ESS Tech, Inc. Announces Second Quarter 2026 Financial Results
Accelerating
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
Management to Host Webcast and Conference Call Today at 5:00 p.m. ET
“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
“At the same time, we streamlined our
“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
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 -
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 -
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 $40 million
Second Quarter 2026 Financial Highlights
-
Revenue was
$73 thousand $2.4 million -
Total operating expenses increased
19% to$7.7 million $6.5 million $1.2 million $0.8 million $0.7 million -
Net loss was
$(15.6) million $(0.46) $(11.1) million $(0.90) -
Adjusted EBITDA loss was
$(7.9) million $(7.8) million -
Net cash used in operating activities was
$22.4 million $30.6 million -
Unrestricted cash and cash equivalents were
$5.6 million
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
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:
Date: |
Tuesday, August 11, 2026 |
Time: |
5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) |
Dial-in: |
1-833-461-5787 |
International: |
1-585-542-9983 |
Meeting ID: |
666 579 401 |
Webcast: |
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
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.
ESS Tech, Inc.
|
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Revenue |
$ |
4 |
|
|
$ |
56 |
|
|
$ |
126 |
|
|
$ |
627 |
|
Revenue - related parties |
|
69 |
|
|
|
2,302 |
|
|
|
75 |
|
|
|
2,330 |
|
Total revenue |
|
73 |
|
|
|
2,358 |
|
|
|
201 |
|
|
|
2,957 |
|
Cost of revenue |
|
7,494 |
|
|
|
7,459 |
|
|
|
14,660 |
|
|
|
16,205 |
|
Gross loss |
|
(7,421 |
) |
|
|
(5,101 |
) |
|
|
(14,459 |
) |
|
|
(13,248 |
) |
Operating expenses |
|
|
|
|
|
|
|
||||||||
Research and development |
|
2,201 |
|
|
|
1,424 |
|
|
|
4,826 |
|
|
|
3,902 |
|
Sales and marketing |
|
562 |
|
|
|
1,304 |
|
|
|
816 |
|
|
|
3,254 |
|
General and administrative |
|
4,950 |
|
|
|
3,728 |
|
|
|
8,813 |
|
|
|
9,299 |
|
Total operating expenses |
|
7,713 |
|
|
|
6,456 |
|
|
|
14,455 |
|
|
|
16,455 |
|
Loss from operations |
|
(15,134 |
) |
|
|
(11,557 |
) |
|
|
(28,914 |
) |
|
|
(29,703 |
) |
Other (expense) income, net |
|
|
|
|
|
|
|
||||||||
Interest (expense) income, net |
|
(596 |
) |
|
|
30 |
|
|
|
(3,092 |
) |
|
|
246 |
|
Gain on revaluation of common stock warrant liabilities |
|
166 |
|
|
|
459 |
|
|
|
510 |
|
|
|
344 |
|
Other income, net |
|
11 |
|
|
|
12 |
|
|
|
21 |
|
|
|
31 |
|
Total other (expense) income, net |
|
(419 |
) |
|
|
501 |
|
|
|
(2,561 |
) |
|
|
621 |
|
Net loss and comprehensive loss to common stockholders |
$ |
(15,553 |
) |
|
$ |
(11,056 |
) |
|
$ |
(31,475 |
) |
|
$ |
(29,082 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share - basic and diluted |
$ |
(0.46 |
) |
|
$ |
(0.90 |
) |
|
$ |
(1.00 |
) |
|
$ |
(2.39 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares used in per share calculation - basic and diluted |
|
33,824,896 |
|
|
|
12,271,587 |
|
|
|
31,563,558 |
|
|
|
12,152,245 |
|
ESS Tech, Inc.
