Market Overview - U.S. stocks showed mixed performance with the Dow Jones index increasing by 0.64% to 47,673.48, while the NASDAQ decreased by 0.79% to 23,340.59 and the S&P 500 fell by 0.23% to 6,817.03 [1] - Energy shares experienced a rise of 1.2%, while information technology stocks saw a decline of 0.9% [1] Company Performance - RealReal Inc (NASDAQ:REAL) shares surged after reporting better-than-expected third-quarter results and providing fourth-quarter sales guidance above estimates, along with an increase in FY25 sales guidance [2] - enGene Holdings Inc (NASDAQ:ENGN) shares increased by 72% to $10.34 following positive Phase 2 LEGEND study data showing a 63% complete response rate [9] - Energy Vault Holdings Inc (NYSE:NRGV) shares rose by 30% to $4.62 after releasing third-quarter results [9] - Surmodics Inc (NASDAQ:SRDX) shares gained 49% to $40.80 after a court denied the FTC's attempt to block GTCR's acquisition [9] - Vor Biopharma Inc (NASDAQ:VOR) shares dropped by 50% to $9.32 due to the announcement of a $100 million public offering [9] - Salarius Pharmaceuticals Inc (NASDAQ:SLRX) shares fell by 50% to $1.00 after announcing a $7 million underwritten public offering [9] - Outset Medical Inc (NASDAQ:OM) shares decreased by 50% to $6.07 following worse-than-expected third-quarter results and a cut in FY25 sales guidance [9] Commodity Market - Oil prices increased by 1.5% to $61.00, while gold rose by 0.3% to $4,134.70 [5] - Silver traded up by 0.8% to $50.730, whereas copper fell by 0.4% to $5.0845 [5] European Market - European shares showed positive movement with the eurozone's STOXX 600 rising by 1.05%, Spain's IBEX 35 Index gaining 1.05%, and London's FTSE 100 increasing by 0.94% [6] Asian Market - Asian markets closed mixed, with Japan's Nikkei 225 down by 0.14%, Hong Kong's Hang Seng up by 0.18%, China's Shanghai Composite down by 0.39%, and India's BSE Sensex up by 0.40% [7]

Core Insights - Energy Vault (NRGV) specializes in developing and deploying energy storage solutions, utilizing a diverse portfolio of technologies including short-term lithium-ion batteries (B-Vault), long-term gravitational systems (G-Vault), hybrid hydrogen storage (H-Vault), and software for optimization (VaultOS) [1] Group 1: Company Overview - Energy Vault's product offerings include various energy storage technologies aimed at addressing different storage timeframes and optimization needs [1] Group 2: Investment Strategy - The company operates in a sector that is increasingly focused on energy storage solutions, which are critical for the transition to renewable energy sources [1]

