Ideal Power Inc. (IPWR): History, Ownership, Mission, How It Works & Makes Money

How does a company with a net loss of over $2.9 million in the third quarter of 2025, and a projected full-year cash burn of roughly $10 million, still command attention from major players like Stellantis? Ideal Power Inc. (IPWR) is at a pivotal inflection point, moving its patented B-TRAN® bidirectional semiconductor technology from development into commercialization, securing a critical purchase order from the automotive giant for custom Electric Vehicle (EV) applications and completing prototype testing for solid-state circuit breakers targeting AI data centers. With 97 issued patents protecting its ultra-efficient power switch, the company's value isn't in its current minimal revenue, but in its deep-tech moat and the near-term revenue ramp expected in the second half of 2025, so you need to understand the underlying technology and business model now.

Ideal Power Inc. (IPWR) History

Ideal Power Inc. has transformed from an energy converter company to a pure-play semiconductor firm, a pivot that was both risky and necessary. The entire trajectory hinges on its patented Bidirectional, Bipolar Junction Transistor (B-TRAN®) technology, which is now the sole focus, especially as the company pushes into the high-growth electric vehicle (EV) and data center markets. This is a development-stage company, still posting a net loss of $2.9 million in the third quarter of 2025, but the recent design wins show the technology is gaining traction with major industry players.

Given Company's Founding Timeline

Year established

Ideal Power Inc. was formed in Texas on May 17, 2007, initially operating as Ideal Power Converters, before converting to a Delaware corporation in July 2013.

Original location

The company was founded and remains headquartered in Austin, Texas, USA.

Founding team members

While the full initial team is not widely publicized, the core technology that started the company-the Power Packet Switching Architecture (PPSA)-originated from concepts developed by figures like Bill Alexander.

Initial capital/funding

Early operations were funded by private sources. The first major public capital injection came from the Initial Public Offering (IPO) on NASDAQ in November 2013, which provided net proceeds of approximately $15.7 million.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The single most transformative decision was the 2019 divestiture of the Power Conversion Systems business. That move stripped the company down to its core intellectual property, shifting the entire business model from selling complex power converters to licensing and selling a disruptive semiconductor, B-TRAN®. It was a clean break, refocusing all resources on a higher-margin, higher-potential technology. Exploring Ideal Power Inc. (IPWR) Investor Profile: Who's Buying and Why?

You're looking at a company in the early commercialization phase, which means initial revenue is small-the full-year 2025 consensus estimate for sales is only $10,200-but the customer list is defintely getting bigger.

• The B-TRAN® Power Rating Increase: In September 2025, the company announced a 50% increase in the power rating of its discrete B-TRAN® product, immediately making the technology more attractive for high-power applications like 800-volt EV architectures and data center power.
• Executive Leadership Change: David Somo was appointed President and CEO in November 2025, bringing over 30 years of semiconductor industry experience, which signals a strategic shift toward aggressive commercialization and scaling.
• Securing Key Design Wins: The 2025 purchase order from Stellantis and the engagement with a Forbes Global 500 power management leader for Solid-State Circuit Breaker (SSCB) evaluation boards are critical. These initial, albeit small, orders show major customers are qualifying the B-TRAN® for their next-generation products.

Here's the quick math: with a projected full-year cash burn of approximately $10 million in 2025 and a cash balance of $8.4 million as of September 30, 2025, the company is operating on tight capital, but the recent purchase orders are the necessary proof points to justify future funding. What this estimate hides is that the major revenue ramp will only happen after these initial design wins convert into high-volume production orders, likely in 2026 and beyond.

Ideal Power Inc. (IPWR) Ownership Structure

Ideal Power Inc. (IPWR) operates as a publicly traded company on the NASDAQ Capital Market, but its ownership is a classic mix where institutional investors hold a significant minority stake, leaving the majority of shares in the hands of the public, which often translates to higher stock volatility.

The company's governance is currently steered by a new Chief Executive Officer, David Somo, who took the helm in early November 2025, marking a clear pivot toward aggressive commercialization of its B-TRAN® bidirectional semiconductor power switch technology. This leadership change is critical, especially given the company's Q3 2025 revenue of only $0.02 million and a net loss of $2.9 million.

Given Company's Current Status

Ideal Power Inc. is a publicly traded, fabless semiconductor technology company listed on the NASDAQ Capital Market under the ticker IPWR. Its relatively small market capitalization-around $31.66 million as of November 2025-places it firmly in the small-cap or micro-cap category, which is typical for a business still in the early stages of commercializing a disruptive technology like their B-TRAN® power switch. The company has a clean capital structure with no long-term debt, but its projected full-year 2025 cash burn of approximately $10 million means its financial health is heavily dependent on market execution and securing new funding or commercial agreements. You can read more about the company's financial standing in Breaking Down Ideal Power Inc. (IPWR) Financial Health: Key Insights for Investors.

