ESS Tech, Inc.

Second-quarter 2026 revenue was $73,000 versus $2.4 million in the prior-year period. Cost of revenue was $7.5 million in both periods, producing a gross loss of $7.4 million versus $5.1 million a year ago. Operating expenses rose 19% to $7.7 million from $6.5 million, and loss from operations was $15.1 million versus $11.6 million last year. Net loss was $15.6 million, or $0.46 per share, compared with $11.1 million, or $0.90 per share, a year ago. Adjusted EBITDA was a loss of $7.9 million versus a loss of $7.8 million in the prior year period. For the first half of 2026, operating expenses declined 12% year-over-year to $14.5 million, loss per share improved 58% to $1, and net cash used in operating activities declined 27% to $22.4 million. Quarter-end unrestricted cash and cash equivalents were $10.8 million, and ESS said it had about $5.6 million in cash, cash equivalents and short-term investments as of July 31, 2026. Management did not provide formal next-quarter or full-year revenue/EPS guidance; instead, it said Bridge market rollout has begun, the first full-scale Bridge operating in-house is targeted toward the end of 2026, the Juniper project is targeted for commercial operation in 2027, and a definitive agreement on the proposed business combination is expected by the end of September with a potential close before year-end.

Drew Buckley framed the quarter as an inflection point driven by ESS’ move into sodium-ion. He said the company now has two platforms, Bridge for short- and medium-duration storage and Energy Base for long-duration storage, and emphasized that early sodium-ion demand is coming from AI/data centers, utilities, and critical infrastructure. His tone was optimistic and strategic, but he repeatedly stressed that the opportunities are still early-stage and unconverted.

Kate Suhadolnik focused on the financial reset and liquidity discipline. She said revenue fell as legacy contracts wound down, cost of revenue was flat at $7.5 million due to fixed manufacturing overhead and underutilized Wilsonville capacity, and operating expenses rose because of a $1.2 million increase in G&A from legal expenses and an $800,000 increase in R&D. She also highlighted first-half improvements: operating expenses down 12% to $14.5 million, operating cash burn down 27% to $22.4 million, and debt paydown of $37 million out of the original $40 million Yorkville note. She was direct about liquidity, noting $10.8 million of unrestricted cash at quarter end and about $5.6 million of cash, cash equivalents and short-term investments as of July 31, while stating the company is pursuing financing alternatives and that substantial doubt about going concern remains in the 10-Q.

Analysts pressed management on the proposed business combination, the sodium-ion pipeline, and the company’s cost structure. Drew said the company expects a definitive agreement by the end of September and a potential close by year-end, and that ESS expects to be self-funded in the near future as expenses and cash burn have come down. On the pipeline, he said the mix is roughly between utilities and AI/data centers, the opportunities developed quickly after the Alsym LOI, and they are still early-stage rather than contracted revenue. On costs, Kate said the Q2 expense increase was driven mainly by nonrecurring legal contingency items and added that current cost of revenue reflects fixed overhead and low volume at Wilsonville, not Bridge’s future unit economics.