Financial Data and Key Metrics Changes - Q3 2025 revenue reached $33.3 million, a 27-fold increase year-over-year compared to $1.2 million in Q3 2024, driven by strong execution on projects in Australia and initial contributions from the Asset Vault assets [17] - GAAP gross profit for Q3 2025 was $9 million, improving nearly 18 times from the prior year, resulting in a gross margin of 27% for the quarter and 32.6% year-to-date [17] - Adjusted EBITDA loss narrowed to $6 million in Q3 2025 from a loss of $14.7 million in the prior year, reflecting higher revenue and gross profit [18] Business Line Data and Key Metrics Changes - The company has built, commissioned, and is now operating two initial projects in Texas and California, contributing to the revenue for the first time in Q3 [4] - The contract backlog remains near $1 billion, more than doubling this year and about four times what it was from the same time last year [12] - The company expects to deliver approximately $150 million in revenue in Q4 2025, driven by ongoing projects in Australia and the U.S. [12] Market Data and Key Metrics Changes - The total developed pipeline for advanced projects is around $2.1 billion, or roughly 8.7 gigawatt-hours [20] - The company anticipates receiving $40 million in investment tax credit proceeds in Q4 2025, contributing to an expected cash balance of $75 million to $100 million by year-end [18][21] Company Strategy and Development Direction - The launch of the Asset Vault platform marks a significant strategic move, focusing on developing, owning, and operating energy storage assets [4][22] - The company aims to accelerate deployment of 1.5 gigawatts in attractive priority markets, with a clear monetization strategy supported by long-term offtake agreements [22][23] - Energy Vault is positioned to generate predictable, recurring, and high-margin cash flows through the vertically integrated ecosystem created by the Asset Vault [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the volatile operating environment, including tariff impacts and macroeconomic uncertainties, but remains confident in maintaining guidance due to ongoing project deliveries [35] - The company is experiencing a target-rich environment for asset acquisition, indicating strong opportunities despite market challenges [35] - Management emphasizes the importance of agility and operational expertise in navigating market fluctuations and maintaining a diverse project portfolio [36] Other Important Information - Energy Vault has improved its ESG scores, placing in the top 98% of all companies reviewed by S&P Global, and maintaining its leadership in the energy storage segment [15] - The company has completed a $300 million preferred equity agreement to fund the Asset Vault, which is expected to significantly enhance cash flow and project financing capabilities [18][22] Q&A Session Summary Question: R&D expense decline and future capitalization - Management noted that the decline in R&D expenses reflects cost-tightening measures and a shift in focus towards activities related to Asset Vault [30][31] Question: Customer acquisition pace amid macro uncertainty - Management indicated that while there have been delays due to market volatility, they are holding their guidance and seeing a rich environment for asset opportunities [34][35] Question: Backlog inclusion of recently announced projects - The current backlog does not include the recently announced projects in Albania, but these will be added to both the backlog and Asset Vault once finalized [40][45] Question: Increase in development pipeline - The increase in the development pipeline reflects stage four or five opportunities that have been shortlisted or awarded, with specific projects not disclosed [46]

Financial Performance - Q3 2025 revenue reached $33.3 million, a significant increase of approximately 27 times year-over-year[10, 12, 13] - Gross margin for Q3 2025 was 270%, compared to 403% in Q3 2024[10, 12, 13] - Adjusted EBITDA improved by 59% year-over-year, resulting in a loss of $60 million in Q3 2025 compared to a loss of $147 million in Q3 2024[10, 12, 13] - Total cash and cash equivalents increased by approximately 7% quarter-over-quarter to $619 million as of September 30, 2025[10, 12, 13] Commercial Pipeline and Backlog - The company's backlog as of September 30th reached $920 million, an increase of 112% year-to-date[10, 15] - The developed pipeline is valued at $21 billion[15] - Executed projects have generated $583 million in revenue since the company's IPO[15] Guidance and Strategy - The company reiterated its 2025 revenue guidance of $200 million to $250 million[17, 18] - The company anticipates a gross margin of 14-16% for the full year 2025[17, 18] - The company projects an ending cash balance of $75 million to $100 million for the full year 2025[17, 18]

