This article first appeared on GuruFocus .
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Revenue:Recorded modest revenue in the second quarter of 2026.
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Cash and Cash Equivalents:Totaled $41.3 million at June 30, 2026.
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Cash Burn:$2.5 million in Q2 2026, flat compared to Q2 2025 and up from $2.3 million in Q1 2026.
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Operating Expenses:$3.6 million in Q2 2026, up from $3.1 million in Q2 2025.
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Net Loss:$3.4 million in Q2 2026, compared to $3 million in Q2 2025.
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Capital Raise:Raised $27.7 million in net proceeds from a registered direct offering of common stock and pre-funded warrants.
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Shares Outstanding:16,421,520 shares outstanding at end of June, with a fully diluted share count of 21,070,159 shares.
Release Date: August 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Ideal Power Inc ( NASDAQ:IPWR ) is finalizing prototype solid-state circuit breakers for its lead Asia customer, with initial low-volume orders expected in Q4 2026.
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The company signed a long-term supply agreement with a high-volume, automotive-qualified foundry in Asia, achieving functional first silicon and supporting targeted gross margins at scale.
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Ideal Power Inc ( NASDAQ:IPWR ) expanded its sales funnel to over $400 million in total revenue opportunity, up from $300 million, driven by growing demand for 800-volt DC architectures.
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The company introduced a new SSCB reference design kit (RDK) to accelerate customer adoption, with a distribution partner placing its first stocking order.
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Ideal Power Inc ( NASDAQ:IPWR ) raised $27.7 million in net proceeds from a registered direct offering, strengthening its balance sheet to $41.3 million in cash with no debt.
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The company is making progress with Stellantis on solid-state EV contactor development, with deeper technical discussions and a milestone scheduled for Q4 2026.
Negative Points
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Ideal Power Inc ( NASDAQ:IPWR ) reported a net loss of $3.4 million in Q2 2026, wider than the $3 million loss in the same period last year.
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The company's cash burn is expected to increase to $10.3-$10.5 million for full-year 2026, up from $9.6 million in 2025, due to hiring and expansion.
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Revenue remains modest, with initial customer orders expected to be small and order sizes increasing only as customers progress through design cycles.
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The Stellantis project has experienced timing delays in completing deliverables under the purchase order, impacting expected milestones.
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Automotive qualification for B-TRAN has been deprioritized in favor of industrial qualification, which could delay automotive revenue opportunities.
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The company's operating expenses increased to $3.6 million in Q2 2026, driven by higher stock-based compensation, personnel costs, and non-cash patent impairments.
Q & A Highlights
Q: How is Ideal Power approaching the hyperscaler opportunity, and are they partnering with other component makers to sell solutions? A: David Somo, President and CEO, explained that hyperscalers have different levels of involvement in their supply chains, with some being deeply involved at the component level and others staying at a higher level. The company is working with industry partners to deliver circuit protection solutions with intelligence to help manage power utilization across data center power distribution systems. This system-level approach is more relevant to hyperscalers than presenting a bare B-TRAN component for evaluation.
Q: What is the expected evaluation period for the hyperscaler opportunity? A: CEO David Somo noted that the timeline is difficult to predict but must align with the projected rollout of 800-volt DC data center power architectures, which is expected to begin in the second half of next year, with more aggressive adoption expected into 2028. Companies aiming to be on the front end of this transition would need to complete evaluations in line with that schedule.
Q: How important is the new foundry agreement and functional first silicon for Ideal Power? A: CFO Tim Burns stated that the long-term supply agreement with a high-volume, automotive-qualified foundry in Asia supports long-term scaling, particularly for automotive volumes several years out. The larger, more established fab offers a better cost structure that supports the company's targeted gross margins of 40% plus. Additionally, the agreement provides confidence to customers, who will recognize the fab under NDA and know Ideal Power can supply them even if their volumes grow rapidly.
Q: What gives management confidence that Ideal Power will be successfully commercialized? A: CEO David Somo cited three key factors: B-TRAN's unique and differentiated capabilities for solid-state circuit protection in data centers, energy infrastructure, and EV applications; the continued expansion of customer engagements and a growing sales funnel; and being in the right place at the right time with the secular megatrend around high-voltage DC for data centers and energy infrastructure.
Q: What milestones will Ideal Power achieve with the recent capital raise? A: CFO Tim Burns explained that the strategy doesn't change with more capital on the balance sheet, and the company will continue to manage cash spend aggressively. The over $41 million in cash at June 30 provides a strong balance sheet viewed favorably by vendors and customers, giving partners confidence that Ideal Power has adequate capital for several years to commercialize its technology.
Q: Can you provide additional commentary on the shelf registration issued on July 10? A: CFO Tim Burns described it as "good housekeeping" since the prior shelf was expiring. There is no intention to raise capital right now, but the shelf provides flexibility to issue registered shares if a strategic investment opportunity comes along. It's a three-year instrument that allows the company to use registered shares if needed in the future.
Q: Does the company's strategic priority to explore opportunities with global market leaders mean corporate investors taking equity stakes? A: CFO Tim Burns clarified that this refers to customers who may adopt the technology. A customer taking an equity stake gives them an incentive for Ideal Power to succeed and can drive revenue growth. Many large prospective customers have equity branches that invest in key suppliers and technologies for their OEM products.
Q: What third-party validations exist around B-TRAN? A: CFO Tim Burns noted that the company is going through JEDEC qualification for industrial markets, which is key for near-term revenue opportunities, and will align automotive qualification timelines with automotive opportunities like Stellantis. Ideal Power has worked with multiple third-party testing houses to generate data included in published datasheets, and customers independently evaluate and test the technology in their own labs.
Q: Can you help investors understand the types of current customer paid engagements? A: CFO Tim Burns identified two main types of near-term revenue: product sampling and development kits, which are small volume orders for customers to evaluate the technology in their labs, and NRE fees for custom development projects, such as custom packaging for specific applications. Longer-term revenue will come from much higher volume orders if companies adopt the technology for their end products.
Q: Has the Stellantis opportunity narrowed or widened since initial discussions, and how should we think about the timeline? A: CEO David Somo stated that the depth of discussions with Stellantis has significantly increased over the past couple of months. They are working closely on defining the system solution level, evaluating alternatives beyond Ideal Power's contribution, including packaging considerations. The deepening conversations and attention to details are typically positive signs of progress toward the solid-state contactor program.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
