ESS Tech, Inc. (GWH) Earnings
ESS Tech, Inc. is expected to report next earnings on November 12, 2026 (in NaN days), with a consensus EPS estimate of $-0.36. GWH has beaten EPS estimates in 4 of its last 12 reported quarters (average surprise -61.5% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 11, 2026 | $-0.44 | $-0.46 | -4.5% | $73000 | -27.0% |
| May 7, 2026 | $-0.29 | $-0.54 | -86.2% | $128000 | -68.0% |
| Mar 5, 2026 | $-0.76 | $-1.97 | -159.2% | $-2M | +0.8% |
| Nov 13, 2025 | $-0.76 | $-0.73 | +3.9% | $214000 | +113.4% |
| Aug 14, 2025 | $-0.88 | $-0.90 | -2.3% | $2M | +81.4% |
| May 15, 2025 | $-1.21 | $-1.50 | -24.5% | $599000 | -82.7% |
| Mar 31, 2025 | $-1.51 | $-1.97 | -30.5% | $3M | -17.5% |
| Aug 14, 2024 | $-1.65 | $-1.80 | -9.1% | $348000 | -93.8% |
| Mar 13, 2024 | $-1.95 | $-1.35 | +30.8% | $3M | -51.6% |
| Mar 1, 2023 | $-2.70 | $-2.40 | +11.1% | — | — |
| Nov 3, 2022 | $-2.70 | $-2.70 | +0.0% | $192000 | -79.2% |
| Aug 11, 2022 | $-2.40 | $-1.50 | +37.5% | $686000 | +82.8% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 11, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Product Strategy & Portfolio Expansion - ESS now operates two complementary non-lithium storage platforms: EnergyBase for 10+ hour long-duration grid storage, and the newly launched Bridge sodium ion platform for 2-16 hour short/medium duration applications targeted at data centers, critical infrastructure, and utilities. - Bridge is a 1.2 MWh AC modular, plug-and-play system with non-flammable chemistry (no thermal runaway risk), a 20-year design life, and operating range of -40°C to +50°C, specifically engineered to handle the rapid microcycling demand of AI data center GPU clusters that degrades lithium ion batteries quickly. - A full working sodium ion module has been built and is currently undergoing charge/discharge testing; the first full-scale Bridge system is targeted for in-house operation by the end of 2026. ### Commercial Progress - Early stage pipeline for sodium ion solutions has grown to nearly $1 billion in opportunities, split roughly evenly between utility and AI/data center customers, with strong interest from both new and existing ESS customers. - Signed a non-binding letter of intent (LOI) with Juniper Energy for 500 MWh or more of sodium ion systems through 2032, anchored by a 10 MW / 80 MWh project for a major California utility targeted for commercial operation in 2027. - Signed a non-binding LOI with Alsem Energy for 8.5 GWh of US-manufactured sodium ion cells, enabling fully domestic supply chain that qualifies for US tax credits and avoids tariff/supply chain concentration risks. ### Operational & Balance Sheet Improvements - Streamlined Wilsonville operations to reduce expenses and cash burn, reallocating capital from legacy activities to higher near-term potential sodium ion development. - Repaid $37 million of the original $40 million principal outstanding on the Yorkville promissory note, progressing on deleveraging priorities. - For the first half of 2026, total operating expenses declined 12% year-over-year to $14.5 million, and net cash used in operating activities declined 27% year-over-year to $22.4 million, despite increased R&D investment for Bridge. ### Proposed Business Combination - Announced a non-binding LOI for a business combination with a private, commercially active energy sector company that has an established operating platform and proven commercial execution. - The transaction implies a total combined enterprise value of approximately $515 million, with ESS stockholders receiving an ownership allocation at a premium to ESS's fully diluted market capitalization at the time of definitive agreement signing; ESS stockholders are expected to own approximately 5% to 10% of the combined company at closing.
