ESS Tech, Inc. (GWH): Business Model Canvas [Dec-2025 Updated]

You're digging into ESS Tech, Inc. (GWH) right now, trying to map the real mechanics of their iron flow battery pivot, especially when you see the Q3 2025 financials-only $200,000 in GAAP revenue against a tight $3.5 million cash position. That's the near-term risk staring us down. But the value proposition is clear: they are selling 10+ hour Long-Duration Energy Storage using earth-abundant materials, aiming for that 98% domestic content adder. The entire business model hinges on converting that proprietary IP and US manufacturing into booked contracts, like the one with Salt River Project. This is where the rubber meets the road. Dive into the full canvas below to see how ESS Tech, Inc. (GWH) plans to fund this critical transition.

ESS Tech, Inc. (GWH) - Canvas Business Model: Key Partnerships

You're looking at the alliances ESS Tech, Inc. (GWH) has locked in to move its Energy Base platform from pilot to commercial scale. These aren't just handshake deals; they represent tangible commitments and capital access points as of late 2025.

The utility sector is definitely validating the iron flow chemistry. The biggest anchor here is the Tier 1 utility partnership with Salt River Project (SRP) in Arizona. This isn't a small order; it's a 5 MW/50 MWh Energy Base pilot project, which they call Project New Horizon, under a ten-year energy storage agreement. Design is already underway, with manufacturing slated to kick off in 2026 for a targeted completion by December 2027. This project is a crucial step for ESS Tech, Inc. to prove out the next-generation platform in a real-world setting.

Strategic customer engagement is also showing up in the financials, not just in future pipeline talk. For instance, ESS Tech, Inc. secured a production tax credit transaction with an affiliate of SB Energy for approximately $0.8 million as part of a broader funding package announced in July. Regarding Portland General Electric (PGE), ESS Tech, Inc. previously completed construction and initial testing of two Energy Center™ units for them in December. It's important to note that PGE's massive recent additions of 475 MW/1.9 GWh capacity are primarily four-hour lithium-ion systems, but the prior collaboration on the 3 MWh Energy Center was a key deployment near ESS Tech, Inc.'s factory.

Access to capital is a partnership in itself, and ESS Tech, Inc. has been busy shoring up its balance sheet. They announced plans to launch a $75 million at-the-market (ATM) equity program, which they view as a flexible tool, not a necessity. This ATM syndicate includes Yorkville, BMO, Canaccord, Needham, and Stifel. Furthermore, they closed a $40 million financing with Yorkville Advisors Global, L.P., of which $15 million has already been repaid. This, combined with the completion of a $25 million Standby Equity Purchase Agreement (SEPA), shows a multi-pronged approach to funding execution.

The core of the technology itself relies on specific material partners, even if they aren't named in the latest filings. The iron flow battery chemistry is fundamentally based on iron, salt, and water. The company emphasizes that its systems are Made in America with over 90% domestic content, which speaks directly to the sourcing strategy for these base materials.

Execution on large projects requires specialized outside help, too. For the SRP pilot, ESS Tech, Inc. will be collaborating with the Electric Power Research Institute (EPRI) to monitor performance data. Here's a quick look at the key financial and project partners as of the Q3 2025 reporting:

The focus for the next 18 months is squarely on execution-building, delivering, and validating performance in the field, especially for the Energy Base platform.

• Pilot Project Capacity: 5 MW / 50 MWh
• PGE Deployment: Two Energy Center™ units completed testing
• Capital Repaid from Yorkville Note: $15 million
• SEPA Completed: $25 million
• Targeted Manufacturing Start for SRP Project: 2026

Also, management is planning an Investor Day in January 2026 to give a deeper look at the roadmap.

ESS Tech, Inc. (GWH) - Canvas Business Model: Key Activities

Manufacturing the Energy Base and Iron Core systems in the US.

ESS Tech, Inc. is commissioning a second automated battery manufacturing line, labeled 'Line 2,' at its Wilsonville facility to improve capital efficiency and shift production toward higher-margin components. This expansion is projected to triple production capacity to over 1 GWh of battery capacity annually. The next-generation Energy Base platform is designed and manufactured in America.

R&D for iron flow battery performance (e.g., 12.2-17.8 hour duration).

Research and development spending in the first quarter of 2025 was reported at $2.3 million (non-GAAP) or $2,478 thousand (GAAP). This investment supports cost-out initiatives and product development. Management reported achieving a material leap in core stack technology, enabling 12 to 17-hour duration, which accelerated the cost/performance roadmap by 18 months.

