Financial Data and Key Metrics Changes - For Q3 2025, the company reported revenue of $200,000, a significant decrease from $2.4 million in Q2 2025, reflecting the transition to the Energy Base platform [11] - GAAP cost of revenues totaled $4.9 million, while operating expenses were $5.1 million, indicating a commitment to disciplined cost control [11] - The net loss for the quarter was $10.4 million, or $0.73 per share, with cash, cash equivalents, and short-term investments at $3.5 million, excluding $30 million from a financing that closed after the quarter-end [11][12] Business Line Data and Key Metrics Changes - The company is transitioning from Energy Warehouse and Energy Center deliveries to the Energy Base platform, which will be the foundation of future commercial activity [11] - The Energy Base offering currently provides a 10-hour duration, with plans to target a 16-hour battery by 2029 [18] Market Data and Key Metrics Changes - The company has established strong relationships with tier-one customers, including SB Energy, Honeywell, and Portland General Electric, validating its technology for real-world deployment [5][6] - The commercial pipeline is strong, with 100% of active opportunities centered on the Energy Base platform, indicating increasing RFP activity and proposal volume [9] Company Strategy and Development Direction - The company aims to deliver on customer commitments, execute with discipline, and convert momentum into long-term growth [14] - A focus on operational discipline, scaling manufacturing capability, and demonstrating technology performance is emphasized as the company prepares for the next phase of growth [9][12] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of long-duration storage in a decarbonized and resilient grid, with a clear strategy to deliver projects similar in size to the SRP pilot project [9][18] - The company plans to host an Investor Day in early 2026 to provide an in-depth look at progress and future roadmaps [10] Other Important Information - The company completed a $40 million financing with Yorkville Advisors, reinforcing its balance sheet and providing flexibility for future operations [6][12] - A $75 million at-the-market equity program is being launched to support growth and execution as needed [8][12] Q&A Session Summary Question: Scale of Energy Base projects and competing technologies - The company is pursuing projects similar in size to the SRP project, targeting larger opportunities in the future, with a current offering of 10-hour duration batteries [18] - Competing technologies include those offering more than 10 hours of storage, with recognition of the need for longer-duration solutions [19] Question: Types of customers issuing RFPs - Customers issuing RFPs are primarily utilities or Independent Power Producers (IPPs) acting on behalf of utilities, with no engagement in behind-the-meter RFPs for data centers [20] Question: Use of proceeds from capital raised and liquidity needs - The company has approximately $30 million in cash and the ability to draw an additional $10 million, providing significant flexibility to manage liquidity [21][22]

Q3 2025 Earnings Presentation November 2025 Disclaimers This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements can be identified by the use of forward looking terminology, including the words "believes," "estimates," "anticipates," "expects," "intends," "plans," "possible," "may," "might," " ...

Product & Strategy - Launched the Energy Base product, featuring a configurable Iron Core for gigawatt-hour storage capacity[11, 18] - The Energy Base utilizes existing iron flow battery modules and scalable enclosures to extend duration up to 22 hours[27] - ESS manufactures core components in-house and procures the balance of system from preferred vendors[22] - Partnered with Honeywell to optimize Energy Base design for quality, cost-efficiency, and scale[24, 26] Market & Applications - Data centers' electricity demand is projected to grow to 800 TWh by 2026, increasing the risk of infrastructure failure[31] - Power disruption accounts for 54% of impactful data center outages[34] - ESS Energy Base provides a safe, scalable, and cost-effective alternative to traditional power solutions for data centers[32] Manufacturing & Cost - Commissioning a second automated battery manufacturing line ("Line 2") in H2 2025 to increase capacity[41] - Capital efficiency improves with the shift from Energy Centers to Energy Bases, reducing capex per unit[41] - ESS products qualify for the domestic content ITC adder due to being 98% domestically sourced and 100% domestically manufactured[42] Financial Performance - Q2 2025 revenue reached $2.4 million, a 578% increase compared to Q2 2024's $0.3 million[49] - Q2 2025 net loss was ($11.1) million, a 50% improvement compared to Q2 2024's ($21.9) million[49] - Adjusted EBITDA for Q2 2025 was ($7.8) million, a 59% improvement compared to Q2 2024's ($18.8) million[49]

