Core Viewpoint - ESS Tech, Inc. (GWH) has experienced a bearish price trend, losing 14.7% over the past week, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with selling pressure likely subsiding, which supports a bullish outlook for the stock [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, signaling that bears may be losing control over the price during a downtrend [4][5]. - The occurrence of a hammer pattern at the bottom of a downtrend suggests that bulls may have successfully halted further price declines, indicating a potential trend reversal [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for GWH, which is a bullish indicator, as it typically leads to price appreciation in the near term [7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 6.8%, indicating that sell-side analysts expect better earnings than previously predicted [8]. - GWH currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperform the market [9].

Company Performance - ESS Tech, Inc. reported a quarterly loss of $1.50 per share, which was better than the Zacks Consensus Estimate of a loss of $1.66, representing an earnings surprise of 9.64% [1] - The company posted revenues of $0.6 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 75.04%, compared to year-ago revenues of $2.74 million [2] - Over the last four quarters, ESS Tech has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [2] Stock Movement and Outlook - ESS Tech shares have declined approximately 53.4% since the beginning of the year, while the S&P 500 has gained 0.2% [3] - The company's earnings outlook is crucial for understanding future stock movements, with current consensus EPS estimates at -$1.01 on $1.5 million in revenues for the coming quarter and -$4.53 on $8.5 million in revenues for the current fiscal year [4][7] Industry Context - The Electronics - Miscellaneous Products industry, to which ESS Tech belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - The company reported GAAP revenue of $600,000 for Q1 2025, with a cost of revenue of $8,700,000, reflecting the final deliveries of energy centers to a Florida utility [19][20] - Non-GAAP operating expenses for Q1 were $9,400,000, with R&D spending of $2,300,000 focused on cost reduction initiatives and technology improvements [21][22] - Adjusted EBITDA for Q1 was negative $15,000,000, but the company expects this loss to narrow as production ramps up in 2025 and beyond [21][22] Business Line Data and Key Metrics Changes - The first quarter revenue was primarily tied to equipment (65%) and site preparation (35%) for battery systems [6] - The company is pivoting from energy warehouse and energy center products to a more focused strategy on energy-based products, which has already shown early momentum [7][8] - Proposal activity has increased significantly, totaling approximately 1.2 gigawatt hours and $400,000,000 in the last two quarters, with over 70% representing the energy base [10] Market Data and Key Metrics Changes - The company secured a contract for a 50 megawatt hour pilot project with an Arizona public power utility, beating over 10 competitors [8][9] - The project is expected to lead to a significant follow-on RFP opportunity, indicating strong demand for non-lithium ion longer duration storage technologies [9][10] - The company is experiencing increased inquiries and proposal activity due to the growing demand for alternatives to lithium-ion batteries [52][54] Company Strategy and Development Direction - The company is focusing on executing its energy-based product launch and gaining commercial momentum, with plans to demonstrate longer duration storage capabilities [6][11] - Strategic partnerships, particularly with Honeywell, are being leveraged to enhance product development and manufacturing capabilities [12][17] - The company aims to reduce costs and improve product performance to compete effectively with lithium-ion technologies [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging capital markets environment and is actively pursuing options to extend the company's cash runway [17][24] - The company is optimistic about the legislative support for domestic battery manufacturing, which could benefit its operations [15][17] - Management expects to transition to EBITDA and cash flow positive in the next few years based on the anticipated ramp of energy-based production and sales [21][22] Other Important Information - The company ended Q1 2025 with $12,800,000 in cash and short-term investments, with a reduced cash burn rate compared to previous quarters [23][24] - The company is exploring various strategic financing alternatives to strengthen its balance sheet and extend its cash runway [25] Q&A Session Summary Question: Outlook for Q2 sales and ramp in the second half - Management confirmed that Q2 sales are expected to be similar to Q1, with a ramp in the second half contingent upon successful capital raising [27][28] Question: Cash runway and operational support - Management indicated that the current cash runway is supported by lower cash burn rates and ongoing discussions for interim financing solutions [29][32] Question: Details on the Arizona RFP requirements - The RFP required non-lithium solutions, and the company's ability to deliver over 10 hours of storage and operate in various temperatures contributed to its success [34][35] Question: Customer deposits for booked orders - Historical deposit ranges for booked orders are between 5% to 20%, with expectations to push towards the higher end for future contracts [38] Question: Status of the Australian project - The project is delayed due to government funding not coming through, with no further updates on timing [46] Question: Discussions with strategic partners - Ongoing discussions with Honeywell and other investors are productive, with a focus on strategic capital raising [49][50] Question: Impact of tariffs on customer inquiries - The company has seen a positive increase in inquiries due to tariff impacts and the drive for electrification growth [52][54]