Disciplined cost control and operational efficiency to reduce cash burn.

Management emphasized a focus on tightening the cost base throughout 2025. The operating cash burn rate decreased by approximately 80% on a monthly basis in June 2025 compared to the Q1 average. For the third quarter of 2025, GAAP cost of revenues totaled $4.9 million, and operating expenses were $5.1 million. The net loss for Q3 2025 was $10.4 million, or $0.73 per share.

• Q2 2025 Gross loss improved by 37% to $5.1 million.
• Q2 2025 operating expenses decreased by 45% to $6.5 million.
• Q3 2025 Net Loss

Securing and executing on large utility and commercial contracts.

The strategic pivot is centered on the Energy Base platform, with 100% of the active opportunity pipeline focused on this product. In the third quarter of 2025, ESS Tech announced a 50 MWh Energy Base pilot project with Salt River Project (SRP), marking the first large-scale deployment of the next-generation platform. The SRP project size is 5 MW, 50 MWh, and management sees follow-on opportunities of 100 MW or 200 MW.

In the first quarter of 2025, the company submitted proposals totaling approximately 1.2 GWh, valued at $400 million, over the preceding two quarters.

Capital raising and liquidity management to fund operations.

The company secured up to $31 million in new capital in July 2025, which included completing the $25 million Standby Equity Purchase Agreement (SEPA). In the third quarter, ESS Tech closed a $40 million financing with Yorkville Advisors Global and subsequently repaid $15 million of the $30 million drawn under the promissory note. The current ratio was reported at 0.49. To further strengthen flexibility, ESS Tech announced plans to launch a $75 million at-the-market (ATM) equity program.

• Cash and cash equivalents at the end of Q2 2025 were $0.8 million.
• Cash, cash equivalents, and short-term investments at the end of Q3 2025 were $3.5 million (excluding post-quarter financing proceeds).
• Yorkville financing closed in Q3 2025: $40 million.
• Planned ATM Program Size: $75 million.

ESS Tech, Inc. (GWH) - Canvas Business Model: Key Resources

You're looking at the core assets ESS Tech, Inc. (GWH) relies on to execute its strategy as of late 2025. These aren't just line items; they are the tangible and intangible foundations supporting their pivot to the Energy Base platform.

Proprietary Technology and Intellectual Property

The central asset is the proprietary iron flow battery technology, centered around the Iron Core modules. This technology is specifically designed for long-duration energy storage (LDES), targeting durations of 10-plus hours, which is a key differentiator from shorter-duration chemistries.

The next-generation platform, the Energy Base, utilizes this Iron Core technology and is engineered for gigawatt-hour scale, capable of providing up to 22 hours of energy storage. The company emphasizes the longevity of its system; ESS battery systems are designed to operate for 25 years, contrasting with the 7 to 10 years typical for conventional batteries. Furthermore, the battery modules are expected to experience zero degradation over 20,000 cycles.

US-Based Manufacturing and Raw Material Advantage

ESS Tech, Inc. manufactures 100% of its products in the United States, with its facility located in Wilsonville, Oregon. The company has been actively scaling this operation. An Export-Import Bank of the United States (EXIM) investment of $50 million was approved to support the expansion, with the goal to triple annual production capacity at the Wilsonville plant. The commissioning of a second automated battery manufacturing line, 'Line 2,' was expected to be online in the second half of 2025, improving capital efficiency.

A significant advantage is the reliance on earth-abundant, low-cost raw materials: iron, salt, and water. This contrasts sharply with supply chains dependent on constrained or geopolitically sensitive materials.

Financial Position and Capital Access

As of the end of the third quarter of 2025, ESS Tech, Inc. reported cash, cash equivalents, and short-term investments of $3.5 million. It's important to note this figure excludes the $30 million in proceeds from the Yorkville financing that closed after the quarter-end. The company also announced plans to launch a $75 million at-the-market (ATM) equity program to provide flexible access to capital.

The ability to monetize tax incentives is a distinct resource. ESS Tech, Inc. closed orders for the sale of four energy warehouses as part of its pivot strategy, planning to sell the associated Advanced Manufacturing Production Tax Credits (PTC) from those equipment sales in the second quarter of 2025. More recently, in July 2025, the company executed a PTC transaction with an affiliate of SB Energy for approximately $0.8 million as part of a broader funding package. The Section 45X Advanced Manufacturing Production Credit itself was a major market component, making up 26.9% of the 2024 tax credit market.

