ESS Tech Reports 40% Revenue Decline in Q3 2025, Appoints New COO

ESS Tech, Inc. reported a significant decline in financial performance for the third quarter of 2025, with total revenue of $214,000, down 40% from $359,000 in the same period last year. For the nine months ending September 30, 2025, revenue decreased by 8% to $3.17 million compared to $3.45 million in 2024. The company attributed this decline to fewer product deliveries and a shift in revenue sources, with a notable increase in revenue from related parties, which accounted for $2.36 million in the nine-month period. Despite the drop in revenue, the cost of revenue also decreased significantly, falling 61% to $4.94 million for the quarter, leading to a gross loss of $4.73 million, an improvement from a gross loss of $12.38 million in the prior year.

In terms of operational developments, ESS Tech appointed Jigish Trivedi as Chief Operating Officer in August 2025, a strategic move aimed at strengthening its leadership team during a challenging period. The company has also been actively pursuing financing options, including a $40 million unsecured promissory note issued to an investor in October 2025, which is expected to support its operations and growth initiatives. Additionally, ESS Tech completed a Standby Equity Purchase Agreement, raising $25 million through the sale of shares, which will help bolster its cash reserves amid ongoing operational losses.

The company’s total assets as of September 30, 2025, were reported at $36.15 million, a significant decrease from $71.81 million at the end of 2024. This decline was primarily due to reduced cash and cash equivalents, which fell to $3.54 million from $13.34 million. The accumulated deficit also widened to $821.84 million, reflecting the ongoing challenges in achieving profitability. ESS Tech's workforce has been impacted by cost-cutting measures, including a furlough of a substantial number of employees, which management hopes will align operational costs with business continuity.

Looking ahead, ESS Tech faces substantial uncertainty regarding its ability to continue as a going concern, as indicated by its management. The company has incurred net losses of $39.5 million for the nine months ended September 30, 2025, and will require additional financing to meet its operational needs. Management is exploring various strategies to secure funding, including potential equity offerings and debt issuance. The company’s future performance will heavily depend on its ability to scale production, reduce costs, and successfully commercialize its energy storage products, particularly the newly launched Energy Base product, which is critical for its growth strategy.