Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 13, 2026 · Beat 3 of last 6 quarters
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Ideal Power's progress on SSCB prototypes and the growing sales funnel underscore the accelerating demand for solid-state circuit protection in 800-volt DC AI data center architectures. The company's co-development with an industry partner for a U.S. hyperscaler evaluation tied to NVIDIA's Rubin Ultra power system highlights a key supply chain node for the AI infrastructure buildout. The new foundry agreement and industrial qualification timeline position Ideal Power to support the expected rollout of 800-volt DC power systems starting in 2027.
Ideal Power reported modest Q2 2026 revenue of $5,800 and a net loss of $3.4 million, with cash burn of $2.5 million. The company finalized a long-term supply agreement with an automotive-qualified Asian foundry (not China) and achieved functional first silicon. It delivered a second set of Gen 2 B-TRAN samples to Stellantis, with the next project milestone scheduled for Q4 2026, and is finalizing low-current SSCB prototypes for its lead Asia customer, with initial low-volume orders expected in Q4 2026. The sales funnel grew to over $400 million, and the company raised $27.7 million net in a May offering, ending the quarter with $41.3 million in cash.
Management reiterated a focus on converting the growing sales funnel into design wins and production orders, with near-term revenue expected to remain modest as customers progress through evaluation and qualification. They guided Q3 2026 cash burn to $2.7M–$2.9M and full-year 2026 cash burn to $10.3M–$10.5M, up from $9.6M in 2025 due to hiring. They plan to begin industrial (JEDEC) qualification in Q3 2026 and complete it in Q4, while automotive (AECQ) qualification will be aligned with customer timelines and is not expected to affect the Stellantis opportunity. The company expects 800-volt DC AI data center architectures to start rolling out in the second half of 2027, driving demand for SSCBs, and they are targeting gross margins of 40%+ at scale supported by the new foundry agreement.
“When people picture the AI boom, they think graphics chips, processors and servers. But the bottleneck is increasingly power, getting it to the data center in distributing and managing it once there.”
on AI data center power bottleneck
“We are already seeing traction as one of our distribution partners has placed its first stocking order for these SSCB RDKs for delivery in the coming weeks and multiple customers have requested access to our new RDKs.”
on SSCB reference design kit traction
“So from my perspective, it's good housekeeping. So our prior shelf was expiring or it expired and we wanted to put up a shelf. We have no intention on raising capital right now.”
on Shelf registration
Are you partnered with other component makers? And if one hyperscaler is doing it, do we think all of them will start to do it?
David Somo explained that hyperscalers have different levels of involvement, and the opportunity is to deliver a circuit protection solution with intelligence that can be integrated into their power distribution systems. He noted that a system-level approach is more relevant than just a B-TRAN device for hyperscaler evaluation.
What do you think the evaluation period is for the hyperscaler opportunity?
David Somo said it's difficult to call, but for those looking to be on the front end of the 800-volt DC transition starting in the second half of next year, the evaluation timeline would need to align with that schedule.
How much was getting the capacity agreement contracted part of satisfying sales conversations?
Tim Burns said the new foundry agreement supports long-term scaling and, more importantly, provides a cost structure that supports targeted gross margins of 40%+. He noted it also gives customers confidence in supply capability even if volumes grow rapidly.