Here's a quick look at the core technology specifications versus recent financial and operational milestones:

The operational readiness is tied to the Wilsonville facility commissioning Line 2, which was expected to come online in the second half of 2025 to support the new product line.

The key resources ESS Tech, Inc. is deploying include:

• Proprietary Iron Core technology and IP protection.
• The Wilsonville, Oregon manufacturing plant, targeting triple capacity.
• Use of iron, salt, and water as primary inputs.
• A capital base bolstered by recent financings totaling over $30 million post-Q3, plus the planned $75 million ATM program.
• The realized value from Advanced Manufacturing Production Tax Credits, including a recent $0.8 million transaction.

Finance: draft 13-week cash view by Friday.

ESS Tech, Inc. (GWH) - Canvas Business Model: Value Propositions

You're looking at the core reasons why a utility or data center operator would choose ESS Tech, Inc. (GWH) over a lithium-ion alternative, and it boils down to physics and long-term economics. The value proposition is built around solving the intermittency problem for renewables with a system that lasts longer and is inherently safer.

The primary offering is Long-Duration Energy Storage (LDES). ESS Tech, Inc. is focused on delivering capacity that goes well beyond the typical four-hour window. Specifically, their latest Energy Base product is engineered to provide up to 22 hours of flexible energy capacity, which is critical for achieving true green baseload power from solar and wind assets. This extended duration capability is what lets them compete for the largest, most complex grid-scale needs.

Safety and sustainability are baked into the chemistry. You don't have to worry about thermal runaway here. The iron flow battery chemistry uses earth-abundant materials-primarily iron, salt, and water-making the solution inherently non-flammable and non-toxic. This translates directly into easier permitting and lower insurance costs for project developers, which is a real, tangible financial benefit when siting large assets.

Longevity is perhaps the most compelling financial argument against the incumbent technology. ESS Tech, Inc. designs its systems for a 25+ year useful life. Furthermore, the technology supports unlimited cycling with zero capacity degradation over that design life. Here's the quick math: if a lithium-ion system needs replacement or significant augmentation after 10 to 15 years, the total cost of ownership for ESS Tech, Inc. drops dramatically over the asset's life, even if the initial upfront cost is higher. What this estimate hides is the ongoing cost of managing capacity fade in competing chemistries.

The domestic content aspect is a direct play on U.S. policy incentives. The Energy Base platform is designed to leverage the Inflation Reduction Act (IRA) tax credits. ESS Tech, Inc. claims its system utilizes approximately 98% domestically sourced components, which positions projects to qualify for the 10 percent bonus Investment Tax Credit (ITC) adder, significantly improving project economics. This focus on U.S. manufacturing is a key differentiator in a policy-driven market.

Finally, the long-term cost-effectiveness is driven by durability and operational flexibility. Because of the unlimited cycling capability, operating costs are lower as there is no capacity loss to account for. The company is actively bidding projects for delivery starting in 2027 and 2028 with pricing expectations trending towards $200 per kilowatt-hour (kWh) or less on a fully installed cost basis, aiming to be competitive with lithium-ion over the long haul. The value proposition centers on these key attributes:

• Duration: Up to 22 hours of energy storage capacity.
• Cycle Life: Unlimited cycles with zero capacity fade.
• Design Life: A stated 25-year useful life.
• Materials: Uses iron, salt, and water; non-flammable.
• Policy Alignment: Claims 98% U.S.-sourced components for ITC adders.

You can see how these features stack up against a standard energy storage offering in this comparison:

Finance: draft 13-week cash view by Friday.

ESS Tech, Inc. (GWH) - Canvas Business Model: Customer Relationships

You're navigating the complex landscape of utility-scale energy storage procurement, where trust and proven performance are everything. For ESS Tech, Inc. (GWH), the customer relationship strategy is built around deep, consultative engagement with major energy players, moving beyond simple transactions to secure long-term deployment commitments.

Dedicated Account Management and Tier 1 Partnerships

ESS Tech, Inc. focuses its relationship efforts on securing and nurturing partnerships with what management terms Tier 1 customers. This approach is designed to validate the iron flow battery technology in demanding, real-world utility environments. The company has explicitly stated it has built strong relationships with key entities, which serves as a foundation for moving from development into execution.

• Tier 1 customers include SB Energy.
• Tier 1 customers include Honeywell.
• Tier 1 customers include Portland General Electric.
• Tier 1 customers include Sacramento Municipal Utility District.
• The most recent addition to this tier is Salt River Project (SRP).

