Group 1 - The article discusses a long-term, contrarian approach to equities investing, with a focus on the Tech, Commodities, and Energy sectors as the world undergoes an energy transition [1] Group 2 - No specific company or stock positions are disclosed, indicating a neutral stance on investment recommendations [2][3]

[Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section highlights that the Quarterly Report on Form 10-Q contains forward-looking statements, which are subject to known and unknown risks, uncertainties, and other important factors that could cause actual results to differ materially - The report contains forward-looking statements regarding future results, business strategy, and the ability to meet NYSE listing requirements, which are subject to known and unknown risks and uncertainties[11](index=11&type=chunk) - Key areas of forward-looking statements include changes in strategy, expansion plans, customer opportunities, financial position, costs, market acceptance of business model, brand development, industry developments, macroeconomic uncertainty, tax law changes (e.g., OBBBA, IRA), investment in development projects, supply chain diversification, intellectual property, future capital requirements, international operations, and the expectation of revenue generation from first two-owned projects in 2025[13](index=13&type=chunk) - Investors should not rely on forward-looking statements as predictions of future events, as actual results may differ materially due to various factors, including those detailed in the 'Risk Factors' section of the 2024 Annual Report on Form 10-K[12](index=12&type=chunk) [Part I - Financial Information](index=6&type=section&id=Part%20I%20-%20Financial%20Information) [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents Energy Vault Holdings, Inc.'s unaudited condensed consolidated financial statements for the periods ended June 30, 2025, and December 31, 2024, including balance sheets, statements of operations and comprehensive loss, statements of stockholders' equity, and statements of cash flows, along with detailed notes explaining significant accounting policies, revenue recognition, credit losses, debt, equity, and other financial details [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets show a significant increase in total assets and liabilities from December 31, 2024, to June 30, 2025, primarily driven by increases in restricted cash, advances to suppliers, property and equipment, and contract liabilities, while total stockholders' equity decreased Condensed Consolidated Balance Sheet Highlights (Amounts in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :-------------- | :---------------- | :--------- | :--------- | | **Assets** | | | | | | Cash and cash equivalents | $21,416 | $27,091 | $(5,675) | -20.95% | | Restricted cash, current portion | $32,918 | $990 | $31,928 | 3225.05% | | Total current assets | $94,895 | $68,905 | $25,990 | 37.72% | | Property and equipment, net | $120,875 | $99,493 | $21,382 | 21.49% | | Total Assets | $248,828 | $183,889 | $64,939 | 35.32% | | **Liabilities** | | | | | | Accounts payable | $35,834 | $20,250 | $15,584 | 76.96% | | Long-term debt, current portion | $23,107 | $— | $23,107 | N/A | | Contract liabilities | $65,726 | $8,938 | $56,788 | 635.30% | | Total current liabilities | $143,826 | $54,655 | $89,171 | 163.15% | | Total liabilities | $158,529 | $57,633 | $100,896 | 175.06% | | **Stockholders' Equity** | | | | | | Total stockholders' equity | $90,299 | $126,256 | $(35,957) | -28.48% | | Total Liabilities and Stockholders' Equity | $248,828 | $183,889 | $64,939 | 35.32% | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) The company reported increased revenue and gross profit for both the three and six months ended June 30, 2025, compared to the prior year. However, net loss also widened due to higher operating expenses, particularly general and administrative costs and provision for credit losses, as well as significantly increased interest expense Condensed Consolidated Statements of Operations Highlights (Amounts in thousands, except per share data) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | YoY Change ($) | YoY Change (%) | | :----------------------------------- | :--------------------------- | :--------------------------- | :------------- | :------------- | | Revenue | $8,512 | $3,770 | $4,742 | 125.78% | | Cost of revenue | $5,996 | $2,721 | $3,275 | 120.36% | | Gross profit | $2,516 | $1,049 | $1,467 | 139.85% | | Total operating expenses | $30,664 | $28,934 | $1,730 | 5.98% | | Loss from operations | $(28,148) | $(27,885) | $(263) | 0.94% | | Interest expense | $(2,516) | $(38) | $(2,478) | 6521.05% | | Net loss attributable to Energy Vault Holdings, Inc. | $(34,927) | $(26,188) | $(8,739) | 33.37% | | Net loss per share (basic and diluted) | $(0.22) | $(0.18) | $(0.04) | 22.22% | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | YoY Change ($) | YoY Change (%) | | :----------------------------------- | :--------------------------- | :--------------------------- | :------------- | :------------- | | Revenue | $17,046 | $11,529 | $5,517 | 47.85% | | Cost of revenue | $9,654 | $8,412 | $1,242 | 14.76% | | Gross profit | $7,392 | $3,117 | $4,275 | 137.16% | | Total operating expenses | $56,433 | $55,629 | $804 | 1.45% | | Loss from operations | $(49,041) | $(52,512) | $3,471 | -6.61% | | Interest expense | $(2,611) | $(46) | $(2,565) | 5576.09% | | Net loss attributable to Energy Vault Holdings, Inc. | $(56,063) | $(47,327) | $(8,736) | 18.46% | | Net loss per share (basic and diluted) | $(0.36) | $(0.32) | $(0.04) | 12.50% | [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) The statements of stockholders' equity show a decrease in total equity from December 31, 2024, to June 30, 2025, primarily due to the net loss incurred during the period, partially offset by increases in additional paid-in capital from stock-based compensation and equity purchase agreements Condensed Consolidated Statements of Stockholders' Equity Highlights (Amounts in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :-------------- | :---------------- | :--------- | :--------- | | Common Stock (Shares) | 160,689 | 153,206 | 7,483 | 4.88% | | Common Stock (Amount) | $16 | $15 | $1 | 6.67% | | Additional Paid-In Capital | $532,095 | $512,022 | $20,073 | 3.92% | | Accumulated Deficit | $(439,885) | $(383,822) | $(56,063) | 14.61% | | Total Stockholders' Equity | $90,299 | $126,256 | $(35,957) | -28.48% | - For the six months ended June 30, 2025, additional paid-in capital increased by **$18.26 million** from stock-based compensation and **$1.866 million** from shares issued per equity purchase agreement[24](index=24&type=chunk) - The accumulated deficit increased by **$56.063 million** for the six months ended June 30, 2025, reflecting the net loss for the period[24](index=24&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company experienced a significant shift in cash flow from operating activities, moving from a net use of cash in 2024 to a net provision of cash in 2025. This was largely offset by continued cash usage in investing activities and a substantial increase in cash provided by financing activities, primarily from new debt issuances Condensed Consolidated Statements of Cash Flows Highlights (Amounts in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net cash provided by (used in) operating activities | $12,629 | $(11,846) | $24,475 | 206.61% | | Net cash used in investing activities | $(17,336) | $(20,832) | $3,496 | -16.78% | | Net cash provided by financing activities | $32,140 | $360 | $31,780 | 8827.78% | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $28,026 | $(32,604) | $60,630 | -185.96% | | Cash, cash equivalents, and restricted cash – end of period | $58,099 | $112,951 | $(54,852) | -48.56% | - Operating cash flow improved significantly, moving from a net use of **$11.8 million** in H1 2024 to a net provision of **$12.6 million** in H1 2025, driven by increased contract liabilities (advance customer payments) and decreased accounts payable[296](index=296&type=chunk)[297](index=297&type=chunk)[298](index=298&type=chunk) - Financing activities provided **$32.1 million** in H1 2025, a substantial increase from **$0.4 million** in H1 2024, primarily due to **$63.8 million** from debt financings and **$1.2 million** from stock issuance, partially offset by debt repayments and issuance costs[301](index=301&type=chunk)[302](index=302&type=chunk)[303](index=303&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and breakdowns of the figures presented in the condensed consolidated financial statements, covering the company's business, significant accounting policies, revenue recognition, credit loss allowances, fair value measurements, related party transactions, investments, property and equipment, intangible assets, debt, pension, stockholders' equity, stock-based compensation, reorganization expenses, segment reporting, income taxes, net loss per share, commitments and contingencies, and subsequent events [NOTE 1. Organization and Description of Business](index=13&type=section&id=NOTE%201.%20ORGANIZATION%20AND%20DESCRIPTION%20OF%20BUSINESS) Energy Vault Holdings, Inc. provides diverse turnkey energy storage platforms, including gravity, battery, and green hydrogen technologies, supported by its energy management system software. The company is transitioning from a build-and-transfer/licensing model to also taking ownership interests in energy storage assets, aiming to accelerate the global transition to renewable energy by providing clean, reliable, and affordable solutions - Energy Vault offers a diverse technology portfolio of turnkey energy storage platforms, including proprietary gravity, battery, and green hydrogen hardware, integrated with technology-agnostic energy management system software[32](index=32&type=chunk) - The company began a multi-year transition in 2024 to shift from solely providing technology to third parties (build-and-transfer or licensing) to also taking an ownership interest in energy storage assets in select markets[32](index=32&type=chunk) - Energy Vault's mission is to provide energy storage solutions to accelerate the global transition to renewable energy, addressing the increasing demand for electricity and the intermittency of renewable sources like solar and wind[33](index=33&type=chunk) [NOTE 2. Summary of Significant Accounting Policies](index=13&type=section&id=NOTE%202.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the company's accounting practices, including the accrual basis of accounting under GAAP, principles of consolidation, treatment of non-controlling interests, and its election as an emerging growth company. It also details policies for restricted cash, revenue recognition for tolling agreements, and the deferral method for Investment Tax Credits (ITCs), while also discussing recent accounting standards not yet adopted - The financial statements are prepared on an accrual basis in accordance with GAAP and SEC rules for interim financial reporting, reflecting all necessary adjustments for fair presentation[34](index=34&type=chunk)[35](index=35&type=chunk) - The company has elected not to opt out of the extended transition period for complying with new or revised financial accounting standards as an emerging growth company, which may affect comparability with other public companies[39](index=39&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) - Restricted cash increased significantly from **$2.982 million** at December 31, 2024, to **$36.683 million** at June 30, 2025, primarily due to debt financing requirements and collateral for customer project guarantees[51](index=51&type=chunk) Restricted Cash Balances (Amounts in thousands) | Category | June 30, 2025 | December 31, 2024 | | :----------------------------------------------------------------- | :-------------- | :---------------- | | Restricted cash, current portion | $32,918 | $990 | | Restricted cash, long-term portion | $3,765 | $1,992 | | **Total restricted cash** | **$36,683** | **$2,982** | | Restricted cash related to debt financing | $22,106 | $— | | Restricted cash related to letters of credit, bank guarantees, and performance and payment bonds | $14,577 | $2,982 | - The company accounts for nonrefundable, transferable Investment Tax Credits (ITCs) using the deferral method, reducing the asset's carrying amount and recording a deferred tax asset upon generation, with the benefit recognized as a reduction to depreciation expense over the asset's useful life[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - During the three and six months ended June 30, 2025, the company placed one qualified asset into service, generating **$14.0 million** in statutory ITCs[64](index=64&type=chunk) [NOTE 3. Revenue Recognition](index=17&type=section&id=NOTE%203.%20REVENUE%20RECOGNITION) This note details the company's revenue streams, which include sales of energy storage products, tolling revenue from owned projects, and licensing of software and intellectual property, as well as operation and maintenance services. It also provides a breakdown of contract assets and liabilities, noting a significant increase in contract liabilities due to advance customer payments Revenue by Category (Amounts in thousands) | Revenue Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Sale of energy storage products | $7,711 | $2,958 | $12,602 | $10,683 | | Tolling revenue | $390 | $— | $390 | $— | | Operation and maintenance services | $277 | $545 | $553 | $545 | | Software licensing | $120 | $152 | $232 | $186 | | Intellectual property ("IP") licensing | $14 | $115 | $3,269 | $115 | | **Total revenue** | **$8,512** | **$3,770** | **$17,046** | **$11,529** | - As of June 30, 2025, remaining performance obligations totaled **$205.1 million**, with approximately **88%** expected to be recognized as revenue over the next 12 months[70](index=70&type=chunk) Contract Balances (Amounts in thousands) | Contract Balance | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | Contract assets, net of allowance for credit losses | $7,727 | $6,798 | | Contract liabilities | $65,726 | $8,938 | - Contract liabilities (deferred revenue) significantly increased to **$65.7 million** at June 30, 2025, from **$8.9 million** at December 31, 2024, reflecting advance customer payments for ongoing projects[71](index=71&type=chunk)[75](index=75&type=chunk) [NOTE 4. Allowance for Credit Losses](index=18&type=section&id=NOTE%204.%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) The company's allowance for credit losses significantly increased for the six months ended June 30, 2025, primarily due to a substantial provision for credit losses on its customer financing receivable and a convertible note receivable from DG Fuels, which was partially impaired due to the counterparty's financial difficulties Allowance for Credit Losses Activity (Amounts in thousands) | Metric | Six Months Ended June 30, 2025 | | :----------------------------------- | :--------------------------- | | Allowance for credit losses, beginning of period | $32,238 | | Provision (benefit) for credit losses | $3,832 | | **Allowance for credit losses, end of period** | **$36,070** | | Metric | Six Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | | Allowance for credit losses, beginning of period | $2,514 | | Provision (benefit) for credit losses | $353 | | Write-offs | $(256) | | **Allowance for credit losses, end of period** | **$2,611** | - The provision for credit losses for the six months ended June 30, 2025, was **$3.832 million**, a significant increase from **$0.353 million** in the prior year, primarily driven by increased allowances for customer financing receivable and the DG Fuels convertible note receivable[76](index=76&type=chunk)[257](index=257&type=chunk) - The company recorded a **$1.9 million** allowance for credit losses on its convertible note receivable from DG Fuels in Q2 2025, concluding it was partially impaired due to DG Fuels experiencing financial difficulties[79](index=79&type=chunk)[91](index=91&type=chunk) - The customer financing receivable was placed on non-accrual status effective December 31, 2024, due to past-due installment payments[78](index=78&type=chunk) [NOTE 5. Fair Value Measurements](index=19&type=section&id=NOTE%205.