The Boston-based tech company is gaining traction in its mission to modernize lithium batteries.SES AI Corporation (SES 5.08%) might not get as much press as other, more famous, artificial intelligence (AI) companies, so you may not have heard that the stock is up over 400% in the past 12 months. SES is on a mission to create the next generation of lithium batteries. The lithium battery industry is ripe for modernization, as well as AI innovation, with real-world applications in automobiles, drones, and mor ...

Financial Data and Key Metrics Changes - The company reported a record revenue of $7.1 million for Q3 2025, representing a 102% increase from the previous quarter [4][11] - Gross margin for Q3 was 51%, with service revenue contributing a gross margin of 78% and product revenue contributing 15% [11][12] - GAAP net loss for Q3 was $20.9 million, an improvement from a loss of $22.7 million in Q2 2025 [12] Business Line Data and Key Metrics Changes - Approximately 45% of Q3 revenue came from the energy storage system (ESS) business following the acquisition of UZ Energy [6][11] - The revenue split for Q3 was approximately 55% from service revenue related to automotive OEMs and 45% from product revenue from UZ Energy [11] Market Data and Key Metrics Changes - The company expects to grow UZ Energy's revenue from approximately $10 million to $15 million in projected full-year 2025 revenue, with significant growth anticipated in the coming years [14] - The company is targeting the $300 billion global ESS market for market share gains [14] Company Strategy and Development Direction - The company is focused on an all-in-on AI strategy, highlighted by the launch of Molecular Universe 1.0, which aims to enhance battery material development [4][9] - A joint venture with Hyzen New Energy Materials was established to manufacture new electrolyte materials discovered through Molecular Universe [7][18] - The company plans to leverage its South Korea cell factory to meet the growing demand for high-energy density pouch cells in the drone market [7][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the revenue growth potential from Molecular Universe and its integration into various applications, including ESS and drones [9][36] - The company anticipates a doubling or tripling of total revenue in the next year due to multiple growth opportunities enabled by Molecular Universe [36] Other Important Information - The company exited Q3 with a strong liquidity position of $214 million and expects to maintain liquidity between $195 million and $200 million by the end of 2025 [13][42] - The company repurchased 1.3 million Class A shares for a total investment of $1.6 million during Q3 [12] Q&A Session Summary Question: Can you talk about the Hyzen JV opportunity? - The Hyzen JV was formed in response to requests from Molecular Universe enterprise users who wanted the company to manufacture new materials discovered through the platform [17][18] Question: How do you expect the monetization of Molecular Universe to play out? - The monetization will be a mix of SaaS platform and materials supply, with material supply expected to generate higher revenue than SaaS [21][22] Question: Can you provide an update on the trial testing of Molecular Universe? - The number of enterprise users trialing Molecular Universe has increased to nearly 40, with plans for on-premise deployment for larger enterprises [24] Question: Can you elaborate on the new enterprise tiers? - The new enterprise tiers differ in database size and model depth, catering to various customer needs from medium-sized companies to larger enterprises [29][30] Question: What is the growth outlook for UZ Energy and other revenue streams? - UZ Energy is expected to grow significantly, with potential doubling of revenue next year, alongside growth in drones and EV applications [36]

Financial Data and Key Metrics Changes - The company reported a record revenue of $7.1 million for Q3 2025, representing a 102% increase from the previous quarter [4][11] - Gross margin for Q3 was 51%, with service revenue contributing a gross margin of 78% and product revenue at 15% [11][12] - GAAP net loss for Q3 was $20.9 million, an improvement from a loss of $22.7 million in Q2 2025 [12] Business Line Data and Key Metrics Changes - The revenue split for Q3 was approximately 55% from service revenue related to automotive OEM customers and 45% from product revenue primarily from UZ Energy's energy storage system sales [11] - ESS revenue, following the acquisition of UZ Energy, accounted for about 45% of total revenue in Q3 [6] Market Data and Key Metrics Changes - The company anticipates significant growth in the energy storage system (ESS) market, projecting UZ Energy's revenue to grow from $10 million-$15 million in 2025 to potentially double in the following year [14][36] - The company is also targeting the drone market, leveraging its South Korea facility to meet the demand for high-energy density pouch cells [7][36] Company Strategy and Development Direction - The company is focused on an all-in-on AI strategy, highlighted by the launch of Molecular Universe 1.0, which aims to enhance battery material discovery and development [4][9] - A joint venture with Hyzen New Energy Materials was established to manufacture new electrolyte materials discovered through Molecular Universe, addressing specific market needs [7][18] - The company plans to expand its SaaS offerings and material supply, expecting revenue from materials to surpass SaaS revenue in the future [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, emphasizing the transformative potential of Molecular Universe across various battery chemistries and applications [9][36] - The company expects to see a hardware-software integrated platform with multiple revenue streams, indicating a strong growth trajectory for 2026 and beyond [9][14] Other Important Information - The company exited Q3 with a strong liquidity position of $214 million, indicating sufficient