Given Company's Ownership Breakdown

As of the third quarter of 2025, the company's stock ownership shows a heavy reliance on retail investors, with institutional holdings representing a smaller slice of the total equity compared to many large-cap technology firms. This high public float means the stock price can be more susceptible to retail trading sentiment and news flow. Insider ownership, while small, provides some alignment between management and shareholder interests.

Here's the quick math: With a significant 76.08% public float, the stock is defintely one to watch for sharp movements based on news. The largest institutional holders, such as BlackRock, Inc. and Vanguard Group Inc., represent the kind of long-term capital that validates the B-TRAN® technology's potential, even at this early stage.

Given Company's Leadership

The company's strategic direction is being driven by a newly appointed leadership team focused on commercializing the B-TRAN® technology for high-growth markets like electric vehicles (EV) and data centers. The management transition in November 2025 is a clear signal that the board is prioritizing sales and market penetration.

• David Somo: President, Chief Executive Officer (CEO), and Director. Appointed November 3, 2025, bringing over 30 years of semiconductor industry experience, including senior executive roles at onsemi.
• Timothy Burns: Chief Financial Officer (CFO), Secretary, and Treasurer. Provides the financial stewardship necessary to manage the projected 2025 cash burn of approximately $10 million.
• Michael C. Turmelle: Chairman of the Board of Directors. Leads the board's oversight function, particularly through the recent CEO transition.

The focus now is on converting customer evaluations-including a recent purchase order from Stellantis for custom development-into scalable, consistent revenue streams, which is the primary task for the new CEO.

Ideal Power Inc. (IPWR) Mission and Values

Ideal Power Inc. stands for driving the global energy transition by commercializing a disruptive semiconductor technology that delivers superior power efficiency and eco-friendly solutions. Their core purpose is to enable the electrification of society through their patented Bidirectional, Bipolar Junction Transistor (B-TRAN®) switch, focusing on performance, density, and cost.

Ideal Power Inc.'s Core Purpose

You can't just look at the balance sheet; you have to understand the 'why' behind the technology, especially for a company like Ideal Power Inc. that's in the deep tech space. Their purpose is clearly centered on solving a fundamental problem in power electronics: energy loss. By providing a more efficient switch, they are defintely positioning themselves as an enabler of a cleaner, more electrified world.

Official Mission Statement

While a single-sentence corporate mission isn't plastered everywhere, the company's stated purpose is to be the innovative provider of its patented B-TRAN® bidirectional semiconductor power switch. This translates directly into a mission focused on creating highly efficient and ecofriendly energy control solutions across multiple high-growth markets.

• Develop and commercialize the B-TRAN® technology to displace conventional power semiconductors.
• Deliver ultra-low conduction losses and improved power density in AC power switching.
• Enable highly efficient and ecofriendly energy control solutions for critical applications.

Here's the quick math: B-TRAN® offers potentially 50% or more reduction in power losses compared to conventional Insulated-Gate Bipolar Transistors (IGBTs), which is a massive efficiency gain in energy-hungry systems.

Vision Statement

The vision is about market dominance and long-term value creation by becoming the enabling power semiconductor solution for the ongoing electrification of our society. This vision maps to a multi-billion dollar addressable market.

• Become the leading, innovative, and enabling power semiconductor solution provider globally.
• Target a multi-billion dollar addressable market across electric vehicles (EV), data centers, and industrial markets.
• Drive long-term value for customers, suppliers, employees, and stockholders through technological innovation.
• Expand the patent portfolio, which already includes 97 issued and 73 pending B-TRAN® patents as of Q3 2025.

The company's focus on EV applications, where their technology could result in a 7% to 10% improvement in an EV's range, shows a clear vision for a future where energy efficiency is paramount.

Ideal Power Inc. Slogan/Tagline

The core tagline, often used in their communications to highlight the unique selling proposition, is centered on the technology itself and its inherent advantages. They lead with the product's name and its primary benefit.

• B-TRAN®: The Bidirectional Semiconductor Power Switch.
• Enabling the Electrification of Our Society.

To be fair, the company is still in the early commercialization phase, with a projected full-year 2025 cash burn of approximately $10 million, so the focus is rightly on execution and technical milestones-like increasing the discrete B-TRAN® power rating by 50% in Q3 2025. If you want to dive deeper into the financial stability underpinning this mission, you should check out Breaking Down Ideal Power Inc. (IPWR) Financial Health: Key Insights for Investors.

