Ideal Power (NASDAQ:IPWR) detailed recent commercial progress and reviewed its fourth-quarter and full-year 2025 financial results during its earnings conference call, highlighting new strategic engagements, work underway with Stellantis, and an expanded push to accelerate B-TRAN commercialization.
Strategic agreements and customer engagements
CEO David Somo said the company’s near-term focus is “disciplined execution” following a recent business update webcast that outlined Ideal Power’s commercialization strategy. Somo provided updates on several developments that occurred since the start of the fourth quarter.
During Q&A, management said Lasin is building out its solid-state circuit breaker portfolio, and Ideal Power’s opportunity is tied to those new SSCB products—initially aimed at data centers and also renewable energy, battery energy storage systems, and grid applications. Somo added that while the company is “primarily” focused on greenfield data center buildouts, there may also be brownfield retrofit opportunities as facilities transition to new power distribution architectures.
Ideal Power also signed a letter of intent with a leading power module manufacturer in Asia to develop and offer a family of B-TRAN-based power modules. Somo said the prospective partner currently sells IGBT and silicon carbide modules and is interested in “differentiated and customized” B-TRAN-enabled solutions.
Stellantis program milestones and automotive testing timeline
Somo said Ideal Power continues to advance its relationship with Stellantis and is executing on an existing purchase order for custom development and packaged B-TRAN devices for EV applications. The company completed the first of five deliverables in the second half of 2025 and expects to complete the remaining four deliverables by mid-2026, including delivery of custom packaged devices and reference design kits for evaluation in EV applications.
In response to an analyst question, management characterized the remaining deliverables under the Stellantis purchase order as fully within Ideal Power’s control. The deliverables include custom development work, two packaging variants requested by Stellantis, and reference design kits.
On automotive qualification, management reiterated that it expects to complete automotive reliability testing “by this summer” and said it believes it remains on track. Somo also said Ideal Power remains engaged with Stellantis on a potential development program for EV contactors.
Asked about Stellantis’ announced plans to share more EV technology with Leapmotor of China, Somo said it could be a positive for Ideal Power, suggesting that technology sharing could expand the market opportunity stemming from the same design and development investment. He also noted that automakers typically pursue new technologies with the intent to deploy them across multiple vehicle models rather than a single model.
Commercialization priorities, sales funnel, and licensing approach
Somo said Ideal Power’s strategic priorities include expanding its sales funnel and, more importantly, advancing qualified opportunities to production orders and revenue. He said the company has identified “nearly 200 million” in potential sales opportunities and aims to add new engagements while converting opportunities into design-ins and custom development agreements.
Management outlined a combination of internal hiring and channel initiatives to support commercialization. Somo said Ideal Power added a sales leader in Asia late in 2025 and expects to add a sales leader in Europe and a field applications manager in Asia. In the webcast Q&A, Somo added that the company is also leaning into its distributor network with additional tools and incentive programs aimed at driving evaluations and design-ins, noting there are “more than 100 different opportunities” being vetted that could enter the funnel once qualified.
When asked what solutions could drive the earliest revenue, Somo pointed to solid-state circuit breakers and static transfer switches, particularly in markets that adopt new technologies faster. He identified data centers, battery energy storage systems, and grid applications as areas with the earliest revenue potential for B-TRAN-based products.
On hurdles to reaching “sizable orders,” management said customers must complete product development and qualification work, and then win adoption with their own end customers. Management also discussed efforts to shorten sales cycles through reference design kits, direct engineering support, and support from distributors with technical sales resources.
Regarding manufacturing and licensing, Somo said he would expect Lasin and similar customers to operate primarily under a purchase order relationship—potentially evolving into longer-term supply agreements—where they buy products manufactured by Ideal Power. He said licensing could become relevant for large multinational customers seeking multi-source supply chain options, though he emphasized a desire to maintain a “favorable position” and “first right of supply” in such arrangements.
Patent portfolio and intellectual property protection
Somo said Ideal Power’s B-TRAN patent estate now includes 100 issued patents, with 48 issued outside the United States, covering North America, China, Taiwan, Japan, South Korea, India, and Europe. The company also has 78 pending B-TRAN patents.
He added that Ideal Power treats its “proven double-sided wafer process flow” as a trade secret and does not disclose the identity of its wafer fabrication partners, working under strict confidentiality. Somo also said the company works with foundries and packaging houses in countries with a history of respecting intellectual property rights.
Financial results, cash burn, and capital raise
CFO Tim Burns reviewed the company’s capital raise and operating results. Burns said Ideal Power raised $12.6 million in estimated net proceeds from a public offering and concurrent private placement that closed on February 25. The offering included common stock and pre-funded warrants, which Burns described as common stock equivalents for EPS purposes but not included in shares outstanding until exercised. He said the financing was led by the company’s largest existing institutional shareholders and included participation from insiders, including the CEO. Burns said the company has no debt and described the post-offering capital structure as “clean.”
Burns reported cash and cash equivalents of $6.1 million as of December 31, 2025, excluding the $12.6 million of estimated net proceeds from the February financing. He said the company did not record revenue in the fourth quarter of 2025, adding that initial orders from companies evaluating products are expected to be small and grow as customers proceed through design cycles, qualification, and inventory build for commercialization.
On cash burn, Burns said fourth-quarter 2025 cash burn was $2.2 million, below the company’s prior guidance of $2.5 million to $2.7 million. Full-year 2025 cash burn was $9.6 million, also below guidance of approximately $10 million. Looking ahead, Burns said Ideal Power expects first-quarter 2026 cash burn of approximately $2.6 million to $2.8 million and full-year 2026 cash burn of approximately $10.5 million, with the increase primarily due to planned hiring, including expansion of the direct sales team.
Operating expenses were $1.9 million in the fourth quarter of 2025 compared with $2.8 million in the fourth quarter of 2024, driven primarily by lower stock-based compensation expense and personnel costs. Burns attributed part of the stock-based compensation change to the forfeiture and modification of certain equity awards tied to a retirement and transition services agreement with the prior CEO. He said the company expects “significantly higher” stock-based compensation in the first quarter of 2026, tapering off in the second quarter, and noted that operating expenses may vary quarter to quarter due to the timing of semiconductor fabrication runs, R&D activity, hiring, and equity grant timing.
Net loss for the fourth quarter of 2025 was $1.9 million, compared with $2.6 million in the fourth quarter of 2024. Full-year 2025 net loss was $10.6 million, compared with $10.4 million in 2024.
Burns also provided share count details. At the end of December 2025, Ideal Power had 8,537,387 shares outstanding and a fully diluted share count of 10,565,023. After the February financing, Burns said the company had 12,089,289 shares outstanding, 2,238,040 pre-funded warrants outstanding, and 1,486,955 stock options and stock units outstanding, for a fully diluted share count of 15,814,384.
About Ideal Power (NASDAQ:IPWR)
Ideal Power Inc, based in Austin, Texas, specializes in the design and manufacture of advanced power conversion solutions for a range of energy applications. The company’s core technology is its proprietary Coupled Power Delivery (CPD) architecture, which enables efficient bi-directional conversion between DC and DC, as well as DC and AC power streams. These solutions are widely applied in renewable energy systems, energy storage, microgrids, and electric mobility platforms.
Ideal Power’s product lineup includes bi-directional DC converters, solid-state transformers, and intelligent power controllers.
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