Ess Tech (GWH) investor relations material

Executive summary

• Achieved key technology validation milestones, including independent validation at Burbank Water and Power and commissioning at Turlock Irrigation District, and advanced commercial opportunities with Project New Horizon (Salt River Project & Google), a $9.9M Air Force contract, and a strategic partnership with Alsym Energy.

• Acquired VoltStorage's intellectual property and assets, strengthening the technology platform.

• Leadership team refreshed, including new CEO, CFO, Chief Strategy Officer, and Chief Commercial Officer appointments to enhance governance and execution.

• Revenue for Q1 2026 declined sharply as legacy contracts wound down and new product ramp-up continued.

• Focused on scaling the Energy Base product, cost reduction initiatives, and expanding into short and medium duration battery storage to broaden the addressable market.

Financial highlights

• Q1 2026 revenue was $128,000, down from $599,000 year-over-year due to fewer equipment deliveries during the transition to the Energy Base product.

• Net loss improved 12% to $15.9 million from $18 million in Q1 2025; net loss per share improved to $(0.54) from $(1.50) year-over-year.

• Adjusted EBITDA loss improved 31% to $10.3 million from $15 million year-over-year.

• Operating expenses decreased 33% to $6.7 million, driven by cost discipline and reductions in sales, marketing, and G&A.

• Ended Q1 2026 with $15.5 million in cash and $6 million in short-term investments, totaling $21.5 million in liquidity.

Outlook and guidance

• Focus remains on execution, capital discipline, and scalable commercial opportunities, with manufacturing for Project New Horizon expected to begin in 2026 and delivery targeted for December 2027.

• Roadmap includes commissioning a 200 kW system in Q3 2026 and delivering an 800 kW 10-hour client system in H1 2027.

• Revenue growth is expected to depend on successful commercialization of the Energy Base product and execution of cost reduction strategies.

• Legislative changes (IRA, OBBB) and tax credits are expected to benefit future margins, but regulatory uncertainty may impact demand.