|
|||||||
|
June 30, 2026 |
|
December 31, 2025 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
10,848 |
|
|
$ |
14,477 |
|
Restricted cash, current |
|
806 |
|
|
|
806 |
|
Accounts receivable, net |
|
10 |
|
|
|
13 |
|
Short-term investments |
|
— |
|
|
|
7,557 |
|
Inventory |
|
112 |
|
|
|
140 |
|
Prepaid expenses and other current assets |
|
1,814 |
|
|
|
3,254 |
|
Total current assets |
|
13,590 |
|
|
|
26,247 |
|
Property and equipment, net |
|
11,793 |
|
|
|
17,224 |
|
Intangible assets, net |
|
2,548 |
|
|
|
2,682 |
|
Operating lease right-of-use assets |
|
2,903 |
|
|
|
3,767 |
|
Restricted cash, non-current |
|
918 |
|
|
|
618 |
|
Other non-current assets |
|
724 |
|
|
|
634 |
|
Total assets |
$ |
32,476 |
|
|
$ |
51,172 |
|
Liabilities and stockholders' (deficit) equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
1,234 |
|
|
$ |
3,023 |
|
Accrued and other current liabilities |
|
10,004 |
|
|
|
11,097 |
|
Accrued product warranties |
|
798 |
|
|
|
985 |
|
Operating lease liabilities, current |
|
1,919 |
|
|
|
1,784 |
|
Deferred revenue, current |
|
280 |
|
|
|
359 |
|
Financing obligations, current |
|
5,765 |
|
|
|
8,044 |
|
Total current liabilities |
|
20,000 |
|
|
|
25,292 |
|
Operating lease liabilities, non-current |
|
1,059 |
|
|
|
2,060 |
|
Deferred revenue, non-current - related parties |
|
5,297 |
|
|
|
5,297 |
|
Common stock warrant liabilities |
|
63 |
|
|
|
573 |
|
Financing obligations, non-current |
|
8,715 |
|
|
|
9,291 |
|
Other non-current liabilities |
|
29 |
|
|
|
41 |
|
Total liabilities |
|
35,163 |
|
|
|
42,554 |
|
Stockholders' (deficit) equity: |
|
|
|
||||
Preferred stock ( |
|
— |
|
|
|
— |
|
Common stock ( |
|
3 |
|
|
|
2 |
|
Additional paid-in capital |
|
874,604 |
|
|
|
854,435 |
|
Accumulated deficit |
|
(877,294 |
) |
|
|
(845,819 |
) |
Total stockholders' (deficit) equity |
|
(2,687 |
) |
|
|
8,618 |
|
Total liabilities and stockholders' (deficit) equity |
$ |
32,476 |
|
$ |
51,172 |
|
|
ESS Tech, Inc.
|
|||||||
|
Six Months Ended June 30, |
||||||
|
2026 |
|
2025 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(31,475 |
) |
|
$ |
(29,082 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
3,077 |
|
|
|
3,085 |
|
Asset abandonment |
|
4,327 |
|
|
|
— |
|
Non-cash interest expense (income) |
|
2,824 |
|
|
|
(155 |
) |
Non-cash lease expense |
|
864 |
|
|
|
731 |
|
Stock-based compensation expense |
|
1,745 |
|
|
|
2,699 |
|
Change in fair value of common stock warrant liabilities |
|
(510 |
) |
|
|
(344 |
) |
Other non-cash expenses, net |
|
1 |
|
|
|
199 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
3 |
|
|
|
86 |
|
Inventory |
|
28 |
|
|
|
301 |
|
Prepaid expenses and other assets |
|
1,350 |
|
|
|
468 |
|
Accounts payable |
|
(1,761 |
) |
|
|
1,268 |
|
Accrued and other liabilities |
|
(1,743 |
) |
|
|
(1,485 |
) |
Accrued product warranties |
|
(187 |
) |
|
|
(1,090 |
) |
Deferred revenue |
|
(79 |
) |
|
|
(6,458 |
) |
Operating lease liabilities |
|
(866 |
) |
|
|
(820 |
) |
Net cash used in operating activities |
|
(22,402 |
) |
|
|
(30,597 |
) |
