Financial Data and Key Metrics Changes - The contract revenue backlog increased by 47% quarter over quarter to $954 million, and up 120% year to date, driven by new third-party project and service agreements, as well as long-term off-take agreements in the US and Australia [11][15] - Revenue for Q2 was $8.5 million, representing a 126% increase year over year, attributed to activity across the Australian project portfolio and the commencement of the Cross Trails battery energy storage system in Texas [16][12] - GAAP gross profit rose by 140% year over year to $2.5 million, with a gross margin of 29.6% [12][16] - Adjusted EBITDA improved by 11% year over year, narrowing the loss to $13.7 million from a loss of $15.4 million in Q2 2024 [12][17] - Cash improved by 23% sequentially to $58.1 million at June 30, finishing at the high end of previous guidance [13][17] Business Line Data and Key Metrics Changes - The company has successfully placed its first two owned projects in Texas and California into service, which are expected to generate nearly $10 million in recurring annual EBITDA [20] - The recently acquired Stoney Creek project is expected to generate approximately $20 million in annual recurring EBITDA once operational, further accelerating the path to a $100 million recurring EBITDA goal over the next three to four years [20] Market Data and Key Metrics Changes - The total developed pipeline for advanced projects is around $2.4 billion, or roughly 6 gigawatt hours, expected to be strengthened by the launch of AssetVault [16] - The company anticipates full-year 2025 revenue between $200 million and $250 million, maintaining prior guidance [18] Company Strategy and Development Direction - The company is focusing on leveraging its technology and operational expertise to develop, own, and operate energy storage systems, aiming for more predictable and profitable revenue streams supported by long-term off-take agreements [4][5] - A $300 million preferred equity investment has been announced to fund the development, construction, and operation of storage projects, enabling over $1 billion in CapEx spending [19] - The Asset Vault subsidiary will contract with Energy Vault for product design, construction, commissioning, and long-term service agreements, providing additional cash flow streams [7][19] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of execution and maintaining a strong reputation in the market, highlighting successful project delivery and operational reliability [10] - The company expects to see benefits from the new capital investment as it focuses on executing its development portfolio without being involved in capital raise processes [68] Other Important Information - The company completed the Cross Trails project financing of $17.8 million in July and anticipates another $27 million in net investment tax credit proceeds in September [13][18] - The Stoney Creek project is expected to achieve ready-to-build status by Q1 2026, with construction commencing thereafter [63] Q&A Session Summary Question: Can you share more details on the preferred equity transaction? - Management stated that details regarding the return structure and preferred dividend yield will be discussed in a virtual investor call post-transaction close [24][25] Question: What is the financing strategy for the $1 billion CapEx? - Management indicated that approximately half of the project costs would be covered through project financing, with 30% to 40% from investment tax credits, and the remaining 20% would involve a split between common and preferred equity [27][29] Question: Can you provide updates on the development status of projects planned for 2027? - Management confirmed that several projects are in mid to later development stages, with Stoney Creek being a significant one expected to be operational by early 2027 [34][36] Question: What does the exclusivity of the preferred financing arrangement imply? - Management clarified that the exclusivity pertains specifically to the Asset Vault and the preferred equity for funding these projects [40][41] Question: How does the Asset Vault business relate to the current business? - Management explained that the $100 million EBITDA from the Asset Vault is complementary to the existing energy storage solutions business, with additional cash flow streams expected to flow back to the parent company [56][58]