10-Q: Amprius Q3 Revenue Soars 173%, Narrows Losses

Amprius Technologies reported a significant 173% revenue increase to $21.4 million in Q3 2025, driven by strong SiCore battery sales, while narrowing its net loss by 64%.

Summary

• Revenue increased by 173% to $21.4 million for the three months ended September 30, 2025, compared to $7.9 million for the same period in 2024.
• Revenue for the nine months ended September 30, 2025, grew by 253% to $47.8 million, up from $13.5 million in the prior year period.
• Gross profit for the three months ended September 30, 2025, was $3.3 million, a significant improvement from a gross loss of $5.1 million in the same period last year.
• Gross profit for the nine months ended September 30, 2025, was $2.3 million, compared to a gross loss of $16.1 million in the prior year period.
• Net loss decreased by 64% to $3.9 million for the three months ended September 30, 2025, from $10.8 million in the comparable period of 2024.
• Net loss for the nine months ended September 30, 2025, was $19.6 million, a 41% reduction from $33.3 million in the prior year period.
• Cash and cash equivalents stood at $73.2 million as of September 30, 2025.
• The accumulated deficit was $194.0 million as of September 30, 2025.
• The company sold shares under its At Market Issuance Sales Agreement, generating aggregate gross proceeds of approximately $45.2 million during the nine months ended September 30, 2025, and $79.9 million cumulatively from inception through September 30, 2025.
• Approximately $20.1 million remains available under the At Market Issuance Sales Agreement as of September 30, 2025.
• Received a $12.0 million contract from the U.S. Government Defense Innovation Unit in July 2025, with an additional $1.5 million award in August 2025.
• Total customer engagements grew to over 400, with shipments to 159 end customers during the three months ended September 30, 2025, including 80 new customers.
• The company has access to over 1.8 GWh of annual SiCore battery production capacity through its global contract manufacturing partners.

Sentiment

Score: 7

Explanation: The company demonstrated significant revenue growth and improved gross profit, leading to a substantial reduction in net losses. Securing government contracts and expanding the customer base are strong indicators of progress. However, the company continues to incur net losses, relies heavily on third-party manufacturing, and faces uncertainty regarding its large-scale manufacturing facility in Colorado, which introduces notable risks.

Positives

• Revenue increased significantly by 173% in Q3 2025 and 253% for the nine months ended September 30, 2025, primarily driven by strong sales of SiCore batteries.
• Gross profit turned positive to $3.3 million in Q3 2025, a substantial improvement from a $5.1 million gross loss in Q3 2024, and improved to $2.3 million for the nine-month period from a $16.1 million loss.
• Net loss decreased by 64% in Q3 2025 to $3.9 million and by 41% for the nine months ended September 30, 2025, to $19.6 million, indicating improved financial performance.
• The company secured a $12.0 million contract from the U.S. Government Defense Innovation Unit in July 2025, with an additional $1.5 million award in August 2025.
• Customer base expanded, with total engagements exceeding 400 and 80 new customers added in Q3 2025, demonstrating growing market acceptance.
• SiMaxx 500 Wh/kg battery platform has been validated by a third party, supporting key development agreements with long-term customers.
• Expanded production at the Fremont, California pilot line, enabling delivery of SiCore battery cells to advanced drone and UAV customers.
• Maintained a strong cash position with $73.2 million in cash and cash equivalents as of September 30, 2025, which is believed to be sufficient for the next twelve months.

