ESS Tech Reports 578% Revenue Growth in Q2 2025, Despite Net Loss

ESS Tech, Inc. reported its financial results for the second quarter of 2025, revealing a significant increase in revenue compared to the same period last year. The company generated total revenue of $2.36 million for the three months ended June 30, 2025, a 578% increase from $348,000 in the prior year. This growth was primarily driven by higher sales of its Energy Warehouse and Energy Center products, particularly to related parties. However, for the six months ended June 30, 2025, total revenue slightly decreased to $2.96 million from $3.09 million in the same period of 2024.

Despite the revenue growth in the second quarter, ESS Tech reported a net loss of $11.06 million, a 50% improvement from the $21.94 million loss recorded in the same quarter of 2024. The company’s operating expenses also decreased significantly, with total operating expenses falling to $6.46 million from $11.73 million year-over-year. This reduction was attributed to lower research and development, sales and marketing, and general and administrative expenses. The company’s accumulated deficit increased to $811.46 million as of June 30, 2025.

In terms of operational developments, ESS Tech has been focusing on its Energy Base product, which was launched earlier this year. The company is also actively pursuing strategic partnerships and has entered into a Standby Equity Purchase Agreement (SEPA) with YA II PN, Ltd., allowing for the potential sale of up to $25 million in common stock over the next 36 months. Additionally, a Sale and Leaseback Agreement with UOP LLC was executed, involving the sale of a stack assembly line for $10.5 million, which will be leased back to ESS Tech.

As of June 30, 2025, ESS Tech had 14,189,663 shares of common stock outstanding and reported cash and cash equivalents of $797,000, a significant decrease from $13.34 million at the end of 2024. The company has indicated that it will need to secure additional financing to support its operations and growth plans, as it continues to face challenges related to cash flow and operational costs. The management has implemented cost reduction measures, including a workforce evaluation and a temporary furlough for a substantial number of employees, to align expenses with business continuity.

Looking ahead, ESS Tech remains optimistic about its growth potential, particularly with the anticipated demand for its energy storage solutions driven by government incentives and the increasing need for sustainable energy technologies. However, the company acknowledges the uncertainties in the market and the need for effective execution of its strategies to achieve profitability and long-term success.