SES AI (SES) Financials

SES AI’s latest statements show improving commercialization, but the company remains deeply unprofitable and dependent on its investment portfolio to fund operations. Q2 2026 revenue was $5.1 million, down from $6.7 million in Q1 but up approximately 44% from the restated Q2 2025 figure of $3.5 million. Revenue has increased substantially from zero in the comparable 2024 quarters, although the quarterly trend remains volatile.

• Revenue is emerging from a zero-revenue base: SES AI reported $5.1 million of Q2 2026 revenue versus no revenue in Q2 and Q3 2024. Revenue also increased from $4.6 million in Q4 2025 to $6.7 million in Q1 2026 before moderating in the latest quarter.
• Q2 2026 gross margin improved sequentially: Gross profit was $1.1 million, representing a margin of approximately 22.6%, compared with roughly 18.1% in Q1 2026. This suggests some improvement in product or service economics from the immediately preceding quarter.
• Liquidity remains substantial relative to reported debt: Cash and equivalents totaled $64.1 million and short-term investments totaled $98.9 million at June 30, 2026. Against $8.0 million of short-term debt, the company had approximately $155.0 million of cash and investments net of that debt.
• Current assets continue to significantly exceed current liabilities: SES AI had $186.0 million of current assets and $28.5 million of current liabilities, producing a current ratio of approximately 6.5. This provides a meaningful cushion for near-term obligations.
• Investment maturities supported reported cash growth: Net cash increased by $17.2 million in Q2 2026, largely because the company received $32.1 million from sales or maturities of investments. This was not generated by the operating business and may not be repeatable.
• Operating cash burn improved sequentially but remains material: Cash used in operating activities declined from $19.8 million in Q1 2026 to $13.8 million in Q2. However, first-half operating cash burn totaled approximately $33.6 million, indicating that the company continues to consume cash while scaling revenue.
• SES AI remains heavily loss-making: Q2 2026 net loss was $17.9 million, or $0.05 per share. The company posted net losses in every supplied quarter, with retained earnings declining to a deficit of $401.9 million by June 30, 2026.
• Operating expenses remain far above gross profit: Q2 selling, general and administrative expense was $9.0 million and research and development expense was $11.4 million. Combined operating expenses of $20.3 million were nearly 18 times the $1.1 million gross profit, resulting in a $19.2 million operating loss.
• Revenue growth has not yet translated into improving profitability: Despite Q2 2026 revenue being higher year over year, the company’s net loss narrowed only modestly from $22.7 million in the restated Q2 2025 period. Q2 2026 gross margin also remained well below the restated Q2 2025 margin of approximately 73.7%.
• The liquidity cushion is shrinking over time: Cash and short-term investments declined from approximately $353.0 million in Q3 2024 to $163.0 million in Q2 2026. Continued operating losses and cash burn could eventually require additional financing, asset sales or equity issuance, creating potential dilution for shareholders.

Overall, SES AI’s financial profile is that of an early-stage technology company making progress toward commercial revenue but not yet demonstrating a self-sustaining business model. Investors should focus on whether revenue can grow consistently, whether gross margins recover, and whether operating expenses and cash burn decline before the company’s liquidity reserves are materially reduced.