Eco Wave Power Q4 2025 Earnings Call - U.S. pilot validates onshore port integration as wave energy eyes AI-driven coastal demand
Summary
Eco Wave Power spent 2025 building infrastructure and validating its technology, reporting a net loss of roughly $3.7 million driven by engineering, deployment, and project-development spending. The company finished the year with about $6.3 million in cash, and reported improved cost discipline in Q4 with total operating expenses down 4% quarter over quarter, R&D down 26%, and sales and marketing down 32% as it shifts from pure development toward commercial execution.
Operational validation is the headline. The Port of Los Angeles onshore pilot, run with Shell Marine Renewable Energy, reached its objectives and a final project report was submitted in March 2026 showing safe integration with conventional onshore port construction. Jaffa Port logged zero downtime and peak production for the site. Eco Wave is advancing a megawatt-scale project in Portugal, secured a land lease in Taiwan for Su'ao Port, and is pursuing deals with BPCL in India and an 8 MW feasibility in South Africa. The company also highlighted its digital twin and Wave GPT ambitions after being featured at NVIDIA GTC, framing wave energy as a potential localized renewable source for coastal data centers and AI infrastructure.
Key Takeaways
- Port of Los Angeles onshore pilot completed objectives; final project report submitted March 16, 2026, showing safe integration into existing port infrastructure using conventional onshore methods.
- Jaffa Port system operated with zero downtime in 2025, delivered stable electricity across varying wave conditions, and recorded highest peak production to date at the site.
- Company reported a 2025 net loss of approximately $3.7 million, attributed to continued investment in engineering, deployment and project development.
- Year-end cash balance was about $6.3 million, providing runway for ongoing operations and near-term project milestones.
- Q4 2025 operating expenses fell 4% quarter over quarter, with R&D down 26% and sales and marketing down 32%, indicating improved cost discipline during the transition to execution.
- Revenue remains limited and lumpy, driven by project timing and milestone accounting, so near-term top-line volatility should be expected.
- Eco Wave was featured at NVIDIA GTC for its digital twin work; management frames AI growth and data center power needs as a strategic demand vector for coastal wave energy.
- Portugal megawatt-scale project progressed to engineering, wave analysis and an execution plan; the Port Authority is conducting structural assessments after a storm but remains engaged.
- Taiwan partner secured a land lease for deployment at Su'ao Port, showing progress in the Asia pipeline.
- Partnerships and pipeline diversification include Shell Marine Renewable Energy in the U.S., BPCL discussions in India, and feasibility work for an 8 MW project in South Africa, signaling global commercial pursuits.
- Management is positioning Wave GPT and digital twin capabilities as operational differentiators for predictive maintenance, optimization and energy forecasting.
- Scaling to full commercial deployment requires additional system installations, successful permitting and structural approvals, and likely further capital raises to move from pilots to arrays.
Full Transcript
Conference Operator: Welcome to the Eco Wave Power Fourth Quarter 2025 earnings call. At this time, all participants are in a listen-only mode. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Aharon Yehuda, CFO of Eco Wave Power. You may begin.
Aharon Yehuda, Chief Financial Officer (CFO), Eco Wave Power: Good morning, everyone. Thank you for taking the time and joining this conference call. I will begin with a brief overview of our financial performance for 2025. As reflected in our annual report, our financial results primarily reflect a year of continued operational expansion and investment in infrastructure. During the year, we advanced key strategic projects, most notably the establishment of our U.S. pilot at the Port of Los Angeles, while also progressing additional projects in Europe and in Asia. These activities required increased investment, which is reflected in our operating expenses and net loss, which was approximately $3.7 million. Importantly, these expenses are directly tied to building the foundation for future commercialization, including engineering, deployment, and project development activities.
At the same time, our revenue remains limited and continued to be driven by project timing and milestone recognition, which is typical to a company at our current stage. From a liquidity perspective, the company ended the year with approximately $6.3 million in cash, providing us a solid financial base to support ongoing operations and key project milestones. Turning to the fourth quarter, maintaining financial discipline is equally critical as we scale. In Q4, we reduced operating expenses by 4% compared to the previous quarter, with R&D expenses down by 26% and sales and marketing expenses reduced by 32%. This improvement reflects a more efficient cost structure as we transition from pure development into the execution phase of real-world projects.
