ESS Tech (NYSE:GWH) Issues Quarterly Earnings Results, Misses Expectations By $0.44 EPS

ESS Tech (NYSE:GWH) issued its quarterly earnings data on Thursday. The company reported ($1.20) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.76) by ($0.44), FiscalAI reports. ESS Tech had a negative net margin of 1,045.28% and a negative return on equity of 1,397.77%. The company had revenue of ($1.59) million for the quarter.

Here are the key takeaways from ESS Tech’s conference call:

• ESS secured landmark commercial deals including a $9.9 million contract with CTC/US Air Force and Project New Horizon with SRP (offtake confirmed by Google); manufacturing is expected to begin in 2026 with delivery targeted for December 2027.
• Financials show meaningful improvement during the FY25 transition: revenue fell to $1.6M as legacy lines wound down, but gross loss narrowed to $27.7M, operating expenses declined 33%, net loss improved 26%, and adjusted EBITDA improved 38%, with management projecting a path to positive EBITDA as Energy Base revenues ramp in 2027.
• Liquidity was stated at a combined $22 million (cash and other liquid assets) after a January 2026 $15M registered direct offering, a $40M Yorkville financing (initial $30M drawn), and an $8.6M ATM raise, but management says additional capital will be needed to support 2027 plans.
• Strategic moves bolster the company: the acquisition of VoltStorage’s IP and assets expands patent coverage and talent, a permanent CFO and a new Chief Commercial Officer were appointed, and leadership changes are positioned to support commercialization of the Energy Base.

ESS Tech Trading Down 4.8%

ESS Tech stock traded down $0.07 on Friday, hitting $1.30. 538,152 shares of the stock traded hands, compared to its average volume of 688,847. ESS Tech has a 1 year low of $0.76 and a 1 year high of $13.87. The firm has a market cap of $30.28 million, a P/E ratio of -0.30 and a beta of 1.46. The business’s fifty day simple moving average is $1.67 and its 200 day simple moving average is $2.32.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of ESS Tech in a research note on Monday, December 29th. Roth Mkm decreased their price target on shares of ESS Tech from $3.50 to $2.50 and set a “buy” rating for the company in a research note on Friday. Finally, Wall Street Zen lowered shares of ESS Tech from a “hold” rating to a “sell” rating in a report on Friday, January 23rd. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $2.50.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. LPL Financial LLC bought a new stake in ESS Tech during the fourth quarter worth about $27,000. Engineers Gate Manager LP bought a new position in shares of ESS Tech during the fourth quarter valued at approximately $31,000. Citadel Advisors LLC purchased a new position in shares of ESS Tech during the third quarter valued at approximately $30,000. XTX Topco Ltd boosted its position in shares of ESS Tech by 137.8% in the 4th quarter. XTX Topco Ltd now owns 49,609 shares of the company’s stock worth $93,000 after purchasing an additional 28,749 shares in the last quarter. Finally, State Street Corp boosted its position in shares of ESS Tech by 188.1% in the 4th quarter. State Street Corp now owns 46,975 shares of the company’s stock worth $88,000 after purchasing an additional 30,671 shares in the last quarter. 46.77% of the stock is owned by hedge funds and other institutional investors.

About ESS Tech

ESS Tech, Inc (NYSE: GWH) is a Portland, Oregon‐based company specializing in long‐duration iron flow battery energy storage solutions. The company’s core business centers on the design, manufacture and deployment of modular battery systems that store electricity using an iron‐chloride electrochemical process. These systems are engineered to support grid operators, utilities, commercial and industrial customers in integrating renewable power, managing peak loads and ensuring reliable back‐up power.

At the heart of ESS Tech’s offering is its “Energy Warehouse,” a containerized flow battery system featuring non‐toxic, fully recyclable materials and a simple architecture that separates energy storage capacity from power output.