%20FAIR%20VALUE%20MEASUREMENTS) This note details the company's fair value measurements, categorizing financial instruments into Level 1, 2, or 3 based on input observability. It specifically highlights warrant liabilities and long-term debt, which are measured using Level 3 unobservable inputs, such as a Black-Scholes model for warrants and a discounted cash flow model for debt - The company categorizes financial assets and liabilities into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[84](index=84&type=chunk) - Warrant liabilities and long-term debt are measured using Level 3 inputs; warrant fair value is determined using a Black-Scholes model, and long-term debt fair value is estimated using a discounted cash flow model with the company's incremental borrowing rate[82](index=82&type=chunk) [NOTE 6. Related Party Transactions](index=19&type=section&id=NOTE%206.%20RELATED%20PARTY%20TRANSACTIONS) The company incurred marketing and sales costs with a related party, a company owned by an immediate family member of an officer, totaling $0.2 million for the three months and $0.5 million for the six months ended June 30, 2025, a decrease from the prior year Related Party Marketing and Sales Costs (Amounts in thousands) | Period | 2025 | 2024 | | :----------------------------------- | :----- | :----- | | Three Months Ended June 30, | $200 | $300 | | Six Months Ended June 30, | $500 | $600 | - As of June 30, 2025, the company had no payables due to this related party, compared to **$0.1 million** at December 31, 2024[83](index=83&type=chunk) [NOTE 7. Investments](index=20&type=section&id=NOTE%207.%20INVESTMENTS) The company's investments include equity securities in KORE Power, Inc., recorded at cost less impairment, and convertible and other notes receivable. A significant allowance for credit losses was recorded against the DG Fuels convertible note due to financial difficulties, while new loans were extended to Stoney Creek BESS Pty Ltd for project development, leading to the company's acquisition of Stoney Creek post-period end Investments (Amounts in thousands) | Investment Type | June 30, 2025 (Current) | June 30, 2025 (Long-Term) | December 31, 2024 (Current) | December 31, 2024 (Long-Term) | | :----------------------------------- | :------------------------ | :------------------------ | :-------------------------- | :-------------------------- | | Investment in equity securities | $— | $3,270 | $— | $3,270 | | Convertible note receivable | $— | $1,418 | $2,622 | $— | | Other note receivable | $837 | $1,603 | $311 | $— | | **Total Investments** | **$837** | **$6,291** | **$2,933** | **$3,270** | - The company holds equity securities in KORE Power, Inc. with a cost basis of **$15.0 million** and cumulative impairment of **$11.7 million** as of June 30, 2025[87](index=87&type=chunk) - A **$1.9 million** allowance for credit losses was recorded on the DG Fuels convertible note receivable in Q2 2025 due to DG Fuels' financial difficulties, leading to partial impairment[91](index=91&type=chunk) - The company loaned **AUD 0.5 million** (Tranche 1), provided a bank guarantee of **AUD 2.5 million** (Tranche 2), loaned an additional **AUD 0.5 million** (Tranche 3), and **AUD 2.9 million** (Tranche 4) to Stoney Creek BESS Pty Ltd for project development, with the acquisition of Stoney Creek completed on August 5, 2025[92](index=92&type=chunk)[93](index=93&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) [NOTE 8. Property and Equipment, Net](index=21&type=section&id=NOTE%208.%20PROPERTY%20AND%20EQUIPMENT,%20NET) Property and equipment, net, significantly increased to $120.9 million at June 30, 2025, from $99.5 million at December 31, 2024, primarily due to the Cross Trails BESS being placed into service and reclassified from construction in progress. Construction in progress still includes the Calistoga Resiliency Center hybrid energy storage system (CRC HESS) and the Snyder, Texas microgrid and customer demonstration unit (Snyder CDU) Property and Equipment, Net (Amounts in thousands) | Category | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | Energy storage system | $23,892 | $— | | Construction in progress | $86,825 | $88,669 | | Total property and equipment | $125,531 | $102,844 | | Less: accumulated depreciation and amortization | $(4,656) | $(3,351) | | **Property and equipment, net** | **$120,875** | **$99,493** | - The Cross Trails BESS was placed into service during the six months ended June 30, 2025, reclassifying its carrying value from construction in progress to energy storage systems[97](index=97&type=chunk) - Depreciation and amortization related to property and equipment was **$0.4 million** for the six months ended June 30, 2025, compared to **$0.6 million** for the same period in 2024[98](index=98&type=chunk) [NOTE 9. Intangible Assets, Net](index=21&type=section&id=NOTE%209.%20INTANGIBLE%20ASSETS,%20NET) Intangible assets, primarily capitalized software to be sold, increased to $5.7 million at June 30, 2025, from $4.5 million at December 31, 2024. The company amortizes these costs over an estimated useful life of five years, with future amortization expenses projected through 2029 and beyond Intangible Assets, Net (Amounts in thousands) | Category | June 30, 2025 (Net Carrying Amount) | December 31, 2024 (Net Carrying Amount) | | :----------------------------------- | :---------------------------------- | :---------------------------------- | | Capitalized software to be sold | $5,749 | $4,538 | - Amortization expense for intangible assets was **$0.4 million** for the six months ended June 30, 2025, compared to **$0.2 million** for the same period in 2024[101](index=101&type=chunk) Estimated Future Amortization Expense for Intangible Assets (Amounts in thousands) | Year | Amount | | :----------------------------------- | :----- | | Remainder of 2025 | $435 | | 2026 | $871 | | 2027 | $871 | | 2028 | $871 | | 2029 | $508 | | Thereafter | $39 | | **Subtotal** | **$3,595** | | Software projects in process | $2,154 | | **Total** | **$5,749** | [NOTE 10. Debt](index=22&type=section&id=NOTE%2010.%20DEBT) The company significantly increased its debt in 2025, primarily through the issuance of CRC Senior Notes ($27.8 million) and a Cross Trails Bridge Loan ($10.0 million), leading to a substantial rise in interest expense. The CRC Bridge Loan was refinanced, resulting in a $1.4 million loss on early extinguishment. Post-period, a Cross Trails Senior Note of $17.8 million was also secured Summary of Debt (Amounts in thousands) | Debt Instrument | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | CRC Senior Notes | $27,826 | $— | | Cross Trails Bridge Loan | $10,000 | $— | | **Total face value of debt** | **$37,826** | **$—** | | Unamortized discount and issuance costs | $(4,475) | $— | | Long-term debt, current portion | $(23,107) | $— | | **Long-term debt** | **$10,244** | **$—** | Interest Expense Components (Amounts in thousands) | Component | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Contractual interest expense | $1,208 | $35 | $1,226 | $39 | | Amortization of debt issuance costs | $661 | $— | $704 | $— | | Amortization of debt discount | $645 | $— | $676 | $— | | Interest expense on finance leases | $2 | $3 | $5 | $7 | | **Total** | **$2,516** | **$38** | **$2,611** | **$46** | - The CRC Bridge Loan of **$27.8 million** was obtained on March 31, 2025, and refinanced on April 4, 2025, through the issuance of CRC Senior Notes, resulting in a **$1.4 million** loss on early debt extinguishment[104](index=104&type=chunk)[105](index=105&type=chunk)[107](index=107&type=chunk) - CRC Senior Notes of **$27.8 million** were issued on April 4, 2025, bearing interest at **12.5%** (then **9.5%**) and secured by CRC assets, with the first principal payment of **$12.9 million** due August 31, 2025[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) - A Cross Trails Bridge Loan of **$10.0 million** was entered into on May 12, 2025, at **24%** interest, and was repaid in July 2025. Subsequently, a Cross Trails Senior Note of approximately **$17.8 million** was secured on July 23, 2025, for the Cross Trails energy storage project[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) [NOTE 11. Pension](index=25&type=section&id=NOTE%2011.%20PENSION) The company's net periodic pension benefit cost for its defined benefit plan increased to $163 thousand for the six months ended June 30, 2025, compared to $124 thousand in the prior year, primarily driven by higher employer service costs and amortization of net loss, partially offset by expected return on plan assets Net Periodic Pension Benefit Cost (Amounts in thousands) | Component | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Employer service costs | $95 | $73 | $182 | $148 | | Interest cost | $19 | $23 | $36 | $48 | | Expected return on plan assets | $(66) | $(53) | $(125) | $(109) | | Amortization of net prior service credit | $10 | $9 | $19 | $18 | | Amortization of net loss | $27 | $9 | $51 | $19 | | **Net periodic benefit cost** | **$85** | **$61** | **$163** | **$124** | [NOTE 12. Supplemental Balance Sheets Detail](index=26&type=section&id=NOTE%2012.%20SUPPLEMENTAL%20BALANCE%20SHEETS%20DETAIL) This note provides a detailed breakdown of various balance sheet accounts, including prepaid and other current assets, other assets, accrued expenses, other current liabilities, and other long-term liabilities, showing changes from December 31, 2024, to June 30, 2025 Supplemental Balance Sheet Details (Amounts in thousands) | Category | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | **Prepaid and other current assets:** | | | | Prepaid expenses | $5,207 | $3,423 | | Total prepaid and other current assets | $5,742 | $3,702 | | **Other assets:** | | | | Interest receivable, net | $500 | $850 | | Total other assets | $678 | $1,156 | | **Accrued expenses:** | | | | Professional fees | $8,086 | $8,373 | | Accrued purchases | $3,132 | $8,165 | | Employee costs | $4,362 | $4,019 | | Insurance premium financings | $1,170 | $724 | | Taxes payable | $1,207 | $2,351 | | Warranty liabilities | $711 | $1,336 | | Total accrued expenses | $18,668 | $24,968 | | **Other current liabilities:** | | | | Operating leases | $451 | $461 | | Finance leases | $40 | $38 | | Total other current liabilities | $491 | $499 | | **Other long-term liabilities:** | | | | Operating leases | $1,650 | $785 | | Finance leases | $94 | $81 | | Unearned lease revenue - tolling arrangements | $29 | $— | | Asset retirement obligation | $12 | $11 | | Warrant liabilities | $2 | $2 | | Warranty liabilities | $597 | $55 | | Total other long-term liabilities | $2,384 | $934 | [NOTE 13. Stockholders' Equity](index=26&type=section&id=NOTE%2013.%20STOCKHOLDERS'%20EQUITY) The company entered into an equity purchase agreement with Hudson Global Ventures, LLC, allowing it to sell up to $25.0 million in common stock, with 1.85 million shares already sold for $1.2 million. The company also received a NYSE notification for non-compliance with the minimum stock price listing requirement and is considering options to regain compliance - On March 31, 2025, the company entered into an equity purchase agreement with Hudson Global Ventures, LLC, granting the right to sell up to **$25.0 million** of newly issued common stock[131](index=131&type=chunk) - As consideration for Hudson's commitment, the company paid a **$0.2 million** commitment fee and issued **452,000** shares of common stock valued at **$0.4 million**[133](index=133&type=chunk) - During the three and six months ended June 30, 2025, the company sold **1.85 million** shares of common stock to Hudson for gross proceeds of **$1.2 million**[140](index=140&type=chunk) - On April 16, 2025, the company received a NYSE notification for non-compliance with the minimum **$1.00** average closing price requirement over a 30-trading-day period and has six months to regain compliance[141](index=141&type=chunk)[143](index=143&type=chunk) [NOTE 14. Stock-Based Compensation](index=28&type=section&id=NOTE%2014.%20STOCK-BASED%20COMPENSATION) The company operates under the 2022 Equity Incentive Plan, 2022 Inducement Plan, and the newly approved 2025 Inducement Plan, which collectively reserve millions of shares for equity awards. Stock option activity for H1 2025 saw a slight decrease in outstanding options, while RSUs granted under market-based conditions increased, leading to $33.8 million in unrecognized stock-based compensation expense for RSUs - The company has three equity incentive plans: the 2022 Equity Incentive Plan, the 2022 Inducement Plan, and the 2025 Inducement Plan, reserving shares for stock options, SARs, restricted stock, and RSUs[144](index=144&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) Stock Option Activity (Amounts in thousands, except per share data) | Metric | Number of Options | Weighted Average Exercise Price Per Share | | :----------------------------------- | :---------------- | :---------------------------------------- | | Balance as of December 31, 2024 | 6,429 | $1.62 | | Stock options exercised | (3) | $0.80 | | **Balance as of June 30, 2025** | **6,426** | **$1.62** | | Options exercisable as of June 30, 2025 | 4,045 | $1.64 | - As of June 30, 2025, total unrecognized stock-based compensation expense related to unvested option awards was **$2.5 million**, expected to be recognized over approximately **1.4 years**[150](index=150&type=chunk) Restricted Stock Unit (RSU) Activity (Amounts in thousands, except per share data) | Metric | Number of RSUs | Weighted Average Grant Date Fair Value per Share | | :----------------------------------- | :------------- | :----------------------------------------------- | | Nonvested balance as of December 31, 2024 | 22,325 | $2.83 | | RSUs granted | 8,719 | $0.91 | | RSUs forfeited | (773) | $2.79 | | RSUs vested | (6,072) | $3.31 | | **Nonvested balance as of June 30, 2025** | **24,199** | **$2.02** | - Unrecognized stock-based compensation expense related to RSUs was **$33.8 million** as of June 30, 2025, with a weighted-average vesting period of approximately **1.6 years**[152](index=152&type=chunk) Total Stock-Based Compensation Expense (Amounts in thousands) | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Sales and marketing | $1,039 | $1,782 | $2,084 | $3,497 | | Research and development | $1,368 | $2,059 | $2,736 | $4,286 | | General and administrative | $6,577 | $5,663 | $13,440 | $11,405 | | **Total stock-based compensation expense** | **$8,984** | **$9,504** | **$18,260** | **$19,188** | [NOTE 15. Reorganization Expenses](index=30&type=section&id=NOTE%2015.%20REORGANIZATION%20EXPENSES) The company recognized $1.2 million in reorganization costs for the three and six months ended June 30, 2025, related to personnel reduction costs as part of cost savings measures. This represents a decrease from $1.7 million in the prior year, and no additional charges are currently expected Total Reorganization Expenses (Amounts in thousands) | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Sales and marketing | $32 | $288 | $32 | $288 | | Research and development | $318 | $503 | $318 | $503 | | General and administrative | $812 | $918 | $812 | $918 | | **Total reorganization expenses** | **$1,162** | **$1,709** | **$1,162** | **$1,709** | - The company recognized **$1.162 million** in reorganization costs for the six months ended June 30, 2025, a decrease from **$1.709 million** in the prior year, with no additional charges expected[155](index=155&type=chunk)[156](index=156&type=chunk) [NOTE 16. Segment Reporting](index=30&type=section&id=NOTE%2016.