Tariffs and Regulatory Environment - Energy Vault's B-Vault products are subject to a cumulative U.S. import tariff burden of approximately 155.9% due to recent tariffs on imports from China[230]. - The company faces significant risks from potential reinstatement of tariffs and ongoing legal challenges regarding tariff authority[232]. - The OBBBA enacted in July 2025 includes changes to federal income tax laws that could affect demand for battery energy storage systems[239]. - The Inflation Reduction Act (IRA) introduced tax incentives for standalone energy storage projects, enhancing market opportunities[238]. - The company is exploring alternative sourcing options to mitigate the impact of tariffs, as importing B-Vault products from non-Chinese suppliers has not been economically viable[235]. Business Development and Acquisitions - The company entered into a license and royalty agreement with an Indian infrastructure development company, expected to generate long-term recurring royalty revenue streams[253]. - The acquisition of Stoney Creek for approximately $2.9 million expands the company's portfolio with project rights to a 125 MW/1,000 MWh BESS in Australia[256]. - The company acquired 100% of SOSA, which has the rights to build a 150 MW/300 MWh BESS project in Texas, marking the first project acquired under the Asset Vault platform[260]. - Energy Vault established a joint venture with OIC, contributing 1.2 billion common units of Asset Vault in exchange for 300 million Series A preferred units and an initial cash contribution of $35 million, with potential further contributions up to $300 million[258]. Financial Performance - Revenue for the three months ended September 30, 2025 was $33.3 million, an increase of $32.1 million from $1.2 million for the same period in 2024, driven by a $30.9 million increase in energy storage product sales[291]. - Revenue for the nine months ended September 30, 2025 was $50.4 million, an increase of $37.6 million from $12.7 million in the same period in 2024, reflecting a $32.9 million increase in energy storage product sales[292]. - The company reported new bookings of $286.4 million for the three months ended September 30, 2025, compared to zero in the same period of 2024, and net bookings of $538.1 million for the nine months ended September 30, 2025, compared to $182.8 million in 2024[265]. - The backlog increased to $919.7 million as of September 30, 2025, from $433.9 million at the end of 2024, representing a significant growth in contracted but unrecognized revenue[265]. - The developed pipeline as of September 30, 2025, was valued at $2.1 billion, with a total of 8,712 MWh, compared to $2.1 billion and 9,194 MWh as of December 31, 2024[265]. Cost and Profitability - Cost of revenue includes product costs, materials, and subcontractor expenses, which are influenced by the prices of equipment and materials such as batteries and inverters[278]. - The company reported a gross profit margin that may vary due to the timing of equipment transfers and project stages, affecting overall profitability[280]. - Gross profit for the three months ended September 30, 2025 was $9.0 million, an increase of $8.5 million from $0.5 million for the same period in 2024[296]. - Gross profit margin decreased to 27.0% for the three months ended September 30, 2025 from 40.3% in the same period in 2024, primarily due to a shift to lower-margin energy storage product sales[298]. Operating Expenses - Sales and marketing expenses for the three months ended September 30, 2025 were $3.2 million, a decrease of $1.1 million from $4.3 million for the same period in 2024[300]. - Research and development expenses for the three months ended September 30, 2025 were $3.4 million, a decrease of $2.3 million from $5.7 million for the same period in 2024[302]. - General and administrative expenses for the three months ended September 30, 2025 were $19.8 million, an increase of $4.4 million from $15.4 million for the same period in 2024[305]. - Interest expense for the three months ended September 30, 2025 was $2.8 million, an increase of $2.7 million from $43 thousand for the same period in 2024[310]. Cash Flow and Financing - Cash provided by operating activities for the nine months ended September 30, 2025, was $0.9 million, a significant improvement compared to cash used of $21.0 million for the same period in 2024[361]. - Cash used in investing activities was $32.8 million for the nine months ended September 30, 2025, compared to $48.1 million for the same period in 2024[364]. - Cash provided by financing activities was $63.4 million for the nine months ended September 30, 2025, compared to $0.6 million for the same period in 2024[366]. - The company reported a $117.2 million inflow from debt financings during the nine months ended September 30, 2025[367]. - The Company raised $6.8 million from the sale of common stock under the Hudson Equity Purchase Agreement during the nine months ended September 30, 2025[326]. Losses and Future Outlook - The company experienced a net loss of $82.9 million for the nine months ended September 30, 2025, adjusted for $46.3 million in non-cash charges[362]. - The Company has incurred negative operating cash flows and operating losses historically and may continue to do so in the future[319]. - The company expects to remain an emerging growth company through the end of 2026, which may affect comparability with other public companies[378]. Commodity Price Risk - The company is exposed to commodity price risk, particularly for materials like cement, steel, aluminum, and lithium, which could impact operating margins[387].

