Core Thesis - Amprius Technologies, Inc. is transitioning from a high-potential R&D company to one with real revenue and momentum toward profitability, with a share price of $8.37 as of September 15th [1] Financial Performance - The company reported $26.4 million in revenue for the first half of 2025, surpassing its total revenue for 2024, with Q2 sales of $15.1 million reflecting a 350% year-over-year increase [2] - Amprius achieved its first positive gross margin in Q2, improving from -195% to +9%, indicating scalable economics [3] Customer Base and Market Position - Amprius has over 90 paying customers, with half being repeat buyers, including notable clients such as Airbus, BAE Systems, AeroVironment, and the U.S. Army [2] - The company's SA102 battery, part of the SiCore platform, offers industry-leading energy density of 450 Wh/kg and is already shipping [3] Technological Advancements - The Airbus subsidiary AALTO's Zephyr drone, powered by Amprius' silicon-anode batteries, set a world record by flying for 67 consecutive days, showcasing the company's breakthrough technology [2] Strategic Advantages - Amprius leverages contract manufacturing in the U.S. and South Korea, avoiding heavy capital expenditures while securing 1.8 GWh of production capacity [3] - Recent U.S. policy directives favoring domestic drone production align with Amprius' strengths in defense and aerospace, providing a favorable growth environment [3] Expansion Opportunities - The company is exploring expansion into light electric vehicles, offering drop-in replacement batteries that provide immediate performance gains for OEMs without costly redesigns [4] - With $54 million in cash and no debt, Amprius is well-positioned compared to peers still seeking validation in the market [4]

Financial Data and Key Metrics Changes - Net sales grew 23% year over year to $16.2 million, marking the third consecutive quarter of revenue growth [5][19] - Gross profit increased 45.4% to $4.6 million, with gross margin expanding 430 basis points to 28.3% [19] - Operating expenses decreased to $7.9 million from $9.9 million, reflecting lower R&D costs [19] - Net loss improved to $7 million or $0.58 per share, compared to a net loss of $13.6 million or $2.02 per share [19] - Adjusted EBITDA improved to negative $2.2 million from negative $6.2 million [19] Business Line Data and Key Metrics Changes - OEM segment net sales rose over 50% year over year to $10.1 million, driven by strong adoption of solutions [5][19] - DTC segment net sales were $5.9 million, down from $6.5 million due to macroeconomic uncertainties [6][19] Market Data and Key Metrics Changes - The company noted a shift in the industry towards premium features and value-added offerings, contrasting with previous cost-reduction strategies [6] - The heavy-duty trucking market remains challenging, but pilot programs are showing positive results [16] Company Strategy and Development Direction - The company is focused on expanding OEM partnerships and leveraging engineering capabilities to deliver integrated solutions [6][11] - Domestic manufacturing capabilities are emphasized as a strategic advantage in a volatile trade environment [8][9] - The company is committed to innovation, recently granted a patent for a non-flammable all-solid-state battery program [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to capitalize on growth opportunities despite a challenging macro environment [11][21] - The company anticipates net sales of $15.9 million in Q3, representing approximately 25% year-over-year growth [21] - Management is optimistic about the ramp-up of pilot programs in the heavy-duty trucking sector [30] Other Important Information - The company completed a public offering raising $5.5 million to support expansion into adjacent markets [10] - The company has optimized its capital structure by exchanging preferred shares for common stock, eliminating associated interest payments [10] Q&A Session Summary Question: When do you expect pilot programs in heavy-duty trucking to impact P&L? - Management expects revenue impact in the first half of next year as fleets await new truck orders [25] Question: How should tariffs impact P&L in the coming quarters? - Management has managed tariff impacts through better inventory pricing and onshoring components, maintaining confidence in managing costs [27][28] Question: Should we expect sequential improvement in Q4? - Management anticipates sequential improvement driven by RV industry growth and new market contributions [31] Question: Can you discuss the recent patent awarded? - The patent relates to the preparation of feedstock for solid-state batteries, crucial for the dry electrode process [34]