SES AI reported third‑quarter 2025 revenue of $7.12 million, a 55% beat over the $4.58 million consensus estimate and a 102% sequential increase from the $3.12 million earned in Q2 2025. The company’s earnings per share fell to –$0.06 versus the –$0.05 forecast, a miss of $0.01, largely because the quarter’s higher operating expenses were driven by intensified research and development spending and integration costs associated with the recent acquisition of Shenzhen UZ Energy.
Gross margin for the quarter stood at 51%, with service revenue—comprising 55% of total sales—generating a 78% margin, while product revenue—45% of sales—yielded a 15% margin. The mix shift toward higher‑margin services reflects the growing demand for AI‑enhanced battery material contracts, whereas the lower product margin is attributable to the UZ Energy product line, which has a lower gross‑margin profile.
Management raised its full‑year 2025 revenue outlook to $20 million–$25 million, up from the prior $15 million–$25 million range. The upgrade is driven by the UZ Energy acquisition, which adds a recurring revenue stream, and the launch of the Molecular Universe 1.0 platform on October 20, 2025, which expands the company’s AI‑driven material discovery offering.
The company completed the purchase of Shenzhen UZ Energy for approximately $25.5 million, subject to earnout adjustments, and announced a joint‑venture with Hisun New Materials that is 90% owned by SES AI. The partnership will commercialize electrolytes discovered through the Molecular Universe platform, allowing SES AI to maintain a capex‑light model while generating recurring revenue from manufacturing and sales.
CEO Qichao Hu emphasized that the quarter was “record” for the company, noting that the $7 million revenue represents more than 100% growth over Q2 and that the all‑in‑on‑AI strategy is delivering tangible results. He highlighted the MU 1.0 launch and the UZ Energy acquisition as key catalysts for the company’s accelerated growth trajectory.
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