Q2 2026 SES AI Corp Earnings Call Transcript
Key Points
- Q2 revenue grew by more than 40% year-over-year, with gross margin improving from 18% to over 22%.
- Achieved first-time revenue contribution across all product lines: ESS, drone cells, materials, and Molecular Universe.
- Secured Sol-Ark certification for UZ's residential batteries, positioning SES AI Corp (SES) among only a few certified competitors in the US market.
- Expect to start producing 1 million NDAA-compliant cells per year in Korea, with strong demand already exceeding capacity and orders extending into 2028.
- Released Molecular Universe MU-3.0, an advanced AI platform for materials discovery, with first Search-in-a-Box order shipped and materials entering pilot commercial deployment.
- Q2 revenue declined sequentially from $6.7 million in Q1 to $5.1 million, and net loss widened to $17.8 million.
- Operating expenses increased sequentially due to a bad debt provision related to a legacy EV service contract.
- Non-GAAP net loss widened sequentially, driven by lower revenue and the bad debt provision.
- The company faces significant capacity constraints, with current 1 million cell capacity insufficient to meet demand, potentially delaying orders to 2028.
- Management acknowledged that many investors are underestimating Molecular Universe's near-term monetization potential, indicating uncertainty in revenue contribution.
Thank you. Hello, everyone. Thank you for joining us and welcome to the SES AI second quarter earnings release and call. After today's prepared remarks, we will host a question and answer session. (Operator Instructions)
I will now hand the conference over to Kyle Pilkington, Chief Legal Officer. Kyle, please go ahead.
Hello, everyone, and welcome to our conference call covering our second quarter 2026 results. Joining me today are Qichao Hu, Founder and Chief Executive Officer; and Ray Liu, Chief Financial Officer. We issued our shareholder letter just after 4:00 PM today, which provides a business update as well as our financial results. You will find a press release with a link to our shareholder letter and todayâs conference call webcast in the investor relations section of our website at ses.ai.
Before we get started, this is a reminder that the discussion today may contain forward-looking information or forward-looking statements within the meaning of applicable securities
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