Ideal Power Reports Third Quarter 2026 Financial Results

Nine-month stock and pre-funded warrant issuance generated $40,259,375 in net proceeds, while revenue remained below the prior-year period.

Rhea-AI Summary

Ideal Power (Nasdaq: IPWR) reported a wider third-quarter 2026 net loss as revenue declined and operating expenses increased year over year. Revenue fell to $7,000 from $24,450, while net loss widened to $3,583,528 from $2,940,650. Loss per share narrowed to $0.18 from $0.32 as weighted-average shares increased. Cash totaled $38,270,075 at September 30, 2026, with no long-term debt outstanding; nine-month net proceeds from common stock and pre-funded warrants were $40,259,375.

A working circuit-breaker prototype with Power Integrations progressed toward a joint reference design, and Richardson Electronics began accepting reference-design kit orders. Ideal Power reported an approximately $450 million sales funnel and expects two funded development projects to begin in the fourth quarter, with statements of work still being finalized. Stellantis evaluations continued, and semiconductor qualification remains targeted for year-end.

16 points · 1 major

MixediHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointCommon stock and pre-funded warrant issuance generated $40,259,375 net proceeds in the first nine months of 2026. 1.1× market cap
• Moderate pointIdeal Power reported an expanded sales funnel of approximately $450 million, with production-order conversion remaining its focus.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Global industrial technology company development project is planned to begin this quarter, funded by nonrecurring engineering payments.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Industry-partner engineering and modeling project for a U.S. hyperscaler is expected to begin in the fourth quarter.
• Moderate pointA long-term supply agreement was signed with a high-volume, automotive-qualified power semiconductor foundry.

11 minor points

• Minor pointCash increased to $38,270,075 at September 30, 2026 from $6,129,049 at December 31, 2025.
• Minor pointNo long-term debt was outstanding at September 30, 2026.
• Minor pointPower Integrations collaboration demonstrated a working circuit-breaker prototype and is progressing toward a joint reference design.
• Minor pointRichardson Electronics now stocks reference-design kits and has begun accepting customer orders.
• Minor point. Forward-looking: it has not happened yet and may not happen.Ideal Power expects additional distributor stocking orders and direct orders in the coming months.
• Minor point. Forward-looking: it has not happened yet and may not happen.Stellantis evaluation support continued; completed deliverables support the next project milestone scheduled for this quarter.
• Minor pointAsian wafer foundry achieved functional B-TRAN first silicon, with process optimization continuing.
• Minor point. Forward-looking: it has not happened yet and may not happen.Ideal Power is progressing toward JEDEC qualification by year-end, an industry-standard semiconductor qualification process.
• Minor pointNine-month gross loss narrowed to $976 from $22,680 in the comparable 2025 period.
• Minor pointQuarterly loss per share narrowed to $0.18 from $0.32; nine-month loss narrowed to $0.66 from $0.95.
• Minor pointNet interest income rose to $336,273 for the quarter and $607,012 year-to-date, versus $79,667 and $305,203.

Negative

• Major pointCommon stock and pre-funded warrant issuance added securities that dilute existing holders.
• Moderate pointQuarterly net loss widened to $3,583,528 from $2,940,650; nine-month loss widened to $10,627,959 from $8,680,439.
• Moderate pointOperating expenses rose to $3,917,033 from $3,018,698 quarterly and $11,233,995 from $8,962,962 year-to-date.
• Moderate pointGlobal industrial technology company project's statement of work remains unfinished.
• Moderate pointHyperscaler simulation project remains under a letter of intent, with scope finalization and confirmation pending.

6 minor points

• Minor pointThird-quarter revenue fell to $7,000 from $24,450; nine-month revenue declined to $12,800 from $37,728.
• Minor pointOperating and investing cash use increased to $2.9 million from $2.7 million in the third quarter.
• Minor pointNine-month operating and investing cash use increased to $7.7 million from $7.4 million.
• Minor pointQuarterly weighted-average shares increased to 19,859,041 from 9,153,407; nine-month shares increased to 16,015,877 from 9,124,115.
• Minor pointQuarterly gross loss widened to $2,768 from $1,619 in the comparable 2025 period.
• Minor point. Forward-looking: it has not happened yet and may not happen.Potential battery-storage customer's planned year-end demonstration depends on a successful evaluation.