Q1 2025 Earnings Presentation May 2025 Disclaimers This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements can be identified by the use of forward looking terminology, including the words "believes," "estimates," "anticipates," "expects," "intends," "plans," "possible," "may," "might," "will, ...

Financial Performance - Total revenue for Q1 2025 was $0.6 million, a decrease from $2.7 million in Q1 2024[14] - The company reported a net loss of $18.0 million for Q1 2025, compared to a net loss of $18.3 million in Q1 2024[14] - The company’s gross profit (loss) for Q1 2025 was $(8.1) million, slightly improved from $(8.4) million in Q1 2024[14] - Net loss for Q1 2025 was $18,026 thousand, a slight improvement from a net loss of $18,310 thousand in Q1 2024, representing a 1.6% decrease in losses[18] - Adjusted EBITDA for Q1 2025 was reported at $(14,954) thousand, compared to $(15,421) thousand in Q1 2024, showing a 3% improvement[23] Cash Flow and Assets - Cash and cash equivalents decreased to $8.4 million as of March 31, 2025, down from $13.3 million at the end of 2024[16] - Total assets decreased to $53.6 million as of March 31, 2025, compared to $71.8 million at the end of 2024[16] - Cash flows from operating activities resulted in a net cash outflow of $18,238 thousand in Q1 2025, compared to $18,910 thousand in Q1 2024, a decrease of 3.6%[18] - Cash and cash equivalents at the end of Q1 2025 were $10,196 thousand, down from $38,184 thousand at the end of Q1 2024, a decline of 73%[20] - The company reported a net cash provided by investing activities of $13,252 thousand in Q1 2025, compared to $34,692 thousand in Q1 2024, a decrease of 61%[18] Operating Expenses - Operating expenses for Q1 2025 totaled $10.0 million, down from $11.1 million in Q1 2024[14] - Total operating expenses for Q1 2025 were $9,999 thousand, down from $11,106 thousand in Q1 2024, indicating a reduction of approximately 10%[21] - Non-GAAP total operating expenses decreased to $9,385 thousand in Q1 2025 from $9,176 thousand in Q1 2024, reflecting a 2.3% increase[21] - Research and development expenses for Q1 2025 were $2,478 thousand, down from $3,546 thousand in Q1 2024, a reduction of 30%[21] - Non-cash stock-based compensation expense decreased to $614 thousand in Q1 2025 from $1,930 thousand in Q1 2024, a decline of 68%[21] Project and Proposal Activity - The company has been awarded a 50 MWh Energy Base project with an Arizona utility, expected to conclude contracting by September, structured as a Power Purchase Agreement[5] - Proposal activity has increased significantly, with submissions totaling approximately 1.2 GWh (or $400 million) over the last two quarters, with over 70% representing the Energy Base[5] Operational Engagement - The company’s global fleet is nearing 2.5 GWh of transacted energy, indicating strong operational engagement[2] - The company is actively pursuing options to extend its runway in a challenging capital markets environment[2]

Company Overview - ESS Tech, Inc. (GWH) is expected to report a year-over-year decline in earnings, with a projected loss of $1.66 per share, reflecting a -10.7% change, and revenues of $2.4 million, down 12.4% from the previous year [3][12]. Earnings Expectations - The consensus EPS estimate has been revised 28.11% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for ESS Tech matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - ESS Tech currently holds a Zacks Rank of 2, making it challenging to predict a definitive earnings beat [11]. Historical Performance - Over the last four quarters, ESS Tech has beaten consensus EPS estimates two times, but in the last reported quarter, it missed expectations by delivering a loss of $1.97 per share against an expected loss of $1.51, resulting in a surprise of -30.46% [12][13]. Industry Comparison - In the same industry, Hayward Holdings, Inc. (HAYW) is expected to post earnings of $0.09 per share, indicating a year-over-year change of +12.5%, with revenues expected to be $213 million, up 0.2% from the previous year [17].

