LanzaTech (US:LNZA)2025-11-19 22:21Revenue Performance - For the three months ended September 30, 2025, total revenue was $9.279 million, a decrease of 7% compared to $9.943 million in the same period of 2024[290]. - One-time revenue for the three months ended September 30, 2025, was $8.106 million, down 4% from $8.414 million in 2024[290]. - Recurring revenue decreased by 23% to $1.173 million for the three months ended September 30, 2025, compared to $1.529 million in 2024[290]. - Total revenue for the nine months ended September 30, 2025, decreased by $9.7 million, or 25.9%, compared to the same period in 2024, primarily due to a $7.1 million reduction in licensing revenue[305]. - Total revenue for the three months ended September 30, 2025, decreased by $0.7 million, or 7%, compared to the same period in 2024[296]. Net Income and Loss - Net income for the three months ended September 30, 2025, was $2.861 million, a significant improvement of 105% from a net loss of $57.431 million in the same period of 2024[290]. - The company reported net losses after tax of $48.9 million and $110.7 million for the nine months ended September 30, 2025, and 2024, respectively[270]. - Net loss for the nine months ended September 30, 2025, improved to $48.9 million from a loss of $110.7 million in the prior year, representing a 55.9% reduction[304]. - The company reported a net loss of $48.9 million for the nine months ended September 30, 2025, with cash outflows from operations totaling $58.7 million[319]. Expenses - Cost of revenues (excluding depreciation) decreased by 15% to $6.916 million for the three months ended September 30, 2025, from $8.141 million in 2024[290]. - Selling, general, and administrative expenses were reduced by 41% to $6.740 million for the three months ended September 30, 2025, compared to $11.452 million in 2024[290]. - Research and development expenses decreased by $18.9 million, or 31.2%, in the nine months ended September 30, 2025, compared to the same period in 2024[308]. - Selling, general and administrative expenses increased by $7.4 million, or 21.5%, in the nine months ended September 30, 2025, compared to the same period in 2024[304]. - Selling, general and administrative (SG&A) expenses increased by $7.4 million, or 21.5%, for the nine months ended September 30, 2025, primarily due to a $13.5 million rise in professional fees related to restructuring efforts[309]. Cash Flow and Financing - Cash and cash equivalents decreased by $22.2 million, or 48.6%, from December 31, 2024, to $23.5 million as of September 30, 2025, primarily due to funding net losses and partial repayment of the Brookfield Loan[313]. - Net cash used in operating activities decreased by $10.7 million, or 15.4%, for the nine months ended September 30, 2025, compared to the same period in 2024[329]. - Net cash provided by investing activities was $11.4 million for the nine months ended September 30, 2025, down from $14.1 million in the prior year[330]. - Net cash from financing activities was $25.6 million for the nine months ended September 30, 2025, compared to $40.2 million in the same period in 2024, driven by the issuance of $40.0 million of Series A Preferred Stock[331]. - The company is actively pursuing financing options and has not yet secured committed capital for future projects[276]. Adjusted EBITDA - Adjusted EBITDA improved by 50%, resulting in a loss of $13.504 million for the three months ended September 30, 2025, compared to a loss of $27.081 million in 2024[290]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $(73.7) million, compared to $(67.0) million in the same period of 2024, reflecting a 10% increase in losses[292]. - Adjusted EBITDA for the three months ended September 30, 2025, was $(13,504) thousand, compared to $(27,081) thousand for the same period in 2024[345]. - The company emphasizes that Adjusted EBITDA is a key measure for evaluating operating performance and establishing budgets[342]. - Adjusted EBITDA is not prepared in accordance with GAAP and has limitations compared to net loss, which is the most directly comparable financial measure[343]. Other Income and Fair Value Changes - Other income, net increased by $38.1 million in the three months ended September 30, 2025, primarily due to changes in the fair value of financial instruments[302]. - Other income, net increased by $62.5 million for the nine months ended September 30, 2025, mainly driven by a $65.3 million change in the fair value of the Convertible Note[311]. - The change in fair value of the Convertible Note was $(42,980) thousand for the nine months ended September 30, 2025, compared to a gain of $21,572 thousand in 2024[345]. - Loss from equity method investees, net, was $10,019 thousand for the nine months ended September 30, 2025, compared to $7,935 thousand in 2024[345]. - The company reported a loss on Brookfield SAFE extinguishment of $6,216 thousand for the nine months ended September 30, 2025[345]. Going Concern and Future Outlook - The company anticipates that existing cash and short-term debt securities will not be sufficient to fund operations for the next twelve months, raising substantial doubt about its ability to continue as a going concern[321]. - The company is focusing on cost reduction and evaluating liquidity-enhancing initiatives, including capital raising and strategic partnerships[322]. - The company had an accumulated deficit of $1.0185 billion, up from $969.6 million as of December 31, 2024[270].