News Explained

The company reports a signed long-term supply agreement with a high-volume, automotive-qualified foundry and functional B-TRAN first silicon there, adding a contracted manufacturing relationship and a manufacturing-readiness milestone.

Key Figures

Revenue: $7,000 vs. $24,450 Net loss: $3.58M vs. $2.94M Operating expenses: $3.92M vs. $3.02M +4 more

Revenue

$7,000 vs. $24,450

Q3 2026 vs. Q3 2025

Net loss

$3.58M vs. $2.94M

Q3 2026 vs. Q3 2025

Operating expenses

$3.92M vs. $3.02M

Q3 2026 vs. Q3 2025

Net loss per share

$(0.18) vs. $(0.32)

Q3 2026 vs. Q3 2025, basic and fully diluted

Cash and cash equivalents

$38.27M

At September 30, 2026

Cash used in operating and investing activities

$2.9M vs. $2.7M

Q3 2026 vs. Q3 2025

Cash used in operating and investing activities

$7.7M vs. $7.4M

First nine months of 2026 vs. first nine months of 2025

Previous Earnings Reports

1 past event · Latest: Aug 13

Same Type 1 event

1. Aug 13

   Q2 earnings

   24h Move

   -2.7%

   Quarterly results showed higher operating expenses and net loss despite increased revenue.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

solid-state circuit breaker, pre-funded warrants

2 terms

solid-state circuit breaker technical

"solid-state circuit breaker ("SSCB")"

A solid-state circuit breaker is an electronic device that controls and interrupts electrical current using fast-acting semiconductor components instead of moving parts. Like a light switch that can react in microseconds and be precisely controlled, it protects equipment and lines from overloads or faults while lasting longer and needing less maintenance than mechanical breakers. Investors care because the technology can reduce downtime, improve safety, and enable smarter, more efficient power systems—features that can lower operating costs and open new markets for manufacturers and service providers.

pre-funded warrants financial

"Net proceeds from issuance of common stock and pre-funded warrants"

Pre-funded warrants are financial instruments that give investors the right to purchase a company's stock at a set price, but with most or all of the purchase price paid upfront. They function like a coupon or gift card for stock, allowing investors to buy shares later at a fixed price, which can be beneficial if they want to avoid future price increases. This makes them important for investors seeking flexibility and certainty in their investment plans.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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AUSTIN, Texas, Nov. 12, 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 third quarter ended September 30, 2026.

"Customer engagements expanded as the transition to higher-voltage DC architectures is accelerating demand for solid-state circuit protection," said David Somo, President and Chief Executive Officer of Ideal Power. "Since the start of the third quarter, we demonstrated an intelligent circuit breaker prototype in collaboration with Power Integrations, commenced shipment of our new B-TRAN® reference design kits ("RDKs"), advanced our initiative with an industry partner for a funded joint engineering study and modeling project to provide a simulation platform for a U.S. hyperscaler, continued advancing our EV opportunity with Stellantis, and progressed new customer engagements across AI data centers and energy infrastructure."

Somo continued, "Reflecting on my first year as CEO, we are materially better positioned to advance customer opportunities through the sales funnel and into production orders. We have assembled an experienced semiconductor leadership and engineering team, expanded our sales funnel to approximately $450 million, released new RDKs, signed a long-term supply agreement with a high-volume, automotive-qualified power semiconductor foundry, and strengthened our balance sheet. Our focus remains on converting opportunities across our expanding sales funnel into volume production orders, revenue growth and long-term shareholder value."

Key Third Quarter 2026 and Recent Business Highlights

Execution of our B-TRAN® commercial strategy continues, including:

• Announced a collaboration with Power Integrations to develop a self-powered, intelligent, ultra-fast solid-state circuit breaker ("SSCB") for 800-volt DC data centers. With a working prototype already demonstrated, the collaboration is now progressing to a joint reference design for potential customers that aims to accelerate commercialization across the data center market.
  
  
• Finalizing a statement of work with a global industrial technology company for an NRE funded 800-volt DC 125-amp SSCB development project that is planned to begin this quarter. The company serves a broad range of markets, including data centers, other industrial applications, and automotive.
  
  
• Initiated a new engagement with a large potential customer. They are currently evaluating B-TRAN® in an 800-volt DC 63-amp SSCB for integration in battery energy storage systems. This SSCB can also be used for data center applications. With a successful evaluation, this customer intends to demonstrate and promote the solution during its end-of-year customer exhibition.
  
