📊 IPWR Key Takeaways
Is Ideal Power Inc. (IPWR) a Good Investment?
Ideal Power is in critical financial distress with revenue collapsing 89.4% YoY to just $37.7K, resulting in massive operating losses of $10.9M and severely negative cash flows of -$9.1M. The company is burning through cash reserves with negative margins exceeding -28,000% and only 6.1M in cash, making near-term viability highly questionable despite strong liquidity metrics that are misleading given the company's operational failure.
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 current and quick ratios (6.72x and 6.71x) provide short-term liquidity buffer
- No long-term debt reduces financial obligations
- Positive insider activity with 5 Form 4 filings in last 90 days suggests management confidence
- 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
- Revenue collapsed 89.4% YoY to negligible $37.7K indicating severe market rejection or operational failure
- Operating cash flow of -$9.1M with minimal revenue unsustainable; cash reserves will deplete within months at current burn rate
- Negative gross margin of -60.1% indicates product costs exceed revenue, pointing to fundamental business model failure
- Net loss of $10.6M on $37.7K revenue demonstrates inability to achieve profitability at any scale
- Free cash flow of -$9.3M shows ongoing value destruction despite capital preservation
- 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
- Quarterly revenue trend and magnitude (critical - any stabilization above $10M+ quarterly)
- Cash runway and burn rate (current trajectory suggests <6 months)
- Gross margin recovery path to positive territory (must demonstrate unit economics viability)
- Operating cash flow inflection to positive (prerequisite for viability)
- New product launches or market wins that could reverse revenue decline
- 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 6.72x 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $51.0K | -$1.7M | $-0.27 |
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 current and quick ratios (6.72x and 6.71x) provide short-term liquidity buffer. No long-term debt reduces financial obligations. 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: Revenue collapsed 89.4% YoY to negligible $37.7K indicating severe market rejection or operational failure. Operating cash flow of -$9.1M with minimal revenue unsustainable; cash reserves will deplete within months at current burn rate. 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 $37.7K.
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 April 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 -134.3% (sector avg: 22%), net margin of -28,038.6% (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 $-9.1M, with capital expenditures of $119.5K. FCF margin is -24,530.7%.
How does IPWR compare to other Technology stocks?
Vs Technology sector averages: Net margin -28,038.6% (avg: 18%), ROE -134.3% (avg: 22%), current ratio 6.72 (avg: 2.5).