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Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 5:00 p.m. ET Chief Executive Officer - Drew Buckley Chief Financial Officer - Kate Suhadolnik Operator: Good afternoon, and welcome to the ESS Tech Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] During today's call, ESS may make statements relating to its future financial performance, anticipated growth strategies and trends in its business. These may include statements regarding: the company's sodium-ion strategy and the early-stage opportunities approaching $1 billion identified for its sodium-ion solutions; the time line for development and market rollout of the Bridge system; the letter of intent with Juniper Energy and the potential deployment of 500-megawatt hours or more of energy storage systems; the letter of intent with Alsym Energy; the timing of the company's projects; the company's plan to streamline its Wilsonville operations and reduce expenses and cash burn; statements regarding the proposed business combination, including the timing, terms and potential benefits; the company's 2026 outlook and beyond; its cash position; the market opportunity; the potential and capabilities of the company's technology and platform; and its ability to execute on Project New Horizon, including the timing of manufacturing and delivery. These statements constitute forward-looking statements within the meaning of federal security laws and are based on management's current expectations and beliefs concerning future developments. These forward-looking statements involve a number of risks, uncertainties and assumptions, including, but not limited to: barriers the company faces in producing its energy storage products; its products being in the early stage of commercialization; aspects of technology not having been fully field tested; the company's dependence on third-party suppliers; delays, disruptions or quality control problems in manufacturing operations; the company's ability to control its costs and achieve its cost reduction strategy; its history of losses and substantial doubt regarding its ability to continue as a going concern; its ability to raise capital in the near future; the non-binding nature of LOIs; risks related to the proposed business combination, including the non-binding nature of the letter of intent; the party's ability to complete due diligence and to negotiate and execute definitive agreements and the realization of benefits; the market opportunity for ESS' production; its ability to satisfy the continued listing standards of the New York Stock Exchange; and other risks and uncertainties described more fully in the company's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K filed on March 5, 2026, its quarterly report on Form 10-Q for the quarter ended June 30, 2026 and its current reports. Actual results may differ materially from those expressed in or implied by forward-looking statements made on this call. Except as required by law, ESS undertakes no obligation to update or revise any forward-looking statements. In today's discussion, the company will reference adjusted EBITDA and non-GAAP financial measures. A reconciliation of adjusted EBITDA to the most directly comparable GAAP measure is provided in the presentation accompanying this call in our earnings release. A press release detailing these results was issued earlier today and is available in the Investor Relations section of the company's website at investors.essinc.com. A replay of this call and today's presentation will also be posted to that same site following the call. Hosting today's call are Drew Buckley, Chief Executive Officer; and Kate Suhadolnik, Chief Financial Officer. I would now like to turn the call over to Drew Buckley. Please go ahead, sir. Drew Buckley: Thank you, operator, and good afternoon, everyone. Welcome to ESS Tech's Second Quarter 2026 Earnings Conference Call. We appreciate you joining us today. I will start with a brief overview of the company and how we are positioned. From there, I will walk you through our second quarter highlights and the commercial progress behind them. And I will introduce Bridge, our new sodium-ion battery energy storage system. I'll also give you an update on the proposed business combination we announced last week. Kate Suhadolnik, our Chief Financial Officer, will then take you through our financial results for the quarter, the reconciliation of GAAP net loss to adjusted EBITDA and our cash and financing position. I will close with a summary of our priorities and the milestones ahead, and then we will open your line for questions. Before we get to the quarter, I want to spend a moment on how we're positioning the company because it frames everything else you will hear today. ESS is an energy storage company specializing in sodium-ion and iron flow battery technology. We design, produce and integrate battery technology, and we build our products with Earth-abundant materials. We now operate two complementary platforms. The first is Bridge, our new sodium-ion battery system. It's a 1.2-megawatt hour AC modular block purpose-built for short- and medium-duration applications, and we are targeting data centers, critical infrastructure and utilities. The second is Energy Base, our iron flow platform. It delivers from 10- to over 20-hour long-duration storage for 24/7 renewable power in applications where lithium-ion is too costly, too unsafe or too inefficient. Both platforms share the same core advantages. Neither one carries thermal runaway risk. Iron flow stores energy using iron salt and water, and our sodium-ion cells are non-flammable. Both are built on a domestic platform with U.S. design, assembly, software and controls. To support that, we have signed a letter of intent with Alsym Energy to add 8.5 gigawatt hours of U.S.-made sodium-ion cells to our portfolio. Underpinning all of it is our Tier 1 opportunities anchored by Salt River Project and Google, an existing Florida utility customer, a major California utility opportunity in partnership with Juniper Energy and by the U.S. Air Force Research Laboratory through Concurrent Technologies Corporation. I will come back to those relationships in a few minutes. But now let me explain why this matters, and I would point you to the three themes at the bottom of the slide. The first is CapEx acceleration. Hyperscalers are scaling data center investment at a pace this industry has not seen before and doing it on a compressed time line. The second is power constraints. Generation additions are not keeping pace with AI-driven load growth, which leaves developers competing for capacity that doesn't exist yet. The third is the storage imperative. Batteries are moving inside the data center and becoming core infrastructure. We believe sodium-ion is essential to closing that gap and that safe non-lithium solutions are positioned to scale across grid-level applications. The second quarter marked an inflection point for ESS. We accelerated our expansion into sodium-ion batteries, and we did it while maintaining the disciplined execution and capital focus that have defined our reset. Let me start with the left side of this slide. The demand we are seeing for sodium-ion is unlike anything in our company's history. During the quarter, we announced that we were accelerating development of our U.S.-made sodium-ion battery energy storage system, and we did that in direct response to strong early customer interest across data centers, critical infrastructure and utility markets. We have now developed early-stage opportunities approaching $1 billion, and we have aligned our resources behind an expanded focus on AI infrastructure and data center market specifically. To supply that demand, we signed a letter of intent with Alsym Energy to add 8.5 gigawatt hours of U.S.-made sodium-ion cells to our portfolio. This agreement extends our non-lithium platform into the short- and medium-duration applications that have historically been served by lithium-ion systems. Subsequent to quarter end, we began the market rollout of Bridge, our modular sodium-ion battery. I'll discuss that product in a moment. Also subsequent to quarter end, we signed a letter of intent with Juniper Energy LLC for the deployment of 500 megawatt hours or more of sodium-ion battery systems, establishing a framework for long-term partnership. The collaboration will begin with a planned 10-megawatt/80-megawatt hour project for a major California utility, targeted for commercial operation in 2027. We believe this represents a clear validation that the market interest we have been discussing is translating into tangible customer commitments. The two statistics at the top of the slide highlight why this opportunity is emerging now. U.S. data center power demand is expected to double by 2030, while industry estimates suggest 20 to 25 gigawatts of battery storage capacity could be deployed inside data centers by the end of the decade. This market was largely nonexistent just a few years ago, and it is still being built today. Now let me turn to the right side of the slide. We also streamlined our Wilsonville operations to reduce expenses and cash burn, and we reallocated that capital towards sodium-ion-related solutions that complement iron flow and carry greater near-term revenue potential. As of today, we have repaid $37 million of the $40 million principal amount outstanding under our promissory note with Yorkville. Deleveraging has been a priority for us, and that progress is real. On August 6, we announced a non-binding letter of intent for a proposed business combination with a private company in the energy sector. The contemplated transaction implies an expected combined enterprise value of approximately $515 million, with the allocation to ESS at a premium to our market capitalization at the signing of definitive agreements. I'll come back to it in more detail in a few minutes. But next, I'll give you some more detail on the Bridge modular system. Bridge is ESS' entry into short- and medium-duration storage, and it meaningfully expands our addressable market beyond our established position in long-duration energy storage. We began the market rollout subsequent to quarter end, and it is the system Juniper expects to deploy with the California utility. You can see the unit pictured on the right side of our slide here. Bridge is a 1.2-megawatt hour AC building block, and the 4 figures across the top of the slide capture the essentials. It is modular, meaning customers can stack 4 together to deliver 4.8 megawatt hours on a standard 20-foot pad, delivering similar energy density to a lithium system. It supports durations from roughly 2 hours to 16 hours, and it is engineered to a 20-year design life. Looking at the specifications on the left side of the slide, you'll see we've intentionally kept the system simple. It uses sodium-ion cells, a standard 480-volt AC grid connection and supports flexible cycle rates and duration. That flexibility allows the same hardware to serve both power and energy applications. It's designed to operate in temperatures from minus 40 to plus 50 degrees Celsius, fits into a stackable 10-foot container and includes fully integrated battery management and energy management systems. I also wanted to give you a tech update on our progress toward our first fully functional sodium-ion demonstration system. We have built module-level hardware in-house in our own lab under our own controls, and testing a full cycle of charge and discharge is underway. That's a step where technology stops being designed and starts being a product, and we've taken it. There's integration and testing work ahead of us before we call the module done, but getting a real module cycling is a major milestone in the development toward the Bridge product. We are targeting to have our first full-scale Bridge operating in-house toward the end of 2026. Now let me turn to the center of the slide and why we believe that Bridge has a right to win in the market. First is safety. The chemistry is non-flammable with no thermal runaway and no toxic off-gassing. Second is simplicity. Because Bridge does not require complex HVAC or liquid cooling, it is far easier to install and to maintain, and it performs reliably across a wide temperature range. Third is speed of deployment. Bridge ships as a plug-and-play AC block. It's forklift-installable, and it connects at a standard 480-volt AC connection. Fourth, and this is the one I would underline, its wide operating temperature range is particularly well suited to the duty cycle of an AI data center. GPU clusters swing tens of megawatts in a matter of seconds, and that kind of micro cycling degrades lithium chemistries quickly. This is a real pain point for data centers and a major underlying reason why we are seeing such strong demand. And fifth is supply. Our letter of intent with Alsym Energy adds 8.5 gigawatt hours of U.S.