Ideal Power Q1 Earnings Miss Expectations with Increased Cash Burn
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 15 2026
0mins
Source: seekingalpha
- Earnings Performance: Ideal Power reported a Q1 GAAP EPS of -$0.33, missing expectations by $0.04, indicating ongoing challenges in profitability that may affect investor confidence.
- Cash Flow Situation: The company utilized $2.3 million in cash for operating and investing activities in Q1 2026, up from $2.1 million in the same period of 2025, reflecting increased financial pressure as it expands its business.
- Cash Reserves Status: As of March 31, 2026, Ideal Power had $16.4 million in cash and cash equivalents, indicating a reasonable liquidity position in the short term, but long-term growth remains a concern.
- Strategic Goal Adjustment: Ideal Power aims to limit its cash burn to between $10 million and $10.5 million in 2026 while expanding its sales funnel to over $300 million, demonstrating strategic adjustments in response to financial pressures.
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About IPWR
Ideal Power, Inc. is the developer and provider of its patented bidirectional semiconductor power switch, creating energy control solutions for electric vehicle, electric vehicle charging, renewable energy, energy storage, UPS/data center, solid-state circuit breaker and other industrial and military applications. The Company is focused on its Bidirectional, Bipolar Junction Transistor (B-TRAN) semiconductor technology. Its B-TRAN can reduce conduction and switching losses, and complexity of thermal management in AC power switching and control circuitry. Its products include SymCool IQ Intelligent Power Module (IPM), SymCool Power Module and B-TRAN Discrete. SymCool IQ IPM builds on the bidirectional B-TRAN multi-die packaging design of its SymCool Power Module and adds an integrated intelligent driver optimized for bidirectional operation. SymCool Power Module is a multi-die B-TRAN module designed to meet the very low conduction loss needs of the solid-state circuit breaker market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ideal Power Closes $30 Million Direct Offering for B-TRAN® Development
- Offering Size: Ideal Power successfully completed a registered direct offering of 5,291,005 shares, raising approximately $30 million, which will significantly support the commercialization of its B-TRAN® technology.
- Use of Proceeds: The net proceeds from this offering will be allocated towards advancing B-TRAN® commercialization, including customer design-ins, custom development programs, and initial production ramp with strategic partners, aiming to accelerate market penetration and enhance competitive positioning.
- Placement Agent Role: Titan Partners acted as the sole placement agent for the offering, ensuring a smooth issuance process and further solidifying its expertise in the capital markets.
- Registration Statement Context: This offering was conducted under a shelf registration statement on Form S-3 filed on December 30, 2025, reflecting the company's commitment to compliance and transparency, which is likely to bolster investor confidence.
See More
Ideal Power Q1 Earnings Miss Expectations with Increased Cash Burn
- Earnings Performance: Ideal Power reported a Q1 GAAP EPS of -$0.33, missing expectations by $0.04, indicating ongoing challenges in profitability that may affect investor confidence.
- Cash Flow Situation: The company utilized $2.3 million in cash for operating and investing activities in Q1 2026, up from $2.1 million in the same period of 2025, reflecting increased financial pressure as it expands its business.
- Cash Reserves Status: As of March 31, 2026, Ideal Power had $16.4 million in cash and cash equivalents, indicating a reasonable liquidity position in the short term, but long-term growth remains a concern.
- Strategic Goal Adjustment: Ideal Power aims to limit its cash burn to between $10 million and $10.5 million in 2026 while expanding its sales funnel to over $300 million, demonstrating strategic adjustments in response to financial pressures.
See More
Ideal Power Secures $30 Million Financing for B-TRAN® Commercialization
- Financing Size: Ideal Power has entered into agreements with institutional investors to sell 5,291,005 shares of common stock, expected to raise approximately $30 million, which will be directed towards the commercialization of its B-TRAN® technology.
- Market Demand: With the accelerating demand for data centers and hyperscalers focusing on efficient power architectures, this financing positions Ideal Power favorably to ramp up the market introduction of its B-TRAN® technology.
- Strategic Partnerships: The company intends to utilize the proceeds to advance customer design-ins, custom development programs, and initial production ramp with strategic partners, enhancing its competitive edge in the market.
- Compliance and Transparency: This financing is conducted under an effective S-3 registration statement, ensuring compliance and boosting investor confidence, thereby further solidifying Ideal Power's market position.
