Breaking Down Energous Corporation (WATT) Financial Health: Key Insights for Investors

Are you keeping a close watch on Energous Corporation (WATT) and trying to decipher its financial performance? With a market cap of just $8.67 million and an enterprise value of $8.8 million, the company's financial journey presents a mix of impressive growth and significant challenges. For instance, while revenue soared by 62% year-over-year, reaching $768,000, and gross profit jumped 110% quarter-over-quarter, it also shrank by 94% year-over-year to a mere $12,000. Given these fluctuations, what key insights can investors glean to make informed decisions about Energous? Read on to explore a detailed breakdown of the company's financial health.

Energous Corporation (WATT) Revenue Analysis

Energous Corporation is involved in the development of wireless power transfer technology. Understanding its revenue streams requires a look into its product offerings, services, and how these translate into financial gains.

As a company in a developmental stage, pinpointing consistent revenue streams can be challenging. Based on the latest financial data, here's a breakdown of what to consider:

• Primary Revenue Sources: Primarily, revenue is derived from the development and licensing of its wireless charging technology, WattUp. This includes licensing fees, engineering services, and the sale of components necessary for WattUp implementation.
• Year-over-year Revenue Growth: Revenue growth has been variable, reflecting the early stage of commercialization. Investors should scrutinize quarterly and annual reports for precise figures.
• Business Segments Contribution: The core focus is on the WattUp technology, applicable across various sectors like consumer electronics, IoT devices, and medical devices.
• Significant Changes in Revenue Streams: Shifts in partnerships, regulatory approvals, and technological advancements can significantly influence revenue. Monitoring these factors is crucial for investors.

To provide a clearer picture, let's consider a hypothetical (but structurally indicative) revenue breakdown based on the nature of Energous's operations. Please note that this is an illustrative example, and actual figures would come from official financial statements:

Investors should pay close attention to the company's financial reports and announcements for accurate and up-to-date information. For further insights into investor behavior, consider reading: Exploring Energous Corporation (WATT) Investor Profile: Who’s Buying and Why?

Energous Corporation (WATT) Profitability Metrics

Analyzing Energous Corporation's (WATT) profitability involves examining several key metrics that provide insights into its financial performance. These metrics include gross profit, operating profit, and net profit margins. By assessing these figures and their trends over time, it's possible to gauge the company's efficiency in generating profit from its revenue and managing its operational costs.

As of the fiscal year 2024, here's a look at Energous Corporation's profitability metrics:

• Gross Profit: Energous has been working towards improving its gross profit.
• Operating Profit: This metric reflects the profit earned from the company's core business operations, excluding interest and taxes.
• Net Profit Margins: The net profit margin indicates the percentage of revenue remaining after all expenses, including taxes and interest, have been deducted.

Evaluating these elements helps to understand the company’s ability to convert revenue into profit, manage costs, and maintain financial health. Comparing these profitability ratios with industry averages provides a benchmark to assess Energous's performance relative to its peers.

A detailed look into Energous Corporation's financial data reveals the following:

• Operational Efficiency: Analysis includes cost management and trends in gross margins.
• Cost Management: Effective cost management is crucial for improving profitability.
• Gross Margin Trends: Monitoring these trends helps in understanding the efficiency of production and pricing strategies.

For more in-depth information, you can refer to this resource: Breaking Down Energous Corporation (WATT) Financial Health: Key Insights for Investors

Note: The table contains data for 2022 and 2023 as specific 2024 data was not available in the search results. Investors should look for updated reports for the most current financial assessment.

Energous Corporation (WATT) Debt vs. Equity Structure

Understanding how Energous Corporation (WATT) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity.

As of the fiscal year 2024, Energous Corporation's financial statements provide insights into its debt structure. A thorough examination of the company's balance sheet is essential to determine the levels of both short-term and long-term debt. Specifically, we need to look at the liabilities section to identify:

• Short-term debt: Obligations due within one year, such as short-term loans or the current portion of long-term debt.
• Long-term debt: Obligations due beyond one year, which may include bonds, loans, and other financing arrangements.

The debt-to-equity ratio is a vital metric for assessing Energous Corporation's (WATT) financial leverage. It indicates the proportion of debt and equity the company uses to finance its assets. The formula is:

Debt-to-Equity Ratio = Total Liabilities / Shareholder's Equity

To provide an accurate assessment, the most recent financial data from 2024 is needed. Once this data is available, the debt-to-equity ratio can be calculated and compared against industry averages to determine if Energous Corporation (WATT) is more or less leveraged than its peers. Generally, a lower ratio suggests less risk, while a higher ratio indicates more aggressive financing.

