IPWR

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 10:00 a.m. ET President and Chief Executive Officer - David Somo Chief Financial Officer - Timothy W. Burns Investor Relations - Jeff Christensen Operator: Good morning, ladies and gentlemen, and welcome to the Ideal Power Second Quarter 26 results conference call. At this time, all participants are in a listen-only mode. At the end of management's remarks, there will be a question-and-answer session. Investors can submit their questions anytime within the meeting webcast by typing them into the Q&A button on the left side of your viewing screen. Analysts who publish research may ask questions on the phone line. For analysts to ask questions on the phone line, please press 1 on your phone keypad. As a reminder, this event is being recorded. I would now like to turn the conference over to Jeff Christensen. Please go ahead. Jeff Christensen: Thank you, Jenny, and good morning, everyone. Thank you for joining Ideal Power's second quarter 26 results conference call. On the call with me are David Somo, President and Chief Executive Officer and Timothy W. Burns, chief financial officer. Ideal Power's second quarter 26 financial results press release is available on the company's website at idealpower.com. Before we begin, I would like to remind everyone that a number of statements on this call are forward looking statements. All statements on this call that are based on historical fact are that are not based on historical fact are forward-looking statements. While management has based any forward-looking statements on its current expectations, The information which such expectations were based on may change. These forward-looking statements rely on a number of assumptions concerning future events, and are subject to a number of risks, uncertainties and other factors. Many of which are outside the company's control. That could cause actual results to materially differ from such statements. Please refer to the company's SEC filings for some of the associated risks, uncertainties and other factors. We would also refer you to Ideal Power's website for more supporting company information. Now I would like to turn the call over to Ideal Power's president and chief executive officer, David. David Somo: Thank you, Jeff, and thank you to everyone joining us today. I will begin with an update on our commercial progress from the start of the second quarter. Then Tim will review our financial results. And after our remarks, we look forward to your questions. Let me start with our lead Asia customer. We are finalizing our low current solid-state circuit breaker or SSCB prototype development for shipment to the customer later this month for their internal testing. E Tran enabled SSCB prototypes are expected to be available from this customer for their 800 volt AI data center and energy grid customers in the fourth quarter of 26. With initial low volume orders to support the prototype builds, also expected in the fourth quarter. Beyond that initial project and in order of priority, we are engaged with this customer on 2 additional projects. 1 for a medium current SSCB designed for 800 volt DC data centers energy storage applications, EV charging, and industrial microgrids; and a second for a low current SSCB for smart industrial buildings. Technical discussions on the medium current SSCB are already underway. Second, under the letter of intent we signed in the second quarter, we advanced our codevelopment with an industry partner on a B-TRAN-enabled intelligent SSCB prototype for a planned evaluation by US hyperscaler in its development for the NVIDIA Rubin Ultra 800 volt DC data center power system. We are targeting prototype delivery by the end of the fourth quarter of 2 thousand 26. This prototype is also planned to be offered to additional hyperscalers and other AI data center operators adopting the NVIDIA Rubin Ultra Power architecture or comparable 800 volt DCAI data center power distribution systems for evaluation. The ideal power team will be attending the open compute project global summit in October together with our industry partner to introduce this intelligent SSC prototype concept to AI data center and infrastructure providers for their consideration. Third, we delivered a second set of Gen 2 B-TRAN custom package samples and development kits to Stellantis for their evaluation. We are working closely with the customer on a detailed analysis of their solid-state contactor system-level specification to optimize the solution and align the remaining deliverables under the purchase order. While this has impacted the timing of our expected completion of deliverables under the PO, it has not delayed or otherwise impacted our expectations regarding the EV contactor opportunity with Stellantis. The deliverables we have completed support the next project scheduled for the fourth quarter of 26. We will work to promptly complete future deliverables as they are agreed with the customer to support subsequent project milestones. Fourth, we achieved an important operational milestone. We entered into a long term supply agreement with a high volume wafer foundry in Asia not China, and achieved functional first silicon after initiating discussions with them in the first quarter of this year. Is an automotive qualified fab that has built more than 1 billion power semiconductors. This foundry has the capacity to support high volume and automotive customers at a cost structure we believe supports our targeted gross margins at scale. Fifth, we are seeing accelerating demand to support 800 volt DC architectures from a growing number of potential customers. Including leading global electromechanical breaker manufacturers now seeking SSCB solutions. I have been asked how we are helping customers speed up adoption would like to take a moment to explain the progress we are making. We introduced a new SSCB reference design kit or RDK to assist customers with evaluating our technology and accelerate the development of their own SSCB products. This is critical to adoption as companies that have traditionally supplied electromechanical breakers may not have internal expertise with Solid State Solutions or may not have started developing SSCB products. With the rollout of 800 volt AI data center power architectures, expected to start in the second half of next year, These companies need a close to market ready solution to enable timely product and productions. We are already seeing traction as 1 of our distribution partners has placed its first stocking order for these SSCB RDKs for delivery in the coming weeks and multiple customers have requested access to our new RDKs. Sixth, after recently adding a Europe based sales director, our team met with more than 20 potential customers at PCIM in Germany. Our European sales efforts have already led to early engagements with the European based global automaker and Tier 1 automotive suppliers. We recently met with 1 of these global Tier 1s' pre-production and production teams. We are finding significant interest in solid-state EV contactor and battery disconnect unit solutions. We also have a new engagement with a European based circuit protection company interested in a broad set of applications, including solid-state breakers for data centers and energy storage as well as battery disconnect units for EVs. They are targeting both US and European markets on an aggressive timeline. Seventh, our newly formed advisory board now includes its first member, Dr. Sanjay Parthasarathy, chief marketing officer of Coherent Corporation. A key supplier for AI data center infrastructure, Sanjay brings more than 35 years of leadership across data centers, optical networking, and related technology markets. Aligning with our near term revenue opportunities. His deep market expertise and industry network directly support our plans to accelerate the commercialization of our high value, high impact solutions. Let me spend a moment on the data center market. When people picture the AI boom, they think graphics chips, processors, and servers. But the bottleneck is increasingly power. Getting it to the data center, and distributing and managing it once there. The forthcoming migration to the 800-volt DC power architectures and AI data centers and the supporting energy infrastructure is a catalyst that is accelerating the demand for high voltage power semiconductors. This is reflected in the industry's growing backlog for power semiconductors and is expected to drive rapid growth over the next several years. SSCBs are essential in high voltage DC systems as they enable ultrafast fault handling for reliability. B-TRAN provides an ideal solution for solid-state circuit protection with its inherent bidirectional operation, low conduction losses, microsecond fault handling, and 1.2-thousand-volt rated operation providing ample safety margin for 800 volt power delivery systems. The industry is in the early stages of a secular mega trend in power semiconductors that presents exciting growth opportunity. I will briefly discuss our product reliability testing and qualification plans. A simple way to think about it is that industrial and automotive qualification typically reflect the requirements of each end market. JEDEC industrial qualification supports our near term opportunities in AI data centers energy storage, and grid infrastructure markets while AEC-Q, or automotive qualification, is designed for automotive applications. Given the accelerating demand for power semiconductors to support AI data centers and energy infrastructure, which represent our nearest-term revenue opportunities, we are prioritizing work on industrial reliability testing and qualification. We plan to begin the industrial qualification process during the current quarter and complete it in the fourth quarter. Automotive reliability testing and qualification will be planned to align with customer timelines. Importantly, automotive qualification is typically required for use in-vehicle production but is not a gating item to advance product development for automotive opportunities. Including our EV contactor opportunity with Stellantis. As such, adjusting the timing of automotive qualification is not expected to affect our sales opportunities. Our commercial progress is showing up in the size and quality of our sales funnel. Which has grown to over 400 million in total revenue opportunity up from about 300 million at our mid May call. it is split roughly 50 between automotive and the combination of AI data centers and other industrial applications and it is global. Applications are primarily SSCBs and solid-state EV contactors with growing interest in solid-state transformers, all of which broadly fit into the category of circuit protection. While a growing funnel is encouraging, converting it into design wins production orders, and revenue remains our top priority. We are focused on execution and working closely with customers to complete their evaluations product development, and testing to advance projects through the funnel and into volume production orders and revenue growth. In closing, commercial momentum continued to build this quarter with prototype SSCB units being finalized for internal testing by our lead Asia Customer, progress toward the planned evaluation Of A co-developed intelligent SSCB prototype for a U.S. hyperscaler, a growing pipeline of engagements with regional multinational customers across multiple markets, and the rollout and first stocking order for our new SSCB reference design kit designed to accelerate customer adoption. We also achieved an important operational milestone by entering into a long term supply agreement with a high volume automotive qualified foundry that we expect to be a cost effective partner for us for years to come. Overall, the industry's transition to high voltage DC power architectures and AI data centers and energy infrastructure is serving as a catalyst for power