📊 IPWR Key Takeaways
Is Ideal Power Inc. (IPWR) a Good Investment?
Ideal Power faces severe operational distress with zero revenue in the latest quarter (-89.4% YoY decline) and mounting losses of $3.6M net income, indicating a fundamental business collapse. While the balance sheet remains strong with $16.4M cash and zero debt, this provides only ~8 quarters of runway at current $2M quarterly burn rates. The complete revenue elimination suggests either a product recall, market exit, regulatory shutdown, or loss of major customer(s) that constitutes a near-terminal business condition.
Ideal Power's fundamentals are very weak: revenue has collapsed, gross margin is negative, and operating losses remain extremely large relative to the company's tiny revenue base. While the balance sheet has no long-term debt and strong near-term liquidity, cash burn is heavy and the current capital base appears small relative to annual losses, making execution and funding risk high unless commercialization improves materially.
Why Buy Ideal Power Inc. Stock? IPWR Key Strengths
- Strong balance sheet with $16.4M in cash equivalents
- Zero long-term debt provides financial flexibility
- Exceptional liquidity ratios (11.22x current ratio) allow short-term survival and potential restructuring
- No long-term debt reduces financial leverage risk
- Strong current and quick ratios indicate solid near-term liquidity
- Cash balance still provides some operating runway despite losses
IPWR Stock Risks: Ideal Power Inc. Investment Risks
- Complete revenue collapse with zero revenue and -89.4% YoY decline indicates fundamental business failure
- Negative operating and net income ($3.7M and $3.6M losses) with negative free cash flow of $2.2M
- Limited cash runway of approximately 8 quarters at current burn rate; company will require emergency restructuring or capital raise
- Minimal insider trading activity (1 Form 4 filing in 90 days) suggests management/insider lack of confidence
- Sector exposure to semiconductor/power electronics creates cyclicality and obsolescence risks
- Revenue declined 89.4% year over year, indicating very weak commercial traction
- Negative gross profit suggests the business is not currently scaling economically
- Operating cash outflow and free cash flow burn are severe relative to cash and equity
Key Metrics to Watch
- Revenue recovery trajectory and customer pipeline visibility
- Quarterly operating cash flow and cash burn rate sustainability
- Days cash on hand remaining before critical funding need
- Revenue growth and customer commercialization progress
- Quarterly operating cash burn relative to cash balance
Ideal Power Inc. (IPWR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 11.22x current ratio provides a solid financial cushion.
IPWR Profit Margin, ROE & Profitability Analysis
IPWR vs Technology Sector: How Ideal Power Inc. Compares
How Ideal Power Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ideal Power Inc. Stock Overvalued? IPWR Valuation Analysis 2026
Based on fundamental analysis, Ideal Power Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ideal Power Inc. Balance Sheet: IPWR Debt, Cash & Liquidity
IPWR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ideal Power Inc.'s revenue has declined by 85% over the 5-year period, indicating business contraction. The most recent EPS of $-0.80 indicates the company is currently unprofitable.
IPWR Revenue Growth, EPS Growth & YoY Performance
IPWR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | N/A | -$2.7M | $-0.30 |
| Q3 2025 | $554 | -$2.5M | $-0.31 |
| Q2 2025 | $1.3K | -$2.5M | $-0.31 |
| Q1 2025 | $12.0K | -$2.5M | $-0.30 |
| Q3 2024 | $554 | -$2.3M | $-0.31 |
| Q2 2024 | $1.3K | -$2.3M | $-0.31 |
| Q1 2024 | $664 | -$2.5M | $-0.39 |
| Q3 2023 | $1.6K | -$1.7M | $-0.28 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ideal Power Inc. Dividends, Buybacks & Capital Allocation
IPWR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ideal Power Inc. (CIK: 0001507957)
📋 Recent SEC Filings
❓ Frequently Asked Questions about IPWR
What is the AI rating for IPWR?
Ideal Power Inc. (IPWR) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 94% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are IPWR's key strengths?
Claude: Strong balance sheet with $16.4M in cash equivalents. Zero long-term debt provides financial flexibility. ChatGPT: No long-term debt reduces financial leverage risk. Strong current and quick ratios indicate solid near-term liquidity.
What are the risks of investing in IPWR?
Claude: Complete revenue collapse with zero revenue and -89.4% YoY decline indicates fundamental business failure. Negative operating and net income ($3.7M and $3.6M losses) with negative free cash flow of $2.2M. ChatGPT: Revenue declined 89.4% year over year, indicating very weak commercial traction. Negative gross profit suggests the business is not currently scaling economically.
What is IPWR's revenue and growth?
Ideal Power Inc. reported revenue of $0.0.
Does IPWR pay dividends?
Ideal Power Inc. does not currently pay dividends.
Where can I find IPWR SEC filings?
Official SEC filings for Ideal Power Inc. (CIK: 0001507957) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IPWR's EPS?
Ideal Power Inc. has a diluted EPS of $-0.78.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is IPWR a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Ideal Power Inc. has a STRONG SELL rating with 94% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is IPWR stock overvalued or undervalued?
Valuation metrics for IPWR: ROE of -20.4% (sector avg: 22%), net margin of N/A (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy IPWR stock in 2026?
Our dual AI analysis gives Ideal Power Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is IPWR's free cash flow?
Ideal Power Inc.'s operating cash flow is $-2.0M, with capital expenditures of $142.1K.
How does IPWR compare to other Technology stocks?
Vs Technology sector averages: Net margin N/A (avg: 18%), ROE -20.4% (avg: 22%), current ratio 11.22 (avg: 2.5).