Ideal Power (IPWR 29.23%), a developer of efficient power semiconductor devices, published its second quarter 2025 results on August 14, 2025. The most notable news from the earnings release was a significant revenue shortfall compared to analyst estimates, alongside a wider net loss and continued cash use. GAAP revenue was $1,275, missing the $20,000 estimate by 93.6%. GAAP earnings per share were $(0.33). The quarter underscored expanding engagement in automotive and industrial markets, yet the financials reinforced its early-stage, pre-commercial nature and highlighted ongoing execution risk.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.33) | $(0.25) | $(0.31) | (6.5%) |
| Revenue | $1,275 | $20,000 | $1,331 | (4.2%) |
| Operating Expenses | $3,138,291 | $2,869,870 | 9.4% | |
| Net Loss | $(3,036,765) | $(2,662,065) | (14.1%) | |
| Cash and Cash Equivalents | $11,105,553 | N/A | N/A |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company Overview and Key Business Focus
Ideal Power develops power semiconductor devices designed to improve efficiency in applications such as electric vehicles, renewable energy, and industrial systems. Its core technology is B-TRAN®, a bidirectional power switch that aims to reduce power losses compared to established technologies like IGBTs (insulated-gate bipolar transistors). This device underpins its initial commercial products: the SymCool® Power Module and the SymCool® IQ Intelligent Power Module, both aimed at markets needing improved energy conversion efficiency.
Expanding the adoption of B-TRAN® technology is central to the business. Recent priorities include solidifying partnerships with major automotive and industrial companies, advancing customer prototype testing, and scaling product delivery. Key success factors are landing customer design wins, proving B-TRAN®'s technical and commercial value, and tightly managing cash to extend the company's operating runway.
Quarter in Review: Operations, Financials, and Strategic Progress
During the period, Ideal Power hit several operational milestones. It completed solid-state circuit breaker (SSCB) prototypes for its first design win customer three months ahead of schedule during Q1 2025, with prototype testing nearly finished. Updated prototypes and reference designs were shipped to additional target customers. Engagements expanded into the automotive sector, with a significant development program at Stellantis internally approved and moving through a formal order process. Stellantis aims to use B-TRAN® devices for both drivetrain inverter and electric vehicle contactor applications.
Despite strong technical progress, Revenue fell short of expectations, while EPS missed forecasts. GAAP revenue missed by a wide margin, remaining minimal and essentially flat year over year. GAAP net losses and operating expenses both increased compared to the prior year, reflecting sustained investment—especially in research and development—to support product development and customer projects. Operating expenses rose 6.9% year over year, largely due to ongoing R&D activity. The cash burn rate accelerated slightly, with $2.5 million used and cash reserves dipping to $11.1 million as of June 30, 2025.
No new major commercial design wins were reported during the quarter, despite ongoing tests and evaluations among multiple Tier 1 auto suppliers and power management leaders. Notably, a distribution agreement with Kaimei Electronic Corp. widened Ideal Power’s reach in the Asian market. Management emphasized the ongoing protection and expansion of its intellectual property portfolio, reaching 96 issued B-TRAN® patents (with 47 outside the United States) and 74 pending as of the end of the quarter, covering all current priority market geographies. Patent strategy remains a cornerstone of its long-term competitive positioning.
The company’s competitive landscape continues to be dominated by larger power semiconductor companies, such as Infineon Technologies and Texas Instruments. Ideal Power’s management maintains that B-TRAN® delivers ultra-low conduction losses—a performance metric measuring how much power is lost when electricity passes through a semiconductor—offering a cost and efficiency advantage in key applications. However, the company’s ability to turn technical leads into commercial wins is not assured, given the slow decision cycles and entrenched positions of industry giants.
Looking Ahead: Guidance and Watch Points
Management reiterated its expectation for a revenue ramp beginning in the second half of 2025, with initial sales growth projected to come from solid-state circuit breaker customers. Management stated that, “We expect solid-state circuit breaker customers, including our first design win customer, to drive our initial revenue ramp starting in the second half of this year.” However, the latest results indicate that this inflection has not yet materialized, and leadership did not provide new or updated financial guidance for fiscal 2025.
As the company remains pre-revenue in commercial terms, investors may want to closely monitor the pace and impact of customer testing programs, the status of major orders such as the one pending with Stellantis, additional design wins, and overall cash use. Execution risk remains significant.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