Negatives

• The company continues to incur net losses, reporting $3.9 million in Q3 2025 and $19.6 million for the nine months ended September 30, 2025, with an accumulated deficit of $194.0 million.
• Net cash used in operating activities increased to $27.6 million for the nine months ended September 30, 2025, indicating ongoing cash burn from operations.
• The scope and schedule for the planned GWh-scale manufacturing facility in Brighton, Colorado, are uncertain and dependent on funding, with the company exploring a potential sublease of the facility.
• Significant reliance on third-party manufacturers (Berzelius and other contract manufacturers) for SiCore batteries introduces risks related to quality control, production delays, increased costs, and intellectual property protection.
• The battery market is intensely competitive, with many established manufacturers and new entrants possessing significantly greater resources.
• The company expects to incur significant capital expenditures to scale manufacturing capacity and improve supply chain processes, which may require additional financing.
• Future equity raises, such as through the At Market Issuance Sales Agreement, could lead to additional dilution for existing stockholders.
• Revenue concentration is a concern, with one customer individually representing 35% of total revenue during both the three and nine months ended September 30, 2025.
• Supply chain risks include dependence on foreign suppliers (e.g., China for anode materials) and potential impacts from trade policies, tariffs, and geopolitical uncertainties.

Risks

• Batteries may fail to perform as expected, adversely affecting the ability to develop, market, and sell products.
• Reliance on third parties to manufacture certain batteries or battery materials subjects the company to risks such as price increases, inability to establish commercially reasonable terms, production delays, quality control issues, and intellectual property loss.
• May not succeed in developing new high-volume manufacturing lines that meet requirements for cell quality, yield, throughput, and other performance metrics, or these lines may be unreliable and costly to operate.
• Failure to meet manufacturing cost targets would limit market opportunities.
• Reliance on complex equipment for operations involves significant risk and uncertainty in terms of operational performance and costs, including unexpected malfunctions and maintenance needs.
• The establishment of a volume manufacturing facility is subject to many risks, including construction, permitting, delays, cost overruns, supply chain constraints, and challenges of operating in a new geographic area.
• May not succeed in retaining and attracting key employees, particularly technical talent, essential for business operations and growth.
• Expending limited resources to pursue a particular product may lead to failure to capitalize on more profitable opportunities.
• May encounter delays and technical obstacles in developing new battery products, such as different cell formats, to meet varied market requirements.
• Certain components of batteries are hazardous and pose safety risks, potentially causing accidents in manufacturing facilities, leading to product recalls and product liability claims.
• Inability to accurately estimate future supply and demand for batteries could result in inefficiencies, additional costs, or delays.
• May not be able to establish supply relationships for necessary finished batteries, materials, components, or equipment, or may be required to pay more than anticipated.
• The battery market is intensely competitive, with many established manufacturers and new entrants having significantly greater resources.
• Future sales opportunities depend on the growth of markets for battery-powered applications, which may develop slower or at a size less than expected.
• Developments in alternative technology or other fossil fuel alternatives may adversely affect the demand for battery products.
• Development agreements and other strategic alliances could be unsuccessful, negatively impacting the business.
• Customers may choose to reduce or cease purchases of batteries manufactured outside of the United States, leading to revenue decline.
• May require additional capital to support business growth, and this capital might not be available on commercially reasonable terms or at all, leading to potential dilution.
• History of financial losses and expectation of significant expenses and continuing losses for the foreseeable future.
• Obligation to develop and maintain proper and effective internal control over financial reporting; failure could adversely affect investor confidence and stock price.
• Failure to receive and maintain government contracts or changes in public sector contracting/fiscal policies could have a material adverse effect.
• Heavy reliance on the intellectual property portfolio; inability to protect intellectual property rights would harm business and competitive position.
• May need to defend against intellectual property infringement claims, which can be time-consuming and costly.
• Patent applications may not result in issued patents, or patent rights may be contested, circumvented, invalidated, or limited in scope.
• Licenses on technology that has not been commercialized or has been commercialized only to a limited extent may not perform as expected.
• Operations expose the company to litigation, environmental, and other legal compliance risks; non-compliance can be expensive and result in fines.
• Subject to anti-corruption, anti-bribery, and anti-money laundering laws; non-compliance can lead to administrative, civil, and criminal fines and penalties.
• Governmental export and import controls could impair the ability to compete in international markets or subject the company to liability for violations.
• Subject to U.S. foreign investment regulations (CFIUS), which may impose conditions on or limit certain investors' ability to purchase stock.
• Recent and potential tariffs imposed by the United States government or a global trade war could increase the cost of products, materially affecting business.
• Reliance on suppliers in foreign countries, including China and South Korea, subjects the company to risks related to foreign laws, regulations, and changes in international relations.
• Involvement in legal proceedings and commercial or contractual disputes could have an adverse impact on profitability and financial position.
• No assurance of compliance with the continued listing standards of the NYSE, with potential delisting risks.
• Sales of substantial amounts of common stock in the public markets, or the perception of such sales, could cause the market price of common stock to drop significantly.
• No guarantee that warrants will be 'in the money,' and they may expire worthless.
• The company may redeem unexpired public warrants prior to their exercise at a time disadvantageous to warrant holders, potentially making them worthless.
• The company may amend the terms of the warrants in a manner adverse to holders with the approval of at least 50% of the then outstanding warrants.
• Warrants are exercisable for common stock, which would increase the number of shares eligible for future resale and result in dilution to stockholders.

