SES AI (SES) Q4 2025 earnings summary

Executive summary

• Achieved full year 2025 revenue of $21 million, up nearly tenfold from 2024, driven by final service contributions from Honda and Hyundai and initial revenue from UZ Energy acquisition.

• Three revenue-generating business units—ESS, drones, and materials—were established, with ESS as the largest near-term driver and all units expected to contribute in 2026.

• Significant progress in the AI-driven Molecular Universe platform, enabling six materials breakthroughs tested by over 40 customers and supporting all business units.

• Strategic focus on a CapEx-light business model and disciplined cost management.

• Manufacturing capacity is being shifted to drone form factors, with expansion plans in Southeast Asia and compliance with defense regulations.

Financial highlights

• Q4 2025 revenue was $4.6 million, up 124% year-over-year; full year revenue reached $21 million, in line with guidance.

• Q4 GAAP gross margin was 11.3%; full year GAAP gross margin was 53.8%.

• Q4 GAAP operating expenses decreased 40% year-over-year to $18.2 million; full year GAAP operating expenses down 15% to $93.9 million.

• Adjusted EBITDA loss improved 23% year-over-year to -$62.6 million for 2025.

• GAAP net loss for 2025 was $73 million ($0.22/share), improved from $100.2 million ($0.31/share) in 2024.

• Ended 2025 with $200 million in liquidity, providing runway into 2028.

Outlook and guidance

• 2026 revenue guidance: $30–$35 million, representing 43–67% growth over 2025, with contributions expected from all business units.

• ESS expected to contribute ~65% of 2026 revenue; drones and materials to ramp in the second half.

• Consolidated gross margin expected around 15% in 2026, with potential for improvement as scale increases.

• Operating expenses projected to decrease by 15% in 2026, with CapEx remaining in single-digit millions.

• Focus remains on a CapEx-light business model to drive growth in ESS, drones, and materials.