ESS Tech(US:GWH)2025-11-13 21:31Financial Performance - ESS reported total revenue of $214,000 for Q3 2025, a decrease of 40.4% compared to $359,000 in Q3 2024[17]. - The company incurred a gross loss of $4.725 million in Q3 2025, compared to a gross loss of $12.382 million in Q3 2024[17]. - ESS's net loss for Q3 2025 was $10.375 million, compared to a net loss of $22.493 million in Q3 2024, representing a 53.8% improvement[17]. - For the nine months ended September 30, 2025, the net loss was $39,457 thousand, a decrease of 37% compared to a net loss of $62,743 thousand in the same period of 2024[21]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $(29,898) thousand, an improvement from $(53,088) thousand in the same period of 2024[27]. Financing and Liquidity - The company completed a $40 million financing with Yorkville Advisors and repaid $15 million of the promissory note, enhancing liquidity for upcoming projects[3][4]. - ESS announced a $75 million at-the-market program to provide flexible access to capital as it executes its growth strategy[5]. - The company raised $4,789 thousand from the issuance of common stock and warrants, contributing to financing activities[21]. Operating Expenses - Total operating expenses for the nine months ended September 30, 2025, were $21,541 thousand, down from $34,131 thousand in 2024, reflecting a 37% decrease[25]. - Research and development expenses for the nine months ended September 30, 2025, were $4,929 thousand, a decrease of 45% from $9,066 thousand in 2024[25]. - Non-GAAP total operating expenses for the nine months ended September 30, 2025, were $19,195 thousand, down from $27,461 thousand in 2024, a reduction of 30.1%[25]. - The company experienced a significant reduction in stock-based compensation expenses, totaling $3,945 thousand for the nine months ended September 30, 2025, compared to $8,538 thousand in 2024, a decrease of 53.8%[27]. Cash Flow and Assets - Cash flows from operating activities showed a net cash used of $36,430 thousand, improving from $51,743 thousand in the prior year, indicating a 29.5% reduction in cash outflow[21]. - The company reported a net cash provided by investing activities of $17,337 thousand, compared to $43,886 thousand in the previous year, representing a 60.5% decline[21]. - Cash, cash equivalents, and restricted cash at the end of the period totaled $4,963 thousand, down from $14,675 thousand at the end of September 2024, a decrease of 66.1%[21]. - Total current assets decreased to $11.557 million as of September 30, 2025, down from $43.364 million at the end of 2024[19]. - Current liabilities totaled $23.803 million as of September 30, 2025, compared to $27.602 million at the end of 2024[19]. Strategic Initiatives - The company is focused on fulfilling the 50 MWh pilot project with Salt River Project and scaling manufacturing processes in 2026[6]. - ESS plans to host an Investor Day in January 2026 to provide updates on strategic priorities and execution progress[2][7]. - The company aims to validate the performance of its Energy Base platform and prepare for volume growth over the next 18 months[6].