%20SEGMENT%20REPORTING) The company operates as a single reportable segment, with its CEO reviewing consolidated operating results and using net loss as the primary profit measure to assess performance and allocate resources. Revenue and significant segment expenses are presented on a consolidated basis - Energy Vault operates as a single operating and reportable segment, with the CEO (CODM) reviewing consolidated results to make operating decisions and allocate resources[47](index=47&type=chunk)[157](index=157&type=chunk) Consolidated Segment Financials (Amounts in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Revenue | $8,512 | $3,770 | $17,046 | $11,529 | | Cost of revenue | $5,996 | $2,721 | $9,654 | $8,412 | | Gross profit | $2,516 | $1,049 | $7,392 | $3,117 | | Non-personnel operating costs | $7,573 | $8,123 | $14,860 | $16,136 | | Salaries and wages | $8,629 | $8,312 | $17,541 | $17,104 | | Stock-based compensation | $8,984 | $9,504 | $18,260 | $19,188 | | Depreciation and amortization | $473 | $279 | $778 | $574 | | Interest expense | $2,516 | $38 | $2,611 | $46 | | Interest income | $(312) | $(1,746) | $(627) | $(3,572) | | Provision for income taxes | $2,073 | $— | $2,456 | $— | | Other segment items | $7,512 | $2,173 | $7,619 | $414 | | **Net loss** | **$(34,932)** | **$(26,199)** | **$(56,106)** | **$(47,338)** | [NOTE 17. Income Taxes](index=31&type=section&id=NOTE%2017.%20INCOME%20TAXES) The company recognized a tax provision of $2.1 million and $2.5 million for the three and six months ended June 30, 2025, respectively, primarily due to a partial valuation allowance against Investment Tax Credits (ITCs) and foreign revenue withholdings. A valuation allowance is recorded against most deferred tax assets due to a history of losses, except for ITCs intended for sale. The company is evaluating the impact of the recently enacted One Big Beautiful Bill Act (OBBBA) on its financial statements Income Tax Provision (Amounts in thousands) | Period | 2025 | 2024 | | :----------------------------------- | :----- | :----- | | Three Months Ended June 30, | $2,073 | $— | | Six Months Ended June 30, | $2,456 | $— | - The tax provision for H1 2025 is primarily due to a partial valuation allowance against generated ITCs and tax withholdings on foreign revenue[161](index=161&type=chunk) - A valuation allowance is recorded against substantially all net deferred tax assets, except for ITCs intended for sale, due to the company's history of losses[162](index=162&type=chunk) - The company is evaluating the impact of the recently enacted One Big Beautiful Bill Act (OBBBA), which includes changes to U.S. federal income tax laws, including ITCs[163](index=163&type=chunk) [NOTE 18. Net Loss Per Share of Common Stock](index=32&type=section&id=NOTE%2018.%20NET%20LOSS%20PER%20SHARE%20OF%20COMMON%20STOCK) The company reported a basic and diluted net loss per share of $(0.22) for the three months and $(0.36) for the six months ended June 30, 2025. Due to net losses, potentially dilutive securities such as private warrants, stock options, and RSUs were excluded from the diluted EPS calculation as their effect would have been anti-dilutive. Contingent Earn-Out Shares also expired on May 12, 2025, without being satisfied Net Loss Per Share Attributable to Energy Vault Holdings, Inc. (Amounts in thousands, except per share amounts) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net loss attributable to Energy Vault Holdings, Inc. | $(34,927) | $(26,188) | $(56,063) | $(47,327) | | Weighted-average shares outstanding – basic and diluted | 156,911 | 149,143 | 155,326 | 148,081 | | **Net loss per share – basic and diluted** | **$(0.22)** | **$(0.18)** | **$(0.36)** | **$(0.32)** | - Due to net losses, common share equivalent securities (private warrants, stock options, RSUs) were excluded from diluted EPS calculations as their effect would have been anti-dilutive[166](index=166&type=chunk)[167](index=167&type=chunk) Anti-Dilutive Common Share Equivalent Securities (Amounts in thousands) | Security Type | 3 and 6 Months Ended June 30, 2025 | 3 and 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------------- | :--------------------------------- | | Private warrants | 5,167 | 5,167 | | Stock options | 6,426 | 6,577 | | RSUs | 24,199 | 23,322 | | **Total** | **35,792** | **35,066** | - The contingent right for **9.0 million** Earn-Out Shares expired on May 12, 2025, as the triggering events were not satisfied[167](index=167&type=chunk) [NOTE 19. Commitments and Contingencies](index=32&type=section&id=NOTE%2019.%20COMMITMENTS%20AND%20CONTINGENCIES) The company's commitments include operating and finance leases, a deferred pension, warranty liabilities, and $5.0 million in non-cancelable purchase obligations. Warranty liabilities increased to $1.3 million at June 30, 2025. The company also has $14.5 million in outstanding letters of credit, $3.7 million in bank guarantees, and $124.9 million in performance and payment bonds. A Tax Credit Transfer Commitment for approximately $39.9 million in ITCs was entered into on March 28, 2025 - Principal commitments as of June 30, 2025, include obligations under operating leases, finance leases, a deferred pension, warranty liabilities, and **$5.0 million** in non-cancelable purchase obligations[168](index=168&type=chunk) Warranty Liabilities (Amounts in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Warranty liabilities, balance at beginning of period | $761 | $2,005 | $1,391 | $1,818 | | Accruals for warranties issued | $926 | $— | $926 | $— | | Change in estimates | $(200) | $1,288 | $(200) | $1,531 | | Costs paid or settled | $(179) | $(509) | $(809) | $(565) | | **Warranty liabilities, balance at end of period** | **$1,308** | **$2,784** | **$1,308** | **$2,784** | - As of June 30, 2025, the company had **$14.5 million** in outstanding letters of credit, **$3.7 million** in bank guarantees, and **$124.9 million** in outstanding performance and payment bonds[173](index=173&type=chunk)[174](index=174&type=chunk) - On March 28, 2025, the company entered into a Tax Credit Transfer Commitment to sell approximately **$39.9 million** (net of fees) in Investment Tax Credits (ITCs) generated by its CRC HESS, Cross Trails BESS, and Snyder CDU projects[176](index=176&type=chunk) [NOTE 20. Subsequent Events](index=34&type=section&id=NOTE%2020.%20SUBSEQUENT%20EVENTS) Subsequent to June 30, 2025, the company entered into an equity purchase agreement with Helena Global Investment Opportunities I Ltd. for up to $25.0 million in common stock, and completed the acquisition of Stoney Creek BESS Pty Ltd for approximately AUD 4.0 million ($2.6 million) to expand its BESS project portfolio in Australia - On August 6, 2025, the company entered into an equity purchase agreement with Helena Global Investment Opportunities I Ltd. to sell up to **$25.0 million** of common stock over a 36-month term, subject to certain conditions and a standstill period[178](index=178&type=chunk) - On August 5, 2025, the company completed the acquisition of Stoney Creek BESS Pty Ltd for approximately **AUD 4.0 million** (**$2.6 million**), expanding its BESS project portfolio in Australia with rights to a **125 MW / 1,000 MWh** BESS in Narrabri, New South Wales[183](index=183&type=chunk) - In connection with the Stoney Creek acquisition, the company guaranteed Stoney Creek's payment obligations under a Development Services Agreement with Enervest Utility Pty Ltd, which includes up to **AUD 8.8 million** (**$5.7 million**) in potential milestone payments[184](index=184&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Energy Vault's financial condition and results of operations, highlighting the company's business model, key factors affecting performance (such as tariffs and energy storage regulations), recent developments, and key operating metrics. It also offers a detailed comparison of financial results for the three and six months ended June 30, 2025, versus 2024, discusses liquidity and capital resources, and presents non-GAAP financial measures [Our Business](index=35&type=section&id=Our%20Business) Energy Vault provides a diverse portfolio of turnkey energy storage platforms, including gravity, battery, and green hydrogen technologies, supported by its energy management system software. The company is transitioning from a third-party build-and-transfer/licensing model to also owning and operating energy storage assets, aiming to accelerate the global transition to renewable energy - Energy Vault offers a diverse technology portfolio of turnkey energy storage platforms, including proprietary gravity, battery, and green hydrogen hardware, supported by its technology-agnostic energy management system software and integration platform[188](index=188&type=chunk) - The company began a multi-year transition in 2024 to shift from solely providing technology to third parties (build-and-transfer or licensing) to also taking an ownership interest in energy storage assets in select attractive markets[188](index=188&type=chunk) - Energy Vault aims to help utilities, independent power producers, and large industrial energy users reduce costs and maintain power reliability, striving to create a world powered by renewable resources[189](index=189&type=chunk) [Key Factors and Trends Affecting our Business](index=35&type=section&id=Key%20Factors%20and%20Trends%20Affecting%20our%20Business) Key factors affecting Energy Vault's business include the significant impact of U.S. tariffs on Chinese lithium-ion batteries, which have caused project delays and cancellations, despite a temporary suspension. The company is also influenced by evolving U.S. energy storage regulations and legislation, such as the IRA and OBBBA, which provide tax incentives but also introduce new restrictions. The rapid growth of the utility-scale energy storage industry, driven by increasing electricity demand and renewable energy deployment, presents opportunities, but competition, inflation, and government regulations pose ongoing risks - U.S. tariffs on Chinese lithium-ion batteries, including a **20% IEEPA tariff** and an additional **125% reciprocal tariff** (totaling ~**155.9%** with existing tariffs), materially affected operations, causing delays or cancellations in third-party sales projects[191](index=191&type=chunk) - A temporary **90-day** pause in certain reciprocal tariffs, effective May 14, 2025, temporarily lowered the cumulative tariff rate, but its continuation beyond mid-August 2025 is uncertain, creating significant supply chain and pricing model risks[192](index=192&type=chunk) - The Inflation Reduction Act (IRA) supports energy storage with tax incentives, while the One Big Beautiful Bill Act (OBBBA), enacted in July 2025, introduces changes to ITCs and broadens Prohibited Foreign Entity (PFE) restrictions, potentially dampening demand for battery energy storage systems[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk) - The utility-scale energy storage industry is rapidly growing due to increased electricity demand (e.g., data centers, AI, EVs) and the global transition to renewable energy, with Australia's AEMO forecasting an **80%** increase in electricity consumption and **1,500%** increase in energy storage capacity by 2050[202](index=202&type=chunk)[203](index=203&type=chunk) - The company faces risks from increased competition, potential declines in renewable energy deployment rates due to inflation, supply chain disruptions, and geopolitical conflicts, as well as changes in federal, state, and local government regulations concerning electricity[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk) [Recent Developments](index=37&type=section&id=Recent%20Developments) Recent developments include the company's acquisition of Stoney Creek BESS Pty Ltd for AUD 4.0 million to expand its Australian BESS project portfolio, a licensing and royalty agreement in India to accelerate B-Vault BESS deployment, and a NYSE notification for non-compliance with the minimum stock price listing requirement. Additionally, the Cross Trails BESS began commercial operations on May 31, 2025, marking the first fully executed asset under the company's 'Own and Operate' strategy - The company acquired Stoney Creek BESS Pty Ltd for approximately **AUD 4.0 million** (**$2.6 million**) on August 5, 2025, to expand its BESS project portfolio in Australia, gaining rights to a **125 MW / 1,000 MWh** BESS in Narrabri, New South Wales[212](index=212&type=chunk)[213](index=213&type=chunk) - On March 31, 2025, the company entered into a license and royalty agreement with an Indian infrastructure development company to accelerate the manufacturing and deployment of Energy Vault's B-Vault BESS technology and VaultOS EMS software in the Indian market[214](index=214&type=chunk) - On April 16, 2025, the company received a NYSE notification for non-compliance with the minimum **$1.00** average closing price requirement over a 30-trading-day period and intends to consider alternatives to cure the deficiency[215](index=215&type=chunk) - On May 31, 2025, the Cross Trails BESS (**57 MW** two-hour BESS) began commercial operations, representing the first fully executed asset under the company's 'Own and Operate' growth strategy, supported by a **10-year** tolling agreement with Gridmatic[216](index=216&type=chunk) [Key Operating Metrics](index=38&type=section&id=Key%20Operating%20Metrics) The company's key operating metrics show a significant increase in net bookings for the six months ended June 30, 2025, driven by new contracts, and a substantial growth in backlog. The developed pipeline also expanded, indicating potential future revenue, though its realization is subject to various market and project-specific factors Key Operating Metrics (Amounts in thousands, except MWh) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | New bookings ($) | $25,944 | $182,830 | $251,673 | $182,830 | | Cancellations ($) | $— | $(182,238) | $— | $(182,238) | | **Net bookings ($)** | **$25,944** | **$592** | **$251,673** | **$592** | | New bookings (MWh) | 15 | 400 | 1,019 | 400 | | Cancellations (MWh) | — | (400) | — | (400) | | **Net bookings (MWh)** | **15** | **—** | **1,019** | **—** | | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | Developed Pipeline ($) | $2,353,214 | $2,085,908 | | Developed Pipeline (MWh) | 5,968 | 9,194 | | Backlog ($) | $682,248 | $433,886 | | Backlog (MWh) | 2,392 | 1,574 | - Net bookings for the six months ended June 30, 2025, significantly increased to **$251.7 million** (**1,019 MWh**) from **$0.6 million** (**0 MWh**) in the prior year, indicating strong new contract acquisition[217](index=217&type=chunk) - Backlog increased to **$682.2 million** (**2,392 MWh**) at June 30, 2025, from **$433.9 million** (**1,574 MWh**) at December 31, 2024, representing contracted but unrecognized revenue[217](index=217&type=chunk) - Developed pipeline, representing uncontracted potential revenue, grew to **$2.35 billion** (**5,968 MWh**) at June 30, 2025, from **$2.09 billion** (**9,194 MWh**) at December 31, 2024, though MWh decreased[217](index=217&type=chunk) [Key Components of Results of Operations](index=39&type=section&id=Key%20Components%20of%20Results%20of%20Operations) This section defines the key components of the company's results of operations, including revenue sources (product sales, tolling, software/IP licensing, O&M services), cost of revenue, gross profit, and various operating expenses (S&M, R&D, G&A, provision for credit losses, depreciation/amortization). It also covers interest income/expense and other income/expense, explaining how each is recognized and the factors influencing their fluctuations - Revenue is generated from the sale of energy storage products (EPC and EEQ models), tolling arrangements for owned projects, and licensing of software solutions and intellectual property, as well as long-term service agreements[223](index=223&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk) - Cost of revenue primarily includes product costs, materials, subcontractors, direct labor, and product warranties, influenced by equipment and material costs (e.g., batteries, inverters, steel) and tariffs[229](index=229&type=chunk)[230](index=230&type=chunk) - Gross profit and gross profit margin can vary due to the timing of transferring control of uninstalled equipment in EPC projects, sales volume, product prices, product mix, geographical mix, and changes in warranty liability estimates[231](index=231&type=chunk)[232](index=232&type=chunk) - Operating expenses include Sales and Marketing (personnel, professional fees, promotional materials), Research and Development (product development, testing, personnel), General and Administrative (IT, legal, corporate