Future Outlook

The company expects to incur additional losses in the future as it scales its business and increases operating expenditures, including research and development. It plans to continue expanding its global network of contract manufacturing partnerships to meet increased demand for SiCore batteries and intends to invest further in expanding manufacturing capabilities and capacity at its Fremont, California facility, including electrode manufacturing. The scope and schedule of the planned GWh-scale manufacturing facility in Brighton, Colorado, will be determined based on funding availability and timing, with the company exploring a potential sublease. Research and development efforts will focus on improving battery life, enhancing energy density, and developing larger cell form factors. The company believes its current cash and cash equivalents will be sufficient to fund obligations over the next twelve months.

Management Comments

• "Our disruptive silicon anode technology is intended to enable batteries with high energy density, high power density, fast charging capabilities over a wide range of operating temperatures, and safety."
• "Our silicon anodes are a direct drop-in replacement of the graphite anode in traditional lithium-ion batteries, and our manufacturing processes leverage the manufacturing processes for conventional lithium-ion batteries and the related supply chain."
• "We believe our proprietary technology has the potential for broad application in electric transportation."
• "We have expanded production at our pilot line in Fremont, California to expedite the SiCore qualification process with our customers."
• "As customers move through the qualification process and request high volume orders, we are able to deliver through our existing contract manufacturers."
• "We expect to incur additional losses in the future as we scale our business and increase our operating expenditures, including our research and development spend."
• "We may raise additional funds in order to meet our future operating and capital expenditure requirements, and we may be unable to raise additional funds or enter into such other agreements when needed on favorable terms or at all."
• "We believe that our performance and future success depends on several factors that present significant opportunities for us but also pose risks and challenges."
• "Currently, we believe that we are the only known manufacturer using a 100% silicon anode that is free of any inactive additives."
• "We believe that we are the leading company in the market that has a high-performance battery that can meet the requirements of aviation and LEV applications."
• "To compete in the EV industry, we expect that we will need to significantly reduce our manufacturing costs, increase form factors and increase production quantity."

Industry Context

The company operates in the rapidly evolving and highly competitive battery market, specifically focusing on lithium-ion batteries with disruptive silicon anode technology. This technology targets high-growth mobility applications such as aviation (unmanned aerial systems, high altitude pseudo satellites), electric vehicles, and light electric vehicles. The company positions itself as a leader with its 100% silicon anode technology, aiming to offer superior performance and safety compared to conventional graphite lithium-ion batteries. The EV battery industry, in particular, is characterized by a limited number of commercially available high-performance batteries, creating a competitive landscape where the company sees significant opportunity to address needs for improved driving range and fast charging. The industry is also subject to stringent and evolving environmental, safety, and transportation regulations. Global macroeconomic factors, including trade policies, tariffs, geopolitical uncertainties (e.g., military conflicts in Russia-Ukraine and the Middle East), and supply chain disruptions, are noted as significant risks that could impact the company and its broader industry.