See More
Ideal Power Secures $30M Stock Agreement with Investors
- Financing Agreement Reached: Ideal Power has entered into definitive agreements with certain institutional investors for the purchase of 5,291,005 shares of common stock, expected to yield approximately $30 million in gross proceeds, scheduled for completion around May 18, 2026, thereby strengthening the company's financial position for future growth.
- Clear Use of Proceeds: The company intends to utilize the net proceeds to advance the commercialization of B-TRAN, including customer design-ins, custom development programs, initial production ramp with strategic partners, and general corporate and working capital needs, laying a solid foundation for future expansion.
- Rising Market Demand: CEO David Somo highlighted that the accelerating demand for data centers and hyperscalers is driving the company to focus on more efficient power architectures, indicating a strategic positioning in the industry's transformation.
- Stock Price Fluctuation: Despite the financing news, Ideal Power's shares fell 2.3% in extended trading on Thursday, reflecting market caution regarding the company's short-term performance, which may impact investor confidence.
See More
Ideal Power Secures $30 Million Financing for B-TRAN® Commercialization
- Financing Details: Ideal Power has entered into agreements with institutional investors to sell 5,291,005 shares of common stock, expected to raise approximately $30 million, which will be utilized to advance the commercialization of its B-TRAN® technology, thereby enhancing its competitive position in a rapidly growing market.
- Market Demand: With the accelerating demand for data centers and hyperscalers focusing on more efficient power architectures, Ideal Power's B-TRAN® technology is poised to meet the urgent market need for energy-efficient solutions, which is expected to drive future revenue growth for the company.
- Strategic Partnerships: This financing will support initial production ramp-up with strategic partners, as Ideal Power plans to accelerate B-TRAN® market penetration through customer design-ins and custom development programs, thereby increasing customer loyalty and market share.
- Compliance and Transparency: The financing is being conducted under an effective SEC registration statement, ensuring compliance throughout the process, and Ideal Power will provide transparent information to investors through a public prospectus, enhancing market trust.
See More
Ideal Power Q1 2026 Earnings Call Insights
- Prototype Development Progress: Ideal Power's low current solid-state circuit breaker (SSCB) project is advancing, with prototype units for 800-volt AI data centers expected in Q4 2026, and initial low-volume sales orders will support prototype production, laying the groundwork for future market demand.
- Increased Sales Opportunities: The company's sales opportunity funnel has grown to over $300 million, up from approximately $200 million, indicating significant market potential despite no revenue recorded yet, with converting this funnel into design wins and production orders as the current top priority.
- Cash Flow Status: Cash burn for Q1 2026 was $2.3 million, with expectations for Q2 to rise to approximately $2.5 million to $2.7 million, and a full-year cash burn target of $10 million to $10.5 million, reflecting investments in expanding sales and engineering personnel.
- Rising Operating Expenses: Operating expenses for Q1 were $3.7 million, with expectations for modest increases in the coming quarters primarily due to higher stock-based compensation and personnel costs, indicating ongoing investments in capacity expansion.
See More
Ideal Power Closes $30 Million Direct Offering for B-TRAN® Development
- Offering Size: Ideal Power successfully completed a registered direct offering of 5,291,005 shares, raising approximately $30 million, which will significantly support the commercialization of its B-TRAN® technology.
- Use of Proceeds: The net proceeds from this offering will be allocated towards advancing B-TRAN® commercialization, including customer design-ins, custom development programs, and initial production ramp with strategic partners, aiming to accelerate market penetration and enhance competitive positioning.
- Placement Agent Role: Titan Partners acted as the sole placement agent for the offering, ensuring a smooth issuance process and further solidifying its expertise in the capital markets.
- Registration Statement Context: This offering was conducted under a shelf registration statement on Form S-3 filed on December 30, 2025, reflecting the company's commitment to compliance and transparency, which is likely to bolster investor confidence.
See More
Ideal Power Q1 Earnings Miss Expectations with Increased Cash Burn
- Earnings Performance: Ideal Power reported a Q1 GAAP EPS of -$0.33, missing expectations by $0.04, indicating ongoing challenges in profitability that may affect investor confidence.
- Cash Flow Situation: The company utilized $2.3 million in cash for operating and investing activities in Q1 2026, up from $2.1 million in the same period of 2025, reflecting increased financial pressure as it expands its business.