-made cell supply to our portfolio, giving us the opportunity to supply a fully U.S. manufactured system free of FEOC concerns and able to take advantage of U.S. tax credits for us and our customers. Early-stage opportunities for this platform are approaching $1 billion. I want to be clear that these are early stage and unconverted at the time of recording, and we will remain very disciplined about how we characterize them. Moving on. This slide frames three commercial relationships that matter the most to us right now: a signed framework; a broadening customer base; and secured supply. On the left is Juniper Energy. As I mentioned, this letter of intent establishes a framework for long-term partnership covering 500 megawatt hours or more of sodium-ion battery energy storage systems by 2032. It's anchored by a planned project for a major utility in California of 10 megawatts and 80-megawatt hours, which is expected to use the Bridge modular sodium-ion AC solution and is targeted for commercial operation in 2027. This is our first large sodium-ion product, and it validates both the product and our route to market. In the center is our broader customer base, and this is where our opportunities are building. We are seeing strong interest from existing customer relationships as well as from new prospective customers, and active discussions are underway on additional energy storage opportunities. Those conversations span data center, critical infrastructure and utility counterparties. And then on the right is Alsym Energy. As discussed, we see this as a key supply agreement to build a U.S. manufactured battery free of tariffs, free of foreign entity restrictions and able to take advantage of the tax credits for us and our customers. Now let's talk a little bit more about the LOI we announced last week. We signed a non-binding letter of intent for a proposed business combination with a private company. I'll be measured given where we are in the process, but I want you to understand why we're very excited about it. The proposed partner is highly complementary to what we do. It is commercially active in our sector with an established operating platform and proven commercial execution. That matters. This isn't two development stage companies coming together. It pairs the platform and market position we've built with revenue-generating operations, and we believe it offers compelling strategic and financial benefits with the potential to be transformational. On terms, the transaction implies an expected combined enterprise value of approximately $515 million, with ESS stockholders receiving an allocation at a premium to our fully diluted market cap at the time of signing the definitive agreement. Subject to final valuations, which can change before the definitive agreement is signed, our stockholders would own approximately 5% to 10% of the combined company at close. We expect to announce a definitive agreement by the end of September and are targeting a close before year-end, but this is subject to significant additional work, including completion of the diligence process, negotiation, execution of a definitive transaction document and required approvals. The non-binding letter of intent can be terminated at any time. Again, we believe this opportunity offers compelling strategic and financial benefits and has the potential to be a transformational part of the strategic reset we've been embarking on. And to be clear, we are not slowing down in the meantime. Everything Kate and I discussed today, including the sodium-ion platform, the Bridge rollout, the customer opportunities, Alsym, all of that continues. With that, I'll turn it over to Kate to discuss the financials. Kate Suhadolnik: Thank you, Drew, and good afternoon, everyone. Our second quarter results reflect the transition Drew just described. As we wind down legacy contracts and invest in the Bridge and Energy Base platforms, it's important to view this quarter's reported results in that context. Revenue for the second quarter of 2026 was $73,000 compared with $2.4 million in the prior year period. That decrease reflects significantly fewer equipment deliveries as we wind down existing contracts while developing our next generation of products. Cost of revenue was essentially flat at $7.5 million in both periods, resulting in a gross loss of $7.4 million compared with $5.1 million a year ago. Operating expenses increased 19% to $7.7 million compared with $6.5 million in the prior year period. The increase was driven primarily by a $1.2 million increase in general and administrative expense, primarily driven by legal expense associated with contingent liability accruals, and an $800,000 increase in research and development, partially offset by a $700,000 reduction in sales and marketing expense. Those last two items are worth highlighting. Sales and marketing expense declined 57% year-over-year on lower personnel costs, reduced outside services and lower marketing and trade show spending. Research and development rose 55%, driven by personnel-related investment as we build out the team advancing the Bridge platform and our expanded technology portfolio. Loss from operations was $15.1 million compared with $11.6 million in the prior year period. Net loss for the quarter was $15.6 million or $0.46 per share compared with $11.1 million or $0.90 per share in the prior year period. While our net loss increased in dollar terms, loss per share improved 49% because of our larger weighted average share count in the current year. Adjusted EBITDA was a loss of $7.9 million compared with a loss of $7.8 million a year ago. I'll walk through the reconciliation of that on the next slide. Before I do, I direct your attention to the three metrics at the bottom of the slide because they provide a better picture of the progress we're making year-to-date. For the first 6 months of 2026, operating expenses declined 12% year-over-year to $14.5 million, even as we increased investment in product development during the second quarter. Loss per share improved 58% to $1, and net cash used in operating activities declined 27% to $22.4 million. We define adjusted EBITDA as net loss before interest expense or income, stock-based compensation, depreciation, amortization and asset abandonment, changes in the fair value of warrant liabilities, legal contingency and other nonoperating items. We believe excluding these items provides investors with a clearer view of the underlying operating performance of the business. Turning to the reconciliation. We begin with a GAAP net loss of $15.6 million for the second quarter. We then adjust for $600,000 of net interest expense, $700,000 of stock-based compensation, $5 million of depreciation, amortization and asset abandonment, a $200,000 gain on the revaluation of warrant liabilities, $1.5 million of legal contingency accruals and a nominal amount of other income. That results in an adjusted EBITDA loss of $7.9 million for the quarter compared with a $7.8 million loss in the prior year period. Turning to the balance sheet. We ended the second quarter of 2026 with $10.8 million in unrestricted cash and cash equivalents. That compares with $14.5 million of cash and $7.6 million of short-term investments or $22 million combined at December 31, 2025. Including accounts receivable and inventory, total liquid assets were $11.0 million at quarter end compared with $22.2 million at year-end. Net cash used in operating activities was $22.4 million for the first 6 months of 2026 compared with $30.6 million in the prior year period. That represents an $8.2 million or 27% improvement and is perhaps the clearest demonstration of the cost discipline Drew discussed earlier. Net cash provided by financing activities was $12.9 million during the first half. That includes $13.6 million of net proceeds from our January registered direct offering, $9.2 million from other financing arrangements and $4.9 million raised through our at-the-market program, partially offset by $14.8 million of repayments on financing obligations. As Drew mentioned, we have repaid $37 million of the original $40 million principal outstanding under the Yorkville note to date. I also want to be direct about our liquidity position. As we disclosed last week, we had approximately $5.6 million in cash, cash equivalents and short-term investments as of July 31, 2026. We are actively pursuing additional financing alternatives, including the proposed business combination Drew described, while continuing to manage spending carefully. Our Form 10-Q includes expanded disclosure regarding liquidity and the existence of substantial doubt about our ability to continue as a going concern, and we encourage investors to review that discussion in full. As we execute our strategy, we remain focused on disciplined spending, preserving liquidity and maintaining the financial flexibility needed to support commercialization and long-term growth. With that, I'll turn the call back over to Drew for some closing remarks. Drew Buckley: Thanks, Kate. This slide summarizes the progress we made during the quarter and the priorities that will define the balance of the year. First is commercial momentum. We signed a letter of intent with Juniper Energy covering 500 megawatt hours or more of sodium-ion storage, anchored by a planned 10-megawatt/80-megawatt hour utility project in California. We signed a letter of intent with Alsym Energy for 8.5 gigawatt hours of U.S.