Comparison to Industry Standards

• The company believes it is the only known manufacturer using a 100% silicon anode free of inactive additives, suggesting a unique technological position in the battery market.
• It asserts itself as the leading company in the market for high-performance batteries meeting aviation and LEV application requirements, indicating a strong niche focus.
• The SiCore 450 Wh/kg high-energy cells have been delivered to AALTO Airbus, and balanced energy-and-power cells to drone manufacturers, demonstrating product validation and adoption by key players in the aviation sector.
• The SiMaxx 500 Wh/kg battery platform has been validated by a third party, supporting development agreements with long-term customers, which suggests competitive performance metrics.
• The company acknowledges that to compete in the broader EV industry, it will need to significantly reduce manufacturing costs, increase form factors, and increase production quantity, implying current cost and scale may not yet meet mainstream EV industry standards.

Management Changes

Legal Proceedings

• Not currently a party to any litigation or legal proceedings that are likely to have a material adverse effect on the business.
• The company has previously experienced infringement claims from non-practicing organizations (patent trolls) and settled a patent infringement case in December 2020, agreeing to make licensing payments.

Related Party Transactions

• Dr. Kang Sun, the CEO and a member of the board of directors, serves on the boards of Berzelius (Nanjing) Co., Ltd. and its holding company.
• The company developed its SiCore batteries through collaboration with Berzelius.
• An Exclusive Supply Agreement was entered into with Berzelius in November 2023, granting exclusive rights to purchase its proprietary silicon anode materials in the United States, Canada, and Mexico.
• The company has purchased, and may continue to purchase, SiCore batteries and raw materials for battery production and R&D activities from Berzelius.
• As of September 30, 2025, there were no purchase commitments with Berzelius.

Stakeholder Impact

• Shareholders: Potential for dilution from future equity raises; improved financial performance (revenue growth, reduced losses) could be positive; risks related to competition, manufacturing scale-up, and market conditions could negatively impact share price.
• Employees: Expected increase in headcount for R&D and SG&A functions; risk of not retaining key technical talent; potential for stock-based compensation.
• Customers: Increased production capacity and new product development aim to meet growing demand; risk of delays in fulfilling orders due to supply chain or manufacturing issues.
• Suppliers: Continued reliance on third-party suppliers, including Berzelius and contract manufacturers; risks related to supply availability and pricing.
• Creditors: Improved financial performance and cash position could be positive; continued losses and capital requirements pose ongoing risk.

Next Steps

• Continue to expand the global network of contract manufacturing partnerships to meet increased demand for SiCore batteries.
• Continue to invest in expanding manufacturing capabilities and capacity at the Fremont, California facility, including electrode manufacturing.
• Determine the scope and schedule of the GWh-scale manufacturing facility in Brighton, Colorado, based on funding availability and industry dynamics.
• Explore the potential sublease of all or a portion of the Brighton, Colorado facility.
• Focus research and development efforts on improving battery life, further improving energy density, and developing larger cell form factors.
• Optimize manufacturing protocol for the SiMaxx 500 Wh/kg battery platform.
• Recruit and train highly skilled personnel, including battery factory design and operations experts, for new manufacturing facilities.
• Potentially seek additional equity or debt financing to support business growth and capital expenditure requirements.

Key Dates

Recommendation

While the company shows impressive revenue growth and a significant reduction in net losses, indicating strong market demand for its products and improved operational efficiency, it remains unprofitable and relies heavily on external manufacturing. The uncertainty surrounding the Brighton, Colorado GWh-scale facility and the need for future capital raises introduce considerable execution and dilution risks. The competitive landscape and supply chain dependencies also warrant caution. A "hold" recommendation reflects the positive momentum balanced against these substantial risks and the need for further clarity on scaling production and achieving sustained profitability.

Keywords

Lithium-ion batteries, Silicon anode technology, Energy density, Fast charging, Electric vehicles, Aviation batteries, UAS, Drones, Battery manufacturing, SEC 10-Q, Financial results, Amprius Technologies, SiCore, SiMaxx