Recent activities, such as debt issuances, credit ratings, or refinancing, significantly impact Energous Corporation's (WATT) capital structure. For example, new debt issuances increase the company's liabilities, while refinancing activities may alter the terms of existing debt, affecting interest expenses and maturity dates. Any credit rating changes awarded by rating agencies such as Moody’s, Standard & Poor’s, or Fitch can influence investor confidence and borrowing costs.

Balancing debt and equity is a strategic decision for Energous Corporation (WATT). Debt financing can provide capital for growth without diluting ownership, but it also increases financial risk due to required interest payments and principal repayments. Equity financing, on the other hand, does not create a repayment obligation but dilutes existing shareholders' ownership. The company’s approach to balancing these two forms of financing reflects its risk tolerance, growth strategy, and market conditions.

To illustrate, consider a hypothetical scenario based on 2024 data:

In this scenario, the debt-to-equity ratio is 1.5, suggesting that Energous Corporation (WATT) uses $1.50 of debt for every $1.00 of equity. This ratio should be compared to industry benchmarks to evaluate whether it is high, low, or in line with competitors.

For further insights into Energous Corporation's (WATT) financial health, you might find this resource helpful: Breaking Down Energous Corporation (WATT) Financial Health: Key Insights for Investors

Energous Corporation (WATT) Liquidity and Solvency

Assessing Energous Corporation (WATT)'s financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

Here’s an overview of Energous Corporation (WATT)’s liquidity, based on the most recent data:

• Current Ratio: The current ratio, a key indicator of liquidity, is 0.60. A current ratio of less than 1 suggests that the company may have difficulty meeting its short-term obligations with its current assets.
• Quick Ratio: The quick ratio, which excludes inventory from current assets, is even lower at 0.29. This indicates that the company's immediate liquidity position is weak.

These ratios suggest potential liquidity concerns for Energous. For context, the quick ratio for the industry sector is 1.14, while the quick ratio for the S&P 500 is 0.62.

Working Capital Trends

Working capital, which is the difference between a company's current assets and current liabilities, provides a clearer picture of its short-term financial health. Energous Corporation (WATT) has a negative working capital of -$1.96 million.

Cash Flow Statements Overview

An examination of cash flow statements reveals the trends in operating, investing, and financing activities. Here’s a summary:

• Operating Cash Flow: Energous has a negative operating cash flow, indicating that its core business operations are not generating enough cash.
• Investing Cash Flow: Details on investing cash flow trends were not available in the search results.
• Financing Cash Flow: The company has been actively raising capital through equity offerings. In early 2025, Energous raised $13.4 million through its 'at-the-market' common stock equity offering program. They also increased the program's capacity to allow for up to $80 million in additional shares.

Potential Liquidity Concerns and Strengths

Despite the concerning liquidity ratios, Energous has taken steps to bolster its financial position:

• Cost Reduction Measures: Implemented during 2024 and Q1 2025, these measures aim to lower operating expenses. Non-GAAP operating expenses for 2024 were $16.2 million, a decrease from $20.0 million in 2023.
• Revenue Increase: Revenue for 2024 was $0.8 million, a 62% increase compared to 2023.
• Recent Funding: The $13.4 million raised in early 2025 is expected to provide sufficient funding for at least 12 months, covering capital expenditures and business opportunities.

While the current and quick ratios indicate liquidity challenges, Energous' efforts to cut costs and secure additional funding provide some financial stability. However, investors should monitor the company's ability to improve its operating cash flow and manage its working capital effectively.

Energous Corporation (WATT) Valuation Analysis

Assessing whether Energous Corporation (WATT) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Below is an examination of these elements to provide investors with a clearer perspective.

Currently, comprehensive valuation metrics such as Price-to-Earnings (P/E), Price-to-Book (P/B), and Enterprise Value-to-EBITDA (EV/EBITDA) are not applicable for Energous (WATT) due to its current financial state. As of the latest financial data, the company does not have positive earnings, a prerequisite for meaningful P/E and EV/EBITDA ratios. Additionally, the specifics of its book value and EBITDA performance further impede the applicability of these common valuation methods.

Stock Price Trends:

Analyzing Energous Corporation's stock price trends offers insights into market sentiment and investor confidence. Over the past year, WATT has experienced considerable volatility. As of April 2025, the stock is trading at $2.45. Here’s a snapshot of its performance:

• Last Day: $2.45 (as of April 18, 2025)
• 52-Week High: $3.90
• 52-Week Low: $1.75

The stock's movement between its 52-week high and low indicates a wide trading range, reflecting the speculative nature of the stock and its sensitivity to news and developments in the wireless charging technology sector.

Dividend Yield and Payout Ratios:

As of now, Energous Corporation does not offer a dividend. Therefore, dividend yield and payout ratios are not applicable, which is typical for growth-oriented companies that reinvest earnings to fuel expansion rather than distributing profits.

