8.39, indicating a bearish trend. The MACD of -0.71 indicates Positive momentum. The RSI at 27.48 is Positive, neither overbought nor oversold. The STOCH value of 7.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WATT.

Energous 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%
CPSH	60 Neutral	$58.07M	-79.56	-3.84%	―	38.22%	70.68%
LPTH	53 Neutral	$407.06M	-19.91	-37.93%	―	36.85%	-77.93%
NEON	49 Neutral	$33.73M	3.76	38.72%	―	-48.54%	―
LINK	41 Neutral	$56.86M	-28.81	-13.78%	―	-1.70%	17.13%
WATT	38 Underperform	$9.18M	-0.26	-175.08%	―	599.15%	82.47%

Energous Corporate Events

Energous Secures $5 Million in Recent Financing Deals

On September 10, 2025, Energous Corporation entered into a securities purchase agreement with an institutional investor for a registered direct offering, resulting in the issuance of shares and warrants, with the transaction closing on September 11, 2025. The company expects net proceeds of approximately $4.1 million, which will be used for working capital and general corporate purposes. Additionally, Energous announced a concurrent warrant exercise transaction, leading to the issuance of new unregistered warrants, with the overall transactions expected to generate gross proceeds of around $5 million. These financial maneuvers aim to strengthen Energous’ market position and operational capabilities.