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Combination ESS Tech, Inc. ( Legacy ESS ) was founded in 2011 and became a publicly traded company through a business combination with a special purpose acquisition company named ACON S2 Acquisition Corp. ( STWO ) which changed its name to ESS Tech, Inc. upon closing (the Business Combination ). As a result of the Business Combination, Legacy ESS survived and became a wholly owned subsidiary of…
The business is unprofitable at the operating level (-3626.47% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 74.9% YoY. Margins deteriorated 2200.0pp alongside, both lines moving the wrong way.
ROIC dropped from -103.96% to -150.24%, capital efficiency is deteriorating. Negative free cash flow of -$54M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$1M
▼ -74.9% YoY
Net Income (TTM)
-$61M
▲ +26.4% YoY
Op. Margin
-4769.87%
▼ -2200.0pp YoY
ROIC
-221.03%
▼ -46.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$49M
▲ +32.5% YoY
Op. Cash Flow (TTM)
-$46M
▲ +30.4% YoY
Net Debt
$6M
Cash & Equiv.
$15M
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