capital to support growth initiatives [13][42] - The company repurchased 1.3 million Class A shares for a total investment of $1.6 million during the quarter [12] Q&A Session Summary Question: Can you talk about the Hyzen JV opportunity? - The Hyzen JV was formed in response to requests from Molecular Universe enterprise users, aiming to supply new electrolyte formulations discovered through the platform [17][18] Question: How do you expect the monetization of Molecular Universe to play out? - The monetization will be a mix of SaaS revenue and material supply, with material supply expected to generate higher revenue than SaaS [21][22] Question: Can you provide an update on the trial testing of Molecular Universe? - The number of enterprise users trialing Molecular Universe has increased to nearly 40, with plans for on-premise deployment for larger companies [24] Question: What are the different subscription options for Molecular Universe? - The company offers various enterprise tiers based on the depth of models and database size, with options for joint development for larger customers [29][31] Question: What is the growth outlook for UZ Energy and other revenue streams? - UZ Energy is expected to see significant growth, with potential doubling of revenue next year, alongside growth in the drone and EV markets [36]

Financial Data and Key Metrics Changes - The company reported a record revenue of $7.1 million for Q3 2025, representing a 102% increase from the previous quarter [4][11] - Gross margin for Q3 was 51%, with service revenue from automotive OEMs contributing a gross margin of 78% and product revenue from UZ Energy at 15% [11][12] - GAAP net loss for Q3 was $20.9 million, an improvement from a loss of $22.7 million in Q2 2025 [12] Business Line Data and Key Metrics Changes - Approximately 45% of Q3 revenue was attributed to the energy storage system (ESS) business following the acquisition of UZ Energy [6] - The company launched three sub-tiers within its enterprise offerings to provide greater value to enterprise users [5][30] Market Data and Key Metrics Changes - The company expects to grow UZ Energy's revenue from an estimated $10 million-$15 million in 2025 to a significantly larger figure in the coming years [13] - The global ESS market is projected to be worth $300 billion, presenting substantial growth opportunities for the company [13] Company Strategy and Development Direction - The company is focused on an all-in-on AI strategy, with the recent launch of Molecular Universe 1.0 aimed at enhancing its product offerings [4][9] - A joint venture with Hyzen New Energy Materials was established to manufacture new electrolyte materials discovered through Molecular Universe [7][18] - The company aims to integrate hardware and software solutions to create a multi-revenue stream platform [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the revenue growth potential from Molecular Universe and its applications across various battery chemistries [9][15] - The company anticipates a doubling or tripling of revenue in 2026 due to multiple growth opportunities in ESS, drones, and EV applications [36][37] Other Important Information - The company exited Q3 with a strong liquidity position of $214 million, allowing for sustainable growth and long-term success [12][15] - The company repurchased 1.3 million Class A shares for a total investment of $1.6 million during Q3 [12] Q&A Session Summary Question: Can you talk about the Hyzen JV and its opportunities? - The Hyzen JV was formed in response to requests from Molecular Universe users, aiming to supply new formulations discovered through the platform [17][18] Question: How do you expect the monetization of Molecular Universe to play out? - The monetization will be a mix of SaaS platform and materials supply, with expectations for growing subscription revenue and material sales [20][23] Question: What is the status of the trials with battery companies? - The number of enterprise users trialing Molecular Universe has increased to nearly 40, with plans for on-premise deployments [24][25] Question: Can you elaborate on the new enterprise tiers? - The new enterprise tiers differ in database size and model depth, catering to various customer needs [30][31] Question: What are the growth prospects for UZ Energy? - UZ Energy is expected to see significant revenue growth, with projections to double in the coming year [36] Question: What is the roadmap for Molecular Universe in 2026? - Future developments will include expanding features to cover electrode and process optimization, as well as creating portable versions for battery companies [45] Question: What is the status of pouch cells for drones? - The company is converting its production line to meet the growing demand for pouch cells, particularly for drones [46]

Core Viewpoint - SES AI Corp has seen a significant stock price increase, with a rise of over 15% on Friday, reaching a new high since March 2023, and a cumulative increase of over 65% this week, effectively doubling its stock price this month [1] Group 1 - The company recently launched the latest version of its Molecular Universe and enterprise-level subscription services [1] - This launch enhances SES AI Corp's leadership position in the battery materials discovery sector [1]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $3.5 million with a gross margin of 74% primarily driven by contracts with automotive OEM customers for AI-enhanced lithium metal and lithium-ion battery materials for EV applications [15] - The company affirmed its full-year 2025 revenue guidance of $15 million to $25 million [15] - Cash utilized for operations in Q2 was $10.8 million, representing a 51% decrease from Q2 2024 and a 53% decrease from Q1 2025 [16] - The company concluded the quarter with a strong liquidity position of $229 million and no debt [16] Business Line Data and Key Metrics Changes - The company is focusing on five areas for revenue growth: software and service, materials, sales, EV