Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Management attributed the 40% year-over-year revenue growth to a successful strategic pivot from EV applications to Energy Storage Systems (ESS) and drone markets.
Gross margin expansion to 22.6% was driven by pricing discipline and a higher mix of international sales within the ESS segment. The company is utilizing its Edge Box technology to source cells from multiple vendors, reducing dependency on single-line pricing and improving supply chain flexibility. Molecular Universe MU-3.0 was launched as an agentic workflow platform to accelerate material discovery for both sodium and lithium chemistries.
Management emphasized that their AI platform offers a competitive advantage through fully secured, on-premise integration, addressing enterprise concerns regarding proprietary data privacy. The ESS strategy is shifting toward total solutions for AI data centers, supported by new board expertise from the power electronics industry. Reaffirmed full-year 2026 revenue guidance of $30 to $35 million, with expectations for a 'hockey stick' growth curve in the second half of the year.
Management expects to scale Korea-based NDAA-compliant cell production from 200,000 to 1 million cells per year by Q4 2026 to meet strong defense demand. Future revenue growth is contingent on converting a pipeline of over 50 NDAA-compliant drone customers into commercial orders, with some orders already secured into 2028. The company is evaluating additional manufacturing capacities in Southeast Asia and Korea to potentially pull forward 2028 demand into 2027.
Molecular Universe MU-4.0 is slated for release later this year, featuring autonomous lab integration and generative capabilities for new molecules. A bad debt provision related to a legacy EV service contract caused a slight sequential increase in operating expenses despite an overall 26% year-over-year reduction. The company maintains a cash position of approximately $163 million, which management believes provides sufficient runway for current growth initiatives.
Management is actively exploring inorganic growth opportunities, specifically targeting manufacturing capacities in Korea and Southeast Asia that are business and revenue accretive. Recent FCC restrictions on foreign-produced inverters are expected to accelerate U.S. demand for SES's certified residential battery solutions. Nvidia-level potential. 30M+ investors trust Moby to find it first.
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