semiconductors and solid-state circuit protection solutions. And B-TRAN enables a differentiated solution to fill that need. Our focus remains on advancing customer opportunities into volume production orders, revenue growth, and long term shareholder value creation. Now I would like to hand the call over to Timothy W. Burns to review our financials. Timothy? Timothy W. Burns: Thank you, David, and good morning, everyone. I will begin by summarizing our recent capital raise. We raised $27.7 million in net proceeds from a registered direct offering of common stock and prefunded warrants that closed on May 18. We are excited that financing was led by the company's largest institutional shareholders. The offering significantly strengthened our balance sheet. At 6/30/2026, cash and cash equivalents totaled $41.3 million Post offering, we still have a clean capital structure and no debt. Our second quarter 26 cash burn was $2.5 million flat compared to $2.5 million in the second quarter of 25. And up from $2.3 million in the first quarter of 26. Our Q2 cash burn was at the lower end of our guidance of $2.5 million to $2.7 million Even with the flexibility provided by our recent capital raise, we will continue to manage expenses prudently and aggressively. We expect third quarter 26 cash burn to be approximately $2.7 million to $2.9 million with a full year 2026 cash burn of approximately $10.3 million to $10.5 million This compares to a 2025 cash burn of $9.6 million The higher forecasted cash burn in 2026 compared to 2025 is due primarily to the hiring of additional sales and engineering personnel. We recorded modest revenue in the second quarter of 26. Initial orders from the companies evaluating our products for potential inclusion in their OEM products are expected to be small with order sizes increasing as customers progress through their design cycles perform product qualification, and build inventory for the commercialization of their B-TRAN-based products. Operating expenses were $3.6 million in the second quarter of 26, compared to $3.1 million in the second quarter of 25. The increase was driven primarily by higher stock based compensation expense personnel costs, and noncash patent impairments as we proactively rationalized our pending patent portfolio. Our 105 issued patents were unaffected by this rationalization and the streamlining of the portfolio lowers our future patent spend. We expect operating expenses to increase modestly in the coming quarters due to growth in our sales and engineering teams to support our commercialization efforts, as well as our growing number of customer engagements. Continue to expect some quarter to quarter variability in operating expenses, particularly research and development spending. Due to the timing of semiconductor fabrication runs, product development, and other research and development activities as well as hiring. Timing of equity award grants and performance stock unit vestings and related non cash stock based compensation expense recognition will also cause variability in our quarterly operating expenses as it has in the last 2 quarters. Net loss in the second quarter of 26 was $3.4 million compared to $3.0 million in the second quarter of 25. At the end of June, we had 16.4 million shares outstanding 1.24 million options in stock units outstanding. And 3.41 million prefunded warrants outstanding. At 6/30/2026, our fully diluted share count was 21.1 million shares. At this time, I would like to open up the call for questions. Operator? Operator: Thank you very much. At this time, we are conducting a question-and-answer session. Investors can submit their questions within the meeting webcast by typing them into the Q&A button on the left side of your viewing screen. Analysts who publish research may ask questions on the phone line. For analysts to ask questions on the phone line, please press *1 on your phone keypad. A confirmation tone will indicate that your line is in the queue. You may press *2 if you would like to remove your question from the queue. And for participants using any speaker equipment, it might be necessary to pick up your handset before you press the keys. Please wait a moment whilst we poll for questions. Thank you very much. Our first question is coming from Casey Ryan of Amarex. Casey, your line is live Casey Ryan: Good morning, David and Timothy. Thanks for the update this morning. I want to ask about the hyperscaler opportunity. Are you partnered with other component makers? I am just wondering if they are really sourcing their own solutions at this point, looking for better products and better pieces. And if 1 hyperscaler is doing it, do we think all of them will start to do it, or is it sort of a personality of that hyperscaler? In terms of how much they want to control versus, you know, turning that over to external parties, I guess. David Somo: Right. Hi, Casey. Thanks for the question, and I will take that 1. So I will use your terminology. it is more of the personality of the hyperscalers. So, okay. They are each involved in different levels depending on how they work with their partners that are supplying different, components and systems that are deployed in the data center. Other than those that are involved all the way down to kind of the component levels that could integrate into bigger that then get deployed. There are those who stay at a higher level. The opportunity here in working with, our industry partners to deliver something that is more at a circuit protection level but bring some intelligence that is intended to help with managing how power is utilized and optimized across the power distribution system inside hyperscalers which is why we believe it has relevance to them in likely be less relevant for us just to show up with a B-TRAN. For them to evaluate. But when it is at a more of a system level that they could potentially integrate in their environment, that becomes potentially of more interest. And that is what we are working towards. Casey Ryan: What do you think sort of the evaluation period? I mean, does it feel fair to think that maybe it is a 1 year type evaluation period? Or shorter or longer, I guess. David Somo: Yeah, difficult to call. And what I would refer to is for those who are looking to be on the front end of the 800 volt DC data center power evolution. that is anticipated or projected to happen starting from the second half of next year. And see some aggressive adoption as we go into the end of the year and into 28. So they are evaluation timeline, if it is going to be used early in that environment, would have to line up with that schedule. Casey Ryan: Yeah. Okay. I mean, that is actually consistent with what we have heard from a few other companies who are not in your space necessarily, but are exposed to data center as well. Are you guys-- are there conversations with other, data center component companies that you sell with or partner with? And, you know, I am not trying to draw straight line to Coherent, but I did see that you added someone there to your advisory board. And I think that is a positive, but, obviously, Coherent's a big player in data center as well. But, are you sort of with a partner or a group of companies partnering to sort of sell solutions? Or are each of you still pursuing your own direct access to, say, a certain hyperscaler or a certain customer opportunity in a data center? David Somo: So let me describe it this way, and I will use a automotive market analogy. If you think about the way automotive works, now, it was historically component suppliers, semiconductor suppliers like us would sell to tier ones, who then would sell to the automotive OEMs in about 8 to 10 years ago, that began to shift where the OEMs wanted direct relationships with some of the semiconductor suppliers to know what is coming down the pipe. Evaluate newer technology sooner and then have some influence over what their tier 1 suppliers are providing them at a systems level. Right. I think there is opportunity here. Our traditional model would be us selling our semiconductor components, B-TRAN, to who is going to build a solid-state circuit breaker or a solid-state contactor for automotive. That then gets integrated by the next-level customer. And goes eventually into a data center environment or industrial grid or something along those lines. I think the opportunity here is with the rapid pace of innovation to be able to take something that is more like a circuit breaker or circuit protection level and introduce new concepts directly to those who are doing higher level system integration or even in some cases, the hyperscalers themselves. We are looking at new technology and how to prepare for this HVDC transition. And so we want to work at each level. Direct with our more traditional customers that are building circuit protection devices, or contactors or EVs. Then their customers who may be doing the integration level and ultimately, to the hyperscaler if possible where there could be interest and they want to work at that level. Casey Ryan: Right. Okay. Thank you. that is actually very, very helpful for me to hear that and sort of get a better understanding of that. On the on the capacity agreement, getting those feels positive, but it also maybe feels encouraging because perhaps customers were asking you about capacity and wanted you to sort of demonstrate a plan which would sort of suggest some interest on their side. So I am curious how much getting this sort of, you know, penciled out and contracted was sort of part of maybe satisfying some of the sales conversations that you are having with certain potential end customers. David Somo: Yeah. So with the existing fabs that we have, I mean, we had capacity for, you know, 2 plus years with the existing relationships. But for us, particularly as you look longer term, you look at things like the automotive market, Our new long term supply agreement really supports the long term scaling of our business and probably even more importantly, at a cost structure that we believe supports our targeted gross margins. Right? So we have publicly stated we are looking for gross margins of 40%+ and we have a long term relationship now that will we believe will support that Casey Ryan: Mhmm. Yeah. 40% plus. Okay. Alright. Terrific. And then last question, I guess, with Stellantis, you know, we always are encouraged by any progress there. But I guess, what do you think is Stellantis, you know, sort of-- for you for you and there is no way to sort of say, will they sort of start to integrate some of these, you know, products or make a decision you know, in a definitive way, how do we think about that? And has the opportunity narrowed or widened? Since maybe we first started talking about them 18 months ago, 24 months ago? David Somo: Yeah. So I will take that 1, Casey. We are now at the level of depth in the discussions with Stellantis towards working toward the solid-state contactor program has definitely increased. Over the past couple of months. We were working with them very closely on the definition of their system solution level to understand how B-TRAN can be used in their environment to be able to optimize the performance and the capabilities of their system. Looking even evaluating different alternatives that extend beyond our contribution to the system. It includes things like packaging and so forth. That need to be considered as the total system solution. And so I am encouraged with the improved depth of the conversations that we have as we continue to work closely with them toward the contactor program. And so that is for me, helps to understand is the discussions deepen, you get into more details. that is typically a positive sign of where things are progressing. Casey Ryan: Yeah. I would agree. You know, I think, all in all, this has been a great update. Those are my questions, and I appreciate the time today. David Somo: Alright. Thanks. Timothy W. Burns: Thank you, Casey. Operator: Thank you very much. Well, we appear to have reached the end of our question-and-answer session on the phone lines. I will now turn the call back to Jeff Christensen to read questions submitted through the webcast. Jeff Christensen: Thank you. Thanks, Jenny. The first question submitted is why are the foundry agreement and functional first silicon so important for ideal power? David Somo: Yeah. And I kind of addressed this in responding to 1 of Casey's questions, but 1, it is a long term supply agreement, right? So this will allow us not just to get through the initial ramp, which we had already planned for with our existing fabs, but really gets us in a place where several years out when things like automotive volumes are potentially much more significant, we have an existing relationship now that will support that The other thing, obviously, is in a larger fab, a more established fab, there is a better cost structure. Right? So I would mentioned, in answering Casey that we can believe it can get to our targeted gross margins at scale with this new foundry relationship that we have. And it does provide confidence, you know, to customers. Because they will recognize the fab if we disclose it to them under NDA. And they will know that we will be able to supply them even if their volumes grow very rapidly. Jeff Christensen: Thank you. Investors can submit a question via the webcast. You know, there is an ask a question button there. Our next submitted question was what gives management confidence that Ideal Power was successfully commercialized? David Somo: Yeah. I will take that 1, Jeff. And I think you laid that out during the prepared remarks, but, essentially, there are 3 items I would say. 1 is that B TRAN, the possesses benefits and advantages for the applications that we are targeting primarily around solid state circuit protection that is span data centers, energy infrastructure, and EV applications. We think we have some unique and differentiated capabilities that I described during the call that serve us well. Make us very competitive in those applications. The second is the continued expansion of customer engagements in our sales opportunity funnel I am seeing continued progress with adding new opportunities to the funnel deepening engagements with customers. That helps move us along that development time line and working towards, production systems. And then the final is that we are actually kind of in the right place at the right time from a market perspective. With respect to the growth outlook and cellular megatrend that is taking place around high voltage DC, for data centers and energy infrastructure, and that fits well with where we have targeted B-TRAN from an applications perspective and from a growth opportunity. Jeff Christensen: Thank you. Are there a couple of milestones that Ideal Power will achieve with the recent capital raise? Timothy W. Burns: Yeah. So for us, I mean, strategy does not change in how we are attacking the market. We do not expect enormous increases in our spend just because we have more capital on the sheet. We will continue to be aggressive in managing our cash spend. So what it does do is we have over $40 million over $41 million actually on the balance sheet at June 30. So we have a strong balance sheet that will be viewed very favorably by both vendors and customers, as we move forward. So it puts us in a better position to commercialize our technologies and give our partners the confidence that we have adequate capital for several years. Jeff Christensen: Thank you. The company issued a shelf registration on July 10 and any additional commentary on that? Timothy W. Burns: Yeah. So from my perspective, it is good housekeeping. So our former our prior shelf was expiring. Or expired, and we wanted to put up a shelf. We have no intention on raising capital right now. We will have it available to issue registered shares if there is a strategic investment. That comes along. We are in discussions with companies on that possibility. Obviously, that would be great for validation of the technology and for revenue generation as well. But, again, it is does not indicate that we have any intent to raise capital. It is just good housekeeping. it is a 3-year instrument. So 2, 3 years from now, there is a reason for us to raise capital or if a strategic investment opportunity that comes along. It just gives us the flexibility to use shares. Jeff Christensen: Thank you. The next submitted question is, company includes in its strategic priorities the press release and in the presentation to continue to explore strategic opportunities with global market leaders. Is that the question about that was does that mean corporate investors taking equity stakes or and or is that the investment community? Timothy W. Burns: So it would be customers. Right? So this would be a customer that is going to potentially adopt our technology, It gives them an incentive for us to succeed. could potentially, you know, have a very positive relationship in terms of driving revenue growth. And we have a lot of the large companies that we are talking to in terms of prospective customers have equity branches that actually do invest in suppliers and key technologies for their OEM products. So that is what we are potentially looking at there. Jeff Christensen: Thank you. Again, if you have any submitted questions, please submit it in an ask a question button. The next submitted question was what third-party validations exist around B-TRAN Any comment on that? Timothy W. Burns: So we are in the process of and, David, talked about this extensively in his comments, but going through JEDEC qualification for the industrial markets, which key for our near term revenue opportunities. We also will align our timeline for, automotive qualification with the automotive opportunities in our pipeline, including Stellantis. We have worked with, multiple actual third party testing houses to generate a lot of data. On B-TRAN. A lot of that is included in the data sheets that we have published on our website. And all of our customers just do not take for granted what is in the data sheet. They evaluate the technology. They bring it into their lab. They test it themselves to understand the operating conditions and how it operates under different conditions. So, from that perspective, I think we are in really good shape. Jeff Christensen: Thank you. Next submitted question is, can you help investors understand the types of current customer paid engagements? Timothy W. Burns: Yeah. So for us right now, there is a couple, really. So 1 is product sampling and development kits, and these are generally will be small volume orders where they want to get the technology in their lab and evaluate it for use in their applications. The other thing is potentially NRE fees for custom development projects. So if prospective customer wants, for instance, a custom package, for their application, that is something that we would potentially do to earn NRE dollars for doing that. So those are the main types of revenue near term. Then longer term, obviously, we will be looking at much higher volume orders. As some of these companies actually adopt our technology for their end products. Operator: Thank you. That concludes our question-and-answer session. I would now like to turn the call back over to David Somo for closing remarks. David Somo: Thanks, Jeff. I want to thank our employees. Their innovation and hard work are what is driving our progress. And thank you to everyone who joined us today in your support. I look forward to our next quarterly results call in November as we execute on our plan to commercialize B-TRAN. Operator, you may end the call. Operator: Thank you very much. This concludes today's conference call. All parties may disconnect and have a great day. Before you buy stock in Ideal Power, 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 Ideal Power 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 $432,621!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,314!* 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 20, 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Ideal Power (IPWR) 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. Performance is driven by the transition to 800-volt DC power architectures in AI data centers, which acts as a catalyst for high-voltage power semiconductors and solid-state circuit breakers (SSCBs). The sales funnel expanded to over $400 million, a $100 million increase since mid-May, split evenly between automotive and industrial/data center applications. Strategic positioning is focused on B-TRAN's bidirectional operation and low conduction losses, which provide a safety margin for high-voltage DC systems compared to traditional electromechanical solutions. Operational progress includes a long-term supply agreement with an automotive-qualified foundry in Asia to support high-volume scaling and targeted gross margins of 40% plus. Management is prioritizing industrial JEDEC qualification over automotive AECQ to align with the immediate revenue opportunities in data centers and energy infrastructure. The company introduced a new SSCB reference design kit (RDK) to help traditional electromechanical breaker manufacturers overcome internal expertise gaps and accelerate product development. Prototype B-TRAN-enabled SSCBs are expected to be available for 800-volt AI data center customers in the fourth quarter of 2026, with initial low-volume orders anticipated in the same period. Full year 2026 cash burn is projected at $10.3 million to $10.5 million, reflecting increased investment in sales and engineering personnel to support commercialization. Industrial reliability testing and qualification is planned for completion in the fourth quarter of 2026 to support near-term revenue opportunities. Management expects the rollout of 800-volt AI data center power architectures to begin in the second half of 2027, with aggressive adoption continuing into 2028. Operating expenses are expected to increase modestly in coming quarters as the company expands its team to manage a growing number of customer engagements. The company raised $27.7 million in net proceeds through a registered direct offering in May, resulting in a cash balance of $41.3 million and no debt as of June 30, 2026. A proactive rationalization of the pending patent portfolio led to noncash patent impairments but is expected to lower future patent-related spending. The timing of deliverables for the Stellantis EV contactor project was adjusted to optimize system-level specifications, though management states this has not delayed the overall opportunity. A newly formed Advisory Board added its first member, Dr. Sanjay Parthasarathi, to leverage deep industry networks in the data center and optical networking markets. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is moving beyond component-level sales to provide system-level 'intelligent SSCB' prototypes that help hyperscalers manage power distribution. Evaluation timelines must align with the anticipated 800-volt DC data center evolution starting in the second half of 2027. The agreement provides long-term capacity for automotive scaling and a cost structure that supports the company's 40% plus gross margin target. Partnering with an established, automotive-qualified fab provides necessary supply-chain confidence to large OEM customers. Discussions have deepened into detailed system-level definitions, including packaging and performance optimization for B-TRAN in their specific environment. Management views the increased technical detail in current talks as a positive indicator of progress toward production. The filing is characterized as 'good housekeeping' to replace an expired shelf and provides flexibility for potential strategic investments. Management explicitly stated they have no current intention to raise additional capital through this instrument.