We believe this is an important milestone, as scaling an energy infrastructure company requires not only technological progress but also operational and financial efficiency. In parallel, we are seeing strong validation of the broader market approach. March 16, 2026, Eco Wave Power was featured in NVIDIA GTC Keynote, where our digital twin technology was presented as part of the application of AI real-world energy solutions. As artificial intelligence continues to expand globally, it is driving significant growth in electricity demands, particularly from data centers and high-performance computing infrastructure. Many of these facilities are located in coastal regions, where access to scalable and reliable renewable energy is becoming increasingly important. We believe our technology is well-positioned to contribute to this evolving landscape by enabling clean electricity generation from existing coastal infrastructure near areas of growing energy demand.
Looking ahead, achieving full commercial deployment will require the installation of additional systems at scale. Our projects in Portugal and Taiwan represent the first steps in this direction, and together with our broader pipeline, form the basis for our transition from pilot project to larger commercial wave energy arrays. Overall, we believe the combination of continued project advancement, improving cost discipline, and the increasing relevance of renewable energy in the AI era provides a solid foundation for the next phase of growth. I now turn the call over to Inna Braverman, CEO of Eco Wave Power Global AB. Inna, you may begin.
Inna Braverman, Chief Executive Officer (CEO), Eco Wave Power Global AB: Thank you, Aharon Yehuda, and good morning, everyone. I’m actually taking this call from NVIDIA’s GTC conference, where I had the privilege of attending the keynote of NVIDIA’s CEO earlier this week. I was truly honored and excited to see Eco Wave Power’s technology featured during Jensen Huang’s keynote and to experience it firsthand, to experience the magnitude of the artificial intelligence industry. What is very clear here is that AI is not just a technological shift. It is an infrastructure shift, and one of its most critical constraints is energy. The scale of electricity required to support data centers, high-performance computing, and AI-driven application is immense and growing rapidly, creating a significant need for new, reliable, and renewable energy sources. Against this backdrop, 2025 was a year of meaningful progress for Eco Wave Power as we continued advancing the commercialization of our technology and expanding our global project portfolio.
One of the key milestones was the successful launch and the completion of the first onshore wave energy pilot project in the United States at the Port of Los Angeles in collaboration with Shell Marine Renewable Energy. In March 2026, we submitted the final project report confirming that the system achieved its technical and operational objective. Importantly, the project demonstrated that wave energy systems can be safely integrated into existing port infrastructure using conventional onshore construction methods. This provides a clear and validated pathway towards future commercial scale deployment. At the same time, our project at Jaffa Port in Israel continued to deliver strong operational performance. The system maintained zero downtime during 2025, generated stable electricity under varying wave conditions, and achieved the highest wave conditions and peak production levels recorded at the site to date.
These results provide valuable engineering data and supports the optimization and scaling of our technology. We also made continued progress across our international pipeline. In Portugal, we advanced the development of our first megawatt-scale project, including engineering work, wave analysis, and submission of the execution plan. While the Port Authority is currently conducting structural assessments following a recent storm event, they have reiterated their continued interest in the project, and we view this as a part of the natural process of advancing large-scale infrastructure. At the same time, we’re maintaining diversified global pipeline, allowing us to continue progressing other opportunities while developments in Portugal are being finalized. In Taiwan, our partners secured a land lease agreement for deployment at Su’ao Port, and we continued expanding into additional markets, including collaboration with BPCL, Bharat Petroleum in India, and the feasibility studies supporting potential eight-megawatt project in South Africa.
From a financial perspective, as discussed earlier, 2025 reflected a year of investment in growth and infrastructure, with a strong focus on advancing real-world projects. At the same time, we demonstrated improving cost discipline in the fourth quarter, which is an important step as we transition towards execution and commercialization. Looking ahead, we’re particularly encouraged by the growing intersection between AI and energy demand. Many of the world’s largest data centers are located near coastal population centers, where electricity demand is concentrated. We believe that wave energy deployed on existing coastal infrastructure can play a meaningful role in providing clean, reliable energy close to these demand centers, reducing reliance on long-distance transmission and supporting the next generation of digital infrastructures.
In parallel, we are also advancing our digital capabilities, including the exploration of our Wave GPT platform, also digital twin, which is intended to leverage AI and advanced analytics to optimize performance, enable predictive maintenance, and improve energy forecasting. Overall, we believe that the combination of validated technology, growing global project pipeline, improving cost discipline, and increasing global demand for clean energy driven by AI positions Eco Wave Power well for the next phase of growth. I would like to thank our shareholders, partners, and supporters for their continued confidence as we move forward. Thank you.
Conference Operator: This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.