personnel), Provision for Credit Losses (potential losses on receivables), and Depreciation and Amortization (property, equipment, intangibles)[233](index=233&type=chunk)[234](index=234&type=chunk)[235](index=235&type=chunk)[236](index=236&type=chunk)[237](index=237&type=chunk) - Interest expense covers contractual interest and amortization of non-cash debt/financing costs, while interest income is derived from money market funds, savings accounts, and receivables. Other income (expense) includes foreign currency gains/losses and non-recurring items[238](index=238&type=chunk)[239](index=239&type=chunk)[240](index=240&type=chunk) [Results of Operations (Detailed Comparison)](index=41&type=section&id=Results%20of%20Operations) Energy Vault experienced significant revenue growth for both the three and six months ended June 30, 2025, driven by increased energy storage product sales and IP licensing. Gross profit margins improved, but net loss widened due to higher general and administrative expenses, a substantial increase in provision for credit losses, and significantly higher interest expense from new debt financings. Sales and marketing, and research and development expenses decreased due to cost-control measures Consolidated Results of Operations (Amounts in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | $ Change | % Change | | :----------------------------------- | :--------------------------- | :--------------------------- | :------- | :------- | | Revenue | $8,512 | $3,770 | $4,742 | 125.8% | | Cost of revenue | $5,996 | $2,721 | $3,275 | 120.4% | | Gross profit | $2,516 | $1,049 | $1,467 | 139.8% | | Sales and marketing | $3,161 | $4,861 | $(1,700) | -35.0% | | Research and development | $4,074 | $6,951 | $(2,877) | -41.4% | | General and administrative | $19,113 | $15,836 | $3,277 | 20.7% | | Provision for credit losses | $3,843 | $442 | $3,401 | 769.5% | | Interest expense | $(2,516) | $(38) | $(2,478) | 6521.1% | | Interest income | $312 | $1,746 | $(1,434) | -82.1% | | Other income (expense), net | $(2,507) | $(22) | $(2,485) | 11295.5% | | Loss before income taxes | $(32,859) | $(26,199) | $(6,660) | 25.4% | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | $ Change | % Change | | :----------------------------------- | :--------------------------- | :--------------------------- | :------- | :------- | | Revenue | $17,046 | $11,529 | $5,517 | 47.9% | | Cost of revenue | $9,654 | $8,412 | $1,242 | 14.8% | | Gross profit | $7,392 | $3,117 | $4,275 | 137.1% | | Sales and marketing | $7,306 | $9,031 | $(1,725) | -19.1% | | Research and development | $7,898 | $13,917 | $(6,019) | -43.2% | | General and administrative | $36,619 | $31,189 | $5,430 | 17.4% | | Provision for credit losses | $3,832 | $353 | $3,479 | 985.5% | | Interest expense | $(2,611) | $(46) | $(2,565) | 5576.1% | | Interest income | $627 | $3,572 | $(2,945) | -82.4% | | Other income (expense), net | $(2,625) | $1,648 | $(4,273) | -259.3% | | Loss before income taxes | $(53,650) | $(47,338) | $(6,312) | 13.3% | - Revenue increased by **$4.7 million** (**125.8%**) for Q2 2025 and **$5.5 million** (**47.9%**) for H1 2025, driven by energy storage product sales (including **$2.6 million** from nonrefundable deposits on a cancelled EEQ contract) and IP licensing revenue[242](index=242&type=chunk)[243](index=243&type=chunk) - Gross profit margin improved to **29.6%** for Q2 2025 (from **27.8%**) and **43.4%** for H1 2025 (from **27.0%**), primarily due to higher margin IP licensing revenue and reduced warranty expenses[247](index=247&type=chunk)[248](index=248&type=chunk) - Sales and marketing expenses decreased by **$1.7 million** for both Q2 and H1 2025, and R&D expenses decreased by **$2.9 million** for Q2 and **$6.0 million** for H1 2025, reflecting cost-control measures and lower headcount[249](index=249&type=chunk)[250](index=250&type=chunk)[252](index=252&type=chunk)[253](index=253&type=chunk) - General and administrative expenses increased by **$3.3 million** for Q2 2025 and **$5.4 million** for H1 2025, mainly due to expanded G&A headcount and higher legal/professional fees[254](index=254&type=chunk)[255](index=255&type=chunk) - Provision for credit losses increased significantly by **$3.4 million** for Q2 2025 and **$3.5 million** for H1 2025, primarily due to increased allowances for customer financing receivable and the DG Fuels convertible note[256](index=256&type=chunk)[257](index=257&type=chunk) - Interest expense surged by **$2.5 million** for Q2 2025 and **$2.6 million** for H1 2025, reflecting interest on new debt financings obtained in 2025[260](index=260&type=chunk)[261](index=261&type=chunk) - Other expense, net, was **$2.5 million** for Q2 2025 and **$2.6 million** for H1 2025, primarily due to a **$1.4 million** loss on debt extinguishment and **$0.9 million** in commitment/transaction fees related to the Hudson Equity Purchase Agreement[263](index=263&type=chunk)[264](index=264&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) Energy Vault's liquidity is supported by its sales backlog, developed pipeline, and recent debt and equity financings, including the CRC Senior Notes and Cross Trails Bridge Loan. The company aims to raise additional capital through equity/debt, including project-specific preferred equity, and has entered into equity purchase agreements with Hudson and Helena. Cash, cash equivalents, and restricted cash increased significantly to $58.1 million at June 30, 2025, primarily due to debt proceeds, and management believes current liquidity is sufficient for the next twelve months - Energy Vault's liquidity is primarily financed through equity issuance, proceeds from reverse recapitalization, and debt financings, with a sales backlog of **$682.2 million** and a robust developed pipeline expected to contribute to future funding[265](index=265&type=chunk)[266](index=266&type=chunk) - The company may raise additional capital through equity and/or debt financings, including project-specific preferred equity that is expected to be non-dilutive to common stockholders[268](index=268&type=chunk)[269](index=269&type=chunk) - A Tax Credit Transfer Commitment was entered into on March 28, 2025, to sell approximately **$39.9 million** in ITCs generated by the CRC HESS, Cross Trails BESS, and Snyder CDU projects[272](index=272&type=chunk)[273](index=273&type=chunk) - The company has an 'at-the-market' equity offering program for up to **$50.0 million** and entered into equity purchase agreements with Hudson Global Ventures, LLC (up to **$25.0 million**, **$1.2 million** already received) and Helena Global Investment Opportunities I Ltd. (up to **$25.0 million**)[274](index=274&type=chunk)[275](index=275&type=chunk)[277](index=277&type=chunk)[278](index=278&type=chunk) - New debt financings include **$27.8 million** CRC Senior Notes (refinancing a bridge loan) and a **$10.0 million** Cross Trails Bridge Loan (repaid in July 2025), followed by a **$17.8 million** Cross Trails Senior Note[279](index=279&type=chunk)[280](index=280&type=chunk)[281](index=281&type=chunk)[286](index=286&type=chunk)[287](index=287&type=chunk)[288](index=288&type=chunk) Cash, Cash Equivalents, and Restricted Cash (Amounts in thousands) | Category | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $21,416 | $27,091 | | Restricted cash | $36,683 | $2,982 | | **Total cash, cash equivalents, and restricted cash** | **$58,099** | **$30,073** | - Management believes current cash, cash equivalents, and restricted cash are sufficient to fund operating activities for at least the next twelve months[270](index=270&type=chunk) Debt Maturity Schedule (Amounts in thousands) | Debt Instrument | 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | Total | | :----------------------------------- | :----- | :----- | :----- | :----- | :----- | :--------- | :------ | | CRC Senior Notes | $12,905 | $669 | $917 | $1,074 | $1,261 | $11,000 | $27,826 | | Cross Trails Bridge Loan | $10,000 | $— | $— | $— | $— | $— | $10,000 | | **Total Debt Obligations** | **$22,905** | **$669** | **$917** | **$1,074** | **$1,261** | **$11,000** | **$37,826** | [Non-GAAP Financial Measures](index=48&type=section&id=Non-GAAP%20Financial%20Measures) This section presents non-GAAP financial measures, including adjusted S&M, R&D, G&A, operating expenses, adjusted net loss, and adjusted EBITDA, which management uses to evaluate ongoing operations. These measures exclude items like stock-based compensation, reorganization expenses, provision for credit losses, and debt extinguishment losses, providing a supplemental view of performance, though they are not a substitute for GAAP measures - The company uses non-GAAP financial measures (adjusted S&M, R&D, G&A, operating expenses, adjusted net loss, and adjusted EBITDA) to complement GAAP amounts and evaluate ongoing results of operations[304](index=304&type=chunk) - Adjustments to GAAP measures typically exclude stock-based compensation, reorganization expenses, provision for credit losses, loss on debt extinguishment, equity purchase agreement expenses, foreign exchange losses, loss on impairment/sale of long-lived assets, and gain on derecognition of contract liability[306](index=306&type=chunk)[307](index=307&type=chunk) Adjusted EBITDA Reconciliation (Amounts in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net loss attributable to Energy Vault Holdings, Inc. (GAAP) | $(34,927) | $(26,188) | $(56,063) | $(47,327) | | Non-GAAP adjustments (total) | $21,202 | $12,894 | $28,768 | $17,446 | | **Adjusted EBITDA (non-GAAP)** | **$(13,654)** | **$(15,351)** | **$(24,924)** | **$(29,857)** | - Adjusted EBITDA improved from **$(15.351) million** in Q2 2024 to **$(13.654) million** in Q2 2025, and from **$(29.857) million** in H1 2024 to **$(24.924) million** in H1 2025, indicating a reduced adjusted loss[307](index=307&type=chunk) - Adjusted EBITDA has limitations as an analytical tool, as it does not reflect cash expenditures, working capital needs, stock-based compensation, or cash requirements for asset replacements, and should not be considered in isolation from GAAP results[308](index=308&type=chunk)[309](index=309&type=chunk) [Critical Accounting Estimates](index=51&type=section&id=Critical%20Accounting%20Estimates) The preparation of financial statements requires management to make estimates and assumptions that affect reported amounts. There have been no changes to the company's critical accounting policies and estimates as compared to those disclosed in the 2024 Annual Report on Form 10-K - The preparation of financial statements requires management to make estimates and assumptions that affect reported amounts, and actual results could differ from these estimates[311](index=311&type=chunk) - There have been no changes to the company's critical accounting policies and estimates compared to those disclosed in the 2024 Annual Report on Form 10-K[312](index=312&type=chunk) [Emerging Growth Company Accounting Election](index=51&type=section&id=Emerging%20Growth%20Company%20Accounting%20Election) As an "emerging growth company," Energy Vault has irrevocably elected to take advantage of the extended transition period for new or revised financial accounting standards, a status expected to continue through the end of 2026. This election may make it difficult to compare its financial results wi

Financial Data and Key Metrics Changes - The contract revenue backlog increased by 47% quarter over quarter to $954 million, and up 120% year to date, driven by new third-party project and service agreements, as well as long-term off-take agreements in the US and Australia [11][15] - Revenue for Q2 was $8.5 million, representing a 126% increase year over year, attributed to activity across the Australian project portfolio and the commencement of the Cross Trails battery energy storage system in Texas [16][12] - GAAP gross profit rose by 140% year over year to $2.5 million, with a gross margin of 29.6% [12][16] - Adjusted EBITDA improved by 11% year over year, narrowing the loss to $13.7 million from a loss of $15.4 million in Q2 2024 [12][17] - Cash improved by 23% sequentially to $58.1 million at June 30, finishing at the high end of previous guidance [13][17] Business Line Data and Key Metrics Changes - The company has successfully placed its first two owned projects in Texas and California into service, which are expected to generate nearly $10 million in recurring annual EBITDA [20] - The recently acquired Stoney Creek project is expected to generate approximately $20 million in annual recurring EBITDA once operational, further accelerating the path to a $100 million recurring EBITDA goal over the next three to four years [20] Market Data and Key Metrics Changes - The total developed pipeline for advanced projects is around $2.4 billion, or roughly 6 gigawatt hours, expected to be strengthened by the launch of AssetVault [16] - The company anticipates full-year 2025 revenue between $200 million and $250 million, maintaining prior guidance [18] Company Strategy and Development Direction - The company is focusing on leveraging its technology and operational expertise to develop, own, and operate energy storage systems, aiming for more predictable and profitable revenue streams supported by long-term off-take agreements [4][5] - A $300 million preferred equity investment has been announced to fund the development, construction, and operation of storage projects, enabling over $1 billion in CapEx spending [19] - The Asset Vault subsidiary will contract with Energy Vault for product design, construction, commissioning, and long-term service agreements, providing additional cash flow streams [7][19] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of execution and maintaining a strong reputation in the market, highlighting successful project delivery and operational reliability [10] - The company expects to see benefits from the new capital investment as it focuses on executing its development portfolio without being involved in capital raise processes [68] Other Important Information - The company completed the Cross Trails project financing of $17.8 million in July and anticipates another $27 million in net investment tax credit proceeds in September [13][18] - The Stoney Creek project is expected to achieve ready-to-build status by Q1 2026, with construction commencing thereafter [63] Q&A Session Summary Question: Can you share more details on the preferred equity transaction? - Management stated that details regarding the return structure and preferred dividend yield will be discussed in a virtual investor call post-transaction close [24][25] Question: What is the financing strategy for the $1 billion CapEx? - Management indicated that approximately half of the project costs would be covered through project financing, with 30% to 40% from investment tax credits, and the remaining 20% would involve a split between common and preferred equity [27][29] Question: Can you provide updates on the development status of projects planned for 2027? - Management confirmed that several projects are in mid to later development stages, with Stoney Creek being a significant one expected to be operational by early 2027 [34][36] Question: What does the exclusivity of the preferred financing arrangement imply? - Management clarified that the exclusivity pertains specifically to the Asset Vault and the preferred equity for funding these projects [40][41] Question: How does the Asset Vault business relate to the current business? - Management explained that the $100 million EBITDA from the Asset Vault is complementary to the existing energy storage solutions business, with additional cash flow streams expected to flow back to the parent company [56][58]

SECOND QUARTER 2025 FINANCIAL RESULTS © 2025 ENERGY VAULT, ALL RIGHTS RESERVED | Confidential FOUO (For Official Use Only) © 2024 ENERGY VAULT, ALL RIGHTS RESERVED | Confidential FOUO (For Official Use Only) - PROPRIETARY INFORMATION OF ENERGY VAULT, INC 1 Disclaimer Forward-Looking Statements This press release includes forward-looking statements that reflect the Company's current views with respect to, among other things, the Company's operations and financial performance. Forward-looking statements inclu ...