Ideal Power Inc. (IPWR) How It Works

Ideal Power Inc. (IPWR) is a semiconductor company that creates value by designing and commercializing its patented Bi-directional, Bipolar Junction Transistor (B-TRAN®) switch, a next-generation power semiconductor that drastically improves energy efficiency in power conversion systems. The company operates as a fabless developer, focusing on design and intellectual property, then partnering with third-party foundries for wafer fabrication and assembly.

Ideal Power Inc.'s Product/Service Portfolio

The company's core offering is its B-TRAN® technology, which it packages into two primary product types to address the massive power switching and control market.

Ideal Power Inc.'s Operational Framework

Ideal Power's operational framework is built on a highly capital-efficient, fabless model, meaning they don't own the expensive manufacturing facilities (fabs). This lets them focus their limited cash, which was $8.4 million as of September 30, 2025, on high-value design and commercialization.

• Design and IP Focus: The company designs the B-TRAN® architecture and controls the intellectual property (IP), which includes a portfolio of 97 issued and 73 pending patents as of Q3 2025.
• Third-Party Manufacturing: Wafer fabrication and packaging are outsourced to established semiconductor foundries and assembly partners, allowing for scalable production without the heavy capital expenditure.
• Commercialization Pipeline: The near-term revenue path focuses on securing design wins, such as the purchase order from Stellantis for custom development of B-TRAN® devices for electric vehicle applications.
• Initial Revenue: The company is in the very early stages of commercialization; Q3 2025 revenue was a modest $20,000, reflecting initial customer evaluations and development work.

Here's the quick math: with a projected full-year 2025 cash burn of around $10 million, the fabless model is defintely the right call to preserve runway.

Ideal Power Inc.'s Strategic Advantages

The company's primary advantage is its proprietary B-TRAN® technology, which solves a fundamental trade-off in power electronics: the need for both low loss and high-speed switching. This is a game-changer for large, rapidly growing markets.

• Superior Efficiency: B-TRAN® can reduce power losses by 50% or more compared to conventional Insulated-Gate Bipolar Transistors (IGBTs), translating directly to lower operating costs and smaller, lighter systems for customers.
• Bidirectional by Design: Unlike traditional switches that require two devices and two diodes for bidirectional (AC) power flow, B-TRAN® is inherently bidirectional. This feature reduces component count, system complexity, and cost in applications like energy storage and EV charging.
• Enabling Technology for SSCBs: B-TRAN® is a key enabler for high-performance Solid-State Circuit Breakers (SSCBs), which are essential for the increased power demands of AI data centers and DC microgrids. The first design win customer is targeting the AI data center market.
• Strong IP Protection: The substantial patent portfolio spanning North America, Europe, and Asia creates a significant barrier to entry for competitors attempting to replicate the technology's unique double-sided structure.

The biggest opportunity right now is converting the Stellantis and first design win testing into high-volume production orders. If you're looking at the long-term potential, Exploring Ideal Power Inc. (IPWR) Investor Profile: Who's Buying and Why? is a good next step.

Ideal Power Inc. (IPWR) How It Makes Money

Ideal Power Inc. generates its minimal, early-stage revenue through the commercialization of its patented Bidirectional, Bipolar Junction Transistor (B-TRAN®) semiconductor power switch technology, primarily by selling devices and modules to customers in high-growth sectors like electric vehicles and solid-state circuit breakers, plus fees from custom development work.

The company operates on a fabless semiconductor model, meaning it focuses capital on high-margin research, design, and intellectual property (IP), outsourcing the costly manufacturing process to third-party foundries. This approach, while capital-efficient for a technology developer, means the financial health hinges entirely on securing high-volume design wins and transitioning from prototype sales to mass production.

Ideal Power Inc.'s Revenue Breakdown

As of the third quarter of 2025, Ideal Power's revenue is still in the very early commercialization phase, but it's growing fast from a near-zero base. The Q3 2025 revenue of $24,450 represents an increase of 4,313.4% year-over-year, which is a massive jump, but the absolute numbers are still tiny. This minimal revenue is currently split between two main streams, with custom development fees driving the majority of the top line.

Here's the quick math: the Q3 2025 revenue of $24,450 was primarily due to completing the first deliverable under the custom development purchase order from Stellantis. This project-based revenue is high-value but non-recurring, so it accounts for the bulk of the current revenue stream. The remaining portion comes from sales of B-TRAN® discrete devices and SymCool® power modules to early-adopter customers, such as the first design win for solid-state circuit breakers (SSCBs) targeting AI data centers.