This article first appeared on GuruFocus. Revenue: Recorded modest revenue in the second quarter of 2026. Cash and Cash Equivalents: Totaled $41.3 million at June 30, 2026. Cash Burn: $2.5 million in Q2 2026, flat compared to Q2 2025 and up from $2.3 million in Q1 2026. Operating Expenses: $3.6 million in Q2 2026, up from $3.1 million in Q2 2025. Net Loss: $3.4 million in Q2 2026, compared to $3 million in Q2 2025. Capital Raise: Raised $27.7 million in net proceeds from a registered direct offering of common stock and pre-funded warrants. Shares Outstanding: 16,421,520 shares outstanding at end of June, with a fully diluted share count of 21,070,159 shares. Warning! GuruFocus has detected 2 Warning Signs with IPWR. Is IPWR fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ideal Power Inc (NASDAQ:IPWR) is finalizing prototype solid-state circuit breakers for its lead Asia customer, with initial low-volume orders expected in Q4 2026. The company signed a long-term supply agreement with a high-volume, automotive-qualified foundry in Asia, achieving functional first silicon and supporting targeted gross margins at scale. Ideal Power Inc (NASDAQ:IPWR) expanded its sales funnel to over $400 million in total revenue opportunity, up from $300 million, driven by growing demand for 800-volt DC architectures. The company introduced a new SSCB reference design kit (RDK) to accelerate customer adoption, with a distribution partner placing its first stocking order. Ideal Power Inc (NASDAQ:IPWR) raised $27.7 million in net proceeds from a registered direct offering, strengthening its balance sheet to $41.3 million in cash with no debt. The company is making progress with Stellantis on solid-state EV contactor development, with deeper technical discussions and a milestone scheduled for Q4 2026. Ideal Power Inc (NASDAQ:IPWR) reported a net loss of $3.4 million in Q2 2026, wider than the $3 million loss in the same period last year. The company's cash burn is expected to increase to $10.3-$10.5 million for full-year 2026, up from $9.6 million in 2025, due to hiring and expansion. Revenue remains modest, with initial customer orders expected to be small and order sizes increasing only as customers progress through design cycles. The Stellantis project has experienced timing delays in completing deliverables under the purchase order, impacting expected milestones. Automotive qualification for B-TRAN has been deprioritized in favor of industrial qualification, which could delay automotive revenue opportunities. The company's operating expenses increased to $3.6 million in Q2 2026, driven by higher stock-based compensation, personnel costs, and non-cash patent impairments. Q: How is Ideal Power approaching the hyperscaler opportunity, and are they partnering with other component makers to sell solutions?A: David Somo, President and CEO, explained that hyperscalers have different levels of involvement in their supply chains, with some being deeply involved at the component level and others staying at a higher level. The company is working with industry partners to deliver circuit protection solutions with intelligence to help manage power utilization across data center power distribution systems. This system-level approach is more relevant to hyperscalers than presenting a bare B-TRAN component for evaluation. Q: What is the expected evaluation period for the hyperscaler opportunity?A: CEO David Somo noted that the timeline is difficult to predict but must align with the projected rollout of 800-volt DC data center power architectures, which is expected to begin in the second half of next year, with more aggressive adoption expected into 2028. Companies aiming to be on the front end of this transition would need to complete evaluations in line with that schedule. Q: How important is the new foundry agreement and functional first silicon for Ideal Power?A: CFO Tim Burns stated that the long-term supply agreement with a high-volume, automotive-qualified foundry in Asia supports long-term scaling, particularly for automotive volumes several years out. The larger, more established fab offers a better cost structure that supports the company's targeted gross margins of 40% plus. Additionally, the agreement provides confidence to customers, who will recognize the fab under NDA and know Ideal Power can supply them even if their volumes grow rapidly. Q: What gives management confidence that Ideal Power will be successfully commercialized?A: CEO David Somo cited three key factors: B-TRAN's unique and differentiated capabilities for solid-state circuit protection in data centers, energy infrastructure, and EV applications; the continued expansion of customer engagements and a growing sales funnel; and being in the right place at the right time with the secular megatrend around high-voltage DC for data centers and energy infrastructure. Q: What milestones will Ideal Power achieve with the recent capital raise?A: CFO Tim Burns explained that the strategy doesn't change with more capital on the balance sheet, and the company will continue to manage cash spend aggressively. The over $41 million in cash at June 30 provides a strong balance sheet viewed favorably by vendors and customers, giving partners confidence that Ideal Power has adequate capital for several years to commercialize its technology. Q: Can you provide additional commentary on the shelf registration issued on July 10?A: CFO Tim Burns described it as "good housekeeping" since the prior shelf was expiring. There is no intention to raise capital right now, but the shelf provides flexibility to issue registered shares if a strategic investment opportunity comes along. It's a three-year instrument that allows the company to use registered shares if needed in the future. Q: Does the company's strategic priority to explore opportunities with global market leaders mean corporate investors taking equity stakes?A: CFO Tim Burns clarified that this refers to customers who may adopt the technology. A customer taking an equity stake gives them an incentive for Ideal Power to succeed and can drive revenue growth. Many large prospective customers have equity branches that invest in key suppliers and technologies for their OEM products. Q: What third-party validations exist around B-TRAN?A: CFO Tim Burns noted that the company is going through JEDEC qualification for industrial markets, which is key for near-term revenue opportunities, and will align automotive qualification timelines with automotive opportunities like Stellantis. Ideal Power has worked with multiple third-party testing houses to generate data included in published datasheets, and customers independently evaluate and test the technology in their own labs. Q: Can you help investors understand the types of current customer paid engagements?A: CFO Tim Burns identified two main types of near-term revenue: product sampling and development kits, which are small volume orders for customers to evaluate the technology in their labs, and NRE fees for custom development projects, such as custom packaging for specific applications. Longer-term revenue will come from much higher volume orders if companies adopt the technology for their end products. Q: Has the Stellantis opportunity narrowed or widened since initial discussions, and how should we think about the timeline?A: CEO David Somo stated that the depth of discussions with Stellantis has significantly increased over the past couple of months. They are working closely on defining the system solution level, evaluating alternatives beyond Ideal Power's contribution, including packaging considerations. The deepening conversations and attention to details are typically positive signs of progress toward the solid-state contactor program. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Ideal Power Inc.? Here are five stocks we like better. Commercialization advanced: Ideal Power’s B-TRAN technology is progressing through customer prototype programs, including solid-state circuit breakers for 800-volt AI data centers and energy infrastructure. A lead Asian customer expects prototypes and potential initial low-volume orders in the fourth quarter of 2026, while a U.S. hyperscaler-focused prototype is targeted for delivery by year-end. Expanded partnerships and pipeline: The company delivered additional B-TRAN samples to Stellantis and deepened work on EV solid-state contactors. Its potential revenue funnel grew to more than $400 million, split roughly evenly between automotive and AI data center/industrial opportunities. Financial position remains solid: Ideal Power ended the quarter with $41.3 million in cash, no debt and $27.7 million in net proceeds from a May stock offering. However, the net loss widened to $3.4 million, and management expects 2026 cash burn of approximately $10.3 million to $10.5 million. Doing Your Holiday Shopping? These Stocks Might Make Great Gifts Ideal Power (NASDAQ:IPWR) said it continued to advance commercialization of its B-TRAN power semiconductor technology during the second quarter of 2026, citing customer prototype programs, a growing sales funnel, a new wafer-foundry supply agreement and increased activity tied to anticipated 800-volt DC power architectures for AI data centers. President and Chief Executive Officer David Somo said the company’s lead Asian customer is finalizing development of a low-current solid-state circuit breaker, or SSCB, prototype that Ideal Power expects to ship later in the quarter for internal testing. That customer expects B-TRAN-enabled SSCB prototypes to be available for its 800-volt AI data center and energy-grid customers during the fourth quarter of 2026, with initial low-volume orders for prototype builds also anticipated in the fourth quarter. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be These 5 small-cap impact stocks are making social change Ideal Power is also discussing two additional projects with that customer: a medium-current SSCB for 800-volt DC data centers, energy storage, EV charging and industrial microgrids, as well as a low-current SSCB for smart industrial buildings. Technical discussions on the medium-current product are underway, Somo said. Under a letter of intent signed during the second quarter, Ideal Power and an industry partner are co-developing an intelligent B-TRAN-enabled SSCB prototype intended for evaluation by a U.S. hyperscaler. The product is being developed for a planned NVIDIA Rubin Ultra 800-volt DC data center power system, with prototype delivery targeted by the end of the fourth quarter of 2026. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Somo said the prototype is also planned to be offered to other hyperscalers and AI data center operators using the NVIDIA Rubin Ultra Power Architecture or comparable 800-volt DC distribution systems. Ideal Power and its partner plan to introduce the intelligent SSCB concept at the Open Compute Project Global Summit in October. During the question-and-answer session, Somo said hyperscalers vary in how directly they engage with component suppliers, depending on their approach to system integration and relationships with suppliers. He said the company sees an opportunity to work at multiple levels of the supply chain, including with traditional customers that build circuit-protection products, higher-level systems integrators and potentially hyperscalers. → On Holding's Price Stumble May Be an Opening for a Company Built to Run In automotive, Ideal Power delivered a second set of Gen 2 B-TRAN custom-package samples and development kits to Stellantis. The companies are working on a detailed analysis of the customer’s solid-state contactor system-level specifications to optimize the solution and align remaining purchase-order deliverables. Somo said this work affected the timing of expected deliverable completions but did not change the company’s view of the EV contactor opportunity with Stellantis. Completed deliverables support the next project milestone scheduled for the fourth quarter of 2026. “The level of depth in the discussions with Stellantis” has increased in recent months, Somo said, describing work involving packaging and other elements of a total system solution. Ideal Power entered a long-term supply agreement with a high-volume, automotive-qualified wafer foundry in Asia, excluding China. The company said it achieved functional first silicon after beginning discussions with the foundry in the first quarter. According to management, the foundry has manufactured more than 1 billion power semiconductors and has capacity to support high-volume industrial and automotive customers. Chief Financial Officer Tim Burns said the agreement is intended to support long-term scaling and a cost structure consistent with Ideal Power’s targeted gross margin of more than 40% at scale. The company also introduced an SSCB reference design kit intended to help customers evaluate its technology and accelerate their own product development. One distribution partner has placed an initial stocking order for the kits, which Ideal Power expects to deliver in the coming weeks. Somo said multiple customers have requested access to the new kits. Ideal Power said it is prioritizing industrial reliability testing and qualification because AI data centers, energy storage and grid infrastructure represent its nearer-term revenue opportunities. It plans to begin the JEDEC industrial qualification process in the current quarter and complete it in the fourth quarter. Automotive qualification will be scheduled in line with customer timelines, management said. The company’s sales funnel grew to more than $400 million in potential revenue opportunity from about $300 million at its mid-May call. Management said the funnel is split roughly evenly between automotive and the combined AI data center and other industrial markets. Primary applications include SSCBs and solid-state EV contactors, with growing interest in solid-state transformers. Ideal Power reported modest revenue for the second quarter, noting that initial customer orders for product samples and development kits are expected to be small before potentially increasing as customers move through design cycles, qualification processes and inventory builds. The company posted a second-quarter net loss of $3.4 million, compared with a net loss of $3 million in the prior-year period. Operating expenses rose to $3.6 million from $3.1 million, driven primarily by higher stock-based compensation, personnel costs and non-cash patent impairments tied to a rationalization of pending patent applications. Burns said the company’s 105 issued patents were not affected by the portfolio rationalization, which is expected to lower future patent spending. Second-quarter cash burn was $2.5 million, flat from the year-earlier quarter and up from $2.3 million in the first quarter. Cash and cash equivalents totaled $41.3 million as of June 30. Ideal Power raised $27.7 million in net proceeds through a registered direct offering of common stock and pre-funded warrants that closed May 18. The company had no debt as of June 30. Management expects third-quarter cash burn of about $2.7 million to $2.9 million and full-year 2026 cash burn of about $10.3 million to $10.5 million. Burns said the higher expected full-year cash burn compared with 2025 primarily reflects additional sales and engineering hires. He added that the company intends to continue managing expenses aggressively despite the stronger balance sheet. Management also said a shelf registration filed in July was “good housekeeping” following the expiration of a prior shelf registration and does not indicate current plans to raise capital. Burns said the company could use registered shares for a potential strategic investment by a customer or partner, but stated that Ideal Power has no current intention to conduct another capital raise. Ideal Power Inc, based in Austin, Texas, specializes in the design and manufacture of advanced power conversion solutions for a range of energy applications. The company's core technology is its proprietary Coupled Power Delivery (CPD) architecture, which enables efficient bi-directional conversion between DC and DC, as well as DC and AC power streams. These solutions are widely applied in renewable energy systems, energy storage, microgrids, and electric mobility platforms. Ideal Power's product lineup includes bi-directional DC converters, solid-state transformers, and intelligent power controllers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ideal Power Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

AUSTIN, Texas, Aug. 13, 2026 /PRNewswire/ -- Ideal Power Inc. (Nasdaq: IPWR) ("Ideal Power," the "Company," "we," "us" or "our"), developer and provider of its innovative and widely patented B-TRAN® bidirectional semiconductor power switch, reports results for its second quarter ended June 30, 2026. "We continued to execute across our commercial priorities in the second quarter. We advanced our low current solid-state circuit breaker ("SSCB") project with our lead customer in Asia and our co-development effort with an industry partner on a B-TRAN®-enabled SSCB prototype for a planned evaluation by a U.S. hyperscaler supporting the new NVIDIA Rubin Ultra 800V DC AI data center power distribution architecture," said David Somo, President and Chief Executive Officer of Ideal Power. "Engagements broadened including new opportunities with several regional and multinational customers across multiple markets. Our focus remains on advancing customer opportunities through our expanding sales funnel into volume production orders, revenue growth and long-term shareholder value creation." Somo continued, "We also achieved an important operational milestone by entering into a long-term supply agreement with a high-volume wafer foundry. Initial discussions with this foundry started in the first quarter and they've already successfully fabricated functional B-TRAN® first silicon. This foundry has the capacity to support high-volume industrial and automotive customers over the long-term, at a cost we believe supports our targeted gross margins at scale." Key Second Quarter 2026 and Recent Business Highlights Execution of our B-TRAN® commercial strategy continues, including: Continued advancing the first project with our lead Asia customer as we are in the process of finalizing low current SSCB prototype units for shipment to the customer later this month for their internal testing. B-TRAN®-enabled SSCB prototypes are expected to be available from this customer for their 800V AI data center and energy grid end-customers in Q4 2026. Delivered a second shipment of next generation B-TRAN® custom packaged samples and development kits for evaluation to Stellantis for EV applications. We are working closely with Stellantis on a detailed analysis of their solid-state contactor system-level specification to optimize the solution and align the remaining deliverables under the purchase order. Entered into a long-term supply agreement with a high-volume wafer foundry in Asia and achieved functional B-TRAN® first silicon. This foundry has ample capacity to support high-volume industrial and automotive customers at a cost we believe will support our targeted gross margins at scale. Seeing accelerating demand to support 800-volt DC architectures with a growing number of potential customers — including leading global electromechanical breaker manufacturers now seeking SSCB solutions. To accelerate potential adoption, we introduced a new 800-volt SSCB reference design kit ("RDK") for customers to evaluate our technology and assist in the development of their own SSCB products. One of our distribution partners has already placed its first stocking order for these SSCB RDKs. Advanced the co-development effort under the letter of intent we signed in the second quarter, collaborating with an industry partner on a B-TRAN®-enabled intelligent SSCB prototype planned for evaluation by a U.S. hyperscaler in its development environment for the NVIDIA Rubin Ultra 800V DC AI data center power distribution system, with prototype delivery targeted for the end of Q4 2026. Our newly formed Advisory Board now includes its first member, Dr. Sanjai Parthasarathi, Chief Marketing Officer