Direct Engagement for Validation and Co-Development

The relationship with SRP is a prime example of direct, high-touch engagement for validation. This partnership resulted from an RFP issued by SRP in 2024 for Long Duration Energy Storage (LDES) pilots. The resulting agreement is for Project New Horizon, a five megawatt (MW), 50 megawatt-hour (MWh) battery system utilizing ESS Tech's next-generation Energy Base technology. This project is described as the first commercial scale deployment of that platform, which management views as a powerful validation of the technology and the team.

The consultative nature extends to post-deployment monitoring. SRP and ESS Tech will work directly with the Electric Power Research Institute (EPRI) to monitor the project's performance data, ensuring continuous feedback loops for both parties.

High-Touch Sales for Complex, Utility-Scale Systems

The sales process is inherently consultative because the systems being sold are complex, utility-scale assets requiring 10 or more hours of discharge. Since the launch of the Energy Base platform, 100% of active opportunities are centered on this product, with proposal volume continuing to increase. These engagements are characterized as being larger in scale, longer in duration and more strategically aligned with the needs of major utilities, data center developers, and industrial customers. For context on the pipeline activity driving these relationships, ESS Tech reported that proposal submissions totaled approximately 1.2 GWh (or $400 million) over the two quarters leading up to Q1 2025.

Building Durable, Long-Term Relationships

The financial structure of these deals emphasizes durability. The agreement with SRP, for instance, is structured as a ten-year energy storage agreement, indicating a commitment that spans a decade. This focus on long-term agreements is critical for revenue visibility, especially as the company transitions its commercial activity to the Energy Base platform, which management expects to be the foundation going forward.

Here's a snapshot of the scale of engagement and commitment:

Post-Installation Support and Performance Monitoring

The relationship doesn't end at commissioning. ESS Tech's technology is designed for longevity, offering a 25-year life expectancy. The Energy Base system is engineered to deliver 10 hours of discharge with charging times of 10 hours or less. This durability is a key component of the post-installation value proposition, reducing the need for frequent, high-touch support related to component replacement, which is a common issue with shorter-duration lithium-ion systems. The company's focus over the next 18 months is heavily weighted toward execution-specifically, building, delivering, and validating performance in the field to build customer confidence.

ESS Tech, Inc. (GWH) - Canvas Business Model: Channels

The approach ESS Tech, Inc. (GWH) uses to reach its customer segments-utilities, Independent Power Producers (IPPs), and large commercial entities-is multi-faceted, evolving to focus almost entirely on the Energy Base platform.

Direct sales force targeting utilities and large commercial customers.

ESS Tech, Inc. (GWH) deploys a direct sales effort centered on its Energy Base product, which is designed for 10+ hour duration storage. As of late 2025, 100% of active opportunities are centered on this platform. This direct engagement has secured key validation points, such as the announced 50 MWh Energy Base pilot project with Salt River Project (SRP), a major Arizona utility. Furthermore, existing systems with Portland General Electric (PGE) continued daily cycling, having transacted another 158 MWh of energy in the first quarter of fiscal year 2025 alone.

Strategic partners like Honeywell for broader market reach and integration.

Strategic collaborations are used to support the supply chain, design integration, and market penetration. Honeywell is specifically noted as a partner in this regard. Other key relationships that serve as channel validation include the work with Salt River Project and Google, which is funding part of the pilot project. ESS Tech, Inc. (GWH) has also built relationships with entities like SB Energy, Portland General Electric, and Sacramento Municipal Utility District (SMUD).

Direct contracting with Independent Power Producers (IPPs) and developers.

ESS Tech, Inc. (GWH) directly contracts with project developers and IPPs, often exploring new revenue models to smooth revenue projections. Management has indicated exploring monthly payment structures like Power Purchase Agreements (PPAs) or tolling agreements to receive revenue ratably. The company secured its first Energy Base order for an 8 MWh project in July 2025, consistent with the strategic shift to the 10+ hour product.

Requests for Proposals (RFPs) and proposal submissions (pipeline over 1.1 GWh).

The pipeline health indicates significant market interest, even as the company transitions its product focus. Proposal submissions totaled approximately 1.2 GWh, representing about $400 million in activity, over the last two quarters leading up to the first quarter of fiscal year 2025. The company also noted over 8 GWh of inquiries across the US and Europe, plus over 30 informal inquiries representing roughly 1.6 GWh.

Here's a quick look at some of the recent customer engagements and pipeline metrics:

The company's focus on converting this pipeline into signed contracts is paramount, especially given the Q3 2025 revenue was reported at only $200,000, reflecting the transition away from older product lines.