development service, and energy storage systems (ESS) [10][12] - The acquisition of UC Energy is expected to provide a foothold in the global ESS market, with projected revenue growth from approximately $10 million to $15 million for the full year 2025 [17] Market Data and Key Metrics Changes - The global ESS market is projected to be $300 billion, presenting significant growth opportunities for the company [17] - The company is experiencing increased revenue from drones and urban air mobility (UAM) applications, with a focus on updating and certifying its supply chain to meet customer demands [28] Company Strategy and Development Direction - The company aims to accelerate the world's energy transition through material discovery and battery management, leveraging its Molecular Universe platform [5][12] - The integration of hardware and software solutions is a key focus, with plans to enhance the AI platform and explore inorganic acquisition opportunities [12][17] - The company is actively recruiting top talent to strengthen its material discovery team [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued momentum in profitability and revenue growth through strategic acquisitions and partnerships [5][17] - The company is focused on demonstrating the superiority of its AI platform in solving complex problems that human scientists cannot, which is expected to drive wider adoption [32] Other Important Information - The company has initiated share repurchases, canceling 871,754 shares for a total investment of $1.1 million at approximately $1.27 per share [17] Q&A Session Summary Question: Can you elaborate on the acquisition of UC Energy and future M&A opportunities? - Management highlighted UC Energy's established presence in the ESS market and its hardware capabilities, which will enhance the company's material development and data integration [21][22] - The company is open to exploring additional M&A opportunities across various applications, including drones and ESS [23] Question: What is the status of the UAM and drone opportunities? - Management noted an increase in revenue from drones and UAM, with ongoing efforts to update the supply chain to meet customer needs [28] Question: What feedback is being received from enterprises using the Molecular Universe platform? - Enterprises are primarily seeking more accurate results rather than additional features, with a focus on solving complex problems that human scientists have struggled with [37] Question: When can we expect the next release of the Molecular Universe platform? - The next version is expected to be released around September to October, which will include more accurate cell-level data [39]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $3.5 million with a gross margin of 74% driven primarily by contracts with automotive OEM customers for AI-enhanced battery materials [14] - The company affirmed its full-year 2025 revenue guidance of $15 million to $25 million [14] - Cash utilized for operations in Q2 2025 was $10.8 million, a 51% decrease from Q2 2024 and a 53% decrease from Q1 2025 [15] - The company concluded the quarter with a strong liquidity position of $229 million and no debt [15] Business Line Data and Key Metrics Changes - The company is focusing on five areas for revenue growth: software and service, materials, sales, EV development service, and energy storage systems (ESS) [9][11] - Revenue from drones and urban air mobility (UAM) has increased this year, with customers seeking to move away from their current supply chains [28] Market Data and Key Metrics Changes - The global ESS market is projected to be $300 billion, with the company aiming to grow UC Energy's business from approximately $10 million to $15 million in projected revenue for 2025 [16] Company Strategy and Development Direction - The company is pursuing a strategic acquisition of UC Energy to establish a foothold in the growing ESS market and enhance its intelligent energy storage solutions [15][16] - The integration of Molecular Universe with hardware capabilities from Uzi Energy is expected to enhance material development and data access [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the ESS market and the integration of AI in battery development, emphasizing the unique capabilities of the Molecular Universe platform [20][22] - The company is actively looking for additional M&A opportunities to enhance its material discovery and production capabilities [23] Other Important Information - The company has been emphasizing operational discipline, resulting in significant reductions in cash usage while growing revenue [15] - The next version of the Molecular Universe tool is expected to be released in September or October, which will include more accurate cell-level data [39] Q&A Session Summary Question: Can you elaborate on the acquisition of Uzi Energy and future M&A opportunities? - The acquisition of Uzi Energy is strategic for entering the ESS market, leveraging their hardware capabilities and integrating them with Molecular Universe for enhanced material development and data access [20][21] - The company is open to new M&A opportunities across various applications, including drones and ESS [23] Question: What is the status of the UAM and drone opportunities? - Revenue from drones and UAM has increased, and the company is updating its supply chain to meet customer demands [28] Question: What is the feedback from enterprises using Molecular Universe? - Enterprises are primarily seeking more accurate results rather than additional features, focusing on solving complex problems that human scientists cannot [36][37]