[Q2 2025 Financial and Operational Highlights](index=1&type=section&id=Q2%202025%20Financial%20and%20Operational%20Highlights) [Q2 2025 Key Financial Results](index=1&type=section&id=Q2%202025%20Key%20Financial%20Results) Energy Vault achieved significant financial growth in Q2 2025, with revenue increasing 126% year-over-year to $8.5 million and gross profit rising 140% to $2.5 million, while also increasing contract backlog by 47% to $954 million and improving Adjusted EBITDA Q2 2025 Key Financial Data: | Metric | Q2 2025 | YoY Growth | Notes | | :--- | :--- | :--- | :--- | | Revenue | $8.5 million | 126% | Driven by Australia project deliveries and Cross Trails BESS commissioning | | GAAP Gross Profit | $2.5 million | 140% | Gross margin of 29.6% (27.8% in prior year period) | | Adjusted EBITDA | $(13.7) million | 11% improvement | Prior year period was a loss of $(15.4) million | | Contract Backlog (as of announcement date) | $954 million | 120% (YTD) | Includes new Consumers Energy project, LTSA, and long-term offtake agreements | | Cash Balance (including restricted cash) | $58.1 million | 23% (QoQ) | Reached upper end of previous guidance range | | GAAP Net Loss | $(34.9) million | - | - | | Adjusted Net Loss | $(18.4) million | 32% increase | Prior year period was a loss of $(13.9) million | | GAAP Operating Expenses | $30.7 million | - | - | | Adjusted Operating Expenses | $16.2 million | - | - | [CEO's Strategic Commentary](index=1&type=section&id=CEO%27s%20Strategic%20Commentary) CEO Robert Piconi highlighted the company's progress in key growth areas, including Australian project construction, US regional expansion, and a $300 million preferred equity financing agreement with a leading infrastructure fund to support 1.5 GW of energy storage IPP projects under the "Asset Vault" platform, projected to generate over $100 million in annual recurring project-level EBITDA within 3-4 years - The company made progress on two energy storage projects in Australia and expanded regionally in the US with a new utility contract with Consumers Energy[2](index=2&type=chunk) - A **$300 million** preferred equity financing agreement was signed with a leading infrastructure fund to launch the "Asset Vault" platform, supporting the construction and operation of **1.5 GW** of owned energy storage IPP projects, projected to generate over **$100 million** in annual recurring project-level EBITDA within the next 3-4 years[1](index=1&type=chunk)[2](index=2&type=chunk) - The company successfully increased cash on its balance sheet by completing the second project financing for Cross Trails BESS, resulting in a **23% quarter-over-quarter increase** in cash balance at the end of Q2[2](index=2&type=chunk) [Operating and Other Recent Highlights](index=2&type=section&id=Operating%20and%20Other%20Recent%20Highlights) Energy Vault achieved several operational milestones in Q2 and recently, including the commissioning of its first owned and operated energy storage assets, the acquisition of the Stoney Creek BESS in Australia, and securing a battery energy storage system project with a major Michigan energy provider - Energy Vault's first two owned and operated energy storage assets (Cross Trails in Texas and Calistoga Resiliency Center in California) are now operational, expected to contribute approximately **$10 million** in annual recurring EBITDA[7](index=7&type=chunk) - Completed the acquisition of the Australia Stoney Creek Battery Energy Storage System (**125 MW / 1 GWh**), the largest project in the new Asset Vault portfolio, with construction expected to begin in early 2026 and completion in 2027, contributing approximately **$20 million** in annual recurring EBITDA upon completion[7](index=7&type=chunk) - Secured a contract with Michigan's largest energy provider for two battery energy storage systems totaling **75 MW / 300 MWh**, with battery deliveries expected to begin in Q4 2025, construction in Q1 2026, and commercial operation in Q4 2026[7](index=7&type=chunk) - The **57 MW / 114 MWh** Cross Trails Battery Energy Storage System (BESS) commenced commercial operation on May 31, 2025, under a 10-year Gridmatic offtake agreement, and **$17.8 million** in project financing was completed in July[7](index=7&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) The company anticipates FY2025 revenue between $200 million and $250 million and plans to increase total cash to $60 million to $75 million by the end of Q3, in addition to implementing an extra $6.5 million in annual operating expense reductions - Expected FY2025 revenue of **$200 million to $250 million** (within previous guidance range), reflecting US battery deliveries and project scheduling[7](index=7&type=chunk) - Target total cash of **$60 million to $75 million** by the end of Q3 2025, including **$18 million** from Cross Trails project financing completed in July and an anticipated **$27 million** net ITC benefit in September[7](index=7&type=chunk) - An additional **$6.5 million** in annual operating expense reductions were implemented in July to optimize long-term strategy, partially offset by strategic investments in Australia[7](index=7&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) [About Energy Vault](index=3&type=section&id=About%20Energy%20Vault) Energy Vault develops and deploys utility-scale energy storage solutions to advance sustainable energy storage, offering proprietary gravity, battery, and green hydrogen storage technologies supported by hardware-agnostic energy management software and an integrated platform - Energy Vault develops and deploys utility-scale energy storage solutions, including proprietary gravity, battery, and green hydrogen energy storage technologies[8](index=8&type=chunk) - All energy storage solutions are supported by the company's hardware-agnostic energy management system software and integrated platform[8](index=8&type=chunk) - The company provides customized short-duration and long-duration energy storage solutions designed to help utilities, independent power producers, and large industrial energy users significantly reduce levelized cost of energy while maintaining power reliability[8](index=8&type=chunk) - Energy Vault's gravity energy storage technology utilizes environmentally friendly materials and can integrate waste for beneficial reuse, promoting a circular economy and accelerating the global clean energy transition[8](index=8&type=chunk) [Financial Statements (GAAP)](index=5&type=section&id=Financial%20Statements%20%28GAAP%29) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Energy Vault's total assets increased to $248.8 million, up approximately 35% from year-end 2024, driven by increases in restricted cash, prepaid vendor advances, and property and equipment, while total liabilities significantly rose due to substantial growth in contract liabilities and long-term debt, leading to a decrease in shareholders' equity Condensed Consolidated Balance Sheets (Selected, in thousands USD): | Item | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | $21,416 | $27,091 | $(5,675) | | Restricted cash | $32,918 | $990 | $31,928 | | Prepaid vendor advances | $20,306 | $10,678 | $9,628 | | Total current assets | $94,895 | $68,905 | $25,990 | | Property and equipment, net | $120,875 | $99,493 | $21,382 | | **Total Assets** | **$248,828** | **$183,889** | **$64,939** | | **Liabilities** | | | | | Accounts payable | $35,834 | $20,250 | $15,584 | | Long-term debt, current portion | $23,107 | — | $23,107 | | Contract liabilities | $65,726 | $8,938 | $56,788 | | **Total current liabilities** | **$143,826** | **$54,655** | **$89,171** | | Long-term debt | $10,244 | — | $10,244 | | **Total Liabilities** | **$158,529** | **$57,633** | **$100,896** | | **Shareholders' Equity** | | | | | Accumulated deficit | $(439,885) | $(383,822) | $(56,063) | | **Total Shareholders' Equity** | **$90,299** | **$126,256** | **$(35,957)** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) In Q2 2025, Energy Vault's revenue grew 126% year-over-year to $8.5 million, with gross profit increasing 140% to $2.5 million and gross margin improving to 29.6%, yet net loss expanded to $34.9 million due to increased operating expenses, particularly in sales and marketing, R&D, and general and administrative costs Condensed Consolidated Statements of Operations and Comprehensive Loss (Selected, in thousands USD): | Item | Q2 2025 | Q2 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue | $8,512 | $3,770 | +126% | | Cost of sales | $5,996 | $2,721 | +120% | | **Gross Profit** | **$2,516** | **$1,049** | **+140%** | | Sales and marketing expenses | $3,161 | $4,861 | -35% | | Research and development expenses | $4,074 | $6,951 | -41% | | General and administrative expenses | $19,113 | $15,836 | +21% | | Provision for credit losses | $3,843 | $442 | +769% | | **Total Operating Expenses** | **$30,664** | **$28,934** | **+6%** | | Operating loss | $(28,148) | $(27,885) | +1% | | Interest expense | $(2,516) | $(38) | +6500% | | Interest income | $312 | $1,746 | -82% | | **Net Loss** | **$(34,932)** | **$(26,199)** | **+33%** | | Net loss per share (basic and diluted) | $(0.22) | $(0.18) | +22% | | Weighted-average shares outstanding | 156,911 | 149,143 | +5% | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, Energy Vault's cash flow from operating activities turned into a net inflow of $12.6 million, compared to a net outflow in the prior year, while cash outflow from investing activities slightly decreased, and cash flow from financing activities significantly increased to $32.1 million, primarily due to proceeds from debt financing, bringing total cash, cash equivalents, and restricted cash to $58.1 million at period-end Condensed Consolidated Statements of Cash Flows (Selected, in thousands USD): | Item | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | **Cash Flow from Operating Activities** | | | | | Net loss | $(56,106) | $(47,338) | $(8,768) | | Stock-based compensation expense | $18,260 | $19,188 | $(928) | | Changes in operating assets | $(10,072) | $75,161 | $(85,233) | | Changes in operating liabilities | $52,493 | $(59,696) | $112,189) | | **Net Cash Flow from Operating Activities** | **$12,629** | **$(11,846)** | **$24,475** | | **Cash Flow from Investing Activities** | | | | | Purchases of property and equipment | $(15,194) | $(21,051) | $5,857 | | **Net Cash Flow from Investing Activities** | **$(17,336)** | **$(20,832)** | **$3,496** | | **Cash Flow from Financing Activities** | | | | | Proceeds from debt financing | $63,794 | — | $63,794 | | Repayments of debt | $(27,826) | — | $(27,826) | | **Net Cash Flow from Financing Activities** | **$32,140** | **$360** | **$31,780** | | Effect of exchange rate changes | $593 | $(286) | $879 | | **Net increase (decrease) in cash, cash equivalents, and restricted cash** | **$28,026** | **$(32,604)** | **$60,630** | | Cash, cash equivalents, and restricted cash at period end | $58,099 | $112,951 | $(54,852) | | Cash and cash equivalents at period end | $21,416 | $106,835 | $(85,419) | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) [Non-GAAP Adjustments and Reconciliations](index=9&type=section&id=Non-GAAP%20Adjustments%20and%20Reconciliations) Energy Vault provides non-GAAP financial measures such as Adjusted Sales and Marketing, R&D, General and Administrative expenses, Operating Expenses, Net Loss, and EBITDA to supplement GAAP data, aiming to offer investors a clearer view of ongoing operational performance by excluding non-recurring or non-cash items - The company uses non-GAAP financial measures such as Adjusted S&M, R&D, G&A expenses, Adjusted Operating Expenses, Adjusted Net Loss, and Adjusted EBITDA to supplement GAAP data and assist analysts and investors in evaluating ongoing operational performance[23](index=23&type=chunk) - Non-GAAP adjustments primarily involve the exclusion of stock-based compensation expense, restructuring charges, provision for credit losses, loss on extinguishment of debt, equity purchase agreement related costs, foreign currency losses, and impairment and loss on sale of long-lived assets[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) Adjusted Operating Expenses Reconciliation (in thousands USD): | Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Operating expenses (GAAP) | $30,664 | $28,934 | | Less: Depreciation and amortization | $(473) | $(279) | | Less: Stock-based compensation expense | $(8,984) | $(9,504) | | Less: Restructuring charges | $(1,162) | $(1,709) | | Less: Provision for credit losses | $(3,843) | $(441) | | Less: Impairment and loss on sale of long-lived assets | — | $(565) | | **Adjusted Operating Expenses (Non-GAAP)** | **$16,202** | **$16,436** | Adjusted Net Loss and EBITDA Reconciliation (in thousands USD): | Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net loss attributable to Energy Vault Holdings, Inc. (GAAP) | $(34,927) | $(26,188) | | Add: Interest expense | $2,516 | $38 | | Less: Interest income | $(312) | $(1,746) | | Add: Provision for income taxes | $2,073 | — | | Add: Depreciation and amortization | $473 | $279 | | Add: Stock-based compensation expense | $8,984 | $9,504 | | Add: Restructuring charges | $1,162 | $1,709 | | Add: Provision for credit losses | $3,843 | $441 | | Add: Loss on extinguishment of debt | $1,412 | — | | Add: Equity purchase agreement related costs | $906 | — | | Add: Foreign currency loss | $216 | $47 | | Add: Impairment and loss on sale of long-lived assets | — | $565 | | Less: Gain on derecognition of contract liabilities | — | — | | **Adjusted EBITDA (Non-GAAP)** | **$(13,654)** | **$(15,351)** | [Supplemental Information](index=3&type=section&id=Supplemental%20Information) [Definitions of Key Metrics](index=3&type=section&id=Definitions%20of%20Key%20Metrics) Energy Vault provides definitions for "Developed pipeline" and "Backlog," which are internal management and industry-standard metrics used to assess potential growth and future revenue - "Developed pipeline" refers to unsigned potential revenue from third-party projects, including potential customers for which projects have been awarded or shortlisted, and projects where the company is in advanced negotiations to build, own, and operate energy storage systems[10](index=10&type=chunk) - "Backlog" represents signed but unrecognized revenue from third-party projects and services, unrecognized revenue from IP licensing agreements or other revenue, and unrecognized revenue from fee arrangements for projects operated by Energy Vault or its affiliates[11](index=11&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements reflecting the company's current views on future operations and financial performance, but these statements involve significant risks and uncertainties that could cause actual results to differ materially from expectations - Forward-looking statements are based on the company's current expectations, plans, and assumptions, involving significant risks and uncertainties that could cause actual results, activity levels, performance, or achievements to differ materially from those expressed or implied by such statements[12](index=12&type=chunk)[13](index=13&type=chunk) - Risk factors include changes in strategy, expansion plans, customer opportunities, future operations, financial condition, projected revenues and losses, tax credit monetization, financing, project costs, brand and reputation, macroeconomic uncertainties, supply chain issues, and the impact of war or hostilities[13](index=13&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by applicable law, and advises investors not to place undue reliance on these statements[13](index=13&type=chunk) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Energy Vault held a conference call on August 7, 2025, to discuss Q2 results, providing access to a webcast and telephone replay - Energy Vault held a conference call on August 7, 2025, at 4:30 PM ET to discuss Q2 results and provide a question-and-answer session[6](index=6&type=chunk) - A live webcast of the conference call is accessible at https://investors.energyvault.com/events-and-presentations/events, with a telephone replay service available until August 21, 2025[6](index=6&type=chunk) [Contacts](index=13&type=section&id=Contacts) Investor and media contact email addresses are provided - Investor contact email: energyvaultIR@icrinc.com[30](index=30&type=chunk) - Media contact email: media@energyvault.com[30](index=30&type=chunk)