Core Viewpoint - ESS Tech, Inc. (GWH) has experienced a bearish price trend, losing 29% over the past week, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottom in the stock price, suggesting that selling pressure may be exhausting and that bulls could be gaining control [2][4]. - A hammer pattern forms when there is a small candle body with a long lower wick, typically occurring during a downtrend, signaling a possible reversal if it appears at the bottom of the trend [3][4]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for GWH, with a 14% increase in the consensus EPS estimate over the last 30 days, indicating that analysts expect better earnings than previously predicted [6][7]. - GWH holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically indicates strong performance potential [8].

Financial Data and Key Metrics Changes - For the fiscal year 2024, the company reported revenue of $6.3 million, which was below the guidance range of $9 to $11 million, primarily due to a partner's inability to secure funding for orders [11][46] - The cost of revenue for the full year was $51.7 million, reflecting challenges in achieving expected revenue guidance [46] - The company achieved a nearly 60% reduction in its NOV adjustment per unit year-over-year, indicating progress in cost management [48] Business Line Data and Key Metrics Changes - The company delivered six Energy Center (EC) systems to a Florida utility customer in December 2024, contributing significantly to revenue [14][44] - The Energy Center design achieved breakeven on a non-GAAP gross margin basis by the end of Q4 2024, hitting the target almost a year faster than expected [19][50] - The company reported adjusted EBITDA of negative $18.2 million for Q4 and negative $71.3 million for the full year 2024, with expectations for future products to be non-GAAP gross margin positive [50][51] Market Data and Key Metrics Changes - The demand for electricity in the U.S. is expected to grow by 35% to 50% between 2024 and 2040, driven by economic growth and the electrification of transport and heating [33] - The company is actively bidding on projects with its new energy base product, which is designed to meet increasing energy demands [34] Company Strategy and Development Direction - The company plans to accelerate its strategic shift towards the Energy Center product deployment and the new energy base product in 2025 [13][20] - The energy base product is designed to be modular and scalable, allowing for greater flexibility in manufacturing and deployment [25][32] - The company aims to leverage partnerships, such as with Honeywell, to enhance its manufacturing capabilities and reduce costs [24][98] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in securing capital and the unpredictability of the business environment, but remains optimistic about future growth opportunities [5][37] - The company is focused on extending its cash runway through securing new capital and efficient management of expenses [66] - Management expects to transition to EBITDA and cash flow positive in the coming years based on projected production and sales volumes [51] Other Important Information - The company is in the process of raising capital to bolster its balance sheet and has engaged financial advisors for this purpose [37][63] - The company received notice of falling below the NYSE market cap requirement of $50 million and is taking action to remedy this situation [40][41] Q&A Session Summary Question: Revenue growth trajectory and 2025 expectations - Management indicated that they will not provide guidance for 2025 but expect moderate revenue growth in the first half of the year, with a scale-up in the back half [73] Question: Trends in gross margins for 2025 - Management does not anticipate being U.S. GAAP gross margin positive in 2025 but expects to achieve that post-2025 [77] Question: Capital raising needs and Export-Import Bank financing - The company aims to raise at least $50 million to access the full amount of the Export-Import Bank loan and anticipates drawing on this loan in the second quarter [79] Question: Product performance metrics in the field - Management acknowledged operational issues with new technology deployments but is working on improvements in software and documentation to enhance user experience [84][86] Question: Future operating expenses outlook - Operating expenses are expected to be slightly lower than the previous year, with a focus on reallocating investments to key initiatives [90][92] Question: Energy base product and manufacturing partnerships - The company plans to continue manufacturing core components while exploring partnerships for balance of system components, emphasizing the importance of leveraging expertise in industrial components [96][98]