-made sodium-ion cells, and active discussions with existing and prospective Tier 1 customers continue to build and remain robust. Second, our expanded product platform. The rollout of the Bridge is underway, extending our reach across the full 0- to 24-hour storage spectrum. At the same time, Energy Base remains our flagship solution for long-duration applications of 10- to 20-plus hours. Together, these platforms significantly expand our addressable market. And today, we see early-stage sodium-ion opportunities approaching $1 billion. Third, on the balance sheet. First half operating expenses declined 12% year-over-year to $14.5 million. Operating cash burn declined 27% to $22.4 million. We have repaid $37 million of the original $40 million Yorkville note and ended the quarter with $10.8 million of unrestricted cash and streamlined our Wilsonville operations to further reduce expenses and cash burn. And fourth, the milestones ahead that we believe will change our story. Our first sodium-ion module is fully built, and we have started charging and discharging and testing protocols this week. We expect to build our first full Bridge product toward the end of 2026. And finally, the proposed combination, which would be a significant step for this company, pairing what we've built with a complementary partner, and we're focused on working towards a definitive agreement in the weeks ahead. With that, I'll turn the call back to the operator to begin the question-and-answer session. Operator: [Operator Instructions] Your first question comes from the line of Alex Hantman with Sidoti & Company. Alex Hantman: My first question was on the LOI that you just shed more light on. I know on the slide, you touched on some of the work streams between now and more definitive agreements in September. Could you talk a little bit more about what that process looks like? And is there any interim support for you guys? Or are you more self-funding through that date? Drew Buckley: Yes. Sure. Thanks, Alex. Good question. So the time line as it sits right now, the way we're looking at it is that we expect to reach a definitive agreement with the counterparty by the end of September and then close potentially on the final transaction toward the end of the year. So that's what we're working with right now. We're going through that entire process. And in terms of the funding side, we expect that in the near future, we'll be self-funded for the time being. As I said before and as Kate kind of remarked on, we've reduced our expenses and cash burn, have paid back most of our promissory note with Yorkville. So we believe we're in a good position to continue to execute on that as well as continue to push forward on the sodium-ion business. But expect to hear more information about the combination in a month's time, in a few weeks' time, I would say. Alex Hantman: Great context. And I guess in terms of pushing forward, I know you guys have talked about a variety of opportunities approaching $1 billion. Can you give us a feel for the pipeline composition, the mix across data center, critical infrastructure, utility and maybe how far along some of those conversations are? Drew Buckley: Yes, sure. I would say that the -- it's a pretty good mix between utilities, AI infrastructure and data center, between those two buckets, utility and data centers. Look, it's early-stage opportunities across this part, not yet to bookings and not contracted revenue. But I think what I'd say, Alex, is that the velocity is really high. The pipeline was developed in a matter of months since the Alsym letter of intent. So we really haven't pushed hard on the marketing side of this or we haven't really pushed too hard into -- deeper into these customers. A lot of it is coming from initial conversations and a lot of excitement around sodium-ion. And the big reason for that is, like we said before, there's just a real need in the market for a battery with a wider operating temperature range that can handle these spikes in power that data centers produce. So the kind of way it will work is, if we take Juniper as an example, we've got our letter of intent there. We've got our definitive supply agreement with Alsym. You can -- and then from there, we'll move towards a full commercial agreement that we have with Juniper, which we expect to come in the coming months. And one other thing I'd say is the demand side of it isn't just coming from new customers. A lot of our existing customers in areas that we have relationships are interested in the technology. And what that tells us is just, again, the demand and the velocity of demand is really high. There's a huge power imbalance problem in the United States that needs to be filled, and batteries are going to be a great way to do that. And we think sodium-ion has a very clear place in that market. Alex Hantman: Good color. And last one from us. So I guess as you're going out to the data center buyers, the utility center buyers that you mentioned, could you talk a little bit about procurement? Are they typically sourcing single supplier or multiple suppliers? And what gets ESS sort of onto that supplier list and on to the top of that list in a crowded field? Drew Buckley: Yes. I think there -- I think like any of these customers, what's most important to them is speed to power right now. So all of your AI data centers or utility customers, they care a lot about speed to power, especially in this space of battery storage systems. So critical for us is just showing that we have the ability to bring product to the market in the time frame that they need it. And relying on some of the historical strengths that ESS has around understanding the momentum and pace between in-house all the way to commercial execution, what does that take in terms of certification, how do we make sure that we're interacting well with the customers' own grid and connecting to them, all of that know-how that we have from history and bringing product to the market is really going to help us in this field. And that's why we designed the product around a 480-volt AC connection is that we really do think it's going to be plug-and-play, drop the box in. And that will be a lot easier for customers to take on. So all of our design efforts and the way we're bringing this product to market is built around that speed to power and ease of power. So we shouldn't have too much in the way of difficulties of bringing the product to the customer site. Again, learnings that we've gotten from the long history we have of bringing products into the customer site with iron flow. Operator: We will now move on to our text Q&A session. I hand the call to Jack Greenberg. Drew Buckley: Jack, you might need to unmute. I had the same problem at the beginning of the call. Jack Greenberg: Hey, everyone. Sorry about that. First webcast question is, where exactly is Bridge in its development today? And what are the milestones between now and the first revenue that you'll see? Drew Buckley: Yes. Good question, Jack. Thanks. So look, we're -- the first module is complete. Initial charge and discharge testing is happening right now in our headquarters in Oregon. We're doing full charge and discharge cycling. The market rollout has begun, and the first operational Bridge, we expect toward the end of 2026. So we're really excited about the pace that things are coming along. And I think the engineering team at ESS has worked quite hard to bring the product to life as quick as possible. We're excited to offer more information and testing KPIs and things like that over the coming quarters. But so far, we're moving at the pace that we expect to be able to get the Bridge out toward the end of the year and have our first system available for customers to see in the fourth quarter. Jack Greenberg: Got it. So next webcast question is on the business combination LOI. Without getting ahead of the process, what attracted you to this partner? And what does the combined platform look like? Drew Buckley: Sure. So the counterparty is an energy sector company built on an established platform with a track record of proven commercial execution. The logic here is that we want to combine ESS' technology manufacturing base and non-lithium portfolio with an operating platform that already has commercial infrastructure and customer reach. The goal is scale and speed to market, not just not to consolidate any duplicate capability. And then on the process side, it's a non-binding letter of intent. Diligence is underway, and parties are working toward definitive agreements. And we hope to give more information as that's available in the coming weeks. Jack Greenberg: And the next webcast question is also on the LOI. The release cites an expected enterprise value of roughly $515 million with ESS valued at a premium to market cap. How should investors think about that valuation and eventual ownership split? Drew Buckley: Yes, sure. So the value expected to be attributable to ESS in the contemplated structure represents a premium to ESS' market capitalization at the time the definitive agreement is signed. So we're looking to sign definitive agreements in September, and the structure represents a premium to our current market cap at the time we signed the agreement. That's the measurement point, not any single day's trading price. The final exchange ratio and resulting ownership percentages will be set in definitive documentation and disclosed in the proxy materials. And then just on the strategic value to ESS shareholders, it's not just the implied valuation, but it's combining an established platform and technology that has commercial execution and scale. Jack Greenberg: And our next webcast question is, you've aligned resources towards AI infrastructure and data centers. How does the Bridge product compete against other lithium incumbents? Drew Buckley: Sure. So non-lithium, non-flammable chemistry. As we were saying earlier, it avoids thermal runaway risk. So for storage, for batteries that are sited or adjacent to data centers, you can think of an urban critical infrastructure setting, that -- it increasingly becomes like a permitting and siting and risk underwriting question more than just cost. So can you get the batteries in and installed is just as important at times than if you have the lowest price. And that's where we think sodium-ion is structurally advantaged is that sodium-ion doesn't have the thermal runaway. There's not as much permitting issue around it. And then the other thing is the lack of HVAC and liquid cooling means that it's a pretty quiet system. And if anyone's read the news, they can see that some of these larger battery systems do create a lot of humming and noise. So I think it is an attractive product to be in an urban setting around homes. And I want to highlight what I said earlier. The Bridge's wide operating temperature range is well suited for AI data centers. Again, the GPUs can demand large amounts of power in a matter of seconds, which creates heat and degrades lithium batteries faster. It's a new and very real pain point for AI customers and a major reason why we're seeing such demand. And finally, hyperscalers and developers are actively managing tariff exposure and supply chain concentration. That makes U.S.-made cells and modules and our Bridge product a criterion that the data centers have to solve in their own right. So that form factor is designed to be dropped in very quickly and with very repeatable deployment. It's not a replacement for lithium. It can be very complementary and serve a different workload, which is growing and very large and a huge opportunity for us. Jack Greenberg: And the final webcast question we will take is, second quarter operating expenses rose 19%, even though first half expenses are down 12%. And cost of revenue was $7.5 million against $73,000 of revenue. How should we think about the cost structure from here? Drew Buckley: Kate, do you want to take that? Kate Suhadolnik: Yes, I'll take that one. Thanks, Jack. Maybe just to start by touching on the Q2 increase you noted. So the increase in our operating expenses in the second quarter, as I mentioned previously, was driven primarily by a $1.2 million rise in G&A expense, which is tied to legal expenses associated with contingent liability accruals. That $1.5 million legal contingency is added back in our adjusted EBITDA and is largely nonrecurring in nature. So I wouldn't place too much emphasis on that as far as go-forward is concerned. We did also see an $800,000 increase in R&D expense as we expanded our technology platform and work to move our new product offerings along. And those were partially offset by a reduction in sales and marketing expenses, as I mentioned previously. I think year-over-year, the adjusted EBITDA loss was essentially flat despite that investment step-up. So that, I think, is a good sign there. As far as current cost of revenue, I would say our current cost of revenue is dominated by fixed manufacturing overhead and really, our underutilized capacity at our Wilsonville headquarters during a quarter with very minimal deliveries to customers. So it's really not a read on unit economics, and it's not representative of Bridge's expected margin structure going forward. The structural levers are the Wilsonville streamlining, which is already underway and we've discussed previously and the modular Bridge approach, which carries lower fixed capacity intensity. The $4.3 million of asset abandonment in the first half reflects that footprint rationalization working through the P&L. But overall, I wouldn't say that our current cost of revenue is a read on our unit economics into the future. Jack Greenberg: And that concludes our webcast Q&A. I'm now going to hand it over back to Drew Buckley. Drew Buckley: Thanks, Jack. Thanks, Caleb, for all your help, and thank you to everyone who joined us today. We really appreciate your continued interest and support of ESS. As a reminder, our Investor Relations team is available to schedule one-on-one calls and to answer any follow-up questions you may have. You can reach out to MZ Group at [email protected]. We look forward to updating you on our continued progress next quarter. Thank you again, and have a great afternoon. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in ESS Tech, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ESS Tech wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,970!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,040!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 18, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends ESS Tech. The Motley Fool has a disclosure policy. ESS Tech (GWH) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Accelerated expansion into sodium-ion batteries driven by intense demand from AI infrastructure and data center markets, which management describes as unlike anything in the company's history. Developed early-stage sodium-ion opportunities approaching $1 billion within months of announcing the Alsym Energy supply agreement, reflecting a high velocity of market interest. Streamlined Wilsonville operations to reduce cash burn and reallocate capital toward sodium-ion solutions that offer greater near-term revenue potential than legacy iron flow systems. Positioned sodium-ion as a critical solution for AI data centers due to its wide operating temperature range, which handles GPU-driven power spikes better than lithium-ion chemistries. Maintained disciplined capital focus by repaying $37 million of a $40 million promissory note with Yorkville to deleverage the balance sheet during the strategic transition. Transitioned to a dual-platform strategy where the new Bridge system serves short-to-medium duration needs while the Energy Base platform remains the flagship for long-duration storage. Targeting the first full-scale Bridge modular system to be operational in-house toward the end of 2026, following the commencement of module-level testing in August. Expects to announce a definitive agreement for a proposed business combination by the end of September 2026, with a target close by year-end. Anticipates commercial operation of a 10-megawatt/80-megawatt hour project for a major California utility in 2027 through the Juniper Energy partnership. Assumes the Alsym Energy LOI for 8.5 gigawatt hours of cells will provide a tariff-free, U.S.-made supply chain to capture domestic tax credits. Actively pursuing additional financing alternatives to address substantial doubt regarding the company's ability to continue as a going concern given the $5.6 million cash position as of July 31, 2026. Proposed business combination implies a $515 million enterprise value, with ESS stockholders expected to own 5% to 10% of the combined entity. Reported a $1.5 million legal contingency accrual in Q2, which management characterized as a largely non-recurring item impacting G&A expenses. Recorded $4.3 million in asset abandonment charges during the first half of 2026, reflecting the footprint rationalization and streamlining of Wilsonville operations. Management issued a 'going concern' warning, noting that while expenses have been reduced, the company requires near-term capital to support commercialization. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects to be self-funded in the near future through reduced cash burn and the near-total repayment of the Yorkville promissory note. The company confirmed that a definitive agreement for the proposed combination is expected in the coming weeks, while they remain self-funded in the near term through reduced expenses and cash burn. Sodium-ion is structurally advantaged in urban settings due to non-flammable chemistry, lack of thermal runaway, and quieter operation without complex HVAC systems. The technology specifically addresses 'micro cycling' degradation caused by GPU clusters in AI data centers, a pain point lithium-ion struggles to manage. Management clarified that the current high cost of revenue relative to sales is due to fixed manufacturing overhead and underutilized capacity at Wilsonville. Stated that current results are not a read on future unit economics, as the Bridge platform is designed for lower fixed capacity intensity.

This article first appeared on GuruFocus. Revenue: $73,000 in Q2 2026, down from $2.4 million in the prior year period, reflecting fewer equipment deliveries as legacy contracts wind down. Gross Loss: $7.4 million in Q2 2026, compared with a $5.1 million loss a year ago, with cost of revenue flat at $7.5 million. Operating Expenses: Increased 19% year-over-year to $7.7 million in Q2 2026, driven by higher G&A and R&D costs, partially offset by lower sales and marketing spending. Loss from Operations: $15.1 million in Q2 2026, compared with $11.6 million in the prior year period. Net Loss: $15.6 million, or $0.46 per share, in Q2 2026, versus $11.1 million, or $0.90 per share, a year ago. Adjusted EBITDA: Loss of $7.9 million in Q2 2026, roughly flat compared with a $7.8 million loss in the prior year period. Cash Position: Ended Q2 2026 with $10.8 million in unrestricted cash and cash equivalents, down from $22 million combined cash and short-term investments at year-end 2025. Operating Cash Flow: Net cash used in operating activities declined 27% year-over-year to $22.4 million for the first six months of 2026. Debt Repayment: Repaid $37 million of the original $40 million principal outstanding under the Yorkville promissory note. Warning! GuruFocus has detected 5 Warning Signs with GWHWW. Is GWHWW fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ESS Tech Inc (GWHWW) has developed early-stage sodium-ion opportunities approaching $1 billion, driven by strong demand from data centers, critical infrastructure, and utilities. The company signed a letter of intent with Juniper Energy for the deployment of 500 MWh or more of sodium-ion battery systems, including a planned 10 MW/80 MWh project for a major California utility targeted for 2027. ESS Tech Inc (GWHWW) secured a letter of intent with Alsym Energy for 8.5 GWh of US-made sodium-ion cells, ensuring a domestic supply chain free of FEOC concerns and eligible for US tax credits. The company has made significant progress on its Bridge sodium-ion product, with module-level hardware built and testing underway, targeting the first full-scale system by the end of 2026. ESS Tech Inc (GWHWW) has improved financial discipline, with first-half 2026 operating expenses down 12% year-over-year, operating cash burn down 27%, and $37 million of the $40 million Yorkville note repaid. ESS Tech Inc (GWHWW) reported a significant revenue decline to $73,000 in Q2 2026 from $2.4 million in the prior year, reflecting wind-down of legacy contracts and minimal deliveries. The company's gross loss widened to $7.4 million in Q2 2026, with cost of revenue remaining flat at $7.5 million despite the revenue drop, indicating underutilized manufacturing capacity. ESS Tech Inc (GWHWW) faces substantial doubt about its ability to continue as a going concern, with cash and short-term investments falling to $5.6 million as of July 31, 2026. The proposed business combination is nonbinding and subject to significant risks, including completion of due diligence, negotiation of definitive agreements, and required approvals, with no guarantee of closing. The company's net loss increased to $15.6 million in Q2 2026, driven by higher operating expenses, including a $1.2 million increase in G&A due to legal contingency accruals and an $800,000 rise in R&D costs. Q: Can you provide more detail on the timeline and process for the proposed business combination LOI, and is there any interim financial support?A: Drew Buckley, CEO, stated that the company expects to reach a definitive agreement with the counterparty by the end of September and close the transaction toward the end of the year. He confirmed that the company will be self-funded for the time being, having reduced expenses and cash burn and repaid most of its promissory note with Yorkville, positioning it well to execute on the combination and continue advancing its sodium-ion business. Q: Can you give us a feel for the pipeline composition of the nearly $1 billion in early-stage opportunities, including the mix across data centers, critical infrastructure, and utilities, and how far along those conversations are?A: Drew Buckley, CEO, noted the pipeline is a mix between utilities and AI infrastructure/data centers. He emphasized the velocity is very high, with the pipeline developed in just a few months since the Alsym LOI. The demand is driven by the market's need for batteries with a wider operating temperature range to handle power spikes from data centers. He cited the Juniper LOI as an example of how these opportunities progress toward full commercial agreements, and noted that existing customers are also showing strong interest in the technology. Q: As you go out to data center and utility buyers, how do they approach procurement, and what gets ESS onto and to the top of their supplier list in a crowded field?A: Drew Buckley, CEO, explained that customers prioritize speed to power. ESS's historical strengths in bringing products to market, certification, and grid interconnection are key advantages. The Bridge product is designed as a plug-and-play 480-volt AC block for easy installation, which aligns with the customers' need for rapid deployment. He believes the design efforts and market approach are built around speed and ease of power, leveraging learnings from the company's iron flow history. Q: Where exactly is Bridge in its development today, and what are the milestones between now and first revenue?A: Drew Buckley, CEO, stated that the first module is complete and initial charge/discharge testing is underway at the Oregon headquarters. The market rollout has begun, and the first operational Bridge system is expected by the end of 2026. The engineering team has worked hard to bring the product to life quickly, and the company expects to have its first system available for customers to see in the fourth quarter. Q: Without getting ahead of the process, what attracted you to the business combination partner, and what does the combined platform look like?A: Drew Buckley, CEO, described the counterparty as an energy sector company with an established platform and a track record of proven commercial execution. The logic is to combine ESS's technology, manufacturing base, and non-lithium portfolio with an operating platform that has commercial infrastructure and customer reach. The goal is scale and speed to market, not consolidating duplicate capabilities. Diligence is underway, and the parties are working toward definitive agreements. Q: How should investors think about the valuation and eventual ownership split in the proposed business combination?A: Drew Buckley, CEO, clarified that the value attributable to ESS represents a premium to its market capitalization at the time the definitive agreement is signed, not any single day's trading price. The final exchange ratio and ownership percentages will be set in definitive documentation and disclosed in proxy materials. He emphasized the strategic value lies not just in the implied valuation but in combining with an established platform that has commercial execution and scale. Q: How does the Bridge product compete against other lithium incumbents, especially given the focus on AI infrastructure and data centers?A: Drew Buckley, CEO, highlighted that Bridge's nonflammable, non-lithium chemistry avoids thermal runway risk, which is a significant advantage for permitting and siting in urban or critical infrastructure settings. The lack of HVAC and liquid cooling makes it a quieter system. The wide operating temperature range is well-suited for AI data centers, where GPU clusters cause micro-cycling that degrades lithium batteries. Additionally, US-made cells and modules address hyperscalers' concerns about tariff exposure and supply chain concentration, making Bridge a complementary solution for a growing workload. Q: Second quarter operating expenses rose 19% even though first half expenses are down 12%, and cost of revenue was $7.5 million against $73,000 of revenue. How should we think about the cost structure from here?A: Kate Suhadolnik, CFO, explained that the Q2 increase was driven by a $1.2 million rise in G&A tied to legal expenses for contingent liability accruals, which is largely nonrecurring and added back in adjusted EBITDA. The $800,000 increase in R&D was for expanding the technology platform, partially offset by lower sales and marketing costs. She clarified that current cost of revenue is dominated by fixed manufacturing overhead and underutilized capacity at Wilsonville, not a read on unit economics. The Wilsonville streamlining and modular Bridge approach are structural levers to reduce costs, and the $4.3 million asset abandonment in the first half reflects that footprint rationalization. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Accelerating U.S.-Made Sodium-Ion Battery Energy Storage Development with the Bridge™ Modular Sodium-Ion System; Early-Stage Opportunities Approaching $1 Billion Signs Letter of Intent with Juniper Energy for 500+ MWh of Sodium-Ion Energy Storage, Anchored by a Planned 80 MWh California Utility Project Signs Non-Binding Letter of Intent for a Strategic Business Combination with Private Energy Sector Company, Implying an Expected $515 Million Combined Enterprise Value and Premium Market Capitalization Valuation for ESS at Signing of Definitive Agreement Management to Host Webcast and Conference Call Today at 5:00 p.m. ET WILSONVILLE, Ore., August 11, 2026--(BUSINESS WIRE)--ESS Tech, Inc. ("ESS," "ESS, Inc." or the "Company") (NYSE: GWH), a leading provider of non-lithium energy storage solutions for commercial and utility-scale applications, today announced financial results for its second quarter ended June 30, 2026. "The second quarter marked an inflection point for ESS as we accelerated our expansion into sodium-ion energy storage while maintaining the disciplined execution and capital focus that have defined our reset," said Drew Buckley, Chief Executive Officer of ESS. "The demand we are seeing for sodium-ion is unlike anything in our company’s history. Since signing our letter of intent with Alsym Energy, we have developed early-stage opportunities approaching $1 billion across data centers, critical infrastructure, and utility markets, and with the recent market rollout of our Bridge™ modular sodium-ion system we are moving decisively to convert that interest into near-term revenue. "At the same time, we streamlined our Wilsonville operations to reduce expenses and cash burn. We lowered operating expenses by 12% in the first half of the year as we reallocate capital toward the highest-return, near-term opportunities. Encouragingly, the interest we are seeing in sodium-ion is coming not only from new customers but from relationships we already have. We believe our combined sodium-ion and iron flow platform positions ESS to deliver safe, American-made energy storage at the scale and speed the market demands. "We are also excited to have signed a non-binding letter of intent for a strategic business combination with a private company in the energy sector. This is a highly complementary partner, built on an established platform with a track record of proven commercial execution. The contemplated transaction implies an expected combined enterprise value of approximately $515 million, with the expected transaction value attributable to ESS expected to represent a premium to our market capitalization at the time a definitive agreement is signed. We see significant potential in what these two platforms could build together, and we look forward to advancing discussions toward definitive agreements." Second Quarter 2026 and Subsequent Highlights Subsequent to quarter end, signed a non-binding letter of intent for a strategic business combination with a private energy-sector company, with the potential transaction implying a combined enterprise value of approximately $515 million and a premium to ESS's market capitalization at the time of definitive agreement signing. If completed, ESS shareholders would be allocated an estimated 5 to 10 percent of the combined company. Subsequent to quarter end, signed a letter of intent with Juniper Energy LLC for the deployment of 500 MWh or more of sodium-ion battery energy storage systems, establishing a framework for a long-term partnership. The collaboration begins with a planned 10 MW / 80 MWh project in California, expected to utilize the Bridge™ modular sodium-ion AC solution and an ESS Energy Management System (EMS), and targeted for commercial operation in 2027. Juniper has expressed its intent to procure 500 MWh or more of ESS battery energy storage systems by 2032. Subsequent to quarter end, began the market rollout of the Bridge™ modular sodium-ion battery energy storage system, with the first module completed and initial charge and discharge testing beginning this week. The first operational Bridge™ product is expected toward the end of 2026. Announced the acceleration of its U.S.-made sodium-ion battery energy storage system ("BESS") development following surging early customer interest across data centers, critical infrastructure, and utility markets, with early-stage opportunities approaching $1 billion, and aligned resources to support an expanded focus on AI infrastructure and data center markets. Signed a letter of intent with Alsym Energy to add 8.5 GWh of U.S.-made sodium-ion cells and modules to the Company’s portfolio, extending ESS’s non-lithium platform into short- and medium-duration applications historically served by lithium-ion systems. As of the date of this release, had repaid $37 million of the $40 million principal amount outstanding under the Company’s promissory note with YA II PN, Ltd. ("Yorkville"). Second Quarter 2026 Financial Highlights Revenue was $73 thousand for the three months ended June 30, 2026, compared with $2.4 million in the prior-year period due to fewer deliveries of equipment to customers. Total operating expenses increased 19% to $7.7 million for the three months ended June 30, 2026, compared with $6.5 million in the prior-year period. The increase was primarily due to an increase in general and administrative expenses of $1.2 million, driven by legal expense associated with contingent liability accruals, and an increase in research and development expenses of $0.8 million, partially offset by a $0.7 million decrease in sales and marketing expenses as part of our efforts to prioritize investment in our product development. Net loss was $(15.6) million, or $(0.46) per share, for the three months ended June 30, 2026, compared with $(11.1) million, or $(0.90) per share, in the prior-year period. Adjusted EBITDA loss was $(7.9) million for the three months ended June 30, 2026, compared to $(7.8) million for the three months ended June 30, 2025. Net cash used in operating activities was $22.4 million for the six months ended June 30, 2026, compared with $30.6 million in the prior-year period. Unrestricted cash and cash equivalents were $5.6 million as of July 31, 2026. We continue to actively pursue multiple sources of incremental liquidity to support our operations and position the Company for long-term growth. Kate Suhadolnik, Chief Financial Officer of ESS, commented, "We remain focused on disciplined expense management, liquidity, and the strategic allocation of capital as we support the business through its transition and commercialization efforts. Total operating expenses for the first six months of 2026 declined 12% year-over-year, even as second quarter spending increased while we continued to invest in product development and our expanded technology platform during the second quarter. We also benefited from the capital raised through our registered direct offering earlier in the year, and we remain focused on managing our resources prudently as we advance our operational and commercialization priorities." Conference Call Details ESS Chief Executive Officer Drew Buckley and Chief Financial Officer Kate Suhadolnik will host the conference call, followed by a question-and-answer period. The call will be accompanied by a presentation, which will be available following the call via the investor relations section of the Company’s website. To access the call, please use the following information: The replay can be viewed through the webcast link above and the presentation utilized during the call will be available via the investor relations section of the Company's website. About ESS, Inc. ESS (NYSE: GWH) is a leading provider of non-lithium energy storage solutions. The Company was established in 2011 with a mission to accelerate decarbonization safely and sustainably through longer lasting energy storage. Using easy-to-source materials, ESS solutions enable energy security, reliability and resilience. We build flexible storage solutions that allow our customers to meet increasing energy demand without power disruptions and maximize the value potential of excess energy. For more information visit www.essinc.com. Use of Non-GAAP Financial Measures In this press release and the accompanying earnings call, ESS includes Adjusted EBITDA, which is a non-GAAP performance measure that ESS uses to supplement its results presented in accordance with U.S. GAAP. As required by the rules of the Securities and Exchange Commission ("SEC"), ESS has provided herein a reconciliation of the non-GAAP financial measures contained in this presentation and the accompanying earnings call to the most directly comparable measures under GAAP. ESS’ management believes Adjusted EBITDA is useful in evaluating its operating performance and is a similar measure reported by publicly-listed U.S. companies, and regularly used by securities analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. By providing this non-GAAP measure, ESS’ management intends to provide investors with a meaningful, consistent comparison of ESS’ profitability for the periods presented. Adjusted EBITDA is not intended to be a substitute for net income/loss or any U.S. GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry. ESS defines and calculates Adjusted EBITDA as net loss before interest expense (income), net, stock-based compensation, depreciation, amortization and asset abandonment, gain on revaluation of common stock warrant liabilities, legal contingency, financing costs and other income, net as they are not indicative of business operations. Forward-Looking Statements This communication contains forward-looking statements (including within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended) concerning the Company and other matters that involve substantial risks and uncertainties. These statements may discuss the management team's goals, beliefs, hopes, intentions and expectations as to future plans, trends, events, results of operations and financial condition and the related potential effects on ESS, or otherwise, based on current beliefs of the management of the Company, as well as assumptions made by, and information currently available to the Company's management. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would," or, in each case, their negative or other variations or comparable terminology may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. Examples of forward-looking statements include, among others, statements pertaining to statements made by the Company’s Chief Executive Officer and Chief Financial Officer, the Company’s sodium-ion strategy and the early-stage opportunities approaching $1 billion identified for its sodium-ion solutions, the timeline for development and market rollout of the Bridge™ system, the letter of intent with Juniper Energy and the potential deployment of 500 MWh or more of energy storage systems and timing related to the same, the letter of intent with Alsym Energy, the Company’s plans to streamline its Wilsonville operations and reduce expenses and cash burn, statements pertaining to the Company’s 2026 outlook and beyond, cash position, the potential and capabilities of the Company’s technology and platform, advancement of operational and commercialization priorities, the Company’s ability to execute on Project New Horizon, including the timing for manufacturing and delivery for Project New Horizon, as well as statements regarding the Company’s partnerships, employees, commercial expectations regarding sales orders, statements regarding our ability to obtain incremental liquidity through financing, the proposed business combination ("Proposed Transaction") and the non-binding letter of intent relating thereto, including the expected combined enterprise value, the potential premium to the Company’s market capitalization, the expected timing for entering into definitive agreements and completing the Proposed Transaction, the expected ownership of the combined company by the Company’s stockholders, and the anticipated benefits of the Proposed Transaction, ESS product development and manufacturing, and relationships with customers. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication. There can be no assurance that the future developments affecting ESS will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond ESS’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, which include, but are not limited to: our ability to raise capital in the near future; our ability to obtain incremental liquidity through financing and strategic alternatives; barriers we face in our attempts to produce our energy storage products; the demand for our sodium-ion solutions and the Bridge™ system not developing as anticipated; our ability to realize and capitalize on sodium-ion opportunities; our ability to generate near-term revenue; delays in the development of our sodium-ion products; our ability to execute definitive agreements with, and deliver to, customers including Juniper Energy; our strategy to allocate resources toward sodium-ion solutions not achieving the anticipated benefits or adversely affecting development of our iron flow technology; our cash burn and cash runway; our ability to secure or maintain a domestic supply chain; risks related to the Company’s ability to execute and meet timelines related to Project New Horizon; our products being in the early stage of commercialization and aspects of our technology not having been fully field tested; our inability to develop our business and effectively commercialize our energy storage products; our dependence on third-party suppliers; our ability to secure or maintain long-term supply relationships with critical suppliers; delays, disruptions or quality control problems in our manufacturing operations; our ability to adequately control our costs, effectively scale our operations and achieve our cost reduction strategy; our reliance on complex machinery; our ability to increase our production capacity; product recalls, defects or performance problems with our products; required maintenance being performed incorrectly or maintenance requirements exceeding our current expectations; our history of losses; our ability to continue as a "going concern"; our ability to secure binding orders; failure to deliver the benefits offered by our technology; inability to achieve market acceptance of our products; our ability to sell effectively to large customers; failure to accurately estimate future supply and demand for our products and services; failure to manage our growth effectively; failure to meet the obligations under our sales contracts and service agreements; our ability to complete projects on schedule and within budget; loss of a member of our senior management or other key personnel; changes to our leadership team; expansions into new markets, product lines or services; our warranty obligations; failure to identify or complete commercial or financial transactions; the non-binding letter of intent for the Proposed Transaction may be terminated at any time and may not result in definitive agreements or a completed transaction on the anticipated terms, timeline or valuation, or at all; the parties’ ability to complete due diligence and to negotiate and execute definitive transaction agreements on the anticipated timeline or at all related to the Proposed Transaction; the parties’ ability to satisfy the conditions to, and to consummate, the Proposed Transaction, including obtaining required regulatory approvals and the approval of ESS’s stockholders; our ability to realize the anticipated benefits of the Proposed Transaction; the potential dilution to, and the allocation of combined company ownership ultimately received by, our stockholders; the receipt of required corporate, stockholder and regulatory approvals for the Proposed Transaction; our ability to maintain compliance with the continued listing standards of the New York Stock Exchange; risks relating to the integration of the two businesses and higher than anticipated transaction and integration costs; difficulties and delays in integrating the combined business resulting from the Proposed Transaction; the combined company’s ability to access additional capital on acceptable terms; the ability of the combined business to retain key customers, employees and relationships; the parties’ ability to raise additional capital to fund the combined company’s business plan; cash flow and access to capital; changes in the global trade environment; our relationships with related parties; regulatory challenges; our ability to protect our intellectual property; general economic and market conditions as well as geopolitical developments and other risks and uncertainties described more fully in the section titled "Risk Factors" in the Company's Annual Report on Form 10-K filed on March 5, 2026, in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 and the Company's other filings with the U.S. Securities and Exchange Commission. Except as required by law, ESS is not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Additional Information and Where to Find It In connection with the Proposed Transaction and depending on the final structure of the Proposed Transaction, the Company expects to file with the Securities and Exchange Commission (the "SEC") a registration statement on Form S-4 (as may be amended, the "Registration Statement"), which would include a preliminary proxy statement of ESS and a prospectus (the "Proxy Statement/Prospectus"). Alternatively, ESS may file a standalone proxy statement. In either case, the definitive proxy statement (or definitive Proxy Statement/Prospectus) and other relevant documents will be mailed to ESS’s stockholders as of a record date to be established for voting on the Proposed Transaction and any other matters as described in the Proxy Statement/Prospectus. ESS may also file other documents regarding the Proposed Transaction with the SEC. This press release does not contain all of the information that should be considered concerning the Proposed Transaction and is not intended to form the basis of any investment, voting or any other decision in respect of the Proposed Transaction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND STOCKHOLDERS OF ESS AND OTHER INTERESTED PARTIES ARE URGED TO READ, WHEN AVAILABLE, THE PRELIMINARY PROXY STATEMENT/PROSPECTUS AND ANY AMENDMENTS THERETO, AND THE DEFINITIVE PROXY STATEMENT/PROSPECTUS AND ALL OTHER RELEVANT DOCUMENTS FILED OR THAT WILL BE FILED WITH THE SEC IN CONNECTION WITH ESS’s SOLICITATION OF PROXIES FOR THE SPECIAL MEETING OF ITS STOCKHOLDERS TO BE HELD TO APPROVE THE PROPOSED TRANSACTION AND OTHER MATTERS AS DESCRIBED IN THE PROXY STATEMENT/PROSPECTUS BECAUSE THESE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION ABOUT ESS, THE COUNTERPARTY TO THE PROPOSED TRANSACTION (THE "COUNTERPARTY"), THE COMBINED COMPANY AND THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the Registration Statement and the Proxy Statement/Prospectus (when available) and all other documents filed or that will be filed with the SEC by ESS, the Counterparty or the combined company without charge, once available, on the SEC’s website at www.sec.gov. NEITHER THE SEC NOR ANY STATE SECURITIES REGULATORY AGENCY HAS APPROVED OR DISAPPROVED THE PROPOSED TRANSACTION DESCRIBED HEREIN, PASSED UPON THE MERITS OR FAIRNESS OF THE PROPOSED TRANSACTION OR ANY RELATED TRANSACTIONS OR PASSED UPON THE ADEQUACY OR ACCURACY OF THE DISCLOSURE IN THIS PRESS RELEASE. ANY REPRESENTATION TO THE CONTRARY CONSTITUTES A CRIMINAL OFFENSE. Participants in the Solicitation ESS, the Counterparty and their respective directors and executive officers may be deemed under SEC rules to be participants in the solicitation of proxies from ESS’s stockholders in connection with the Proposed Transaction. A list of the names of ESS’s directors and executive officers and information regarding their interests in the Proposed Transaction and their ownership of ESS securities are, or will be, contained in ESS’s filings with the SEC, including the Proxy Statement/Prospectus relating to the Proposed Transaction. Additional information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of ESS’s stockholders in connection with the Proposed Transaction, including the names and interests of ESS’s and the Counterparty’s directors and executive officers, will be set forth in the Proxy Statement/Prospectus relating to the Proposed Transaction when it is filed with the SEC. Investors and security holders may obtain free copies of these documents as described above. No Offer or Solicitation This press release is for informational purposes only and is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the Proposed Transaction, and shall not constitute an offer to sell or exchange, or the solicitation of an offer to buy or exchange, any securities of ESS, the Counterparty or the combined company, or any commodity or instrument or related derivative, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation, sale or exchange would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended (the "Securities Act"), or an exemption therefrom. Investors should consult with their counsel as to the applicable requirements for a purchaser to avail itself of any exemption under the Securities Act. View source version on businesswire.com: https://www.businesswire.com/news/home/20260811241297/en/ Contacts Investor Relations Chris TysonExecutive Vice PresidentMZ Group - MZ North AmericaPhone: (949) [email protected] www.mzgroup.us

