Energy Vault(NRGV) - 2025 Q1 - Quarterly Results

Energy Vault First Quarter 2025 Financial Results Financial & Operational Highlights Energy Vault reported a 10% revenue increase to $8.5 million, with gross margin more than doubling to 57.1%, and contract backlog growing 49% to $648 million, while Adjusted EBITDA loss narrowed by 22% to $11.3 million Q1 2025 Key Financial Metrics vs. Q1 2024 | Metric | Q1 2025 ($M) | Q1 2024 ($M) | Change | | :--- | :--- | :--- | :--- | | Revenue | $8.5 | $7.8 | +10% | | GAAP Gross Margin | 57.1% | 26.7% | +30.4 p.p. | | Net Loss | ($21.1) | ($21.1) | Flat | | Adjusted EBITDA | ($11.3) | ($14.5) | +22% (Improved) | - Contract revenue backlog increased by 49% year-to-date, reaching $648 million. Nearly 90% of this backlog is shielded from U.S. tariff risks due to a strong Australian presence, license agreements, and asset ownership[1][3] - Total cash (including restricted cash) increased by 57% from year-end 2024 to $47.2 million, primarily due to proceeds from the Calistoga Resiliency Center (CRC) project financing[1][3] - Key operational milestones include the completion and initial revenue generation of the Cross Trails project in Texas, a 10-year licensing agreement in India with SPML Infra, and continued expansion in Australia with over 2.6 GWh of projects in development[1][2][7] Business Outlook Energy Vault targets a 15-25% reduction in quarterly adjusted operating expenses to $12-14 million, expects $45-50 million in Q2/Q3 cash from project financing and ITC sales, with potential upside from tariff resolution - The company is targeting a 15-25% reduction in quarterly adjusted operating expenses, aiming for a new quarterly run rate of $12-14 million, down from $16.2 million in Q1 2025[1][7] - An additional ~$45 million is expected in Q2 and Q3 from the Cross Trails project financing (~$20M), its associated ITC sale (~$12M), and other ITC sales[1][7] - The first three build-own-operate projects are expected to deliver approximately $30 million in annual, recurring project EBITDA over a 15-year-plus life[1] - While current guidance is maintained, a positive resolution and timing of the China/U.S. tariff pause could create potential revenue upside from accelerated U.S. battery deliveries in 2025[1][7] Financial Statements Consolidated financial statements for Q1 2025 show balance sheet growth from project financing, income statement improvements in revenue and gross margin despite flat net loss, and a net cash increase driven by financing activities Condensed Consolidated Balance Sheets As of March 31, 2025, total assets increased to $217.4 million from $183.9 million at year-end 2024, primarily due to an increase in property and equipment and restricted cash, while total liabilities rose to $102.5 million from $57.6 million, largely driven by long-term debt related to project financing, and total stockholders' equity decreased to $114.9 million Balance Sheet Summary (in thousands) | Account | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Current Assets | $74,357 | $68,905 | | Total Assets | $217,441 | $183,889 | | Total Current Liabilities | $86,247 | $54,655 | | Total Liabilities | $102,528 | $57,633 | | Total Stockholders' Equity | $114,913 | $126,256 | | Cash and cash equivalents | $17,822 | $27,091 | | Restricted cash (current & long-term) | $29,333 | $2,982 | Condensed Consolidated Statements of Operations For Q1 2025, revenue increased 10% year-over-year to $8.5 million, gross profit surged to $4.9 million from $2.1 million, with gross margin expanding to 57.1% from 26.7% in Q1 2024, mainly due to a high-margin India license agreement, and despite lower operating expenses, the net loss remained flat year-over-year at $(21.1) million, resulting in an unchanged EPS of $(0.14) Statement of Operations Summary (in thousands, except per share data) | Account | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Revenue | $8,534 | $7,759 | | Gross Profit | $4,876 | $2,068 | | Loss from Operations | ($20,893) | ($24,627) | | Net Loss | ($21,174) | ($21,139) | | Net Loss Per Share | ($0.14) | ($0.14) | Condensed Consolidated Statements of Cash Flows In Q1 2025, the company experienced a net cash usage of $2.7 million from operating activities and $7.3 million from investing activities, which were more than offset by net cash provided by financing activities of $27.1 million, primarily from debt financing proceeds, resulting in a net increase in total cash and restricted cash of $17.1 million for the quarter Cash Flow Summary (in thousands) | Activity | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | 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 Energy Vault utilizes non-GAAP measures like Adjusted EBITDA and adjusted operating expenses to provide a clearer view of ongoing operations, with Q1 2025 adjusted operating expenses narrowing to $16.2 million and Adjusted EBITDA loss improving 22% to $(11.3) million - Management believes non-GAAP financial measures are useful for evaluating ongoing operational results by excluding certain non-cash or non-recurring items, such as stock-based compensation[21] Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net loss (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 | | Other adjustments | 122 | (1,528) | | Adjusted EBITDA (non-GAAP) | ($11,270) | ($14,506) | Reconciliation of Operating Expenses (in thousands) | Line Item | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | 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 |