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10-Q2025-11-10· merged:deepseek-v4-flash

NRGV · Energy Vault Holdings, Inc.

0001828536-25-000203

SEC filing

Summary

Energy Vault reports a single segment with $50.4M revenue, $280M RPO, $4M purchase commitments, and $60.2M total debt from $0.

Key takeaways

Full analysis

Notes & Operating Detail

Balance Sheet & Liquidity

As of September 30, 2025, Energy Vault held $32.7 million in cash and cash equivalents, with an additional $29.2 million in restricted cash (total $61.9 million). Total assets were $281.9 million, up from $183.9 million at December 31, 2024. The company had $60.2 million in total debt (carrying value), a significant increase from zero at year-end 2024, driven by project-level senior notes, convertible debentures, and sale of future receipts. Stockholders' equity stood at $80.5 million, down from $126.3 million due to net losses and share issuances. Inventory increased to $7.0 million from $0.1 million, reflecting battery modules and components for projects.

Commitments & Contractual Obligations

Notes disclose $4.0 million in non-cancelable purchase obligations as of September 30, 2025 (Note 19). Additionally, the company has $14.7 million in outstanding letters of credit, $8.7 million in bank guarantees, $134.6 million in performance bonds, and $20.5 million in other bonds. The company entered into a Tax Credit Transfer Commitment estimated at $40.6 million for investment tax credits. A lease agreement for an energy storage system provides for $43.3 million in aggregate remaining Monthly Floor payments over the contract term.

Capital Allocation (buybacks, dividends, debt, capex)

No share buybacks or dividends were disclosed. Debt issuance during the nine months totaled $117.2 million (including CRC Senior Notes $27.8M, Cross Trails Senior Note $17.8M, Convertible Debentures $30.0M, and sale of future receipts), partially offset by $51.5 million in repayments. Capital expenditures were $30.7 million, primarily for energy storage systems and construction in progress. The company also issued shares via equity purchase agreements and warrants, raising net proceeds of $6.8 million.

Segment / Geographic Mix (if disclosed at note level)

Energy Vault operates as a single reportable segment (Note 16). Revenue is disaggregated by product line: sale of energy storage products ($44.4M), tolling/PPA ($1.5M), O&M services ($0.9M), software ($0.4M), and IP licensing ($3.3M) for the nine months ended September 30, 2025. Two customers accounted for 64% and 15% of revenue in that period. All revenue is derived from contracts with customers; no geographic breakdown is provided.

Cash Flow Quality

Cash Flow Quality

For the nine months ended September 30, 2025, Energy Vault reported a net loss of $82.9M, yet operating cash flow was positive $0.9M. This divergence is driven by significant non-cash charges: stock-based compensation of $28.4M, depreciation/amortization of $2.3M, deferred taxes of $5.6M, and provision for credit losses of $3.8M. Working capital was a net source of $38.9M, primarily from a $53.6M increase in contract liabilities and $24.6M in accounts payable, partially offset by a $40.4M increase in advances to suppliers.

Capital expenditures of $30.7M represent 33x operating cash flow, indicating heavy investment in property and equipment. Free cash flow (not explicitly stated) would be negative at approximately ($29.7M) based on CFO less capex. The company funded this gap through financing: $117.2M in debt proceeds, partially offset by $51.5M in repayments and $9.6M in debt issuance costs. Net financing provided $63.4M, which also covered investing needs. No share repurchases or dividends were paid.

Anomalies include the large swing in contract liabilities (from $3.5M inflow in 2024 to $53.6M inflow in 2025) and advances to suppliers (outflow of $40.4M vs $13.6M prior), suggesting significant project activity. Overall, cash flow quality is weak as positive operating cash flow is entirely dependent on working capital changes and non-cash items.