Company to Provide Update on Newly Announced LOI Business Combination WILSONVILLE, Ore., August 10, 2026--(BUSINESS WIRE)--ESS Tech, Inc. (ESS) (NYSE: GWH) ("ESS" or the "company"), a leading provider of non-lithium energy storage solutions, today announced that its second quarter 2026 conference call will now take place on Tuesday, August 11, 2026 at 5:00 p.m. EDT to discuss financial results for the quarter ended June 30, 2026. The company will be providing updates on commercial progress, customer deployments, anticipated technology milestones, and the recently announced signing of a non-binding Letter of Intent for a proposed business combination. A press release detailing these results will be issued prior to the call. ESS Tech CEO Drew Buckley and CFO Kate Suhadolnik will host the conference call, followed by a question-and-answer period. The conference call will be accompanied by a presentation, which can be viewed or access following the call via the investor relations section of the Company’s website here. To access the call, please use the following information: The replay can be viewed through the webcast link above and the presentation utilized during the call will be available via the investor relations section of the Company’s website here. About ESS Tech, Inc. ESS (NYSE: GWH) is the leading provider of non-lithium energy storage solutions. ESS was established in 2011 with a mission to accelerate decarbonization safely and sustainably through longer lasting energy storage. Using easy-to-source materials ESS solutions enable energy security, reliability and resilience. We build flexible storage solutions that allow our customers to meet increasing energy demand without power disruptions and maximize the value potential of excess energy. For more information visit www.essinc.com. Cautionary Language on Forward-Looking Statements This communication contains forward-looking statements (including within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended) concerning the Company and other matters that involve substantial risks and uncertainties. These statements may discuss the management team’s goals, beliefs, hopes, intentions and expectations as to future plans, trends, events, results of operations and financial condition, or otherwise, based on current beliefs of the management of the Company, as well as assumptions made by, and information currently available to, the Company’s management. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would," or, in each case, their negative or other variations or comparable terminology may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These forward-looking statements are based on ESS’ current expectations and beliefs concerning future developments and their potential effects on ESS. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication. There can be no assurance that the future developments affecting ESS will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond ESS control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, which include other risks and uncertainties described more fully in Exhibit 99.2 of the Current Report on Form 8-K filed by the Company on June 23, 2026 and the Company’s other filings with the U.S. Securities and Exchange Commission. Except as required by law, ESS is not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260810826105/en/ Contacts Company [email protected] Investor Relations Chris TysonExecutive Vice PresidentMZ Group - MZ North AmericaPhone: (949) [email protected] www.mzgroup.us Media Brad DoreVP, MarketingESS, [email protected] 916-207-7355

Garmin (GRMN) came out with quarterly earnings of $2.81 per share, beating the Zacks Consensus Estimate of $2.27 per share. This compares to earnings of $2.17 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +23.79%. A quarter ago, it was expected that this maker of personal navigation devices would post earnings of $1.84 per share when it actually produced earnings of $2.08, delivering a surprise of +13.04%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Garmin, which belongs to the Zacks Electronics - Miscellaneous Products industry, posted revenues of $2.02 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.73%. This compares to year-ago revenues of $1.81 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Garmin shares have added about 25% since the beginning of the year versus the S&P 500's gain of 8.5%. While Garmin has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Garmin was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.39 on $1.97 billion in revenues for the coming quarter and $9.53 on $7.98 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Miscellaneous Products is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. ESS Tech, Inc. (GWH), another stock in the same industry, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.44 per share in its upcoming report, which represents a year-over-year change of +51.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. ESS Tech, Inc.'s revenues are expected to be $0.1 million, down 95.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Garmin Ltd. (GRMN) : Free Stock Analysis Report ESS Tech, Inc. (GWH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

WILSONVILLE, Ore., July 29, 2026--(BUSINESS WIRE)--ESS Tech, Inc. (ESS) (NYSE: GWH) ("ESS" or the "company"), a leading provider of non-lithium energy storage solutions, today announced that it will hold a conference call on Thursday, August 13, 2026 at 5:00 p.m. EDT to discuss financial results for its second quarter 2026 ended June 30, 2026, and will be providing updates on commercial progress, customer deployments, and anticipated technology milestones. A press release detailing these results will be issued prior to the call. ESS Tech CEO Drew Buckley and CFO Kate Suhadolnik will host the conference call, followed by a question-and-answer period. The conference call will be accompanied by a presentation, which can be viewed or access following the call via the investor relations section of the Company’s website here. To access the call, please use the following information: The replay can be viewed through the webcast link above and the presentation utilized during the call will be available via the investor relations section of the Company’s website here. About ESS Tech, Inc. ESS (NYSE: GWH) is the leading provider of non-lithium energy storage solutions. ESS was established in 2011 with a mission to accelerate decarbonization safely and sustainably through longer lasting energy storage. Using easy-to-source materials ESS solutions enable energy security, reliability and resilience. We build flexible storage solutions that allow our customers to meet increasing energy demand without power disruptions and maximize the value potential of excess energy. For more information visit www.essinc.com. Cautionary Language on Forward-Looking Statements This communication contains forward-looking statements (including within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended) concerning the Company and other matters that involve substantial risks and uncertainties. These statements may discuss the management team’s goals, beliefs, hopes, intentions and expectations as to future plans, trends, events, results of operations and financial condition, or otherwise, based on current beliefs of the management of the Company, as well as assumptions made by, and information currently available to, the Company’s management. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would," or, in each case, their negative or other variations or comparable terminology may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These forward-looking statements are based on ESS’ current expectations and beliefs concerning future developments and their potential effects on ESS. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication. There can be no assurance that the future developments affecting ESS will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond ESS control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, which include other risks and uncertainties described more fully in Exhibit 99.2 of the Current Report on Form 8-K filed by the Company on June 23, 2026 and the Company’s other filings with the U.S. Securities and Exchange Commission. Except as required by law, ESS is not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729260700/en/ Contacts [email protected] Investor Relations Chris TysonExecutive Vice PresidentMZ Group - MZ North AmericaPhone: (949) [email protected] www.mzgroup.us Media Brad DoreVP, MarketingESS, [email protected] 916-207-7355

Teradyne (TER) came out with quarterly earnings of $2.47 per share, beating the Zacks Consensus Estimate of $2.04 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +21.08%. A quarter ago, it was expected that this maker of wireless products, data storage and equipment to test semiconductors would post earnings of $2.11 per share when it actually produced earnings of $2.56, delivering a surprise of +21.33%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Teradyne, which belongs to the Zacks Electronics - Miscellaneous Products industry, posted revenues of $1.33 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 9.37%. This compares to year-ago revenues of $651.8 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Teradyne shares have added about 73% since the beginning of the year versus the S&P 500's gain of 8.3%. While Teradyne has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Teradyne was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.40 on $1.07 billion in revenues for the coming quarter and $7.20 on $4.53 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Miscellaneous Products is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, ESS Tech, Inc. (GWH), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.44 per share in its upcoming report, which represents a year-over-year change of +51.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. ESS Tech, Inc.'s revenues are expected to be $0.1 million, down 95.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teradyne, Inc. (TER) : Free Stock Analysis Report ESS Tech, Inc. (GWH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Advancing Commercial Opportunities: Project New Horizon Collaboration with Salt River Project and Google, Large Capacity Energy Storage System for the U.S. Department of the Air and Space Force, Strategic Partnership with Alsym, Successful Commissioning of LDES at TID Burbank Water and Power/APPA Efficacy Report Provides Validates ESS Iron Flow Technology; VoltStorage GmbH Assets Acquisition Strengthens Technology Platform and Intellectual Property Base Strengthened Liquidity Position Supports Execution Across Energy Base Development, Commercial Execution and Go-to-Market Priorities Management to Host Webcast and Conference Call Today at 5:00 p.m. ET WILSONVILLE, Ore., May 07, 2026--(BUSINESS WIRE)--ESS Tech, Inc. ("ESS," "ESS, Inc." or the "Company") (NYSE: GWH), a leading manufacturer of long-duration energy storage systems ("LDES") for commercial and utility-scale applications, today announced financial results for its first quarter ended March 31, 2026. "The first quarter and second quarter to date reflect continued initiatives to reset ESS around execution, capital discipline, and scalable commercial opportunities," said Drew Buckley, Chief Executive Officer of ESS. "We continued to strengthen our leadership team, improve our financial position, and sharpen our operating focus as we advance into the Company’s next phase. We advanced Project New Horizon with Salt River Project and Google, were awarded a $9.9 million contract with Concurrent Technologies Corporation ("CTC") and the United States Air Force Research Laboratory ("AFRL") for a large capacity energy storage system, recently announced our partnership with Alsym Energy, and added commercial leadership with the appointment of Randy Selesky as Chief Commercial Officer. "On the technology side, the final report issued in connection with Burbank Water and Power for the American Public Power Association ("APPA") to evaluate the application of ESS’s Iron Flow Battery technology in a real-world utility environment. The report concluded that ESS’s Iron Flow Battery technology works as intended and there is a use case for this battery technology in a utility’s overall energy storage strategy. We believe that our acquisition of VoltStorage GmbH’s assets has strengthened and expanded our intellectual property base and technology platform. "Looking ahead, we expect commercial activity to increase as projects progress from contracting to delivery and commissioning, supported by an active pipeline across targeted end markets. Recent progress reinforces what we believe is growing demand for resilient, domestically