SES AI Corporation Reports $5.8 Million Revenue in Q1 2025, Net Loss Improves

SES AI Corporation reported its financial results for the first quarter of 2025, revealing a revenue of $5.8 million, a significant increase from zero revenue in the same period last year. The company attributed this growth primarily to service-related contracts with original equipment manufacturers (OEMs) for its Lithium-Metal battery technology. Despite the revenue generation, SES AI recorded a net loss of $12.4 million, an improvement from a net loss of $15.6 million in the first quarter of 2024. The loss per share for the quarter was $(0.04), compared to $(0.05) in the prior year.

Operating expenses for the quarter totaled $27.8 million, up 30.8% from $21.3 million in the previous year. This increase was driven by a 74% rise in research and development expenses, which reached $20.5 million, reflecting the company's ongoing investment in scaling its battery technology and infrastructure. General and administrative expenses decreased by 23% to $7.3 million, primarily due to reduced headcount and associated costs. The company also reported a gain of $7.9 million from changes in the fair value of Sponsor Earn-Out liabilities, compared to a gain of $0.9 million in the prior year.

In terms of operational developments, SES AI has been actively pursuing joint development agreements (JDAs) with major automotive manufacturers, including Hyundai and Honda, to advance its battery technology. The company has transitioned from developing A-Sample batteries to B-Sample batteries, which are closer to commercial production standards. As of March 31, 2025, SES AI had total cash and cash equivalents of $56.1 million, down from $128.8 million at the end of 2024, reflecting significant cash outflows primarily for operating activities and investments in marketable securities.

The company continues to face challenges typical of early-stage growth firms, including the need for substantial capital to fund ongoing operations and development. SES AI anticipates that it will incur losses for the foreseeable future as it works to scale its operations and achieve profitability. The management remains optimistic about the long-term potential of its technology and the growing market for electric vehicles and urban air mobility applications. Looking ahead, SES AI plans to leverage its existing cash reserves and marketable securities to support its operational needs and strategic initiatives over the next 12 months, while also exploring additional funding opportunities as necessary.