LanzaTech Announces First Quarter 2025 Financial Results

Financial Performance - LanzaTech reported total revenue of $9.5 million for Q1 2025, a decrease from $10.2 million in Q1 2024, primarily due to lower revenues in biorefining and Joint Development Agreement (JDA) & Contract Research businesses, partially offset by a significant increase in CarbonSmart revenue [5][6] - Biorefining revenue decreased to $2.9 million in Q1 2025 from $5.0 million in Q1 2024, attributed to the completion of engineering and service contracts [6] - JDA & Contract Research revenue fell to $2.4 million in Q1 2025 from $4.3 million in Q1 2024, due to the completion of certain government projects [6] - CarbonSmart revenue increased significantly to $4.2 million in Q1 2025 from $0.9 million in Q1 2024, driven by direct fuel sales and new licensing arrangements [6] Cost and Expenses - The cost of revenue for Q1 2025 was $7.5 million, up from $6.8 million in Q1 2024, influenced by a change in revenue mix and margin contraction in the biorefining business [7] - Operating expenses rose to $33.0 million in Q1 2025 from $29.6 million in Q1 2024, primarily due to costs associated with business focus and strategic evaluations [8] Net Loss and Adjusted EBITDA - The net loss for Q1 2025 was $19.2 million, an improvement from a net loss of $25.5 million in Q1 2024, mainly due to a non-cash gain on financial instruments [9] - Adjusted EBITDA loss increased to $30.5 million in Q1 2025 from $22.1 million in Q1 2024, attributed to higher selling, general and administrative expenses and lower revenue [10] Balance Sheet and Liquidity - As of March 31, 2025, LanzaTech had $23.4 million in total cash and investments, down from $58.1 million at the end of 2024 [11] - The company closed $40 million of preferred equity capital in May 2025, but ongoing liquidity initiatives raise concerns about its ability to continue as a going concern [5][11] Company Overview - LanzaTech Global, Inc. is focused on transforming waste carbon into sustainable fuels, chemicals, materials, and protein through its biorecycling technology [12]