Group 1 - Energy Vault Holdings, Inc. held its Q1 2025 earnings conference call on May 12, 2025, at 4:30 PM ET [1] - The call was hosted by Michael Beer, the CFO, who welcomed participants and outlined the agenda [2][3] - The earnings press release and presentation were made available on the company's Investor website, and a replay of the call will be accessible later [4] Group 2 - The conference call included a brief question and answer session following the formal presentation [1][3] - Participants were informed that the call was being recorded and that they should disconnect if they objected [4] - Forward-looking statements were mentioned, indicating that they are subject to risks and uncertainties, and actual results may differ from estimates [5]

Group 1: Earnings Performance - Energy Vault Holdings, Inc. reported a quarterly loss of $0.08 per share, better than the Zacks Consensus Estimate of a loss of $0.13, and an improvement from a loss of $0.14 per share a year ago, representing an earnings surprise of 38.46% [1] - The company posted revenues of $8.53 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 68.63%, but showing an increase from year-ago revenues of $7.76 million [2] - Over the last four quarters, the company has surpassed consensus EPS estimates only once [2] Group 2: Stock Performance and Outlook - Energy Vault shares have declined approximately 66.5% since the beginning of the year, contrasting with the S&P 500's decline of 3.8% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.11 on revenues of $37.7 million, and -$0.41 on revenues of $206.3 million for the current fiscal year [7] Group 3: Industry Context - The Alternative Energy - Other industry, to which Energy Vault belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Energy Vault is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6]

[Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This note cautions on forward-looking statements, which involve risks and uncertainties that could materially alter actual results - The report contains forward-looking statements regarding future results, financial condition, business strategy, and the ability to meet NYSE listing requirements, involving known and unknown risks and uncertainties that could cause actual results to differ materially[11](index=11&type=chunk)[12](index=12&type=chunk) - Key forward-looking statements include changes in strategy, expansion plans, market acceptance of business model, brand development, industry developments, macroeconomic uncertainty, investment in development projects, supply chain diversification, intellectual property protection, future capital requirements, international operations, and the expectation of revenue generation from first two-owned projects in **2025**[13](index=13&type=chunk) - Investors are cautioned not to unduly rely on these statements, as they are based on current expectations and projections, and actual results may vary due to competitive and rapidly changing environments, new risks, and evolving ESG standards and expectations[12](index=12&type=chunk)[15](index=15&type=chunk) [Part I - Financial Information](index=6&type=section&id=Part%20I%20-%20Financial%20Information) This part presents the company's financial statements and management's analysis of its financial performance and condition [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, covering balance sheets, operations, equity, cash flows, and detailed accounting notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and equity, at specific reporting dates Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2025 | December 31, 2024 | Change | % Change | | :-------------------------------- | :------------- | :---------------- | :------- | :------- | | **Assets** | | | | | | Cash and cash equivalents | $17,822 | $27,091 | $(9,269) | -34.2% | | Restricted cash, current portion | $27,308 | $990 | $26,318 | 2658.4% | | Total current assets | $74,357 | $68,905 | $5,452 | 7.9% | | Property and equipment, net | $125,604 | $99,493 | $26,111 | 26.2% | | Total Assets | $217,441 | $183,889 | $33,552 | 18.3% | | **Liabilities & Equity** | | | | | | Total current liabilities | $86,247 | $54,655 | $31,592 | 57.8% | | Long-term debt | $12,888 | $— | $12,888 | N/A | | Total liabilities | $102,528 | $57,633 | $44,895 | 77.9% | | Total stockholders' equity | $114,913 | $126,256 | $(11,343) | -9.0% | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) This section presents the company's financial performance over specific periods, detailing revenues, expenses, and net loss Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | % Change | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :------- | :------- | | Revenue | $8,534 | $7,759 | $775 | 10.0% | | Cost of revenue | $3,658 | $5,691 | $(2,033) | -35.7% | | Gross profit | $4,876 | $2,068 | $2,808 | 135.8% | | Total operating expenses | $25,769 | $26,695 | $(926) | -3.5% | | Loss from operations | $(20,893) | $(24,627) | $3,734 | -15.2% | | Net loss | $(21,174) | $(21,139) | $(35) | 0.2% | | Net loss attributable to Energy Vault Holdings, Inc. | $(21,136) | $(21,139) | $3 | 0.0% | | Net loss per share — basic and diluted | $(0.14) | $(0.14) | $0.00 | 0.0% | [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section details changes in the company's equity, including common stock, additional paid-in capital, and accumulated deficit Condensed Consolidated Statements of Stockholders' Equity Highlights (in thousands) | Metric | March 31, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------- | :---------------- | :------- | | Common Stock Shares Outstanding | 154,243 | 153,206 | 1,037 | | Additional Paid-In Capital | $521,322 | $512,022 | $9,300 | | Accumulated Deficit | $(404,958) | $(383,822) | $(21,136) | | Total Stockholders' Equity | $114,913 | $126,256 | $(11,343) | - Stock-based compensation for the three months ended March 31, 2025, was **$9.276 million**, contributing to the increase in additional paid-in capital[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the cash inflows and outflows from operating, investing, and financing activities over specific periods Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :------- | | Net cash (used in) provided by operating activities | $(2,730) | $947 | $(3,677) | | Net cash used in investing activities | $(7,313) | $(8,768) | $1,455 | | Net cash provided by (used in) financing activities | $27,060 | $(678) | $27,738 | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $17,082 | $(8,771) | $25,853 | | Cash and cash equivalents - end of period | $17,822 | $135,773 | $(117,951) | - The significant increase in cash provided by financing activities in **Q1 2025** was primarily due to **$26.8 million** in net proceeds from the CRC Bridge loan and **$1.5 million** from insurance premium financings[214](index=214&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide essential details on the company's business, significant accounting policies, financial instrument details, and commitments [Note 1. Organization and Description of Business](index=11&type=section&id=NOTE%201.%20ORGANIZATION%20AND%20DESCRIPTION%20OF%20BUSINESS) This note describes Energy Vault's business, its technology portfolio, and its strategic transition to asset ownership - Energy Vault provides a diverse technology portfolio of turnkey energy storage platforms, including proprietary gravity, battery, and green hydrogen technologies, supported by its technology-agnostic energy management system software[29](index=29&type=chunk) - In **2024**, the Company began a multi-year transition from solely providing technology to third parties (build-and-transfer or licensing) to also taking an ownership interest in energy storage assets in select markets[29](index=29&type=chunk) - The Company's mission is to provide energy storage solutions to accelerate the global transition to renewable energy, focusing on helping utilities, independent power producers, and large industrial users reduce energy costs and maintain reliability[30](index=30&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=11&type=section&id=NOTE%202.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the key accounting principles and estimates used in preparing the financial statements, including consolidation, GAAP compliance, and going concern considerations - The financial statements are prepared in accordance with GAAP and SEC rules for interim reporting, reflecting all necessary adjustments for fair presentation[31](index=31&type=chunk)[32](index=32&type=chunk) - The Company includes its wholly-owned subsidiaries and a majority-owned subsidiary in its consolidated financial statements, eliminating all intercompany balances and transactions[33](index=33&type=chunk) - As an emerging growth company, Energy Vault has elected not to opt out of the extended transition period for complying with new or revised financial accounting standards, which may affect comparability with other public companies[35](index=35&type=chunk)[37](index=37&type=chunk) - The Company has incurred significant net losses and used substantial cash since inception, with accumulated deficits of **$405.0 million** as of March 31, 2025, though management believes current cash and planned actions will fund operations for at least the next **twelve months**[40](index=40&type=chunk)[42](index=42&type=chunk) - One customer accounted for **100%** of accounts receivable and customer financing receivable as of March 31, 2025 and December 31, 2024, while revenue from two customers accounted for **55%** and **38%** of total revenue for the three months ended March 31, 2025[47](index=47&type=chunk) [Note 3. Revenue Recognition](index=13&type=section&id=NOTE%203.%20REVENUE%20RECOGNITION) This note details the company's policies for recognizing revenue across various product and service categories Revenue by Product and Service Categories (in thousands) | Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Sale of energy storage products | $4,891 | $7,725 | | Operation and maintenance services | $276 | $— | | Software licensing | $112 | $— | | Intellectual property ("IP") licensing | $3,255 | $— | | Other | $— | $34 | | Total revenue | $8,534 | $7,759 | - As of March 31, 2025, remaining performance obligations totaled **$127.6 million**, with approximately **97%** expected to be recognized as revenue over the next **12 months**[50](index=50&type=chunk) - Contract liabilities (deferred revenue) increased from **$8.938 million** at December 31, 2024, to **$10.585 million** at March 31, 2025, with **$5.2 million** recognized as revenue in **Q1 2025** from prior period balances[52](index=52&type=chunk)[54](index=54&type=chunk) [Note 4. Allowance for Credit Losses](index=14&type=section&id=NOTE%204.%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) This note explains the methodology and activity related to the allowance for credit losses on receivables Allowance for Credit Losses Activity (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Allowance for credit losses, beginning of period | $32,238 | $2,514 | | Provision (benefit) for credit losses | $(11) | $(89) | | Allowance for credit losses, end of period | $32,227 | $2,425 | - The Company uses a probability-of-default (PD) and loss-given-default (LGD) methodology, based on Moody's historical rates for corporate bonds, to calculate the allowance for credit losses[57](index=57&type=chunk) - The customer financing receivable of **$11.5 million** was placed on non-accrual status effective December 31, 2024, due to past-due installment payments[58](index=58&type=chunk) [Note 5. Fair Value Measurements](index=15&type=section&id=NOTE%205.%20FAIR%20VALUE%20MEASUREMENTS) This note describes how the company measures assets and liabilities at fair value, categorizing them by input observability - The Company categorizes assets and liabilities measured at fair value into Level 1, Level 2, or Level 3 based on the observability of inputs[59](index=59&type=chunk)[62](index=62&type=chunk) - Warrant liabilities are classified as Level 3, with their fair value determined using a Black-Scholes model due to not being publicly traded[59](index=59&type=chunk) [Note 6. Related Party Transactions](index=15&type=section&id=NOTE%206.%20RELATED%20PARTY%20TRANSACTIONS) This note discloses transactions with parties considered to be related to the company - The Company paid **$0.3 million** in marketing and sales costs to a company owned by an immediate family member of an officer for the three months ended March 31, 2025[60](index=60&type=chunk) [Note 7. Investments](index=15&type=section&id=NOTE%207.%20INVESTMENTS) This note provides details on the company's investments, including equity securities and various notes receivable Investments (in thousands) | Investment Type | March 31, 2025 (Current) | March 31, 2025 (Long-Term) | December 31, 2024 (Current) | December 31, 2024 (Long-Term) | | :-------------------------------- | :------------------------- | :------------------------- | :-------------------------- | :-------------------------- | | Investment in equity securities | $— | $3,270 | $— | $3,270 | | Convertible note receivable | $2,725 | $— | $2,622 | $— | | Other note receivable | $608 | $213 | $311 | $— | | Total | $3,333 | $3,483 | $2,933 | $3,270 | - The Company holds equity securities in KORE Power, Inc. at a cost basis of **$15.0 million**, with cumulative impairment of **$11.7 million** as of March 31, 2025[64](index=64&type=chunk) - The Company has a convertible promissory note with DG Fuels, LLC totaling **$3.0 million**, bearing **10.0%** annual interest, maturing in **October 2025**, with no expectation to exercise the conversion option[65](index=65&type=chunk)[66](index=66&type=chunk) - The Company loaned Stoney Creek BESS Pty Ltd AUD **0.5 million** (Tranche 1) and an additional AUD **0.5 million** (Tranche 3) at **8.0%** interest, and agreed to provide a bank guarantee of AUD **2.5 million** (Tranche 2) and up to AUD **7.8 million** (Tranche 4) for project costs[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) - On March 17, 2025, the Company entered into an agreement to acquire Stoney Creek for a **nominal price**, pending regulatory approval in Australia[71](index=71&type=chunk) [Note 8. Property and Equipment, Net](index=17&type=section&id=NOTE%208.%20PROPERTY%20AND%20EQUIPMENT,%20NET) This note provides a breakdown of the company's property and equipment, including construction in progress and accumulated depreciation Property and Equipment, Net (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Construction in progress | $114,815 | $88,669 | | Total property and equipment | $129,556 | $102,844 | | Less: accumulated depreciation and amortization | $(3,952) | $(3,351) | | Property and equipment, net | $125,604 | $99,493 | - The increase in construction in progress primarily relates to the Calistoga Resiliency Center hybrid energy storage system, the Cross Trails BESS, and the Snyder CDU[73](index=73&type=chunk) [Note 9. Intangible Assets, Net](index=17&type=section&id=NOTE%209.%20INTANGIBLE%20ASSETS,%20NET) This note details the company's intangible assets, primarily capitalized software, and related amortization Intangible Assets, Net (in thousands) | Category | March 31, 2025 (Net Carrying Amount) | December 31, 2024 (Net Carrying Amount) | | :-------------------------------- | :----------------------------------- | :------------------------------------ | | Capitalized software to be sold | $5,131 | $4,538 | - Amortization expense for capitalized software was **$0.2 million** for the three months ended March 31, 2025, with an estimated useful life of **five years**[75](index=75&type=chunk) [Note 10. Debt](index=18&type=section&id=NOTE%2010.