Product & Strategy - ESS launched the Energy Base, a new product configuration scalable from 5 MW to 100+ MW with a duration of 10+ to 22 hours, utilizing the Iron Core technology[14,32] - The Energy Base is designed to be more capital efficient for both ESS and its customers, shifting manufacturing mix to higher margin components and lowering working capital burden[32,47] - ESS partners with Honeywell to optimize Energy Base design for quality, cost-efficiency, and scale, exploring product collaboration and procurement leverage[30] - ESS's product line is evolving to meet a broader range of use cases at larger scales, with the same core technology across all products[31] Market & Opportunities - Data centers' electricity demand is estimated to grow to 800 TWh by 2026, putting extreme pressure on aging infrastructure and increasing the risk of failure[37] - Power disruption accounts for 54% of impactful data center outages, highlighting the need for resilient power solutions[40] - ESS Energy Base enables fast deployment of additional grid capacity and increases grid balancing and resilience for data center customers[38] Financial Performance - Q1 2025 revenue was $0.6 million, a 78% decrease compared to $2.7 million in Q1 2024[53] - Q1 2025 net loss was $18.0 million, a 2% improvement compared to $18.3 million in Q1 2024[53] - Adjusted EBITDA for Q1 2025 was a loss of $15.0 million, a 3% improvement compared to a loss of $15.4 million in Q1 2024[53]

Financial Data and Key Metrics Changes - For the fiscal year 2024, the company reported revenue of $6.3 million, which was below the guidance range of $9 to $11 million, primarily due to a partner's inability to secure funding for orders [11][46] - The cost of revenue for the full year was $51.7 million, reflecting challenges in achieving expected revenue guidance [46] - The company achieved a nearly 60% reduction in its NOV adjustment per unit year-over-year, indicating progress in cost management [48] Business Line Data and Key Metrics Changes - The company delivered six Energy Center (EC) systems to a Florida utility customer in December 2024, contributing significantly to revenue [14][44] - The Energy Center design achieved breakeven on a non-GAAP gross margin basis by the end of Q4 2024, hitting the target almost a year earlier than expected [19][50] - The company reported a 35% reduction in costs for the Energy Warehouse (EW) and a 26% reduction for the EC [52] Market Data and Key Metrics Changes - The demand for electricity in the U.S. is expected to grow by 35% to 50% between 2024 and 2040, driven by economic growth and the electrification of transport and heating [33] - The company is actively bidding on projects with the new energy base product, which is designed to meet increasing energy demands [34] Company Strategy and Development Direction - The company plans to accelerate its strategic shift towards the Energy Center product deployment and the new energy base product in 2025 [13][20] - The energy base product is designed to be modular and scalable, allowing for greater flexibility in manufacturing and deployment [25][32] - The company aims to leverage partnerships, such as with Honeywell, to enhance manufacturing capabilities and reduce costs [24][98] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the current operating environment, including capital raising and geopolitical uncertainties [5][37] - The company is focused on extending its cash runway through securing new capital and efficient management of expenses [66] - Management expressed optimism about the long-term potential of the energy storage market and the company's positioning within it [67] Other Important Information - The company is in the process of raising capital to bolster its balance sheet and support growth objectives [37][63] - The company received notice of falling below the NYSE market cap requirement of $50 million and is taking action to remedy this situation [40][41] Q&A Session Summary Question: Revenue growth trajectory and 2025 expectations - Management indicated that they will not provide guidance for 2025 but expect moderate revenue growth in the first half of the year, with a scale-up in the second half [73] Question: Trends in gross margins for 2025 - Management stated that they do not anticipate being U.S. GAAP gross margin positive in 2025 but expect to achieve that post-2025 [77] Question: Capital raising needs and Export-Import Bank financing - Management is looking to raise at least $50 million to access the full amount of the Export-Import Bank loan and anticipates drawing on it in the second quarter [79] Question: Performance metrics of products in the field - Management acknowledged operational issues with new technology deployments but highlighted improvements in software and documentation to enhance user experience [84][86] Question: Future operating expenses - Management indicated that operating expenses are expected to be slightly lower than the previous year, with a focus on reallocating resources to key initiatives [90][92] Question: Energy base product and manufacturing partners - Management clarified that the energy base product will involve manufacturing core components while potentially leveraging external partners for balance of system components [96][98]