ESS Tech(US:GWH)2025-05-15 20:22Product & 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]