  
• Finalizing a statement of work for an NRE funded project with an industry partner, with whom we signed an LOI earlier this year, to jointly conduct an engineering study and modeling work that provides a simulation platform for a U.S. hyperscaler. This project is expected to be confirmed and begin in the fourth quarter.
  
  
• Expanded distribution of our 800-volt SSCB RDK to accelerate product evaluations and potential adoption. Richardson Electronics now stocks the RDK and has begun accepting customer orders, with additional stocking orders from other distributors, as well as direct orders, expected in the coming months.
  
  
• Continued advancing our solid-state EV contactor opportunity with Stellantis by supporting its evaluation of Gen 2 B-TRAN® custom-packaged samples and development kits and continuing work on system-level specifications. Deliverables completed to date support the next project milestone scheduled for this quarter. We also continue to expand our broader automotive pipeline with additional global automakers and Tier 1 suppliers.
  
  
• Advanced manufacturing readiness with continued process flow optimization at our high-volume, automotive-qualified semiconductor wafer foundry in Asia, where we achieved functional B-TRAN® first silicon. The foundry has ample capacity to support high-volume industrial and automotive customers at a cost structure we believe supports targeted gross margins at scale. For JEDEC qualification, we are making progress toward completion by the end of the year.
  
  
• Started to realize the strategic benefits of our newly formed Advisory Board, with its first member, Dr. Sanjai Parthasarathi, contributing to our multi-year strategic planning and facilitating introductions to leading companies in data centers, AI infrastructure, and related technology markets.
  
  
• B-TRAN® Patent Estate: Currently at 108 issued B-TRAN® patents with 52 of those issued outside of the United States. Current geographic coverage includes North America, China, Taiwan, Japan, South Korea, India, and Europe.

Third Quarter 2026 Financial Results

• Cash and cash equivalents totaled $38.3 million at September 30, 2026.
  
  
• Cash used in operating and investing activities in the third quarter of 2026 was $2.9 million compared to $2.7 million in the third quarter of 2025.
  
  
• Cash used in operating and investing activities in the first nine months of 2026 was $7.7 million compared to $7.4 million in the first nine months of 2025.
  
  
• No long-term debt was outstanding at September 30, 2026.
  
  
• Operating expenses in the third quarter of 2026 were $3.9 million compared to $3.0 million in the third quarter of 2025 driven primarily by higher personnel costs, stock-based compensation expense, and non-cash patent impairment charges as we rationalized our pending patent portfolio.
  
  
• Net loss in the third quarter of 2026 was $3.6 million compared to $2.9 million in the third quarter of 2025. Net loss in the first nine months of 2026 was $10.6 million compared to $8.7 million in the first nine months of 2025.

Conference Call and Webcast: Third Quarter 2026

The Company will hold a conference call on Thursday, November 12, 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 615151. 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 November 26, 2026 by dialing 877-481-4010 using passcode 54750.

The live webcast and interactive Q&A will be accessible on the Company's Investor Relations website under the Events tab HERE. The webcast replay will be available at the same link.

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 higher-voltage DC architectures accelerating demand for advanced solid-state circuit protection, that expanded distribution of our 800-volt SSCB RDK will accelerate product evaluations and potential adoption, our expectation that we will secure additional stocking orders from other distributors as well as direct orders in the coming months, our expectation that we will receive NRE funded projects with certain customers, the expected timing of completion of JEDEC qualification, and that our new foundry will provide a cost structure that supports our targeted gross margins at scale. 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 Christensen
Darrow Associates Investor Relations
jchristensen@darrowir.com
703-297-6917

IDEAL POWER INC.
Balance Sheets
(unaudited)
		September 30, 2026		December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	38,270,075	$	6,129,049
Accounts receivable		8,200		24,000
Inventory		35,750		9,700
Prepayments and other current assets		235,848		377,901
Total current assets		38,549,873		6,540,650
Property and equipment, net		485,651		376,717
Intangible assets, net		2,401,874		2,687,466
Right of use asset		448,787		397,397
Other assets		90,094		44,459
Total assets	$	41,976,279	$	10,046,689
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	338,649	$	408,398
Accrued expenses		983,412		471,329
Current portion of lease liability		123,955		93,435
Total current liabilities		1,446,016		973,162
Long-term lease liability		338,622		309,900
Other long-term liabilities		806,070		886,538
Total liabilities		2,590,708		2,169,600
Stockholders' equity:
Common stock		16,496		8,539
Additional paid-in capital		168,055,927		125,927,443
Treasury stock		(13,210)		(13,210)
Accumulated deficit		(128,673,642)		(118,045,683)
Total stockholders' equity		39,385,571		7,877,089
Total liabilities and stockholders' equity	$	41,976,279	$	10,046,689