Revenue and Profitability - Contract revenue backlog reached $920 million, up 112% year-to-date[1] - Q3 2025 revenue of $33.3 million, a 27x increase from $1.2 million in the prior year[4] - Revenue for the three months ended September 30, 2025, was $33,319 thousand, a significant increase from $1,199 thousand in the same period of 2024, representing a growth of 2,776%[20] - Gross profit for the nine months ended September 30, 2025, was $16,402 thousand, compared to $3,600 thousand for the same period in 2024, indicating a growth of 355%[20] - Q3 2025 GAAP gross profit of $9.0 million, up nearly 18x from $0.5 million in the prior year, with a gross margin of 27.0%[4] Expenses and Losses - Adjusted EBITDA loss narrowed 59% to $6.0 million from a loss of $14.7 million in the prior year[1] - The net loss for the nine months ended September 30, 2025, was $82,925 thousand, compared to a net loss of $73,954 thousand for the same period in 2024, representing a decline of 12%[22] - Cash and cash equivalents at the end of the period were $32,696 thousand, down from $51,124 thousand at the end of the same period in 2024, a decrease of 36%[22] - Operating expenses for the nine months ended September 30, 2025, totaled $83,026 thousand, consistent with $83,187 thousand for the same period in 2024, showing a slight decrease of 0.2%[20] - The company incurred interest expense of $5,392 thousand for the nine months ended September 30, 2025, compared to $89 thousand for the same period in 2024, a substantial increase[20] Cash and Assets - Cash balance as of September 30, 2025, was $61.9 million, reflecting a 7% sequential increase[4] - Total current assets increased to $103,243 thousand as of September 30, 2025, up from $68,905 thousand at December 31, 2024, reflecting a growth of 50%[18] - Targeting $75-100 million in total cash by the end of 2025, including recent Asset Vault capitalization[9] Equity and Liabilities - The company reported total liabilities of $201,334 thousand as of September 30, 2025, compared to $57,633 thousand at December 31, 2024, an increase of 249%[18] - The total stockholders' equity decreased to $80,549 thousand as of September 30, 2025, down from $126,256 thousand at December 31, 2024, a decline of 36%[18] Strategic Initiatives - Closed a $300 million preferred equity agreement for the launch of the 'Asset Vault' business[1] - Expected contribution of $100-150 million in recurring Adjusted EBITDA from Asset Vault Fund 1 by year-end 2029[1] - Announced agreement to deploy 1.8 GWh of Battery Energy Storage Systems (BESS) in Europe[1] - Full year 2025 revenue guidance estimated at $200-250 million, reflecting project timelines[9] Shareholder Information - The weighted average shares outstanding for Q3 2025 were 163,329,000, up from 150,812,000 in Q3 2024[28] - Stock-based compensation expense for Q3 2025 was $10,151,000, slightly down from $10,248,000 in Q3 2024, and for the nine months ended September 30, 2025, it was $28,411,000 compared to $29,436,000 in the prior year[29] Adjusted Metrics - Adjusted EBITDA for Q3 2025 was $(6,026,000), an improvement from $(14,652,000) in Q3 2024, while for the nine months ended September 30, 2025, it was $(30,950,000) compared to $(44,509,000) in the same period of 2024[29] - The company noted that adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net loss or other performance measures derived in accordance with GAAP[30]

Core Insights - Energy Vault Holdings, Inc. has signed a Framework Supply Agreement with EU Green Energy LLC for the deployment of up to 1.8 GWh of Battery Energy Storage Systems over the next four years [1] Group 1: Company Developments - The agreement with EU Green Energy marks a significant step for Energy Vault in expanding its presence in the renewable energy sector [1] - The deployment of Battery Energy Storage Systems is expected to enhance grid-scale energy storage solutions, aligning with the growing demand for renewable energy [1] Group 2: Industry Context - The partnership highlights the increasing collaboration between energy storage solution providers and renewable energy developers, particularly in the Balkan region [1] - The agreement is part of a broader trend towards sustainable energy solutions, reflecting the industry's shift towards more efficient energy storage technologies [1]

Core Insights - Wall Street anticipates a year-over-year increase in earnings for Energy Vault Holdings, Inc. (NRGV) due to higher revenues, with actual results being crucial for stock price movement [1][2] - The earnings report is set to be released on November 10, and better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2] Earnings Estimates - The consensus estimate predicts a quarterly loss of $0.03 per share, reflecting an 83.3% year-over-year improvement [3] - Expected revenues are projected at $33.4 million, representing a significant increase of 2683.3% compared to the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has remained unchanged over the past 30 days, indicating stability in analyst expectations [4] - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [12] Earnings Surprise Prediction - A positive Earnings ESP is generally a strong indicator of an earnings beat, especially when combined with a favorable Zacks Rank [10] - Energy Vault currently holds a Zacks Rank of 4, complicating predictions for an earnings beat [12] Historical Performance - In the last reported quarter, Energy Vault was expected to post a loss of $0.07 per share but instead reported a loss of $0.22, resulting in a surprise of -214.29% [13] - Over the past four quarters, the company has only surpassed consensus EPS estimates once [14] Industry Comparison - Talen Energy Corporation (TLN), another player in the alternative energy sector, is expected to report an EPS of $3.84, indicating a year-over-year change of +134.2% [18] - Talen's revenues are projected at $701.64 million, up 7.9% from the previous year, but its EPS estimate has been revised down by 34.8% in the last 30 days, resulting in an Earnings ESP of -4.80% [19][20]

