Energy Vault(NRGV) - 2025 Q2 - Quarterly Results

Q2 2025 Financial and Operational Highlights Q2 2025 Key Financial Results 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 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] - 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][2] - 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] Operating and Other Recent Highlights 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] - 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] - 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] - 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] Business Outlook 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] - 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] - 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] Company Information About Energy Vault 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] - All energy storage solutions are supported by the company's hardware-agnostic energy management system software and integrated platform[8] - 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] - 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] Financial Statements (GAAP) Condensed Consolidated Balance Sheets 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 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 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 Non-GAAP Adjustments and Reconciliations 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] - 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][25][26] 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 Definitions of Key Metrics 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] - "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] Forward-Looking Statements 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][13] - 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] - 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] Conference Call Information 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] - 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] Contacts Investor and media contact email addresses are provided - Investor contact email: energyvaultIR@icrinc.com[30] - Media contact email: media@energyvault.com[30]