Ideal Power’s sales pipeline reaches $450 million as data center revenue expected in 2027
Key Facts
Ideal Power said in its third-quarter results announcement, issued on November 12, 2026, that it still expects revenue related to AI data centers in the second half of 2027, with growth over several years. Management said on the earnings call that its sales pipeline had expanded to about $450 million, compared with about $400 million in mid-August. The pipeline includes circuit-protection opportunities for data centers and energy infrastructure, as well as automotive applications, so the figure does not represent contracted sales or AI-only opportunities. This expected commercial timing is some distance from current quarterly results, while conversion into revenue depends on the progress of customer evaluations and engineering projects. One technical opportunity centers on data center systems that distribute direct current at 800 volts.
The company said it had demonstrated a working prototype of a solid-state circuit breaker with Power Integrations and that the two are working on a joint reference design for prospective customers in 800-volt direct-current data centers. Management said the 800-volt, 63-amp circuit-breaker reference design kit is available through distributor Richardson Electronics. This gives prospective customers access to the design package to evaluate the technology in their systems, while its availability alone does not establish the start of commercial production or the existence of confirmed orders. In a parallel effort, Ideal Power said it was finalizing a statement of work for a funded project with a global industrial technology company to develop an 800-volt, 125-amp circuit breaker. The project was planned to begin in the fourth quarter of 2026, making it one of the near-term execution milestones to watch.
The company said a large prospective customer had begun evaluating B-TRAN technology in an 800-volt, 63-amp circuit breaker for battery energy storage systems, with the breaker also potentially usable in data centers. The company is also working with an industrial partner on a funded project to prepare an engineering study and model a simulation platform for a U.S. hyperscale computing operator. The project was expected to be confirmed and begin in the fourth quarter of 2026. In automotive, Ideal Power continues to support Stellantis’s evaluation of second-generation B-TRAN samples and electric contactor development kits. It said completed deliveries support the next phase of the project, scheduled for that quarter, adding a commercial pathway independent of data centers and energy.
Reported revenue remains limited relative to the size of the sales pipeline: it was $7,000 for the three months ended September 30, 2026, compared with $24,450 in the corresponding period of 2025. Third-quarter net loss was $3.6 million, compared with $2.9 million a year earlier. Operating expenses rose to $3.9 million from $3.0 million, which the company attributed to employee costs, stock-based compensation and non-cash expenses for patent impairment. As of September 30, cash and cash equivalents totaled $38.3 million, and the company had no long-term debt. Its executives forecast cash burn of between $2.7 million and $2.9 million in the fourth quarter, and between $10.4 million and $10.6 million for full-year 2026.
Management identified other product and qualification milestones, saying JEDEC qualification remained on track for completion by the end of 2026. This process tests progress toward technology approval before sales opportunities turn into revenue, while funded development projects and available reference design kits provide other points for tracking execution. In premarket trading on November 12, the stock fell 1.1% to $2.245, compared with a previous close of $2.27. This followed the November 11 session close at $2.27, according to EL7 data. The project and qualification dates announced by the company, along with its expectation that revenue will begin in the second half of 2027, remain the key specified milestones the market is awaiting.