ESS Tech secures $31 million in insider-led funding

WILSONVILLE, Ore. - Energy storage company ESS Tech, Inc. (NYSE:GWH), currently trading at $1.60 and showing weak financial health according to InvestingPro analysis, announced on Friday it has secured $31 million in funding through multiple financing measures to strengthen its cash position.

The funding package includes approximately $0.9 million in short-term loans and warrants from a group led by ESS board members and management, a $0.8 million production tax credit transaction with an SB Energy affiliate, a $4 million equipment sale-leaseback transaction with a U.S. strategic partner, and a Standby Equity Purchase Agreement allowing ESS to sell up to $25 million in common equity over three years. This funding comes at a crucial time, as InvestingPro data shows the company has been quickly burning through cash, with significant negative free cash flow of -$78.65 million in the last twelve months.

The company also reported securing its first 8 MWh Energy Base order, aligning with its February strategic shift toward 10+ hour energy storage products. ESS has implemented operational streamlining that reduced monthly cash burn by approximately 80% in June compared to the monthly average for the first five months of 2025.

Preliminary unaudited second-quarter results show nearly 300% revenue increase compared to the first quarter, with a 22% decrease in cost of revenue and a 37% decrease in operating expenses. The company also reported a 43% improvement in net loss and a 49% improvement in adjusted EBITDA.

"This funding helps to strengthen our cash position to allow us to focus on the completion of key Energy Base contracting opportunities and to secure our broader capital raise," said Kelly Goodman, Interim Chief Executive Officer, in the press release.

ESS manufactures iron flow long-duration energy storage systems using earth-abundant materials including iron, salt and water. The company reports its technology can deliver over 10 hours of energy capacity for commercial and utility-scale applications.

In other recent news, ESS Tech, Inc. reported steady revenue of $600,000 for the first quarter of 2025, highlighting ongoing financial challenges with a negative adjusted EBITDA of $15 million. The company has successfully secured capital to maintain operations at its Wilsonville facility, despite facing potential shutdowns due to financing difficulties. ESS Tech has also completed the sale of four Energy Warehouses and plans to sell Production Tax Credits within the current quarter. The company is actively pursuing further financing and has announced ongoing discussions with potential capital providers to support its business plan. ESS Tech’s strategic shift towards energy-based solutions includes launching the Energy Base product and securing a 50 MWh pilot project. In addition, the company has issued WARN Act notices, indicating a potential site closure if financing is not obtained by May 30, 2025. ESS Tech is engaged in contract negotiations with a major U.S. utility and continues to explore strategic partnerships, including collaborations with Honeywell.

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