%20DEBT) This note outlines the company's debt obligations, including bridge loans, senior notes, and interest expense details - On March 31, 2025, CRC entered into a **$27.8 million** CRC Bridge Loan at **9.5%** interest, which was refinanced on April 4, 2025, by **$27.8 million** CRC Senior Notes[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) - The CRC Senior Notes bear interest at **12.5%** until **December 31, 2025** (or receipt of tax credit transfer proceeds), then **9.5%**, with the first principal payment of **$12.9 million** due **August 31, 2025**, and maturity on **April 4, 2032**[81](index=81&type=chunk)[82](index=82&type=chunk) Interest Expense (in thousands) | Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Contractual interest expense | $18 | $4 | | Amortization of debt issuance costs | $43 | $— | | Amortization of debt discount | $31 | $— | | Interest expense on finance leases | $3 | $4 | | Total | $95 | $8 | [Note 11. Supplemental Balance Sheets Detail](index=20&type=section&id=NOTE%2011.%20SUPPLEMENTAL%20BALANCE%20SHEETS%20DETAIL) This note provides additional details for selected balance sheet accounts, including prepaid expenses, accrued expenses, and other liabilities Selected Supplemental Balance Sheet Details (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Prepaid expenses | $5,132 | $3,423 | | Interest receivable | $925 | $850 | | Professional fees (Accrued expenses) | $10,267 | $8,373 | | Insurance premium financings (Accrued expenses) | $1,621 | $724 | | Customer deposits (Other current liabilities) | $15,001 | $— | | Operating leases (Other long-term liabilities) | $1,699 | $785 | [Note 12. Stock-Based Compensation](index=20&type=section&id=NOTE%2012.%20STOCK-BASED%20COMPENSATION) This note details the company's equity incentive plans, stock option and RSU activity, and total stock-based compensation expense - The Company has three equity incentive plans: the 2022 Incentive Plan (approx. **15.5 million shares** + annual increase), the 2022 Inducement Plan (**8.0 million shares**), and the 2025 Inducement Plan (**8.0 million shares**, approved **Feb 2025**), all for granting stock options, SARs, restricted stock, and RSUs[93](index=93&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) Stock Option Activity (in thousands, except per share data) | Metric | December 31, 2024 | March 31, 2025 | | :-------------------------------- | :---------------- | :------------- | | Options Outstanding | 6,429 | 6,429 | | Weighted Average Exercise Price Per Share | $1.62 | $1.62 | | Options exercisable | 2,342 | 2,342 | | Unrecognized stock-based compensation expense | $3.1 million | $3.1 million | | Weighted-average period for recognition | 1.6 years | 1.6 years | Restricted Stock Units (RSUs) Activity (in thousands, except per share data) | Metric | December 31, 2024 | March 31, 2025 | | :-------------------------------- | :---------------- | :------------- | | Nonvested balance | 22,325 | 25,662 | | RSUs granted | N/A | 7,070 | | RSUs vested | N/A | (3,617) | | Weighted Average Grant Date Fair Value per Share (Nonvested) | $2.83 | $2.28 | | Unrecognized stock-based compensation expense | $43.1 million | $43.1 million | | Weighted-average vesting period | 1.7 years | 1.7 years | Total Stock-Based Compensation Expense (in thousands) | Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Sales and marketing | $1,045 | $1,715 | | Research and development | $1,368 | $2,227 | | General and administrative | $6,863 | $5,742 | | Total stock-based compensation expense | $9,276 | $9,684 | [Note 13. Segment Reporting](index=22&type=section&id=NOTE%2013.%20SEGMENT%20REPORTING) This note clarifies that the company operates as a single reportable segment, with consolidated results reviewed by the CEO - The Company operates as a single reportable segment, with the CEO reviewing consolidated operating results to make decisions and assess performance[103](index=103&type=chunk) Consolidated Segment Revenue and Expenses (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Revenue | $8,534 | $7,759 | | Cost of revenue | $3,658 | $5,691 | | Gross profit | $4,876 | $2,068 | | Non-personnel operating costs | $7,290 | $8,012 | | Salaries and wages | $8,909 | $8,792 | | Stock-based compensation | $9,276 | $9,684 | | Net loss | $(21,174) | $(21,139) | [Note 14. Income Taxes](index=23&type=section&id=NOTE%2014.%20INCOME%20TAXES) This note discusses the company's income tax provision and the valuation allowance recorded against deferred tax assets - The Company recognized a tax provision of **$0.4 million** for the three months ended March 31, 2025, compared to no provision in the prior-year period[106](index=106&type=chunk) - A valuation allowance has been recorded against substantially all net deferred tax assets due to the Company's history of losses, indicating it is not more likely than not that these assets will be realized[106](index=106&type=chunk) [Note 15. Net Loss Per Share of Common Stock](index=23&type=section&id=NOTE%2015.%20NET%20LOSS%20PER%20SHARE%20OF%20COMMON%20STOCK) This note presents the calculation of basic and diluted net loss per share, including the impact of potentially dilutive securities Net Loss Per Share (in thousands, except per share amounts) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss attributable to Energy Vault Holdings, Inc. | $(21,136) | $(21,139) | | Weighted-average shares outstanding – basic and diluted | 153,723 | 147,019 | | Net loss per share – basic and diluted | $(0.14) | $(0.14) | - Due to net losses, potentially dilutive securities (private warrants, stock options, RSUs, and Earn-Out Shares) were **anti-dilutive** and excluded from the diluted EPS calculation[109](index=109&type=chunk) - The contingent right for **9.0 million Earn-Out Shares** expired on **May 12, 2025**, as the triggering events were not satisfied[110](index=110&type=chunk) [Note 16. Commitments and Contingencies](index=24&type=section&id=NOTE%2016.%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the company's principal commitments, warranty liabilities, various bonds, and tax credit transfer agreements - Principal commitments as of March 31, 2025, included operating leases, finance leases, a deferred pension, warranty liabilities, and **$7.6 million** in non-cancelable purchase obligations[111](index=111&type=chunk) - The Company provides limited warranties for BESS customers, with estimated warranty liabilities of **$0.761 million** as of March 31, 2025, down from **$1.391 million** at the beginning of the period[113](index=113&type=chunk)[114](index=114&type=chunk) - As of March 31, 2025, the Company had **$14.5 million** in outstanding letters of credit, **$2.0 million** in bank guarantees, **$110.3 million** in performance and payment bonds, and **$20.5 million** in other bonds[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) - On March 28, 2025, the Company committed to sell approximately **$39.9 million** (net of fees) in Investment Tax Credits (ITCs) generated by its Calistoga, Cross Trails, and Snyder projects, anticipated to be placed in service in **2025**[120](index=120&type=chunk) [Note 17. Subsequent Events](index=25&type=section&id=NOTE%2017.%20SUBSEQUENT%20EVENTS) This note discloses significant events that occurred after the balance sheet date, including a NYSE non-compliance notification and a new bridge loan - On April 16, 2025, the Company received a NYSE notification for non-compliance with the minimum **$1.00** average closing price rule over **30 trading days**, with a **six-month period** to regain compliance[121](index=121&type=chunk) - On May 12, 2025, the Company entered into a **$10.0 million** Cross Trails Bridge Loan with Crescent Cove, bearing **24%** annual interest and maturing on **July 13, 2025**, secured by U.S. assets (excluding Calistoga hybrid energy system)[123](index=123&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Energy Vault's financial condition and results of operations, including business overview, key factors, recent developments, operating metrics, and non-GAAP reconciliations [Our Business](index=27&type=section&id=Our%20Business) This section provides an overview of Energy Vault's diverse energy storage technology portfolio and its strategic shift towards asset ownership - Energy Vault offers a diverse portfolio of turnkey energy storage platforms, including gravity, battery, and green hydrogen technologies, integrated with its energy management system software[126](index=126&type=chunk) - The Company is transitioning from a build-and-transfer or licensing model to also taking ownership interests in energy storage assets in attractive markets, leveraging its experience and proprietary technologies[126](index=126&type=chunk) [Key Factors and Trends Affecting our Business](index=27&type=section&id=Key%20Factors%20and%20Trends%20Affecting%20our%20Business) This section discusses significant external and internal factors influencing the company's performance, such as tariffs, industry growth, tax incentives, and competition - New U.S. tariffs on Chinese lithium-ion batteries, totaling approximately **155.9%**, have materially affected operations, causing delays or cancellations in third-party sales projects for B-Vault products[129](index=129&type=chunk)[130](index=130&type=chunk) - The utility-scale energy storage industry is rapidly growing due to increased electricity demand (driven by data centers, AI, EVs), global renewable energy transition, and focus on grid resilience[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - The Inflation Reduction Act (IRA) of **2022** provides significant tax incentives for energy storage, including Investment Tax Credits (ITCs) for standalone projects and bonus credits for energy communities, domestic content, and low-income areas, which the Company believes it is positioned to benefit from[146](index=146&type=chunk)[147](index=147&type=chunk) - The Company faces competition from new and existing energy storage solution providers and software manufacturers, and its market share could decline if it cannot compete effectively[141](index=141&type=chunk) - Higher inflation rates in recent years could increase expenses and product costs, potentially impacting competitiveness if not offset by price increases[142](index=142&type=chunk) [Recent Developments](index=30&type=section&id=Recent%20Developments) This section highlights significant recent events, including project acquisitions, licensing agreements, and NYSE compliance notifications - Between **October 2024** and **March 2025**, the Company loaned Stoney Creek BESS Pty Ltd up to AUD **8.8 million** for project development and agreed to provide a bank guarantee of AUD **2.5 million**, and on **March 17, 2025**, the Company entered into an agreement to acquire Stoney Creek[148](index=148&type=chunk) - On March 31, 2025, the Company signed a license and royalty agreement with an Indian infrastructure development company to accelerate manufacturing and deployment of its B-Vault BESS technology and VaultOS EMS software in India[149](index=149&type=chunk) - On April 16, 2025, the NYSE notified the Company of non-compliance with its minimum stock price listing requirement (**$1.00** average over **30 trading days**), granting a **six-month period** to regain compliance[150](index=150&type=chunk) [Key Operating Metrics](index=30&type=section&id=Key%20Operating%20Metrics) This section presents key performance indicators such as new bookings, developed pipeline, and backlog, providing insight into future revenue potential Key Operating Metrics (in thousands, except MWh) | Metric | March 31, 2025 | March 31, 2024 | | :-------------------------------- | :------------- | :------------- | | New bookings ($) | $225,729 | $— | | Net bookings ($) | $225,729 | $— | | New bookings (MWh) | 1,004 | — | | Net bookings (MWh) | 1,004 | — | | Developed Pipeline ($) | $2,131,300 | $2,085,908 | | Developed Pipeline (MWh) | 8,797 | 9,194 | | Backlog ($) | $648,043 | $433,886 | | Backlog (MWh) | 2,577 | 1,574 | - Net bookings represent the total aggregate contract value and MWhs from customer contracts signed during the period, net of cancellations, including probable future variable payments from tolling and offtake arrangements[152](index=152&type=chunk) - Developed pipeline indicates uncontracted potential revenue from third-party projects and potential tolling revenue from projects in advanced negotiations, serving as an internal management metric for anticipated growth[154](index=154&type=chunk) - Backlog represents contracted but unrecognized revenue from projects, services, and IP licensing agreements, including probable future variable payments from tolling arrangements[156](index=156&type=chunk) [Key Components of Results of Operations](index=31&type=section&id=Key%20Components%20of%20Results%20of%20Operations) This section explains the primary drivers of revenue, cost of revenue, gross profit, and operating expenses - Revenue is generated from the sale of energy storage products (EPC and EEQ models), software and IP licensing, and long-term operation and maintenance services, with future revenue expected from tolling arrangements for owned systems[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk) - Cost of revenue primarily includes product costs (equipment, tariffs, shipping), materials, subcontractors, direct labor, and product warranties, influenced by underlying costs of components like batteries and inverters[164](index=164&type=chunk)[165](index=165&type=chunk) - Gross profit and gross profit margin fluctuate due to the timing of transferring control of uninstalled equipment in EPC projects (lower margins initially, higher in later stages) and changes in sales volume, product prices, costs, and mix[166](index=166&type=chunk)[167](index=167&type=chunk) - Operating expenses include Sales and Marketing (personnel, professional fees, promotional), Research and Development (materials, testing, labor, consulting), General and Administrative (IT, legal, professional fees, corporate personnel), Benefit for Credit Losses, and Depreciation and Amortization[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20operations) This section provides a detailed analysis of the company's financial performance, comparing current and prior period results across key income statement line items Consolidated Results of Operations (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | % Change | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :------- | :------- | | Revenue | $8,534 | $7,759 | $775 | 10.0% | | Cost of revenue | $3,658 | $5,691 | $(2,033) | -35.7% | | Gross profit | $4,876 | $2,068 | $2,808 | 135.8% | | Sales and marketing | $4,145 | $4,170 | $(25) | -0.6% | | Research and development | $3,824 | $6,966 | $(3,142) | -45.1% | | General and administrative | $17,506 | $15,353 | $2,153 | 14.0% | | Loss from operations | $(20,893) | $(24,627) | $3,734 | -15.2% | | Interest income | $315 | $1,826 | $(1,511) | -82.7% | | Other income (expense), net | $(118) | $1,670 | $(1,788) | -107.1% | | Loss before income taxes | $(20,791) | $(21,139) | $348 | -1.6% | - Revenue increased by **$0.8 million** (**10.0%**) driven by **$3.6 million** from new IP licensing, operation and maintenance, and software licensing, partially offset by a **$2.8 million** decline in energy product storage sales[175](index=175&type=chunk) - Gross profit improved significantly by **135.8%** to **$4.9 million**, with gross margin increasing to **57.1%** from **26.7%**, primarily due to IP licensing revenue having no associated cost of sales[178](index=178&type=chunk) - R&D expenses decreased by **$3.1 million** (**45.1%**) due to reductions in personnel-related expenses, software expenses, and engineering costs, reflecting cost-control measures[180](index=180&type=chunk) - G&A expenses increased by **$2.2 million** (**14.0%**) due to higher G&A headcount and retention bonuses[181](index=181&type=chunk) - Interest income decreased by **$1.5 million** (**82.7%**) due to lower average cash balances, and other income (expense), net, decreased by **$1.8 million** due to a non-recurring gain in **Q1 2024**[184](index=184&type=chunk)[185](index=185&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to meet its financial obligations, including cash position, funding sources, and capital raising activities - The Company's liquidity is supported by a sales backlog of **$648.0 million** as of March 31, 2025, a developed pipeline, and bonding capacity exceeding **$1.0 billion**[187](index=187&type=chunk)[188](index=188&type=chunk) - Management believes current cash, cash equivalents, and restricted cash, along with subsequent events, will be sufficient to fund operating activities for at least the next **twelve months**[192](index=192&type=chunk) - The