Guidance
- The company targets to sign a definitive business combination agreement by the end of September 2026, with transaction closing targeted before the end of 2026, pending due diligence, negotiation, and required approvals. - The first full-scale operational Bridge sodium ion system is expected to be completed and operating in-house by the end of 2026, with commercial deployment of the first customer project (the Juniper/California utility project) targeted for 2027 commercial operation. - Management maintained its focus on continued cash discipline and liquidity preservation to support current operations through the business combination process and product commercialization, with no explicit revenue guidance provided for 2026.
Segment performance
ESS Tech operates two product segments for energy storage: 1) Bridge (sodium ion battery system): Early commercial development stage with no revenue generated in Q2 2026; early stage opportunities approaching $1 billion in value, representing 100% of the company's current identified pipeline. 2) EnergyBase (iron flow long-duration storage system): Q2 2026 revenue was $73,000, compared to $2.4 million in Q2 2025. Revenue contribution for EnergyBase was 100% of total Q2 2026 revenue, as Bridge has not yet generated commercial revenue.
Risks & headwinds
- All forward-looking statements, including pipeline opportunities, product development timelines, and the proposed business combination, are subject to material risks that could cause actual results to differ materially from expectations. - The company disclosed that there is substantial doubt about its ability to continue as a going concern, as noted in its Q2 2026 Form 10-Q filing. - The $1 billion early stage sodium ion opportunity pipeline is unconverted and not yet contracted, with no guarantee these early discussions will result in actual revenue or customer commitments. - The proposed business combination is non-binding, can be terminated at any time, and requires completion of due diligence, negotiation of definitive agreements, and regulatory/party approvals, with no guarantee it will be completed. - ESS's products are in early stages of commercialization, with full field testing not yet completed, and the company relies on third-party suppliers for key components, creating risk of manufacturing delays, quality issues, or supply disruptions. - The company must continue to satisfy New York Stock Exchange continued listing standards to remain a public company. - High current fixed manufacturing overhead from underutilized capacity resulted in a large gross loss in Q2 2026, which is not representative of future unit economics but creates near-term financial pressure.
Analyst Q&A
Q: What is the timeline and funding plan for the proposed business combination process between now and a definitive September agreement? /
A: Management expects to sign a definitive agreement by the end of September 2026, with closing targeted by year-end. The company will be self-funded through the process, noting that reduced expenses and cash burn, plus repayment of most of the Yorkville note, leave it well-positioned to continue executing on sodium ion development in the interim.
Q: What is the composition of the nearly $1 billion early stage sodium ion pipeline, and how advanced are customer conversations? /
A: The pipeline is split roughly evenly between utility customers and AI/data center customers. All opportunities are still early stage and unconverted, but the pipeline has built extremely quickly in just a few months, driven by strong market demand for a non-lithium solution that can handle AI data centers' unique power demand profiles. The Juniper LOI is expected to progress to a full commercial agreement in the coming months, and existing ESS customers have also expressed strong interest in the new sodium ion platform.
Q: What is Bridge's current development stage, and what milestones are needed before first revenue? /
A: The first full sodium ion module is complete and currently undergoing charge/discharge testing at ESS's Oregon headquarters. Market rollout has begun, and the first full operational Bridge system is expected to be ready by the end of 2026, with customer visibility planned for Q4 2026. First commercial revenue is expected from the anchored Juniper project after commercial operation in 2027.
Q: How does Bridge compete against incumbent lithium ion products for data center customers? /
A: Bridge's non-flammable sodium ion chemistry eliminates thermal runaway risk, simplifying permitting and siting for batteries located adjacent to data centers in urban areas. It also does not require complex HVAC/liquid cooling, reducing installation and maintenance complexity and noise. Its wide operating range handles the rapid, high-magnitude power swings from AI GPUs that accelerate lithium ion degradation. Finally, its fully US-made supply chain helps data center customers manage tariff and supply chain concentration risks, which is a key procurement requirement today.