DALLAS, TX -- June 2, 2026 -- SES AI Corp. (NYSE: SES): Stonegate Capital Partners Initiates Coverage on SES AI Corp. (NYSE: SES). SES’ 1Q26 update further shifts the story from EV battery development toward a commercialization model led by ESS, with drone cells, materials, and Molecular Universe adding clearer 2H26/2027 revenue paths. Revenue beat expectations, though Q1 benefited from ~$1.5M of 4Q25 revenue shifting into the period, so the better read is not run-rate extrapolation but improved mix, reaffirmed FY26 guidance, and better visibility into drone qualification, cost reductions, and AI-enabled product differentiation.
Quarterly Results: Revenue was $6.7M, up 47% q/q and 16% y/y, above consensus of $3.65M, driven primarily by UZ Energy ESS sales with early drone sample and Molecular Universe subscription contributions. GAAP gross margin improved to 18.1% from 11.3% in 4Q25, while non-GAAP gross margin improved to 18.3% from 11.7%, reflecting better UZ margins and higher-margin mix. GAAP OpEx was $19.1M, non-GAAP OpEx was $14.3M, non-GAAP net loss was $11.1M, or $(0.03)/share, and adjusted EBITDA loss improved to $12.8M from $13.8M in 4Q25.
ESS / Edge Box: ESS remains the primary FY26 revenue driver. The ~$20M, three-year ATG EPower agreement gives UZ Energy a North American distribution channel across residential, commercial, and industrial customers. The more differentiated element is Edge Box, which combines ESS hardware with Molecular Universe Predict to improve battery state-of-charge/state-of health accuracy, reduce oversizing, support on-premise data security, and improve virtual power plant bidding decisions.
Drone Cells / Materials / Molecular Universe: Drone cells are the most important 2H26 swing factor. SES completed the Chungju line conversion, began shipping NDAA-compliant samples, and management indicated interest is predominantly defense-related. Qualification typically takes one to two quarters, with much of the product/performance testing already complete and the current focus shifting to supply-chain audits. Management expects Q2 drone revenue, a Q3/Q4 pickup, and 2027 as the first fuller-year delivery period. Materials remain earlier-stage, but approximately half a dozen customers have advanced through second-phase testing, while Molecular Universe gained validation through a multiyear Search-in-a-Box subscription with a major global battery manufacturer.
Guidance: SES reaffirmed FY26 revenue guidance of $30M–$35M, with 1H26 driven primarily by UZ Energy ESS revenue and drone/materials contributions expected to build in 2H26. Management still expects ~15% consolidated gross margin and a ~15% reduction in full-year OpEx from 2025 levels, with cost actions becoming more visible in Q3/Q4. SES ended 1Q26 with ~$178M of liquidity after ~$20M of operating cash use, supporting the Company’s capex-light growth plan and commercialization priorities. CFO Ray Liu was appointed effective April 27, 2026.
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SOURCE: Stonegate, Inc.