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(1,432 |
) |
|
|
(1,491 |
) |
Maturities and purchases of short-term investments, net |
|
7,655 |
|
|
|
18,411 |
|
Net cash provided by investing activities |
|
6,223 |
|
|
|
16,920 |
|
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of common stock via ATM, net of issuance costs |
|
4,859 |
|
|
|
721 |
|
Proceeds from issuance of common stock and common stock warrants via RDO, net of issuance costs |
|
13,553 |
|
|
|
— |
|
Proceeds from financing arrangements |
|
9,200 |
|
|
|
— |
|
Payments on financing obligations |
|
(14,775 |
) |
|
|
— |
|
Proceeds from stock options exercised |
|
— |
|
|
|
6 |
|
Proceeds from contributions to Employee Stock Purchase Plan |
|
13 |
|
|
|
103 |
|
Repurchase of shares from employees for income tax withholding purposes |
|
— |
|
|
|
(27 |
) |
Net cash provided by financing activities |
|
12,850 |
|
|
|
803 |
|
|
|
|
|
||||
Net change in cash, cash equivalents and restricted cash |
|
(3,329 |
) |
|
|
(12,874 |
) |
Cash, cash equivalents and restricted cash, beginning of period |
|
15,901 |
|
|
|
15,195 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
12,572 |
|
|
$ |
2,321 |
|
ESS Tech, Inc.
|
|||||
|
Six Months Ended June 30, |
||||
|
2026 |
|
2025 |
||
Supplemental disclosures of cash flow information: |
|
|
|
||
Cash paid during the period for: |
|
|
|
||
Operating leases included in cash used in operating activities |
$ |
1,061 |
|
$ |
887 |
Interest |
|
685 |
|
|
— |
|
|
|
|
||
Non-cash investing and financing transactions: |
|
|
|
||
Purchase of property and equipment included in accounts payable and accrued and other current liabilities |
|
435 |
|
|
4,277 |
Transfers between inventory and property and equipment, net |
$ |
— |
|
$ |
668 |
|
|
|
|
||
Cash and cash equivalents |
$ |
10,848 |
|
$ |
797 |
Restricted cash, current |
|
806 |
|
|
906 |
Restricted cash, non-current |
|
918 |
|
|
618 |
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows |
$ |
12,572 |
|
$ |
2,321 |
ESS Tech, Inc.
|
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
||||||||
Net loss |
|
$ |
(15,553 |
) |
|
$ |
(11,056 |
) |
|
$ |
(31,475 |
) |
|
$ |
(29,082 |
) |
Interest expense (income), net |
596 |
(30 |
) |
3,092 |
(246 |
) | ||||||||||
Stock-based compensation |
|
|
681 |
|
|
|
1,670 |
|
|
|
1,745 |
|
|
|
2,904 |
|
Depreciation, amortization and asset abandonment |
|
|
5,025 |
|
|
|
1,545 |
|
|
|
7,404 |
|
|
|
3,085 |
|
Gain on revaluation of common stock warrant liabilities |
|
|
(166 |
) |
|
|
(459 |
) |
|
|
(510 |
) |
|
|
(344 |
) |
Financing costs |
|
|
— |
|
|
|
568 |
|
|
|
75 |
|
|
|
986 |
|
Legal contingency |
|
|
1,540 |
|
|
|
— |
|
|
|
1,540 |
|
|
|
— |
|
Other income, net |
|
|
(11 |
) |
|
|
(12 |
) |
|
|
(21 |
) |
|
|
(31 |
) |
Adjusted EBITDA |
|
$ |
(7,888 |
) |
|
$ |
(7,774 |
) |
|
$ |
(18,150 |
) |
|
$ |
(22,728 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260811241297/en/
Investor Relations
Chris Tyson
Executive Vice President
MZ Group - MZ North America
Phone: (949) 491-8235
GWH@mzgroup.us
www.mzgroup.us
Source: ESS, Inc.