分组1 - ESS Tech, Inc. reported a quarterly loss of $1.97 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.51, and a decline from a loss of $1.35 per share a year ago, indicating an earnings surprise of -30.46% [1] - The company posted revenues of $2.85 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 42.52%, and showing minimal growth from year-ago revenues of $2.8 million [2] - ESS Tech shares have declined approximately 43% since the beginning of the year, contrasting with the S&P 500's decline of -5.1% [3] 分组2 - The earnings outlook for ESS Tech is mixed, with the current consensus EPS estimate for the coming quarter at -$1.39 on $7 million in revenues, and -$5.27 on $38.93 million in revenues for the current fiscal year [7] - The Zacks Industry Rank places Electronics - Miscellaneous Products in the bottom 40% of over 250 Zacks industries, suggesting that the industry outlook could significantly impact the stock's performance [8]

Financial Data and Key Metrics Changes - For the fiscal year 2024, the company reported revenue of $6.3 million, which was below the guidance range of $9 to $11 million, primarily due to a partner's inability to secure funding for orders [11][46] - The cost of revenue for the full year was $51.7 million, reflecting challenges in achieving expected revenue guidance [46] - The company achieved a nearly 60% reduction in its NOV adjustment per unit year-over-year, indicating progress in cost management [48] Business Line Data and Key Metrics Changes - The company delivered six Energy Center (EC) systems to a Florida utility customer in December 2024, contributing significantly to revenue [14][44] - The Energy Center design achieved breakeven on a non-GAAP gross margin basis by the end of Q4 2024, hitting the target almost a year earlier than expected [19][50] - The company reported a 35% reduction in costs for the Energy Warehouse (EW) and a 26% reduction for the EC [52] Market Data and Key Metrics Changes - The demand for electricity in the U.S. is expected to grow by 35% to 50% between 2024 and 2040, driven by economic growth and the electrification of transport and heating [33] - The company is actively bidding on projects with the new energy base product, which is designed to meet increasing energy demands [34] Company Strategy and Development Direction - The company plans to accelerate its strategic shift towards the Energy Center product deployment and the new energy base product in 2025 [13][20] - The energy base product is designed to be modular and scalable, allowing for greater flexibility in manufacturing and deployment [25][32] - The company aims to leverage partnerships, such as with Honeywell, to enhance manufacturing capabilities and reduce costs [24][98] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the current operating environment, including capital raising and geopolitical uncertainties [5][37] - The company is focused on extending its cash runway through securing new capital and efficient management of expenses [66] - Management expressed optimism about the long-term potential of the energy storage market and the company's positioning within it [67] Other Important Information - The company is in the process of raising capital to bolster its balance sheet and support growth objectives [37][63] - The company received notice of falling below the NYSE market cap requirement of $50 million and is taking action to remedy this situation [40][41] Q&A Session Summary Question: Revenue growth trajectory and 2025 expectations - Management indicated that they will not provide guidance for 2025 but expect moderate revenue growth in the first half of the year, with a scale-up in the second half [73] Question: Trends in gross margins for 2025 - Management stated that they do not anticipate being U.S. GAAP gross margin positive in 2025 but expect to achieve that post-2025 [77] Question: Capital raising needs and Export-Import Bank financing - Management is looking to raise at least $50 million to access the full amount of the Export-Import Bank loan and anticipates drawing on it in the second quarter [79] Question: Performance metrics of products in the field - Management acknowledged operational issues with new technology deployments but highlighted improvements in software and documentation to enhance user experience [84][86] Question: Future operating expenses - Management indicated that operating expenses are expected to be slightly lower than the previous year, with a focus on reallocating resources to key initiatives [90][92] Question: Energy base product and manufacturing partners - Management clarified that the energy base product will involve manufacturing core components while potentially leveraging external partners for balance of system components [96][98]