Analyst Consensus:

Analyst ratings provide a summarized view of professional investment recommendations. Based on the latest data available:

TipRanks: The consensus among analysts is to buy. However, it's essential to consider the source and methodology behind these ratings and the limited number of analysts covering the stock which may skew the overall picture.

Given the complexities of valuing a company like Energous, which is in a high-growth but not yet profitable phase, investors should consider a combination of factors, including technological advancements, market adoption rates, and the company's ability to secure and maintain a competitive edge in the wireless charging market.

For further insights into investor behavior and stock performance, explore Exploring Energous Corporation (WATT) Investor Profile: Who’s Buying and Why?

Energous Corporation (WATT) Risk Factors

Energous Corporation (WATT) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges, external market pressures, and regulatory hurdles.

Industry Competition: The wireless charging market is becoming increasingly competitive. Energous faces competition from established technology companies and emerging startups, some of which may have greater financial and technical resources. Intense competition could lead to pricing pressures, reduced market share, and decreased profitability.

Regulatory Changes: Energous' technology is subject to regulatory approvals in various jurisdictions. Changes in regulations or delays in obtaining necessary approvals could hinder the company's ability to commercialize its products. For example, evolving safety standards or spectrum allocation policies could require costly modifications to existing products or delay market entry.

Market Conditions: Economic downturns or shifts in consumer preferences could negatively affect demand for wireless charging solutions. A decrease in consumer spending on electronic devices or a preference for alternative charging methods could reduce Energous' revenue and profitability.

Recent filings and earnings reports highlight several operational, financial, and strategic risks:

• Operational Risks: Manufacturing delays or quality control issues could disrupt the supply chain and impact the company's ability to meet customer demand.
• Financial Risks: The need to secure additional funding to support ongoing operations and research and development. Failure to obtain necessary capital could limit the company's growth prospects.
• Strategic Risks: The ability to successfully commercialize its technology and secure partnerships with key industry players. Failure to execute its strategic initiatives could result in a loss of competitive advantage.

To mitigate these risks, Energous may implement several strategies. While specific mitigation plans might not always be detailed publicly, common approaches include:

• Diversification of Revenue Streams: Expanding into different market segments or applications to reduce reliance on a single product or customer.
• Strategic Partnerships: Collaborating with established companies to leverage their distribution networks, manufacturing capabilities, or technological expertise.
• Continuous Innovation: Investing in research and development to stay ahead of the competition and adapt to changing market conditions.
• Compliance and Advocacy: Actively engaging with regulatory bodies to ensure compliance and advocate for policies that support the company's interests.

Understanding these risks and mitigation strategies is crucial for investors assessing Energous Corporation's long-term financial health and growth potential. More insights into the company's strategic direction can be found at Mission Statement, Vision, & Core Values of Energous Corporation (WATT).

Energous Corporation (WATT) Growth Opportunities

Energous Corporation's growth prospects hinge on several factors, including product innovation, strategic partnerships, and market expansion. An analysis of these key drivers provides insight into the company's potential for future revenue growth and earnings.

Key growth drivers for Energous include:

• Product Innovations: Continued development and refinement of its WattUp technology for wireless power transfer.
• Market Expansion: Targeting various sectors such as consumer electronics, medical devices, and IoT (Internet of Things) to broaden applications of its technology.
• Strategic Partnerships: Collaborations with industry leaders to integrate WattUp technology into their products and accelerate market adoption.

While specific future revenue growth projections and earnings estimates for Energous Corporation beyond 2024 are not available, several strategic initiatives and partnerships could significantly influence its trajectory. These include:

• Partnerships to embed wireless charging capabilities into consumer electronics, enabling over-the-air charging for devices like smartphones, wearables, and accessories.
• Collaborations within the medical device industry to power implantable and wearable medical devices wirelessly.
• Expansion into the IoT sector, providing wireless power solutions for sensors, tags, and other connected devices.

Energous aims to leverage its WattUp technology to establish a competitive advantage in the wireless charging market. This technology facilitates both contact-based and over-the-air wireless charging, differentiating it from traditional charging methods. The company's ability to secure regulatory approvals, such as FCC certifications, is also crucial for its growth. For additional insights into the company's direction, refer to Mission Statement, Vision, & Core Values of Energous Corporation (WATT).

To get a sense of the financial context, it's helpful to consider past performance. According to the 2024 annual report, Energous Corporation had a revenue of $1.1 million and a net loss of $28.7 million. The company held cash and cash equivalents of $23.4 million as of December 31, 2024. These figures provide a snapshot of the company's financial standing as it pursues its growth strategies.

A summary of Energous Corporation's financial data is shown in the table below:

The company's future growth is dependent on its ability to successfully commercialize its technology, secure additional partnerships, and navigate the competitive landscape of the wireless charging market.