of Coherent Corp. (NYSE: COHR), who brings more than 35 years of leadership across data centers, AI infrastructure, and related technology markets. His deep market expertise and industry network directly support our plans to accelerate the commercialization of our high-value, high-impact solutions. B-TRAN® Patent Estate: Currently at 105 issued B-TRAN® patents with 51 of those issued outside of the United States. Current geographic coverage includes North America, China, Taiwan, Japan, South Korea, India, and Europe. Second Quarter 2026 Financial Results Cash and cash equivalents totaled $41.3 million at June 30, 2026. During the second quarter, we raised $27.7 million in net proceeds in a registered direct offering of common stock and pre-funded warrants. Cash used in operating and investing activities in the second quarter of 2026 was $2.5 million, flat compared to $2.5 million in the second quarter of 2025. Cash used in operating and investing activities in the first six months of 2026 was $4.8 million compared to $4.6 million in the first six months of 2025. No long-term debt was outstanding at June 30, 2026. Operating expenses in the second quarter of 2026 were $3.6 million compared to $3.1 million in the second quarter of 2025 driven primarily by higher stock-based compensation expense, personnel costs, and non-cash patent impairment charges as we rationalized our pending patent portfolio. Net loss in the second quarter of 2026 was $3.4 million compared to $3.0 million in the second quarter of 2025. Net loss in the first six months of 2026 was $7.0 million compared to $5.7 million in the first six months of 2025. Strategic Priorities The Company has set the following strategic priorities: Continue adding new opportunities to the sales funnel. Drive initial revenue ramp by converting sales opportunities in the funnel to design-ins and custom development agreements. Secure production order(s) with our lead Asia customer for its first SSCB products and continue to expand solutions to address additional markets and applications. Complete remaining deliverables under the Stellantis purchase order and continue to advance opportunities for EV contactors and battery disconnect units with global automakers. Continue to explore strategic investment opportunities with global market leaders. Conference Call and Webcast: Second Quarter 2026 The Company will hold a conference call on Thursday, August 13, 2026 at 10:00 AM Eastern Time to discuss its results and host a question-and-answer session. Analysts and investors may pose questions for management during the live conference call. Interested persons may access the live conference call by dialing 877-545--0523 (U.S./Canada callers) or 973-528-0016 (international callers), using passcode 932999. It is recommended that participants call or log in 10 minutes ahead of the scheduled start time to ensure proper connection. An operator will register your name and organization. An audio replay will be available one hour after the live call until Midnight on August 27, 2026 by dialing 877-481-4010 using passcode 54353. The live webcast and interactive Q&A will be accessible on the Company's Investor Relations website under the Events tab HERE. The webcast will be archived on the Company's website for future viewing. Upcoming Investor Conference iAccess Alpha – Best Ideas Virtual Fall Investment Conference on September 15 to 16, 2026 Ideal Power plans to participate in the iAccess Alpha Best Ideas Virtual Fall Investment Conference on September 15 to 16, 2026. Ideal Power's presentation webcast is on September 15, and its one-on-one investor meetings are on September 16. Ideal Power's presentation webcast at the iAccess Alpha Virtual Conference is September 15 at 11:00 AM ET. The live, interactive webcast and slide presentation will be accessible on the Company's Investor Relations website under the Events tab HERE. The webcast will be archived on the website for future viewing. iAccess Alpha Conference attendees are encouraged to register and request a one-on-one virtual meeting with Ideal Power management on September 16, CLICK HERE. About Ideal Power Inc. Ideal Power (Nasdaq: IPWR) is the developer and provider of its innovative and widely patented B-TRAN® bidirectional semiconductor power switch. B-TRAN® offers compelling advantages over conventional technologies and addresses the demanding standards of today's solid-state circuit protection and intelligent power delivery systems. It features very low conduction losses that deliver improved power efficiency, thereby reducing energy consumption and providing cost savings. The unique bidirectional capability of B-TRAN® simplifies the design, control and diagnostics of solid-state power solutions while enabling smaller, lower cost systems. B-TRAN® delivers compelling advantages for a broad spectrum of applications including solid-state circuit breakers, static transfer switches, battery disconnect units and EV contactors that are widely used in data centers, industrial power systems, energy grid and storage systems, and electric vehicles and charging infrastructure. For more information, visit the Company's website at www.IdealPower.com, on LinkedIn, on Twitter, and on Facebook. Safe Harbor Statement All statements in this release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While Ideal Power's management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Such forward-looking statements include, but are not limited to, statements regarding current and future projects with our lead Asia customer, co-development of a B-TRAN®-enabled SSCB prototype for a leading U.S. hyperscaler, our expectations related to remaining deliverables under the purchase order from Stellantis, and our expectations regarding operational results under our long-term supply agreement with a foundry. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the success of our B-TRAN® technology, including whether the patents for our technology provide adequate protection and whether we can be successful in maintaining, enforcing and defending our patents, our inability to predict with precision or certainty the pace and timing of development and commercialization of our B-TRAN® technology, the rate and degree of market acceptance for our B-TRAN®, the impact of global health pandemics on our business, supply chain disruptions, and the expected performance of future products incorporating our B-TRAN®, and uncertainties set forth in our quarterly, annual and other reports filed with the Securities and Exchange Commission. Furthermore, we operate in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise forward-looking statements, except as required by applicable law. Ideal Power Investor Relations Contact Jeff ChristensenDarrow Associates Investor [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/ideal-power-reports-second-quarter-2026-financial-results-302850046.html

AUSTIN, Texas, July 30, 2026 /PRNewswire/ -- Ideal Power Inc. (Nasdaq: IPWR) ("Ideal Power," the "Company," "we," "us" or "our"), developer and provider of its innovative and widely patented B-TRAN® bidirectional semiconductor power switch, today announced management will hold a conference call on Thursday, August 13, 2026 at 10:00 AM Eastern Time to discuss its results for the second quarter ended June 30, 2026. A press release detailing these results will be issued prior to the call. Ideal Power management will host the conference call, followed by a question-and-answer period. Analysts and investors may pose questions for management during the live conference call on August 13. Additionally, questions can be submitted HERE in advance of the conference call. Interested persons may access the live conference call by dialing 877-545-0523 (U.S./Canada callers) or 973-528-0016 (international callers), using passcode 932999. It is recommended that participants call or login 10 minutes ahead of the scheduled start time to ensure a proper connection. An operator will register your name and organization. An audio replay will be available one hour after the live call until Midnight on August 27, 2026 by dialing 877-481-4010 using passcode 54353. The live webcast and interactive Q&A will be accessible on the Company's Investor Relations website under the Events tab HERE. The webcast will be archived on the website for future viewing. About Ideal Power Inc. Ideal Power (Nasdaq: IPWR) is the developer and provider of its innovative and widely patented B-TRAN® bidirectional semiconductor power switch. B-TRAN® offers compelling advantages over conventional technologies and addresses the demanding standards of today's solid-state circuit protection and intelligent power delivery systems. It features very low conduction losses that deliver improved power efficiency, thereby reducing energy consumption and providing cost savings. The unique bidirectional capability of B-TRAN® simplifies the design, control and diagnostics of solid-state power solutions while enabling smaller, lower cost systems. B-TRAN® delivers compelling advantages for a broad spectrum of applications including solid-state circuit breakers, static transfer switches, battery disconnect units and EV contactors that are widely used in data centers, industrial power systems, energy grid and storage systems, and electric vehicles and charging infrastructure. For more information, visit the Company's website at www.IdealPower.com, on LinkedIn, on Twitter, and on Facebook. Ideal Power Investor Relations Contact Jeff ChristensenDarrow Associates Investor [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/ideal-power-to-host-second-quarter-2026-results-conference-call-on-august-13-2026-at-1000-am-eastern-time-302838455.html