Summary of SES AI Fireside Chat - July 15, 2025 Company Overview - SES AI (SES) was established in 2012, focusing on developing high energy density lithium metal batteries and has expanded to other chemistries including silicon lithium ion, LFP, and sodium batteries [4][6] Core Business Model - SES is transitioning to a multistrategy business model that integrates battery production with an innovative AI-driven software platform called Molecular Universe [5][6] - The Molecular Universe platform has gained popularity since its launch, demonstrating successful applications in various battery chemistries [4][6] Revenue and Financial Outlook - SES anticipates becoming the first battery company in the US to break even sooner than expected, driven by revenues from materials, drones, batteries, energy storage, and subscriptions to Molecular Universe [7][36] - The company is on track to meet its revenue guidance for 2025, with plans to expand manufacturing capacities and marketing channels [39] Molecular Universe Platform - The platform allows SES to generate its own data by systematically testing and synthesizing different materials and battery configurations, which is crucial for training their AI models [11][12] - The latest version, Molecular Universe 0.5, introduces a feature called Deep Space, which enhances problem-solving capabilities by asking clarifying questions before providing solutions [18][20] - This innovation aims to significantly reduce R&D time from years to approximately 20-30 minutes for practical solutions, appealing to battery companies looking to cut R&D costs [19][23] Market Interest and Adoption - There is growing interest from enterprise customers, particularly battery and electric companies, in the Molecular Universe platform, with many major battery companies trialing the enterprise version [15][31] - The pricing model includes multiple tiers, with a free entry-level option for academic users and paid tiers for enterprise customers [28][30] Competitive Positioning - Molecular Universe serves as a core connection between various market segments, including batteries for drones, electric vehicles (EVs), and energy storage systems (ESS), allowing SES to supply major battery producers without direct competition [35][36] - The platform's ability to provide practical solutions is expected to enhance SES's market position and revenue growth [36][26] Future Outlook - SES plans to announce further developments in manufacturing capacities and marketing strategies to support growth in its various market segments [39]

Financial Data and Key Metrics Changes - The company achieved a record revenue of $5.8 million in Q1 2025, positioning itself on track to meet its full-year revenue guidance of $15 million to $25 million [5][13] - The gross margin for Q1 was reported at 79%, consistent with expectations, attributed to an asset-light business model [13][14] - The company ended the quarter with a strong liquidity position of $240 million and no debt, expecting to exit 2025 with over $200 million in liquidity [14][15] Business Line Data and Key Metrics Changes - Revenue in Q1 was primarily driven by contracts with automotive OEM customers for AI-enhanced lithium metal and lithium-ion batteries for EV applications [13] - The company is expanding its service offerings through the launch of the Molecular Universe software and service platform, which aims to mass-produce material discovery and development services [10][12] Market Data and Key Metrics Changes - The company is experiencing fierce global competition in the EV market, with new safety regulations prompting the need for innovative solutions [7] - There are currently over a dozen companies, including OEMs and battery manufacturers, engaged in early access testing of the Molecular Universe platform [7][10] Company Strategy and Development Direction - The company is transitioning from a capital expenditure-heavy manufacturing model to a scalable software and service business model [11][12] - The launch of the Molecular Universe platform is expected to significantly enhance the company's revenue potential by providing solutions applicable across all battery chemistries and markets [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue guidance for 2025 and emphasized the foundational nature of the current year for future growth [38] - The company aims to leverage its strong cash position to execute its vision and expand its commercial team to pursue greater opportunities [11][14] Other Important Information - The Molecular Universe platform will be launched on April 29, with a live demonstration planned to showcase its features and pricing structures [10][12] - The pricing structure for the Molecular Universe includes multiple tiers, offering both software subscriptions and on-premise deployment options for larger enterprises [31][32] Q&A Session Summary Question: Can you remind us of the cell type, chemistry, and capacity of your SK facility? - The Jeongju facility has two lines for large part cells and smaller UAM cells, with the capability to add equipment for cylindrical and prismatic cells [18] Question: What are the performance benefits from SCS's 2170s with your improved electrolyte? - The company's electrolyte enables stable performance for 2170 cells with high silicon content, achieving over 6.5 amp hours without gas issues [20] Question: Who are the potential customers for the Molecular Universe AI? - The initial version targets major battery companies, car manufacturers, and chemical and electrical companies, with over a dozen early access users already engaged [23] Question: What is the rationale for the share buyback authorization? - The share repurchase program is viewed as an efficient capital allocation tool, with no impact on the company's liquidity runway [33][34] Question: How will revenue ramp through the year? - The company expects stable revenue growth and is confident in achieving its guidance, with 2025 being a foundational year for significant growth in 2026 [38] Question: How will success of the Molecular Universe be measured? - Success will ultimately be measured by the revenue generated from the Molecular Universe platform [40] Question: What are the expected gross margins in the long term? - The gross margins will depend on the mix of services and products, with software and services expected to have margins above 80% [44]