 

IDEAL POWER INC.
Statements of Operations
(unaudited)
		Three Months Ended September 30,					Nine Months Ended September 30,
		2026		2025			2026		2025
Revenue	$	7,000	$	24,450		$	12,800	$	37,728
Cost of revenue		9,768		26,069			13,776		60,408
Gross loss		(2,768)		(1,619)			(976)		(22,680)
Operating expenses:
Research and development		1,828,068		1,793,162			5,290,515		5,261,173
General and administrative		1,613,855		958,938			4,491,838		2,755,998
Sales and marketing		475,110		266,598			1,451,642		945,791
Total operating expenses		3,917,033		3,018,698			11,233,995		8,962,962
Loss from operations		(3,919,801)		(3,020,317)			(11,234,971)		(8,985,642)
Interest income, net		336,273		79,667			607,012		305,203
Net loss	$	(3,583,528)	$	(2,940,650)		$	(10,627,959)	$	(8,680,439)
Net loss per share – basic and fully diluted	$	(0.18)	$	(0.32)		$	(0.66)	$	(0.95)
Weighted average number of shares outstanding – basic and fully diluted		19,859,041		9,153,407			16,015,877		9,124,115

 

IDEAL POWER INC.
Statements of Cash Flows
(unaudited)
		Nine Months Ended September 30,
		2026		2025
Cash flows from operating activities:
Net Loss	$	(10,627,959)	$	(8,680,439)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		295,587		276,332
Amortization of right of use asset		75,379		63,908
Write-off of capitalized patents		393,459		34,363
Write-off of property and equipment		79		6,211
Stock-based compensation		2,256,255		997,840
Decrease (increase) in operating assets:
Accounts receivable		15,800		(30,808)
Inventory		(26,050)		31,319
Prepaid expenses and other assets		96,418		147,322
Increase (decrease) in operating liabilities:
Accounts payable		(69,749)		125,082
Accrued expenses and other liabilities		431,615		116,535
Lease liability		(67,527)		(60,940)
Net cash used in operating activities		(7,226,693)		(6,973,275)
Cash flows from investing activities:
Purchase of property and equipment		(233,244)		(111,334)
Acquisition of intangible assets		(279,223)		(265,404)
Net cash used in investing activities		(512,467)		(376,738)
Cash flows from financing activities:
Net proceeds from issuance of common stock and pre-funded warrants		40,259,375		-
Proceeds from exercise of pre-funded warrants		267		110
Payment of taxes upon vesting of stock units		(379,456)		(98,834)
Net cash provided by (used in) financing activities		39,880,186		(98,724)
Net Increase (decrease) in cash and cash equivalents		32,141,026		(7,448,737)
Cash and cash equivalents at beginning of period		6,129,049		15,842,850
Cash and cash equivalents at end of the period	$	38,270,075	$	8,394,113

 

 

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SOURCE IDEAL POWER INC.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Ideal Power's third-quarter 2026 revenue and net loss?

Ideal Power reported $7,000 in revenue and a $3,583,528 net loss for the three months ended September 30, 2026. Revenue was $24,450 and net loss was $2,940,650 in the comparable 2025 quarter. Basic and fully diluted loss per share narrowed to $0.18 from $0.32.

Why did Ideal Power's third-quarter 2026 operating expenses increase?

Ideal Power attributed the increase primarily to higher personnel costs, stock-based compensation expense and non-cash patent impairment charges as it rationalized its pending patent portfolio. Quarterly operating expenses increased to $3,917,033 from $3,018,698 in the comparable 2025 period.

What condition applies to Ideal Power's potential battery-storage customer demonstration?

The potential customer intends to demonstrate and promote the solution at its year-end customer exhibition if its evaluation succeeds. It is evaluating B-TRAN in an 800-volt DC, 63-amp solid-state circuit breaker for integration into battery energy storage systems.