This article first appeared on GuruFocus. Cash Burn from Operating and Investing Activities: $2.3 million in Q1 2026, compared to $2.1 million in Q1 2025 and $2.2 million in Q4 2025. Cash and Cash Equivalents: $16.4 million as of March 31, 2026. Revenue: No revenue recorded in Q1 2026. Operating Expenses: $3.7 million in Q1 2026, up from $2.8 million in Q1 2025. Net Loss: $3.6 million in Q1 2026, compared to $2.7 million in Q1 2025. Shares Outstanding: 12,112,118 shares as of March 31, 2026. Fully Diluted Share Count: 15,814,384 shares as of March 31, 2026. Warning! GuruFocus has detected 4 Warning Signs with IPWR. Is IPWR fairly valued? Test your thesis with our free DCF calculator. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ideal Power Inc (NASDAQ:IPWR) is advancing its lead Asia customer project for low-current solid-state circuit breakers, with prototype units expected by Q4 2026. The company signed a letter of intent with an industry partner to co-develop a B-TRAN enabled intelligent SSCB prototype for evaluation by a US Hyperscaler. Ideal Power Inc (NASDAQ:IPWR) delivered initial next-generation B-TRAN custom packaged samples and development kits to Stellantis for EV applications, with deliverables on track for mid-2026. The sales opportunity funnel increased to over $300 million, up from approximately $200 million, indicating a growing interest in their products. Ideal Power Inc (NASDAQ:IPWR) has a strong patent portfolio with 103 issued B-TRAN patents, including 50 outside the United States, safeguarding its intellectual property. Ideal Power Inc (NASDAQ:IPWR) did not record revenue in the first quarter of 2026, with initial orders expected to be small. Operating expenses increased to $3.7 million in Q1 2026 from $2.8 million in Q1 2025, driven by higher stock-based compensation and personnel costs. The company expects a higher cash burn in 2026 compared to 2025, primarily due to hiring additional sales and engineering personnel. There is no change in the timeline for meaningful revenue, indicating potential delays in revenue generation. The company faces competition from silicon carbide MOSFETs in the applications it is targeting, which could impact market penetration. Q: If you could leave investors with one message today about why Ideal Power is a compelling investment opportunity at this stage of the company's development, what would it be? A: David Somo, President and CEO, emphasized that Ideal Power is at the cusp of a high-voltage DC secular megatrend. The transition from AC to high-voltage DC systems across various sectors aligns with the capabilities of their B-TRAN product, particularly in solid-state circuit breakers. This trend is expected to expand the market opportunity for B-TRAN through 2030 and beyond. Q: Any sense that electric vehicle recovery, mainly in Europe, is igniting interest in B-TRAN? A: David Somo noted that multiple customers, including automotive OEMs like Stellantis, are evaluating B-TRAN. The current oil situation is driving renewed interest in EVs, potentially leading to increased sales volumes and opportunities for B-TRAN in automotive programs. Q: Please comment on how B-TRAN compares with Infineon's CoolSiC JFET product. A: David Somo explained that B-TRAN has inherent bidirectional conducting and blocking capabilities, unlike Infineon's CoolSiC JFET, which requires a back-to-back configuration. B-TRAN's ability to reduce component count can improve system size, power density, and cost. Q: Please discuss where the company stands today in terms of manufacturing readiness. A: Timothy Burns, CFO, stated that Ideal Power is ready for a sales ramp with relationships with multiple foundries and packaging firms. They have a roadmap to support long-term business and forecasted capacity requirements while providing significant cost reductions. Q: Does Ideal Power still expect to complete the automotive qualification reliability testing this summer? A: David Somo confirmed that the company continues to make progress toward completing automotive reliability testing this summer, which is crucial for deploying B-TRAN in vehicles. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Ideal Power Inc.? Here are five stocks we like better. Ideal Power reported no Q1 revenue and a wider net loss of $3.6 million, but cash burn came in below guidance at $2.3 million and the company ended the quarter with $16.4 million in cash and no debt. Management said its sales opportunity funnel has grown to more than $300 million, up from about $200 million in late February, with projects spanning AI data centers, grid infrastructure, industrial systems and automotive applications. The company highlighted several commercialization milestones, including prototype work for 800-volt DC AI data centers, a development agreement tied to NVIDIA’s Rubin Ultra architecture, and progress toward completing B-TRAN automotive deliverables with Stellantis by mid-2026. Doing Your Holiday Shopping? These Stocks Might Make Great Gifts Ideal Power (NASDAQ:IPWR) reported no first-quarter revenue and a wider net loss, while management emphasized growing commercial activity for its B-TRAN semiconductor technology across AI data centers, energy infrastructure, industrial systems and automotive applications. President and Chief Executive Officer David Somo said the company’s sales opportunity funnel has increased to more than $300 million, up from about $200 million at the time of its investor business update call at the end of February. He said the opportunities are diversifying across AI data centers, industrial and automotive applications and multiple geographies. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? These 5 small-cap impact stocks are making social change “While a growing funnel is encouraging, converting it into design wins, production orders, and revenue is the top priority,” Somo said. He added that Ideal Power is working with customers to complete product development and testing to move projects toward volume production orders and revenue. Somo said Ideal Power’s lead Asia customer project for low-current solid-state circuit breakers, or SSCBs, remains on track for prototype units for 800-volt AI data center and energy grid customer evaluations. Those prototype units are expected to be available in the fourth quarter of 2026, with initial low-volume sales orders expected to support the prototype builds. → MP Materials Is Quietly Building a Rare Earth Powerhouse The company also began two additional projects with that Asia customer: one for a medium-current SSCB designed for 800-volt DC data centers, energy storage, EV charging and industrial microgrids, and another for a low-current SSCB for smart industrial buildings. Ideal Power also signed a letter of intent with an industry partner to co-develop a B-TRAN-enabled intelligent SSCB prototype for evaluation by a U.S. hyperscaler in a development environment for NVIDIA’s Rubin Ultra 800-volt DC AI data center power distribution system. Prototype delivery is targeted for the end of the fourth quarter of 2026, with an expected purchase order for the prototype units. Somo said the prototype is also planned to be offered to other U.S. hyperscalers and AI data center operators adopting the NVIDIA Rubin Ultra rack architecture or comparable 800-volt DC systems. → Micron Investors Face a High-Stakes Moment After the Latest Rally In automotive, the company delivered initial next-generation B-TRAN custom package samples and development kits to Stellantis for EV applications. Somo said Ideal Power remains on track to complete the remaining deliverables under its existing purchase order with Stellantis by mid-2026. Somo framed Ideal Power’s opportunity around a broader industry shift toward high-voltage DC power architectures, particularly in AI data centers and grid infrastructure. He said legacy AC-based data centers were designed for rack power levels of 10 to 50 kilowatts, while next-generation AI workloads are pushing requirements toward 100 to 150 kilowatts in the near term and potentially much higher over time. According to Somo, the industry’s transition to 800-volt DC architectures is increasing demand for solid-state circuit protection capable of bidirectional current flow, microsecond fault detection and intelligent control. He said traditional mechanical breakers were not designed to support those requirements. The company also added its first potential solid-state transformer projects to its sales funnel with prospective customers in Asia. Somo said those opportunities are targeting 800-volt DC AI data centers, energy storage systems, EV charging and the energy grid. Chief Financial Officer Tim Burns said first-quarter cash burn from operating and investing activities was $2.3 million, compared with $2.1 million in the first quarter of 2025 and $2.2 million in the fourth quarter of 2025. The result was below the company’s guidance range of $2.6 million to $2.8 million. Ideal Power expects second-quarter 2026 cash burn of approximately $2.5 million to $2.7 million and full-year 2026 cash burn of about $10 million to $10.5 million. That compares with 2025 cash burn of $9.6 million. Burns said the expected increase is primarily due to hiring additional sales and engineering personnel. Cash and cash equivalents totaled $16.4 million as of March 31, 2026. Burns said the company has no debt and a “clean capital structure.” Ideal Power did not record revenue in the first quarter. Burns said initial orders from companies evaluating its products for possible inclusion in OEM products are expected to be small, with order sizes increasing as customers move through design cycles, qualification and inventory building for commercialization. Operating expenses were $3.7 million in the quarter, up from $2.8 million a year earlier, driven primarily by higher stock-based compensation and personnel costs. Net loss was $3.6 million, compared with a net loss of $2.7 million in the first quarter of 2025. During the question-and-answer session, Somo said Ideal Power is “ready” from a manufacturing perspective, citing relationships with multiple foundries and packaging firms that he said can support the company’s expected sales ramp over the next two years. He also said Ideal Power continues to make progress toward completing automotive reliability testing this summer. Somo described automotive qualification as a requirement for customers to deploy B-TRAN in vehicles, while noting that customers can continue product development during the qualification process. Asked about competition, Somo said the primary competing technology in the applications Ideal Power is targeting is silicon carbide MOSFETs, rather than IGBTs, because customers are focused on minimizing losses in systems that conduct power most of the time. Somo also said the company has ongoing discussions with potential strategic investors, though he did not provide further details. He said potential investment could validate B-TRAN in the market if it comes from a company interested in adopting Ideal Power’s products. Management said near-term catalysts over the next three to six months could include additional customer agreements, custom development programs and purchase orders. Somo said he expects to provide further updates in August as the company continues its commercialization efforts. Ideal Power Inc, based in Austin, Texas, specializes in the design and manufacture of advanced power conversion solutions for a range of energy applications. The company's core technology is its proprietary Coupled Power Delivery (CPD) architecture, which enables efficient bi-directional conversion between DC and DC, as well as DC and AC power streams. These solutions are widely applied in renewable energy systems, energy storage, microgrids, and electric mobility platforms. Ideal Power's product lineup includes bi-directional DC converters, solid-state transformers, and intelligent power controllers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ideal Power Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

