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1. Company Snapshot

1.a. Company Description

Ideal Power Inc.focuses on the development and commercialization of its B-TRAN technology.It develops Bi-directional bi-polar junction TRANsistor solid state switch technology.


The company was formerly known as Ideal Power Converters Inc.and changed its name to Ideal Power Inc.in July 2013.


Ideal Power Inc.was incorporated in 2007 and is headquartered in Austin, Texas.

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1.b. Last Insights on IPWR

Ideal Power's recent performance has been impacted by several factors. The company's Q3 2025 earnings call revealed a strong foundation for growth, but the appointment of a new CEO, David Somo, may have led to investor uncertainty. Additionally, the company's share price crossing below its 200-day moving average of $5.04 to $3.68 may indicate a negative trend. Despite securing a development order from Stellantis for its B-TRAN semiconductor technology, concerns may arise from the lengthy timeline for deliverables. (Source: Nasdaq)

1.c. Company Highlights

2. Ideal Power's Q3 2025 Earnings: A Deeper Dive into the Numbers

Ideal Power reported modest revenue for 2025, with initial orders from large companies evaluating their products for potential inclusion in their OEM products. The company's cash burn from operating and investing activities was $2.7 million in Q3 2025, up from $2.4 million in Q3 2024. The actual EPS came out at -$0.32, slightly missing estimates of -$0.3. The company's financial performance is still in the early stages, with a long road to commercialization ahead.

Publication Date: Nov -16

📋 Highlights
  • Stellantis Purchase Order Progress:: Completed first deliverable under a custom EV development purchase order in late September, with five remaining deliverables.
  • Q3 Cash Burn Increase:: Operating cash burn rose to $2.7M in Q3 2025 (vs. $2.4M in Q3 2024), with full-year 2025 guidance at ~$10M.
  • Liquidity Position:: Holds $8.4M in cash and cash equivalents as of 09/30/2025, with no debt and a clean capital structure.
  • Revenue Target Outlook:: Initial revenue guidance of $100K–$200K in Year One hinges on finalizing product designs and customer engagements.
  • Automotive OEM Engagement:: Engaged with six global automakers, including a sixth in early discussions for next-gen high-voltage EV power solutions.

Financial Performance and Guidance

The company's cash burn for the first nine months of 2025 was $7.4 million, up from $6.6 million in the first nine months of 2024. Ideal Power expects fourth-quarter cash burn to be approximately $2.5 to $2.7 million, with a full-year 2025 cash burn of approximately $10 million. The company's cash and cash equivalents stood at $8.4 million as of September 30, 2025, with no debt and a clean capital structure.

Market Opportunities and Competitive Advantage

Ideal Power is seeing a trend towards higher power architectures, particularly in EVs with the adoption of 800-volt main battery systems, which is driving the redesign of overall systems and components like inverters, charging systems, and contactors. As David Somo mentioned, "we're bringing a better solution to the table, which is enabling ultra-low conduction losses, improved power efficiency and power density, and bidirectionality." The company's B-TRAN technology is well-positioned to capitalize on this trend, with opportunities in power switching, EV contactors, battery disconnect units, charging systems, and inverters.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 9900.0%, indicating a high growth trajectory. However, the company's current valuation metrics are extreme, with a P/S Ratio of 1797.66 and an EV/EBITDA of -2.11. The ROE and ROIC are also negative, at -66.48% and -82.25%, respectively. These metrics suggest that the market is pricing in a high level of growth, but also highlight the risks associated with investing in a company with significant losses.

Manufacturing and Supply Chain

The company has two foundries, one in Europe and one in Asia, as well as two packaging houses, one in Asia and one in the US. Tim Burns emphasized that they are in good shape in terms of manufacturing capabilities and are focused on commercializing the technology. The company is also well-positioned to manage and mitigate the impact of future tariff changes, trade policy shifts, and supply chain disruption.