Core Insights - Energy Vault is evolving as an integrated energy storage Independent Power Producer (IPP) and has introduced a new investment platform called Asset Vault to enhance deployment and value creation in the energy transition [2]. Group 1 - The company is hosting a Virtual Investor and Analyst Day Webcast to provide insights into its strategy, business performance, and growth trajectories [1]. - A presentation related to Energy Vault's strategy is available on the investor website, and a replay of the webcast will be accessible later [3].

Summary of Energy Vault's 2025 Investor Day Company Overview - **Company**: Energy Vault (NYSE: NRGV) - **Event**: 2025 Virtual Investor and Analyst Day - **Focus**: Integrated energy storage Independent Power Producer (IPP) and introduction of Asset Vault, a new investment platform for energy transition [1][4] Key Points and Arguments Introduction of Asset Vault - Asset Vault is designed to accelerate deployment and value creation in energy transition [1][6] - It aims to enhance Energy Vault's role in operating critical energy storage infrastructure [6][10] Business Performance and Growth - Energy Vault has brought online 65 megawatts of projects and contracted an additional 275 megawatts [7] - Projects include the 125-megawatt Stony Creek project in Australia and the 150-megawatt Sosa Energy Center in Texas [8] - These projects are expected to generate approximately $40 million in annual recurring EBITDA over the next 24 months [9] Financial Outlook - A $300 million funding of non-dilutive preferred equity will enable up to 1.5 gigawatts of new deployments, equating to over $1 billion in capital expenditures [9] - Projected annual recurring EBITDA from Asset Vault alone is expected to reach $100 to $150 million within the next three to four years [9][21] Market Position and Strategy - Energy Vault's contract backlog has quadrupled to almost $1 billion, indicating strong demand for energy storage solutions [10][21] - The company is positioned to leverage its expertise in energy storage and grid management to support the growth of AI infrastructure [10][27] Collaboration with Crusoe Energy - Energy Vault is collaborating with Crusoe Energy to develop modular AI data center infrastructure projects [10][27] - This partnership aims to address the energy needs of large data centers, which are critical for the AI industry [27] Investment Strategy - Asset Vault will be capitalized through a combination of common stock issued to Energy Vault and preferred equity from Orion Infrastructure Capital (OIC) [32] - The capital structure is designed to minimize dilution and maintain control while facilitating project financing [32][38] Project Evaluation Criteria - Projects are evaluated based on developer reputation, project economics, project risk, and geography [54][56] - A scoring matrix is used to objectively assess projects, ensuring only those that meet internal hurdle rates are pursued [59][63] Revenue Structure - The targeted revenue mix aims for 75% contracted revenue from investment-grade offtakes and 25% merchant exposure to capture upside [64] - This balance allows for stable cash flows while also taking advantage of market volatility [64][66] Additional Important Insights - Energy Vault's technology-agnostic software platform enables the deployment of various technologies tailored to specific applications [19] - The company has a strong focus on R&D and core technologies while shifting towards owning and operating energy storage assets [45] - The anticipated growth in energy storage demand is projected at a CAGR of approximately 28% through 2030, significantly outpacing electricity demand growth [12][13] Conclusion - Energy Vault is strategically positioned to capitalize on the growing demand for energy storage solutions, particularly in the context of the AI infrastructure boom [10][27] - The introduction of Asset Vault and collaborations with key partners like Crusoe Energy are expected to enhance the company's growth trajectory and shareholder value [10][27][21]