• Direct sales focus is now exclusively on the Energy Base platform.
• The company is exploring project-level capital and monthly payment structures.
• Discussions continue with potential capital providers to support closing key customer contracts.
• The global fleet of ESS Tech, Inc. (GWH) systems is nearing 2.5 GWh of energy transacted cumulatively.

ESS Tech, Inc. (GWH) - Canvas Business Model: Customer Segments

You're looking at the customer base for ESS Tech, Inc. (GWH) as of late 2025, and it's clear the focus has sharpened around long-duration needs. The company's strategy, pivoting to the Energy Base platform, is directly targeting customers who need more than just a few hours of storage; they need true resiliency.

Utility-scale grid operators seeking long-duration resiliency (e.g., SRP)

This segment is your anchor right now, representing the most concrete, validated win for the new Energy Base product. The agreement with Salt River Project (SRP) is the prime example here. You're looking at a 5 MW, 50 MWh pilot project, which is designed to deliver 10 hours of discharge capacity. This deal is structured under a ten-year energy storage agreement, showing the long-term commitment utilities are willing to make for this duration. To put SRP's need in context, they are actively working to at least double their generating resources over the next 10 years and already manage nearly 1,300 MW of storage, including 1,100 MW of battery storage. This validation is key; ESS Tech was selected from more than 10 competitors for this specific project.

Independent Power Producers (IPPs) and renewable energy developers

For ESS Tech, Inc., the engagement with IPPs and developers often mirrors the utility segment. Management has confirmed that for Request for Proposal (RFP) activity, the customers are either utilities or they are IPPs acting on behalf of the utility. The Energy Center™ product line, which offers 8+ hours of storage, was explicitly designed to serve utilities, independent power producers, and commercial customers for larger-scale front-of-the-meter applications. The company is actively pursuing project-level capital and exploring revenue models like Power Purchase Agreements (PPAs) or tolling agreements, which directly involve developers and financiers.

Commercial and industrial customers with high energy demands

While the primary focus is utility-scale, the technology is applicable behind the meter for large commercial and industrial users needing reliable, clean power. The Energy Center™ solution is well-suited for addressing a variety of larger-scale behind-the-meter applications. The company's technology uses earth-abundant iron, salt, and water, which appeals to C&I customers prioritizing safety and sustainability over lithium-ion chemistries. The shift to the Energy Base platform, which offers 12+ hour duration, is designed to support the need for green baseload power for decades to come, a requirement that extends beyond pure utility needs.

Digital infrastructure sector, including data centers, needing resilient, clean power

This is an emerging, high-priority area for ESS Tech, Inc. You'll notice a distinction in how they approach this segment; management stated they are not engaged in RFPs behind the meter for data centers, but rather those conversations are handled on a bilateral basis. The market pull is strong, as ESS Tech was recognized by Fortune in 2025 for its commitment to solving tough energy challenges, specifically citing rapidly growing AI data center demand. The company's pipeline reflects this focus; following the Energy Base launch, proposals submitted represented approximately 1.2 GWh (or $400 million) over the last two quarters of the first half of 2025. As of Q2 2025, the new platform was driving a 1.1 GWh proposal pipeline. The first Energy Base order secured was for an 8 MWh project, showing movement toward commercializing this platform for these demanding users.

Here's a quick look at the quantifiable engagement across the pipeline as of late 2025:

The company's entire active opportunity set is now centered on the Energy Base platform. You've got to track the conversion rate on that 1.1 GWh pipeline; that's where the revenue ramp for 2026 will come from.

• The SRP project is a 5 MW / 50 MWh system.
• The Energy Center™ product line is an 8+ hour solution.
• The Energy Base™ product line targets 12+ hour projects.
• The company reported Q3 2025 revenue of $200,000.
• Cash on hand was roughly $30 million as of the Q3 2025 call.

Finance: draft 13-week cash view by Friday.

ESS Tech, Inc. (GWH) - Canvas Business Model: Cost Structure

You're looking at the cost side of the ESS Tech, Inc. (GWH) equation, which is heavily weighted toward scaling production capacity while managing the burn rate during this strategic pivot to the Energy Base platform. The cost structure is defined by significant upfront investment in the physical assets required to build iron flow batteries at scale.

