[Management View]
SES AI Corporation reported record revenue of $7.1 million for Q3 2025, representing 102% sequential growth from Q2 2025. The company attributed this growth to the UC Energy acquisition and the deployment of the Molecular Universe platform. Key strategic priorities include expanding the Molecular Universe platform, integrating AI features into ESS products, and leveraging joint ventures for material supply.

[Outlook]
Management updated the full-year 2025 revenue guidance to $20 million to $25 million, incorporating contributions from UC Energy. Future plans include offering on-premise deployments of Molecular Universe to address data security needs, expanding commercial supply of materials to OEMs, and increasing activity in the drone sector.

[Financial Performance]
Revenue for Q3 2025 was $7.1 million, a 102% increase from Q2 2025. Gross margin was 51%, with service revenue at 78% and product revenue at 15%. GAAP net loss improved to $20.9 million, or negative $0.06 per share, from $22.7 million, or negative $0.07 per share, in Q2 2025.

[Q&A Highlights]
Question 1: On the Hyzen JV, can you talk about how that opportunity came about? Was the company paying for Molecular Universe access? Or was this sort of an internal project at SES AI Corporation? And then what type of battery will this electrolyte enable?
Answer: The Hyzen JV came at the request of Molecular Universe enterprise users. Several battery companies trialing Molecular Universe asked SES AI Corporation to supply new formulations discovered through the platform. The JV, controlled 90% by SES AI Corporation, contract manufactures these formulations. Applications include improved low-temperature performance for ESS batteries, high voltage electrolyte for cell phone applications, and improved cycle life for EV applications.

Question 2: How do you expect the monetization of Molecular Universe to play out over the next year? Beyond JVs, do you expect Molecular Universe to grow as a traditional SaaS business?
Answer: Molecular Universe is a mix of SaaS platform and materials. The SaaS platform is expected to grow in seats per month and quarter. Material supply revenue from Molecular Universe discoveries is projected to be much higher than SaaS revenue.

Question 3: Can you give an update on the number of companies trialing Molecular Universe and potential large or medium-sized OEMs signing on?
Answer: The number of enterprise users is nearing 40. Many medium and large-sized enterprises are planning for on-premise deployment of Molecular Universe.

Question 4: Can you elaborate on the three sub-tiers within the enterprise subscription and other subscription options?
Answer: Enterprise tiers differ in database size, model depth, and knowledge. Enterprise one is akin to a PhD student level, enterprise two to a postdoc level, and enterprise three to a senior scientist level. Larger companies prefer a combination of cloud and on-premise solutions.

Question 5: Can you provide background on UC Energy and its growth potential?
Answer: UC Energy serves behind-the-meter commercial and industrial applications. SES AI Corporation supplies machine learning models to improve UC's BMS accuracy. Integration of Molecular Universe features into UC's ESS packs has reduced customer complaints. UC Energy's revenue is expected to double next year.

Question 6: What is the liquidity outlook for the end of 2025, and will scaling up Molecular Universe impact cash burn or CapEx plans?
Answer: SES AI Corporation expects to exit 2025 with $195 million to $200 million in liquidity. The CapEx-light business model ensures sufficient funds for growth.

Question 7: Can you share the roadmap for Molecular Universe for 2026 and requested features?
Answer: MU 1.0 will expand to cover electrode process optimization and cell design. Major battery companies have requested their own Molecular Universe for factory expansion.

Question 8: Can you provide an update on 2170 and LMA pouch cells for robotics, drones, and UAM?
Answer: The pouch cells for drones are seeing standardization around 10 amp-hour power cells. SES AI Corporation is converting its Chengdu line to meet growing demand.

[Sentiment Analysis]
Analysts and management displayed a positive tone, emphasizing confidence in the company's growth prospects and strategic initiatives.

[Quarterly Comparison]
| Metric | Q3 2025 | Q2 2025 | Change |
|-----------------------|---------------|---------------|----------------|
| Revenue | $7.1 million | $3.5 million | +102% |
| Gross Margin | 51% | 48% | +3% |
| GAAP Net Loss | $20.9 million | $22.7 million | -$1.8 million |
| Shares Outstanding | 365 million | 366.3 million | -1.3 million |
| Cash Used in Operations| $14.3 million | $15 million | -$0.7 million |

[Risks and Concerns]
Potential risks include fluctuations in gross margin due to revenue mix changes, dependency on joint ventures for material supply, and challenges in scaling up production for new market segments.

[Final Takeaway]
SES AI Corporation's strategic acquisitions and AI integration have driven significant revenue growth in Q3 2025. The company's focus on expanding the Molecular Universe platform and leveraging joint ventures positions it well for future growth. Management's updated revenue guidance and positive sentiment indicate confidence in sustainable growth and long-term success.