Ideal Power Inc. is dedicated to the development and market introduction of its proprietary B-TRAN technology, an advanced bi-directional bipolar junction transistor ...
Ideal Power Inc. is a technology company focused on the development and market introduction of its proprietary B-TRAN® (Bi-directional Bipolar Junction TRANsistor) solid-state switch. Founded in 2007 and headquartered in Austin, Texas, the company was initially named Ideal Power Converters Inc. before changing to its current name in 2013. B-TRAN® ...Ideal Power Inc. is a technology company focused on the development and market introduction of its proprietary B-TRAN® (Bi-directional Bipolar Junction TRANsistor) solid-state switch. Founded in 2007 and headquartered in Austin, Texas, the company was initially named Ideal Power Converters Inc. before changing to its current name in 2013. B-TRAN® is a bidirectional semiconductor power switch designed to replace traditional power switches in applications such as electric vehicles (EVs), renewable energy systems (solar and wind), energy storage, motor drives, and solid-state circuit breakers. The technology offers significant advantages including reduced conduction losses, simplified drive circuits, and lower system costs, which are critical for improving the efficiency and performance of modern power electronics.
The company generates revenue through licensing its B-TRAN® technology, prototyping services, and potential future royalty streams from manufacturing partners. As a development-stage company with limited revenue (reported revenue of approximately $37,700 for 2024), Ideal Power's financial performance shows a focus on R&D and commercialization efforts. Key financial metrics include a market capitalization around $69 million (as of late 2025/early 2026), a price-to-book ratio of about 2.63, and negative operating margins due to significant investment in research and development (R&D expenses exceeding 250% of revenue) and sales, general, and administrative (SG&A) costs. The company currently has a strong cash position relative to its market cap, with cash per share around $1.47 and a current ratio above 11, indicating it can fund operations for the near term.
Key leadership includes CEO David Somo, who assumed the role in November 2025, succeeding Dan Brdar, who had led the company through much of its growth. Other executives include CFO Tim Burns and Chief Commercial Officer Mark Russell. The company is headquartered in Austin, Texas, and has a small team of about 17 full-time employees, typical for an innovation-driven startup.
In 2025, Ideal Power made significant progress with product development, including the introduction of its B-TRAN® devices to potential customers and strategic partnerships, though full commercialization is still in progress. The company's value proposition lies in its strong patent portfolio and the potential for its technology to disrupt existing power semiconductor markets. Ideal Power faces competition from established players like Infineon, ON Semiconductor, and STMicroelectronics, but differentiates itself through its focus on bidirectional switching and cost-effectiveness. Looking ahead, the company aims to secure additional partnerships and licensing agreements to scale up production and generate sustainable revenue, positioning itself for growth in the rapidly expanding market for efficient power conversion solutions.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$37728
-56.1%
—
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-10.6M
-1.5%
+6.0%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
-60.1%
-601.1%
—
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-28979.0%
-125.2%
—
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-28038.6%
-131.5%
—
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-9.3M
-0.1%
-12.4%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-24530.7%
-128.2%
—
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
5.1%
+88.1%
-60.6%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
6.72x
-76.9%
+148.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning, ladies and gentlemen, and welcome to the Ideal Power Second Quarter 26 results conference call. At this time, all participants are in a listen-only mode. At the end of management's remarks, there will be a question-and-answer session. Investors can submit their questions anytime within the meeting webcast by typing them into the Q&A button on the left side of your viewing screen. Analysts who publish research may ask questions on the phone line. For analysts to ask questions on the phone line, please press 1 on your phone keypad. As a reminder, this event is being recorded. I would now like to turn the conference over to Jeff Christensen. Please go ahead.
Jeff Christensen: Thank you, Jenny, and good morning, everyone. Thank you for joining Ideal Power's second quarter 26 results conference call. On the call with me are David Somo, President and Chief Executive Officer and Timothy W. Burns, chief financial officer. Ideal Power's second quarter 26 financial results press release is available on the company's website at idealpower.com. Before we begin, I would like to remind everyone that a number of statements on this call are forward looking statements. All statements on this call that are based on historical fact are that are not based on historical fact are forward-looking statements. While management has based any forward-looking statements on its current expectations, The information which such expectations were based on may change. These forward-looking statements rely on a number of assumptions concerning future events, and are subject to a number of risks, uncertainties and other factors. Many of which are outside the company's control. That could cause actual results to materially differ from such statements. Please refer to the company's SEC filings for some of the associated risks, uncertainties and other factors. We would also refer you to Ideal Power's website for more supporting company information. Now I would like to turn the call over to Ideal Power's president and chief executive officer, David.
David Somo: Thank you, Jeff, and thank you to everyone joining us today. I will begin with an update on our commercial progress from the start of the second quarter. Then Tim will review our financial results. And after our remarks, we look forward to your questions. Let me start with our lead Asia customer. We are finalizing our low current solid-state circuit breaker or SSCB prototype development for shipment to the customer later this month for their internal testing. E Tran enabled SSCB prototypes are expected to be available from this customer for their 800 volt AI data center and energy grid customers in the fourth quarter of 26. With initial low volume orders to support the prototype builds, also expected in the fourth quarter. Beyond that initial project and in order of priority, we are engaged with this customer on 2 additional projects. 1 for a medium current SSCB designed for 800 volt DC data centers …