The high fixed costs are centered on the physical footprint and intellectual property development. You have the manufacturing facility in Wilsonville, Oregon, which represents a substantial sunk cost. Furthermore, Research and Development (R&D) is a major fixed component, supporting the continuous improvement of the iron flow technology. For instance, R&D spend in Q1 2025 was reported at $2.3 million, showing the level of investment required to maintain technological leadership and drive down future product costs. This investment is crucial for achieving long-term cost targets, like the goal of pricing the Energy Base near or below $200 per kilowatt-hour (kWh) on a fully installed cost basis for 2027/2028 deliveries.

Variable costs, on the other hand, are tied directly to each unit produced. ESS Tech, Inc.'s core advantage is its chemistry, relying on earth-abundant materials: iron, salt, and water. This avoids the price volatility seen with materials like cobalt and nickel in lithium-ion chemistries. Component sourcing remains a key variable cost, though management is actively pursuing vendor optimization and cost-out initiatives to reduce these per-unit expenses. The company has been making progress on cost reductions, with Q2 2025 cost of revenue showing a 22% decrease compared to Q1 2025, reflecting these early efforts.

Here's a quick look at the key reported expenses from the third quarter of 2025, which really shows where the money went during that period of transition:

The $4.9 million in GAAP cost of revenues for Q3 2025 reflects the revenue mix shift away from legacy products toward the new Energy Base platform. Simultaneously, operating expenses totaled $5.1 million for the quarter, which management pointed to as evidence of their commitment to disciplined cost control. Honestly, keeping OpEx flat while transitioning a product line is a significant achievement in managing the cash burn rate.

Capital expenditure is focused on scaling up the ability to fulfill the growing pipeline, which is now 100% centered on the Energy Base platform. The major planned outlay for the second half of 2025 involves the commissioning of the second automated battery manufacturing line, referred to as Line 2. This expansion is designed to significantly increase throughput, with the goal of tripling annual production capacity to over 1 gigawatt-hour (GWh) of battery capacity annually. This CapEx is being supported by financing structures, including an expected draw down from the Export-Import Bank of the United States (EXIM) facility, which was anticipated to fund production capacity CapEx needs through 2025 and into 2026.

You should keep an eye on these cost drivers as production ramps:

• Manufacturing facility depreciation and overhead costs.
• R&D spend to ensure the Energy Base maintains its cost advantage.
• Raw material procurement efficiency for iron, salt, and water.
• Component sourcing costs for non-battery materials.
• Costs associated with commissioning and ramping up Line 2.

Finance: draft the projected Q4 2025 OpEx variance analysis by next Tuesday.

ESS Tech, Inc. (GWH) - Canvas Business Model: Revenue Streams

You're looking at the revenue generation engine for ESS Tech, Inc. (GWH) as they push through their product transition phase in late 2025. Honestly, the numbers right now reflect that pivot, so you need to look at both the current snapshot and the future intent.

Product sales are currently in a state of flux, moving away from legacy units to the next-generation platform. This transition is the main story in the recent financials.

• Delivery of Energy Base and legacy Energy Center/Warehouse systems.
• Closed orders for the sale of four Energy Warehouses as part of the dual strategy to move existing inventory.
• The Company closed its first Energy Base sale following the platform launch.

The most recent reported revenue clearly shows the impact of this shift. You see the legacy revenue winding down while the new platform ramps up.

Q3 2025 GAAP revenue was reported at $200,000, reflecting product transition. This is a significant drop from the $2.4 million reported in the second quarter of 2025. Some reports cite the quarterly revenue as $0.21 million.

ESS Tech, Inc. is actively pursuing future revenue streams tied to project deployment, specifically looking at recurring revenue models rather than just upfront equipment sales. They are exploring monthly payment structures like Power Purchase Agreements (PPAs) or tolling agreements to smooth out revenue projections and establish a baseline.

Liquidity generation through asset monetization, particularly tax credits, is a key component supporting operations while the Energy Base platform scales. This is a non-recurring but important cash inflow.

The sale of Advanced Manufacturing Production Tax Credits (PTC) is used for liquidity. For example, ESS Tech, Inc. monetized $1.9 million of their 2024 Production Tax Credits in Q1 2025. Furthermore, a PTC transaction for approximately $0.8 million was part of the funding package announced in July 2025.

Service and maintenance contracts are the expected long-term revenue stabilizers once systems are deployed and operational, though specific dollar amounts for this stream as of late 2025 weren't detailed in the immediate earnings reports. The focus is on delivering the 50 MWh pilot project with Salt River Project (SRP) to validate performance and build confidence for future service agreements.

Here's a quick look at the financial actions supporting this revenue transition:

Finance: draft 13-week cash view by Friday.