Company may raise additional capital through equity and/or debt financings, including preferred equity for project-specific financing vehicles, which are expected to be non-dilutive to common stockholders[189](index=189&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk) - On March 28, 2025, the Company entered into a Tax Credit Transfer Commitment to sell approximately **$39.9 million** in ITCs from projects anticipated to be placed in service in **2025**[194](index=194&type=chunk) - The Company has an 'at-the-market' equity offering program for up to **$50.0 million** and an Equity Purchase Agreement with an investor to sell up to **$25.0 million** of common stock[195](index=195&type=chunk)[196](index=196&type=chunk) Cash, Cash Equivalents, and Restricted Cash (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $17,822 | $27,091 | | Restricted cash | $29,333 | $2,982 | | Total cash, cash equivalents, and restricted cash | $47,155 | $30,073 | Cash Flows Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash (used in) provided by operating activities | $(2,730) | $947 | | Net cash used in investing activities | $(7,313) | $(8,768) | | Net cash provided by (used in) financing activities | $27,060 | $(678) | | Net increase (decrease) in cash | $17,082 | $(8,771) | [Non-GAAP Financial Measures](index=38&type=section&id=Non-GAAP%20Financial%20Measures) This section presents and reconciles non-GAAP financial measures, including adjusted operating expenses, net loss, and EBITDA, to provide additional insights into the company's performance - The Company uses non-GAAP financial measures, including adjusted S&M, R&D, G&A expenses, adjusted operating expenses, adjusted net loss, and adjusted EBITDA, to complement GAAP measures and provide insights into ongoing operations[215](index=215&type=chunk) Non-GAAP Adjusted Operating Expenses (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Operating expenses (GAAP) | $25,769 | $26,695 | | Stock-based compensation expense | $(9,276) | $(9,684) | | Depreciation and amortization | $(305) | $(295) | | Benefit for credit losses | $11 | $88 | | Adjusted operating expenses (non-GAAP) | $16,199 | $16,804 | Non-GAAP Adjusted Net Loss (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss attributable to Energy Vault Holdings, Inc. (GAAP) | $(21,136) | $(21,139) | | Stock-based compensation expense | $9,276 | $9,684 | | Gain on derecognition of contract liability | $— | $(1,500) | | Benefit for credit losses | $(11) | $(88) | | Foreign exchange losses | $133 | $60 | | Adjusted net loss (non-GAAP) | $(11,738) | $(12,983) | Non-GAAP Adjusted EBITDA (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss attributable to Energy Vault Holdings, Inc. (GAAP) | $(21,136) | $(21,139) | | Interest income, net | $(220) | $(1,818) | | Provision for income taxes | $383 | $— | | Depreciation and amortization | $305 | $295 | | Stock-based compensation expense | $9,276 | $9,684 | | Gain on derecognition of contract liability | $— | $(1,500) | | Benefit for credit losses | $(11) | $(88) | | Foreign exchange losses | $133 | $60 | | Adjusted EBITDA (non-GAAP) | $(11,270) | $(14,506) | [Critical Accounting Estimates](index=40&type=section&id=Critical%20Accounting%20Estimates) This section confirms no material changes to critical accounting policies and notes the company's election as an emerging growth company - There have been no material changes to the Company's critical accounting policies and estimates compared to those disclosed in the **2024** Annual Report on Form 10-K[222](index=222&type=chunk) - As an emerging growth company, Energy Vault has elected to take advantage of the extended transition period for new or revised financial accounting standards, which may impact comparability[223](index=223&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the Company's exposure to various market risks, including foreign currency fluctuations, inflation, credit risk, and commodity price volatility, and their potential financial impact - The Company is exposed to foreign currency risk as some contracts and operating expenses are denominated in currencies other than the U.S. dollar, such as the Australian dollar, Euro, and Swiss franc, which could affect costs and revenue[226](index=226&type=chunk)[227](index=227&type=chunk) - Inflation risk could adversely impact operations through higher material, labor, and construction costs, which the Company may not be able to fully offset through price increases[228](index=228&type=chunk) - Credit risk arises from potential defaults by customers on contractual obligations, mitigated by credit policies, monitoring, and requiring milestone payments, letters of credit, or cash collateral[231](index=231&type=chunk) - Commodity price risk from fluctuating market prices of raw materials like cement, steel, aluminum, and lithium could reduce operating margins if suppliers increase component prices and these increases cannot be recovered from customers[233](index=233&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's disclosure controls and procedures and reports no material changes in internal control over financial reporting - Management, with the participation of the principal executive and financial officers, concluded that the Company's disclosure controls and procedures were **effective** at a reasonable assurance level as of **March 31, 2025**[235](index=235&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended March 31, 2025, that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[236](index=236&type=chunk) [Part II - Other Information](index=42&type=section&id=Part%20II%20-%20Other%20Information) This part covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The Company is involved in ordinary course legal proceedings, but management believes that unfavorable outcomes would not individually or in aggregate have a material adverse effect on its business, financial condition, and results of operations - The Company is regularly subject to various legal proceedings in the ordinary course of business[237](index=237&type=chunk) - Management believes that an unfavorable outcome for identified legal matters is **not probable**, and therefore, no reserve has been established[237](index=237&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) This section highlights a material change to the Company's risk factors, specifically regarding its non-compliance with NYSE listing standards due to its stock price falling below the minimum requirement, which could impact its ability to maintain an active trading market - On April 16, 2025, the Company was notified by the NYSE of non-compliance with Rule 802.01C, as its common stock's average closing price was less than **$1.00** over a **30-trading-day period**[239](index=239&type=chunk) - Failure to regain compliance within the **six-month cure period** could lead to delisting, making it difficult for security holders to sell shares and potentially impairing the Company's ability to raise capital and motivate employees[239](index=239&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report for the period - None[240](index=240&type=chunk) [Item 3. Defaults Upon Senior Securities](index=42&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities to report for the period - None[241](index=241&type=chunk) [Item 4. Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company - Not applicable[242](index=242&type=chunk) [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) This section confirms no disclosure in lieu of Form 8-K, no material changes to board nominee recommendation procedures, and no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements adopted or terminated by directors or officers during the quarter - No disclosure in lieu of reporting on a Current Report on Form 8-K[243](index=243&type=chunk) - No material changes to the procedures by which security holders may recommend nominees to the board of directors[244](index=244&type=chunk) - No director or officer adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the three months ended March 31, 2025[245](index=245&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including organizational documents, equity incentive plans, debt agreements, equity purchase agreements, certifications, and XBRL interactive data files - Key exhibits include the **2025** Employment Inducement Award Plan, Note Purchase Agreement with Eagle Point Credit Management, LLC, Equity Purchase Agreement with Hudson Global Ventures, LLC, and Credit Agreement with Crescent Cove Opportunity Lending, LLC[247](index=247&type=chunk) - Certifications of the Principal Executive Officer and Chief Financial Officer are included under Rules 13a-14(a) and 15d-14(a) of the Exchange Act and pursuant to **18 U.S.C. Section 1350**[247](index=247&type=chunk) - XBRL Instance Document and Taxonomy Extension Documents are also filed[247](index=247&type=chunk) [Signatures](index=45&type=section&id=Signatures) This section provides the official signatures of the company's principal executive and financial officers, certifying the report's submission - The report was signed on **May 12, 2025**, by Robert Piconi, Chairman of the Board and Chief Executive Officer, and Michael Beer, Chief Financial Officer[252](index=252&type=chunk)

Financial Data and Key Metrics Changes - The company reported a revenue increase of 10% year over year, reaching $8.5 million, driven by projects in Australia and a new licensing agreement in India [10][28] - Gross margin improved significantly to 57.1%, up from 26.7% a year ago, attributed to a favorable revenue mix from the India license agreement [11][28] - Adjusted EBITDA loss narrowed to $11.3 million from $14.5 million year over year, reflecting improved gross margins and reduced operating costs [15][29] - Cash increased by 57% quarter over quarter, from $30 million to $47 million, with expectations to reach $50 million to $60 million by the end of Q2 [12][30] Business Line Data and Key Metrics Changes - The backlog increased by 49% year to date, totaling $648 million, with significant contributions from projects in the US and Australia [25][27] - The company has 2.6 gigawatt hours of projects in Australia either contracted or under agreement, with additional projects under construction [25][26] - The energy asset management business is progressing with seven projects, expected to generate approximately $30 million in annual recurring EBITDA over the next fifteen years [18][31] Market Data and Key Metrics Changes - The company is largely shielded from US tariff risks due to a strong presence in Australia and licensing agreements, with 90% of the backlog unaffected by tariffs [20][27] - The recent pause in US-China tariffs has reignited discussions for US battery deliveries, potentially leading to increased demand [19][20] Company Strategy and Development Direction - The company is focusing on expanding its energy storage solutions and build, own, and operate portfolio, with a strong emphasis on the Australian market [16][23] - The strategy includes optimizing infrastructure while ramping up investments in high-potential markets like Australia [16][31] - The company aims to achieve approximately $100 million in recurring annual EBITDA from its owned and operated projects [19][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market's response to the tariff pause, indicating potential for increased bookings and project deliveries [20][44] - The company maintains its revenue guidance for 2025, with over 80% of revenue already contracted [48][51] - Management highlighted the importance of geographic diversity and the ability to adapt to market changes, which positions the company well for future growth [23][27] Other Important Information - The company is in the process of project financing and ITC monetization for its Cross Trails project, expecting significant cash inflows in the coming quarters [30] - The first owned and operated asset, Cross Trails in Texas, is undergoing commissioning and is expected to begin commercial operations soon [14][30] Q&A Session Summary Question: Impact of tariffs on securing new bookings in the US market - Management noted that the tariff situation had caused a "wait and see" approach among developers, but the recent pause could lead to renewed contracting opportunities [41][44] Question: 2025 guidance and booked contracts - Over 80% of the revenue guidance is contracted, with expectations for additional bookings to be secured in light of the tariff pause [48][49] Question: Differentiators for India battery technology licensing - Management highlighted the growth potential in India, the flexibility of their technology, and their established track record as key differentiators [56][62] Question: Differences in project financing discussions - The company emphasized the importance of proven technology and long-term off-take agreements in securing favorable project financing [63][66]

Financial Data and Key Metrics Changes - The company reported a revenue increase of 10% year over year, reaching $8.5 million, driven by projects in Australia and a new licensing agreement in India [26][9] - Gross margin improved significantly to 57.1%, up from 26.7% a year ago, attributed to a favorable revenue mix from the India license agreement [26][9] - Adjusted EBITDA loss narrowed to $11.3 million from $14.5 million year over year, reflecting improved gross margins and reduced operating costs [27][13] Business Line Data and Key Metrics Changes - The backlog increased by 49% year to date, totaling $648 million, with significant contributions from projects in the US and Australia [23][24] - The company has 2.6 gigawatt hours of projects in Australia either contracted or under agreement, with additional projects under construction [23][29] - The energy asset management business is progressing with seven projects, expected to deliver approximately $30 million in annual recurring project EBITDA over their lifespan [29][15] Market Data and Key Metrics Changes - The company is largely shielded from US tariff risks due to a strong presence in Australia and licensing agreements, with 90% of the backlog unaffected by tariffs [24][18] - The recent pause in US-China tariffs has reignited discussions for US battery deliveries, potentially leading to increased demand [18][39] Company Strategy and Development Direction - The company is focusing on expanding its build, own, and operate strategy, with a strong pipeline of storage asset ownership projects in the US and Australia [29][21] - The company aims to achieve approximately $100 million in recurring annual EBITDA from its owned and operated projects over the long term [29][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for increased bookings and project deliveries following the tariff pause, indicating a return to a more normalized contracting environment [18][44] - The company is committed to reducing operating expenses by 15% to 25% while continuing to invest in profitable engagements, particularly in the Australian market [27][14] Other Important Information - Cash increased by 57% quarter over quarter, reaching $47.2 million, with expectations to further increase to $60 million to $75 million by Q3 [10][28] - The company is in the process of project financing and ITC monetization for its Cross Trails project, expecting significant proceeds from these activities [28][10] Q&A Session Summary Question: Impact of tariffs on securing new bookings in the US - Management noted that the tariff situation had caused a "wait and see" approach among developers, but the recent pause in tariffs could lead to renewed contracting opportunities [39][42] Question: Guidance for 2025 and booked revenue - Over 80% of the company's revenue for 2025 is contracted, with expectations for additional bookings to be secured in light of the tariff pause [46][47] Question: Differentiators for India battery technology licensing - The company highlighted growth potential in India, flexibility in its technology, and a strong track record with customers as key differentiators [53][56] Question: Differences in project financing discussions - Management explained that having proven technology and long-term off-take agreements significantly de-risks project financing, making discussions with lenders more favorable [62][63]