- Cash Reserves Status: As of March 31, 2026, Ideal Power had $16.4 million in cash and cash equivalents, indicating a reasonable liquidity position in the short term, but long-term growth remains a concern.
- Strategic Goal Adjustment: Ideal Power aims to limit its cash burn to between $10 million and $10.5 million in 2026 while expanding its sales funnel to over $300 million, demonstrating strategic adjustments in response to financial pressures.
See More
Ideal Power Secures $30 Million Financing for B-TRAN® Commercialization
- Financing Size: Ideal Power has entered into agreements with institutional investors to sell 5,291,005 shares of common stock, expected to raise approximately $30 million, which will be directed towards the commercialization of its B-TRAN® technology.
- Market Demand: With the accelerating demand for data centers and hyperscalers focusing on efficient power architectures, this financing positions Ideal Power favorably to ramp up the market introduction of its B-TRAN® technology.
- Strategic Partnerships: The company intends to utilize the proceeds to advance customer design-ins, custom development programs, and initial production ramp with strategic partners, enhancing its competitive edge in the market.
- Compliance and Transparency: This financing is conducted under an effective S-3 registration statement, ensuring compliance and boosting investor confidence, thereby further solidifying Ideal Power's market position.
See More
Ideal Power Secures $30M Stock Agreement with Investors
- Financing Agreement Reached: Ideal Power has entered into definitive agreements with certain institutional investors for the purchase of 5,291,005 shares of common stock, expected to yield approximately $30 million in gross proceeds, scheduled for completion around May 18, 2026, thereby strengthening the company's financial position for future growth.
- Clear Use of Proceeds: The company intends to utilize the net proceeds to advance the commercialization of B-TRAN, including customer design-ins, custom development programs, initial production ramp with strategic partners, and general corporate and working capital needs, laying a solid foundation for future expansion.
- Rising Market Demand: CEO David Somo highlighted that the accelerating demand for data centers and hyperscalers is driving the company to focus on more efficient power architectures, indicating a strategic positioning in the industry's transformation.
- Stock Price Fluctuation: Despite the financing news, Ideal Power's shares fell 2.3% in extended trading on Thursday, reflecting market caution regarding the company's short-term performance, which may impact investor confidence.
See More
Ideal Power Secures $30 Million Financing for B-TRAN® Commercialization
- Financing Details: Ideal Power has entered into agreements with institutional investors to sell 5,291,005 shares of common stock, expected to raise approximately $30 million, which will be utilized to advance the commercialization of its B-TRAN® technology, thereby enhancing its competitive position in a rapidly growing market.
- Market Demand: With the accelerating demand for data centers and hyperscalers focusing on more efficient power architectures, Ideal Power's B-TRAN® technology is poised to meet the urgent market need for energy-efficient solutions, which is expected to drive future revenue growth for the company.
- Strategic Partnerships: This financing will support initial production ramp-up with strategic partners, as Ideal Power plans to accelerate B-TRAN® market penetration through customer design-ins and custom development programs, thereby increasing customer loyalty and market share.
- Compliance and Transparency: The financing is being conducted under an effective SEC registration statement, ensuring compliance throughout the process, and Ideal Power will provide transparent information to investors through a public prospectus, enhancing market trust.
See More
Ideal Power Q1 2026 Earnings Call Insights
- Prototype Development Progress: Ideal Power's low current solid-state circuit breaker (SSCB) project is advancing, with prototype units for 800-volt AI data centers expected in Q4 2026, and initial low-volume sales orders will support prototype production, laying the groundwork for future market demand.
- Increased Sales Opportunities: The company's sales opportunity funnel has grown to over $300 million, up from approximately $200 million, indicating significant market potential despite no revenue recorded yet, with converting this funnel into design wins and production orders as the current top priority.
- Cash Flow Status: Cash burn for Q1 2026 was $2.3 million, with expectations for Q2 to rise to approximately $2.5 million to $2.7 million, and a full-year cash burn target of $10 million to $10.5 million, reflecting investments in expanding sales and engineering personnel.
- Rising Operating Expenses: Operating expenses for Q1 were $3.7 million, with expectations for modest increases in the coming quarters primarily due to higher stock-based compensation and personnel costs, indicating ongoing investments in capacity expansion.
See More
