- ESS Tech, Inc. (GWH, Financial) secures a $31 million insider-led funding package to support its strategic shift.
- The company reports a nearly 300% increase in Q2 2025 revenue compared to Q1 2025.
- ESS achieves an 80% reduction in monthly cash burn as part of its operational streamlining efforts.
ESS Tech, Inc. (GWH), a pioneer in iron flow long-duration energy storage systems, announced securing a $31 million insider-led funding arrangement. This comprehensive package includes approximately $0.9 million in short-term loans and warrants from a board-led syndicate, a $0.8 million production tax credit transaction with SB Energy, and a $4 million equipment sale leaseback agreement. Furthermore, a Standby Equity Purchase Agreement with YA II PN, LTD allows ESS to sell up to $25 million of common equity over three years, pending customary limitations.
The funding comes as ESS secures its first Energy Base order for an 8 MWh project, reflecting its strategic shift to a 10+ hour product. This initiative, announced in February, is part of ESS's broader efforts to optimize operations, which have led to an 80% reduction in monthly cash burn by June 2025. Preliminary financial results for Q2 2025 indicate a robust performance with a nearly 300% increase in revenue, a 22% decrease in the cost of revenue, a 37% decline in operating expenses, a 43% improvement in net loss, and a 49% enhancement in adjusted EBITDA.
Kelly Goodman, Interim CEO, expressed confidence in these fiscal measures to bolster ESS's cash position and focus on pivotal Energy Base contracts. The funding reinforces the momentum behind ESS's proprietary battery technology, showcasing extended durations of 12.2 hours at rated power and 17.8 hours at reduced power. This positions the firm to meet growing energy reliability and resilience needs, leveraging its U.S.-manufactured, environmentally safe energy storage solutions.