produced long-duration energy storage, and we believe our commercial and technology momentum better positions ESS to convert growing demand for safe, long-duration, American-made energy storage into meaningful commercial progress." First Quarter 2026 and Subsequent Highlights Final report issued by Burbank Water and Power for the American Public Power Association concluded that ESS’s Iron Flow Battery technology works as intended and there is a use case for this battery technology in a utility’s overall energy storage strategy. Successfully commissioned two ESS Iron Flow battery systems at Turlock Irrigation District ("TID") in California’s Central Valley, pairing ESS Iron Flow battery technology with solar panels, designed to generate renewable electricity while helping reduce water evaporation. Signed a letter of intent for a strategic partnership with Alsym Energy, a pioneer in non-flammable, high performance sodium-ion batteries, to develop next generation battery solutions designed to address use cases traditionally served by lithium-ion systems but without the inherent thermal runaway risks associated with lithium chemistries. Engaging with international investor relations specialists MZ Group to lead a comprehensive strategic investor relations and financial communications program across all key markets. Announced a collaboration framework with Salt River Project and Google for Project New Horizon at SRP’s Copper Crossing Energy and Research Center in Florence, Arizona. The 5 MW / 50 MWh pilot will deploy ESS’s Energy Base technology. Manufacturing is expected to begin in 2026 and delivery is targeted for December 2027. Appointed Randall Selesky as Chief Commercial Officer to lead global commercial strategy, sales, marketing, product management, and business development. Mr. Selesky brings more than 20 years of leadership in the energy sector, including more than a decade in the battery storage industry and previously served as Chief Commercial Officer at VoltStorage. Acquired the intellectual property and assets of VoltStorage GmbH, adding VoltStorage's patents, technical development work, and key personnel to ESS’s existing platform. Closed $15 million registered direct offering at $1.75 per share, which was a premium to the January 28, 2026 closing price. The financing is intended to support general corporate purposes and working capital. Awarded a $9.9 million contract with Concurrent Technologies Corporation and the United States Air Force Research Laboratory for a large capacity energy storage system of up to 27 MWh to support U.S. operations. Announced leadership changes naming Drew Buckley as Chief Executive Officer, Kelly Goodman as Chief Strategy Officer and General Counsel, and Kate Suhadolnik as Chief Financial Officer as the Company continued its leadership and organizational reset focused on governance, execution, and financial discipline. First Quarter 2026 Financial Highlights Revenue was $128 thousand for the three months ended March 31, 2026, compared with $0.6 million in the prior-year period due to fewer deliveries of equipment to customers. Total operating expenses decreased 33% to $6.7 million for the three months ended March 31, 2026, compared with $10.0 million in the prior-year period. The decrease was primarily due to a decrease in sales and marketing expenses of $1.7 million, and a decrease in general and administrative expenses of $1.7 million, reflecting our ongoing commitment to reduce sales and marketing and general administrative expenses as part of our efforts to prioritize investment in our product development. Net loss improved to $(15.9) million, or $(0.54) per share, for the three months ended March 31, 2026, compared with $(18.0) million, or $(1.50) per share, in the prior-year period. Adjusted EBITDA loss improved 31% year-over-year to $(10.3) million for the three months ended March 31, 2026 compared to $(15.0) million for the three months ended March 31, 2025. Net cash used in operating activities was $13.5 million for the three months ended March 31, 2026, compared with $18.2 million in the prior-year period. Unrestricted cash and cash equivalents were $15.5 million as of March 31, 2026, and short-term investments were $6.0 million, representing total liquidity of $21.5 million. Kate Suhadolnik, Chief Financial Officer of ESS, commented, "We remain focused on expense control, liquidity, and maintaining financial flexibility as we support the business through its transition and commercialization efforts. Total operating expenses declined 33% year-over-year and we also benefited from the capital raised through our registered direct offering during the quarter. We ended the quarter with $15.5 million in unrestricted cash and cash equivalents and $6.0 million in short-term investments, representing total liquidity of $21.5 million. We remain focused on the strategic allocation of capital as we advance our operational and commercialization priorities." Conference Call Details ESS Chief Executive Officer Drew Buckley and Chief Financial Officer Kate Suhadolnik will host the conference call, followed by a question-and-answer period. The call will be accompanied by a presentation, which will be available following the call via the investor relations section of the Company’s website. To access the call, please use the following information: The replay can be viewed through the webcast link above and the presentation utilized during the call will be available via the investor relations section of the Company's website. About ESS, Inc. ESS (NYSE: GWH) is the leading manufacturer of long-duration iron flow energy storage solutions. ESS was established in 2011 with a mission to accelerate decarbonization safely and sustainably through longer lasting energy storage. Using easy-to-source iron, salt, and water, ESS iron flow technology enables energy security, reliability and resilience. We build flexible storage solutions that allow our customers to meet increasing energy demand without power disruptions and maximize the value potential of excess energy. For more information visit www.essinc.com. Use of Non-GAAP Financial Measures In this press release and the accompanying earnings call, ESS includes Adjusted EBITDA, which is a non-GAAP performance measure that ESS uses to supplement its results presented in accordance with U.S. GAAP. As required by the rules of the Securities and Exchange Commission ("SEC"), ESS has provided herein a reconciliation of the non-GAAP financial measures contained in this presentation and the accompanying earnings call to the most directly comparable measures under GAAP. ESS’ management believes Adjusted EBITDA is useful in evaluating its operating performance and is a similar measure reported by publicly-listed U.S. companies, and regularly used by securities analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. By providing this non-GAAP measure, ESS’ management intends to provide investors with a meaningful, consistent comparison of ESS’ profitability for the periods presented. Adjusted EBITDA is not intended to be a substitute for net income/loss or any U.S. GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry. ESS defines and calculates Adjusted EBITDA as net loss before interest expense (income), net, stock-based compensation, depreciation and amortization, loss (gain) on revaluation of common stock warrant liabilities, financing costs and other income, net as they are not indicative of business operations. Forward-Looking Statements This communication contains forward-looking statements (including within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended) concerning the Company and other matters that involve substantial risks and uncertainties. These statements may discuss the management team's goals, beliefs, hopes, intentions and expectations as to future plans, trends, events, results of operations and financial condition and the related potential effects on ESS, or otherwise, based on current beliefs of the management of the Company, as well as assumptions made by, and information currently available to, the Company's management. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would," or, in each case, their negative or other variations or comparable terminology may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. Examples of forward-looking statements include, among others, statements pertaining to statements made by the Company’s Chief Executive Officer and Chief Financial Officer, statements pertaining to the Company’s 2026 outlook and beyond, cash position, the potential and capabilities of the Company’s technology and platform, advancement of operational and commercialization priorities, the Company’s ability to execute on Project New Horizon, including the timing for manufacturing and delivery for Project New Horizon, as well as statements regarding the Company’s partnerships, employees, commercial expectations regarding sales order and pipeline, the expected integration of the VoltStorage intellectual property and technology, ESS product development and manufacturing, and relationships with customers. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication. There can be no assurance that the future developments affecting ESS will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond ESS control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, which include, but are not limited to: barriers we face in our attempts to produce our energy storage products; risks related to the Company’s ability to execute and meet timelines related to Project New Horizon; our products being in the early stage of commercialization and aspects of our technology not having been fully field tested; our inability to develop our business and effectively commercialize our energy storage products; our dependence on third-party suppliers;; our ability to secure or maintain long-term supply relationships with critical suppliers; delays, disruptions or quality control problems in our manufacturing operations; our ability to adequately control our costs, effectively scale our operations and achieve our cost reduction strategy; our reliance on complex machinery; our ability to increase our production capacity; product recalls, defects or performance problems with our products; required maintenance being performed incorrectly or maintenance requirements exceeding our current expectations; our history of losses; our ability to continue as a "going concern"; our ability to secure binding orders; failure to deliver the benefits offered by our technology; inability to achieve market acceptance of our products; our ability to sell effectively to large customers; failure to accurately estimate future supply and demand for our products and services; failure to manage our growth effectively; failure to meet the obligations under our sales contracts and service agreements; our ability to complete on schedule and within budget; loss of a member of our senior management or other key personnel; changes to our leadership team; expansions into new markets, product lines or services; our warranty obligations; failure to identify or complete commercial or financial transactions; changes in the global trade environment; our projects relationships with related parties; regulatory challenges; our ability to protect our intellectual property; and our ability to raise capital in the near future; general economic and market conditions as well as geopolitical developments and other risks and uncertainties described more fully in the section titled "Risk Factors" in the Company's Annual Report on Form 10-K filed on March 5, 2026 and the Company's other filings with the U.S. Securities and Exchange Commission. Except as required by law, ESS is not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260507163788/en/ Contacts Company [email protected] Investor Relations Chris Tyson Executive Vice President MZ Group - MZ North America Phone: (949) 491-8235 [email protected] www.mzgroup.us