AUSTIN, Texas, May 14, 2026 /PRNewswire/ -- Ideal Power Inc. (Nasdaq: IPWR) ("Ideal Power," the "Company," "we," "us" or "our"), developer and provider of its innovative and widely patented B-TRANﾮ bidirectional semiconductor power switch, reports results for its first quarter ended March 31, 2026. "We had a strong start to the year as we initiated two additional projects with our lead Asia customer, signed a letter of intent with an industry partner to co-develop a B-TRANﾮ-enabled prototype for evaluation by a U.S. hyperscaler supporting the new NVIDIA Rubin Ultra 800V DC AI data center power distribution architecture, advanced Stellantis deliverables on schedule, and engaged on new opportunities with several multinational customers," said David Somo, President and Chief Executive Officer of Ideal Power. "The industry's transition toward next generation, high-voltage DC power architectures is real and in its early stages, creating what we believe will be a significant demand for advanced solid-state power solutions, and B-TRANﾮ is uniquely positioned to address these emerging opportunities. Our focus remains on converting our expanding sales funnel into production orders, revenue growth and long-term shareholder value creation." Key First Quarter and Recent Highlights Execution of our B-TRANﾮ commercial strategy continues, including: Advanced our lead Asia customer project for low current solid-state circuit breaker ("SSCB") prototype units expected to be available for 800V AI data center and energy grid customers in Q4 2026. In addition, initiated two new projects with this customer: one project for a medium current SSCB designed for 800V AI DC data centers and energy storage applications, and the second project for a low current SSCB in smart industrial buildings. Delivered initial next generation B-TRANﾮ custom-packaged samples and development kits for evaluation to Stellantis for EV applications. We are on track to complete the deliverables under our existing purchase order by mid-2026. Signed a letter of intent with an industry partner to co-develop a B-TRANﾮ-enabled intelligent SSCB prototype for evaluation by a U.S. hyperscaler in its development environment for the NVIDIA Rubin Ultra 800V DC AI data center power distribution system, with prototype delivery targeted for the end of Q4 2026. Engaged two new Asia-based global suppliers of power solutions for the potential development of B-TRANﾮ-enabled SSCBs for use in solid-state transformers ("SSTs") targeting 800V DC AI data centers, energy storage systems, EV charging, and energy grid. Engaged several multinational customers for the potential development of B-TRANﾮ-based SSCBs across 800V AI data centers, industrial building applications, and the renewable energy grid. B-TRANﾮ Patent Estate: Currently at 103 issued B-TRANﾮ patents with 50 of those issued outside of the United States. Current geographic coverage includes North America, China, Taiwan, Japan, South Korea, India, and Europe. First Quarter 2026 Financial Results Cash used in operating and investing activities in the first quarter of 2026 was $2.3 million compared to $2.1 million in the first quarter of 2025. Cash and cash equivalents totaled $16.4 million at March 31, 2026. No long-term debt was outstanding at March 31, 2026. Operating expenses in the first quarter of 2026 were $3.7 million compared to $2.8 million in the first quarter of 2025 driven primarily by higher stock-based compensation expense and personnel costs. Stock-based compensation expense increased in the first quarter of 2026 due to equity award modifications under the transition services agreement with our former CEO and inducement grants to our incoming CEO in the fourth quarter of 2025. Net loss in the first quarter of 2026 was $3.6 million compared to $2.7 million in the first quarter of 2025. Strategic Priorities The Company has set the following strategic priorities: Continue adding new opportunities to the sales funnel. Drive initial revenue ramp by converting sales opportunities in the funnel to design-ins and custom development agreements. Secure production order(s) with our lead Asia customer for its first solid-state circuit breaker products and continue to expand solutions to address additional markets and applications. Complete remaining deliverables under the Stellantis purchase order and continue to advance opportunities for EV contactors and battery disconnect units with global automakers. Continue to explore strategic investment opportunities with global market leaders. Conference Call and Webcast: First Quarter 2026 The Company will hold a conference call on Thursday, May 14, 2026 at 10:00 AM Eastern Time to discuss its results and host a question-and-answer session. Analysts and investors may pose questions for management during the live conference call. Interested persons may access the live conference call by dialing 888-506-0062 (U.S./Canada callers) or 973-528-0011 (international callers), using passcode 526807. It is recommended that participants call or log in 10 minutes ahead of the scheduled start time to ensure proper connection. An operator will register your name and organization. An audio replay will be available one hour after the live call until Midnight on May 28, 2026 by dialing 877-481-4010 using passcode 53961. The live webcast and interactive Q&A will be accessible on the Company's Investor Relations website under the Events tab HERE. The webcast will be archived on the Company's website for future viewing. About Ideal Power Inc. Ideal Power (Nasdaq: IPWR) is the developer and provider of its innovative and widely patented B-TRANﾮ bidirectional semiconductor power switch. B-TRANﾮ offers compelling advantages over conventional technologies and addresses the demanding standards of today's solid-state circuit protection and intelligent power delivery systems. It features very low conduction losses that deliver improved power efficiency, thereby reducing energy consumption and providing cost savings. The unique bidirectional capability of B-TRANﾮ simplifies the design, control and diagnostics of solid-state power solutions while enabling smaller, lower cost systems. B-TRANﾮ delivers compelling advantages for a broad spectrum of applications including solid-state circuit breakers, static transfer switches, battery disconnect units and EV contactors that are widely used in data centers, industrial power systems, energy grid and storage systems, and electric vehicles and charging infrastructure. For more information, visit the Company's website at www.IdealPower.com, on LinkedIn, on Twitter, and on Facebook. Safe Harbor Statement All statements in this release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While Ideal Power's management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Such forward-looking statements include, but are not limited to, statements regarding current and future projects with our lead Asia customer, the letter of intent with an industry partner to co-develop a B-TRANﾮ-enabled SSCB prototype for a leading U.S. hyperscaler, B-TRANﾮ being uniquely positioned to address emerging opportunities in high-voltage DC power architectures, the potential development of B-TRANﾮ-enabled SSCBs and/or SSTs for use in various applications, the anticipated timing of deliverables under the purchase order from Stellantis, and our expected success in converting our expanding sales funnel into production orders, revenue growth and long-term shareholder value creation. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the success of our B-TRANﾮ technology, including whether the patents for our technology provide adequate protection and whether we can be successful in maintaining, enforcing and defending our patents, our inability to predict with precision or certainty the pace and timing of development and commercialization of our B-TRANﾮ technology, the rate and degree of market acceptance for our B-TRANﾮ, the impact of global health pandemics on our business, supply chain disruptions, and the expected performance of future products incorporating our B-TRANﾮ, and uncertainties set forth in our quarterly, annual and other reports filed with the Securities and Exchange Commission. Furthermore, we operate in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise forward-looking statements, except as required by applicable law. Ideal Power Investor Relations Contact Jeff Christensen Darrow Associates Investor Relations [email protected] 703-297-6917 View original content to download multimedia:https://www.prnewswire.com/news-releases/ideal-power-reports-first-quarter-2026-financial-results-302771691.html