Ses Ai Q2 Revenue Matches Estimates
Key Points
GAAP revenue matched analyst estimates at $3.5 million, driven by battery contracts with automotive original equipment manufacturers (OEMs).
GAAP earnings per share (EPS) of $0.07 missed forecasts by $0.09, reflecting ongoing heavy spending and operational losses.
Significant improvement in cash used for operations, down 51% year-over-year.
Ses Ai (NYSE:SES), a developer of advanced batteries and artificial intelligence (AI) platforms for energy storage, reported its second quarter 2025 earnings on August 4, 2025. The most important news was that GAAP revenue met expectations at $3.5 million, primarily from projects with major automakers. While GAAP revenue hit the target, the company’s GAAP earnings per share (EPS) of $0.07 missed forecasts by $0.09. Despite good signs from new product development and a step forward with battery and software offerings, the operational loss and continued research spending kept profitability out of reach. Overall, the quarter showed steady commercial progress, signs of discipline in cash use, and aggressive investments in future-facing technologies -- but it also underlined how far the company remains from turning a profit.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | ($0.07) | ($0.02) | ($0.06) | (16.7%) |
| Revenue (GAAP) | $3.5 million | $3.5 million | $0.0 million | — |
| Net Loss | ($22.7 million) | N/A | ($19.9 million) | (14.1%) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q2 2025 earnings report.
What Ses Ai Does and Where It's Focused
Ses Ai designs and manufactures advanced high-energy batteries. Its technology specializes in lithium-metal and lithium-ion cells with improved energy density, safety, and charging speeds. These batteries are intended for electric vehicles (EVs), drones, urban air mobility (UAM) aircraft, and large-scale energy storage systems.
The company increasingly relies on AI to accelerate battery material development and manufacturing optimization. Recent initiatives focus on moving new battery designs from lab prototypes to commercial production, expanding into energy storage systems, and building software tools to speed up discovery and monitoring of battery health. Key to future success will be commercial contracts and adoption of its “Molecular Universe" AI platform.
Financial and Operational Highlights for the Quarter
Ses Ai recorded GAAP revenue growth, chiefly from contracts to develop AI-enhanced battery materials for automotive OEMs. This marks continued traction for its science and engineering teams, with formal customer-paid projects now underway. GAAP revenue matched the expected $3.5 million, coming entirely from these new business lines versus no recognized GAAP revenue a year ago.
The company generated a gross margin of 74%. Research and development (R&D) expenses increased from $15.1 million a year ago to $19.1 million (GAAP), a 27% rise. This heavy investment in future technology is a central reason the business posted a net loss (GAAP) of $22.7 million, compared to $19.9 million a year ago. Operating losses remain high.
Cash used for operations sharply improved year-over-year. The company used $10.8 million in cash for operations, a 51% decrease year-over-year. The reduction in cash usage was attributed to operational discipline and deploying capital effectively while growing top-line revenue.
Expenses on share repurchases only occurred in July, subsequent to the quarter end.
Progress in Battery Technology, AI, and New Markets
One of the company’s headline achievements was steady progress in advanced battery technology. Research and engineering efforts targeted both lithium-metal and high-silicon lithium-ion cell designs. These batteries promise more power and quicker charging than traditional designs and are tailored for use in electric vehicles and next-generation aerial mobility. The company successfully transitioned its battery samples with major OEM partners from prototype (“A-Sample”) to validation-ready (“B-Sample”) status, a necessary step for any supplier hoping to win volume orders.
Investment in the Molecular Universe platform -- a software system that uses AI to simulate and discover new battery materials -- continued at pace. In the first quarter after its public launch, the tool began trials with over 30 potential enterprise customers. The platform aims to answer scientific and engineering questions faster than traditional research methods, and the latest “Deep Space AI” feature can simulate battery development problems that would take humans years to solve, shrinking them to minutes. Feedback from users focused on the need for ever-more accurate results, pushing product teams to plan a new version offering improved cell-level modeling for release in September or October. Widespread software adoption, however, depends on this technology proving it can solve industry problems no human expert has managed to crack.
Operationally, manufacturing progress for the drone and UAM battery market saw practical steps forward. The company reported it could meet higher order volumes through its upgraded Korea production line and contract manufacturers, with existing production capacity already exceeding current orders. Revenue from these customers is increasing in 2025. This suggests Ses Ai is moving from pure research into real product delivery for non-automotive markets.
Strategically, Ses Ai’s planned acquisition of UZ Energy -- a designer and manufacturer of battery energy storage containers -- gave it a new near-term revenue stream and access to the broader Battery Energy Storage Systems (BESS) market. UZ Energy is projected to contribute approximately $10–15 million in revenue for full year 2025, providing a bridge between the company’s core battery chemistry and real-world grid storage deployments. Pairing Ses Ai’s Molecular Universe software with UZ hardware also gives the company a unique position in the market, letting it gather real operating data to further train and refine its AI systems.
Looking Ahead
For fiscal 2025, management reaffirmed its revenue outlook of $15 million to $25 million. The company will continue to invest in research, talent hiring, and targeted mergers or acquisitions to grow its AI and energy platform. No new profit or cash flow targets were provided.
Management did not issue detailed forward guidance for operating profit or other earnings metrics, focusing its guidance solely on revenue expectations. As such, investors are left without additional clarity on when the company might reach breakeven or how quickly scaling costs could narrow losses in coming quarters.
SES does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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