3. NewsRoom

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Financial Analysis: Kone Oyj (OTCMKTS:KNYJY) vs. Ideal Power (NASDAQ:IPWR)

Dec -07

Source: defenseworld.net

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Ideal Power (NASDAQ:IPWR) vs. JNS (OTCMKTS:JNSH) Financial Survey

Nov -30

Source: defenseworld.net

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Fermi may appear ‘too good to be true’, but has competitive advantage, says broker

Nov -19

Source: proactiveinvestors.com

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Ideal Power (NASDAQ:IPWR) Share Price Passes Below 200-Day Moving Average – Time to Sell?

Nov -19

Source: defenseworld.net

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Bookfield takes pick-and-shovels approach to AI with $10bn investment plan

Nov -19

Source: proactiveinvestors.com

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Ideal Power CEO David Somo charts path for B-TRAN commercialization

Nov -18

Source: proactiveinvestors.com

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Nvidia earnings loom: Can the chip giant keep the AI momentum going?

Nov -18

Source: proactiveinvestors.com

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iPhone 17 surge hints at Apple revival in a weakening China smartphone market

Nov -14

Source: proactiveinvestors.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.00%)

6. Segments

Bidirectional Bipolar Junction TRANsistor

Expected Growth: 15.4%

Growing demand for efficient power conversion and bi-directional power flow in renewable energy systems, electric vehicles, and energy storage drives the adoption of BBJT technology, enabling Ideal Power Inc. to capitalize on the increasing need for efficient power management.

7. Detailed Products

Power Conversion Systems (PCS)

Ideal Power's Power Conversion Systems (PCS) are designed to provide efficient and reliable power conversion for a wide range of applications, including renewable energy systems, energy storage systems, and microgrids.

Battery Converters

Ideal Power's Battery Converters are designed to provide efficient and reliable power conversion for energy storage systems, enabling the efficient charging and discharging of batteries.

Grid Resiliency Systems

Ideal Power's Grid Resiliency Systems are designed to provide reliable and efficient power backup and grid stabilization solutions for commercial and industrial applications.

Microgrid Solutions

Ideal Power's Microgrid Solutions are designed to provide reliable and efficient power generation, distribution, and management for remote communities, military bases, and other off-grid applications.

8. Ideal Power Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ideal Power Inc. faces moderate threat from substitutes due to the availability of alternative energy sources.

Bargaining Power Of Customers

Ideal Power Inc. has a diverse customer base, reducing the bargaining power of individual customers.

Bargaining Power Of Suppliers

Ideal Power Inc. relies heavily on a few key suppliers, giving them significant bargaining power.

Threat Of New Entrants

Ideal Power Inc. operates in a highly regulated industry, making it difficult for new entrants to join the market.

Intensity Of Rivalry

Ideal Power Inc. operates in a competitive market, but the intensity of rivalry is mitigated by the company's strong brand reputation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.98%
Debt Cost 3.95%
Equity Weight 98.02%
Equity Cost 9.03%
WACC 8.93%
Leverage 2.02%

11. Quality Control: Ideal Power Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Microvast

A-Score: 4.0/10

Value: 4.8

Growth: 5.6

Quality: 3.2

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

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Dragonfly Energy

A-Score: 3.8/10

Value: 9.4

Growth: 2.9

Quality: 5.5

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

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Plug Power

A-Score: 3.4/10

Value: 7.4

Growth: 1.2

Quality: 3.4

Yield: 0.0

Momentum: 8.0

Volatility: 0.3

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SKYX

A-Score: 3.1/10

Value: 7.0

Growth: 4.0

Quality: 3.0

Yield: 0.0

Momentum: 3.5

Volatility: 1.3

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ESS Tech

A-Score: 2.8/10

Value: 6.0

Growth: 7.2

Quality: 3.3

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

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Ideal Power

A-Score: 2.7/10

Value: 6.4

Growth: 4.1

Quality: 3.4

Yield: 0.0

Momentum: 1.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.49$

Current Price

3.49$

Potential

-0.00%

Expected Cash-Flows