Business Economics

You need to look at Ideal Power Inc. as a high-potential, pre-scale IP company, not a traditional manufacturer. The business economics are defined by the low capital expenditure (CapEx) of the fabless model and the high potential gross margin once volume is achieved.

• Gross Margin Potential: Management estimates that at scale, the gross margin for B-TRAN® products will be approximately 50%. This is a strong margin for a semiconductor component, reflecting the value of the proprietary technology and the cost-efficiency of the outsourced manufacturing.
• Asset-Light Model: The fabless approach keeps operating expenses relatively low for a semiconductor company, allowing the team to focus its spending-like the Q3 2025 operating expenses of $3.0 million-almost entirely on research and development (R&D) and commercialization efforts.
• Cost of Revenue: In Q3 2025, the company reported a gross loss of $(1,619). This is a common situation for a company in the early stages of commercialization, where the initial costs associated with low-volume wafer fabrication runs and custom development deliverables temporarily exceed the minimal revenue generated.
• Licensing as a Future Lever: Beyond product sales, the company has the option to license its B-TRAN® technology to very large players, such as automakers, to secure a second source of supply for them. This would provide a high-margin, pure-IP revenue stream, further enhancing profitability.

The long-term play is to convert the 97 issued B-TRAN® patents into a defensible, high-margin revenue stream that captures a piece of the rapidly growing EV and renewable energy markets.

Ideal Power Inc.'s Financial Performance

The financial performance as of late 2025 clearly shows a company still in the heavy investment phase, burning cash to secure future market share. The focus is on R&D and commercial milestones, not near-term profitability. For a deeper dive, check out Breaking Down Ideal Power Inc. (IPWR) Financial Health: Key Insights for Investors.

• Net Loss: The net loss for the third quarter of 2025 was $2.9 million, a slight increase from the prior year, reflecting the ramp-up in wafer fabrication and R&D spending. The company has sustained losses for 13 consecutive years, so this is defintely not a surprise.
• Cash Runway: The company's cash and cash equivalents stood at $8.4 million as of September 30, 2025. With a projected full-year 2025 cash burn of approximately $10 million, the current cash position gives them a runway into the first half of 2026, assuming the burn rate holds.
• Key Commercial Milestones: The financial health is tied to operational execution, like the purchase order from Stellantis for custom EV development and the completion of testing for the first design win customer's solid-state circuit breakers. Converting these early wins into recurring, high-volume production orders is the only path to reversing the cash burn.

Ideal Power Inc. (IPWR) Market Position & Future Outlook

Ideal Power Inc. is positioned as a high-potential disruptor in the power semiconductor market, currently in the critical phase of transitioning its patented B-TRAN® technology from customer evaluation to initial commercial sales. The company's future trajectory hinges on converting its recent design wins, like the purchase order from Stellantis, into a sustained revenue ramp, moving past the minimal revenue of $20,000 reported in the third quarter of 2025.

Competitive Landscape

The power semiconductor market is dominated by entrenched giants, making Ideal Power's entry a classic David-versus-Goliath scenario. The company's core advantage is its Bidirectional, Bipolar Junction TRANsistor (B-TRAN®), which offers ultra-low conduction losses and bidirectionality on widely deployed, low-cost silicon, a key differentiator in high-efficiency applications like electric vehicles and data centers.

Opportunities & Challenges

You need to be a trend-aware realist here, so you must weigh the substantial technical wins against the financial reality of a pre-commercial company. The global power semiconductor market is estimated to reach $56.87 billion in 2025, so even a small slice of that pie is a massive opportunity.

Industry Position

Ideal Power's position is that of a pure-play technology innovator, not a scaled manufacturer. They are asset-light and debt-free, with cash and cash equivalents totaling $8.4 million as of September 30, 2025.

• Technology Focus: The company is hyper-focused on its B-TRAN® technology, a bidirectional power switch that directly addresses the increasing need for efficiency in high-growth markets like electric vehicles, renewable energy, and data center uninterruptible power supplies (UPS).
• Automotive Traction: The Stellantis order and engagement with a sixth global automaker are key indicators that their technology is passing initial, rigorous third-party automotive qualification and reliability testing, which has shown positive results with no failures to date.
• Financial Runway: The projected cash burn of around $2.5 million to $2.7 million per quarter means the current cash balance is sufficient to fund operations through at least mid-2026. That's a defintely tight window.
• Strategic Direction: The new CEO, David Somo, brings over three decades of semiconductor experience and is prioritizing commercialization and revenue acceleration, which is exactly what the market needs to see right now.

To understand the foundation of this strategy, you should review the Mission Statement, Vision, & Core Values of Ideal Power Inc. (IPWR).