Ideal Power Reports 85% Revenue Decline in Q1 2025, Increases Operating Expenses

Ideal Power Inc. reported its financial results for the first quarter of 2025, revealing a significant decline in revenue compared to the same period in 2024. The company generated revenue of $12,003, a decrease of approximately 85% from $78,739 in the first quarter of 2024. This drop in revenue is attributed to the completion of a development agreement with Stellantis in the previous year, which contributed significantly to the prior period's figures. The cost of revenue also decreased to $30,862 from $68,498, reflecting the reduced scale of operations.

The company's operating expenses increased to $2,805,973 for the first quarter of 2025, up from $2,537,192 in the same quarter of 2024. This rise was driven by higher research and development costs, which increased by 15% to $1,567,992, primarily due to increased personnel and semiconductor fabrication costs. General and administrative expenses also rose by 5% to $899,821, while sales and marketing expenses increased by 7% to $338,160. As a result, Ideal Power reported a loss from operations of $2,824,832, a 12% increase from the loss of $2,526,951 in the prior year. The net loss for the quarter was $2,703,024, compared to a net loss of $2,469,626 in the first quarter of 2024.

In terms of operational developments, Ideal Power has made strides in product commercialization, launching its first two commercial products, the SymCool® Power Module and the SymCool® IQ Intelligent Power Module. The company has begun shipping these products to fulfill customer orders, and it anticipates higher volume orders as it secures design wins. Notably, Ideal Power announced its first design win for solid-state circuit breakers with a major circuit protection equipment manufacturer in Asia, which is expected to lead to commercial sales later in 2025.

As of March 31, 2025, Ideal Power had cash and cash equivalents of $13.7 million, down from $15.8 million at the end of 2024. The company reported a net working capital of $13.4 million and had no outstanding debt. While management believes that current cash reserves will be sufficient to meet liquidity needs for at least the next twelve months, they acknowledge the potential need for additional funding to support ongoing operations and product development. The company expects to see increased cash outflows as it continues to develop and commercialize its B-TRAN® technology throughout the remainder of 2025.

Looking ahead, Ideal Power remains focused on advancing its B-TRAN® technology and expanding its market presence. The company is actively engaged in customer evaluations and testing with several large companies, which could lead to future design wins and custom development agreements. Management anticipates that the time from securing design wins to generating significant revenue could take approximately one year, although this timeline may vary by customer. The company is also finalizing the scope of work for the next phase of its development agreement with Stellantis, which is expected to include extensive testing to meet automotive certification standards.