0001828536-25-000107
SEC filingRevenue surged on EPC ramp and tolling, but net loss widened on higher G&A and credit losses; tariffs pose material risk.
In the three months ended June 30, 2025, Energy Vault reported revenue of $8.5 million, a 126% increase from $3.8 million in the same period of 2024. The growth was driven by a $4.8 million increase in energy storage product sales, reflecting the ramp-up of an EPC project and recognition of $2.6 million in nonrefundable deposits upon cancellation of an EEQ contract. Additionally, the Cross Trails BESS began commercial operations in May 2025, contributing $0.4 million in tolling revenue. Cost of revenue increased by $3.3 million to $6.0 million, in line with higher EPC activity. Consequently, gross profit rose to $2.5 million from $1.0 million, and gross margin improved 180 bps to 29.6%, benefiting from higher-margin product sales and reduced warranty expenses.
Operating expenses increased by $1.7 million to $30.7 million, driven by a $3.3 million rise in general and administrative expenses (higher headcount and legal fees) and a $3.4 million increase in provision for credit losses, partially offset by reductions in sales and marketing ($1.7 million) and R&D ($2.9 million) due to cost-control measures. Loss from operations widened slightly to $28.1 million from $27.9 million. Below the operating line, interest expense surged to $2.5 million from a negligible amount, reflecting new debt financings, while interest income fell to $0.3 million from $1.7 million due to lower cash balances. Net loss attributable to Energy Vault Holdings reached $34.9 million, compared to $26.2 million in the prior-year quarter.
For the six-month period, revenue increased 48% to $17.0 million from $11.5 million, driven by IP licensing ($3.2 million) from the Indian B-Vault deal and higher product sales. Cost of revenue was $9.7 million versus $8.4 million, leading to gross profit of $7.4 million (43.4% margin vs. 27.0% in 2024). Operating expenses rose modestly to $56.4 million. Net loss for the first half was $56.1 million, compared to $47.3 million in 2024.
Energy Vault reports revenue by product/service type rather than formal segments. In Q2 2025, sale of energy storage products contributed 91% of revenue ($7.7 million), up from 78% a year ago, driven by ECP project progress and the cancellation deposit. Tolling revenue emerged as a new stream ($0.4 million) from the Cross Trails BESS. IP licensing dipped to $0.1 million (Q2 only) but totaled $3.3 million in the first half, reflecting the upfront fees from the March 2025 Indian licensing agreement. Operation and maintenance and software licensing remained small. The mix shift toward higher-margin IP licensing and tolling supported the gross margin improvement over the six-month period.
Management did not provide quantitative guidance but highlighted several strategic priorities: the transition to an "Own and Operate" model, with the Cross Trails BESS as the first asset; a $682.2 million backlog and $2.35 billion developed pipeline providing revenue visibility; and continued exploration of alternative B-Vault sourcing to mitigate the impact of cumulative U.S. tariffs of ~155.9% on Chinese imports. The temporary 90-day tariff pause (expiring mid-August 2025) creates uncertainty. Recent financing activities (CRC Senior Notes, Cross Trails Senior Notes) and equity purchase agreements (Hudson, Helena) were undertaken to fund project capex and operations. Management believes existing cash ($21.4 million unrestricted plus restricted) is sufficient for at least 12 months. Key risks include tariff reinstatement, project execution delays, and reliance on a few customers (three customers accounted for 91% of Q2 revenue).
As of June 30, 2025, Energy Vault held $21.4M in cash and cash equivalents and $36.7M in restricted cash (total $58.1M), compared to $27.1M cash and $3.0M restricted cash at December 31, 2024. The increase in restricted cash is primarily due to debt financing requirements. Total assets grew to $248.8M from $183.9M, driven by increases in property and equipment (net) to $120.9M (including $23.9M placed-in-service energy storage system and $86.8M construction-in-progress) and intangible assets to $5.7M. Total liabilities surged to $158.5M from $57.6M, largely due to $33.4M in debt (CRC Senior Notes of $27.8M and Cross Trails Bridge Loan of $10.0M) and a sharp rise in contract liabilities to $65.7M (from $8.9M). Stockholders' equity decreased to $90.3M from $126.3M, reflecting the net loss of $56.1M offset by $18.3M in stock-based compensation and equity issuances.
Remaining performance obligations totaled $205.1M as of June 30, 2025, with 88% expected to be recognized within 12 months. Contract liabilities (deferred revenue) stood at $65.7M. Non-cancelable purchase obligations were $5.0M. The company also had $14.5M in outstanding letters of credit, $3.7M in bank guarantees, $124.9M in performance and payment bonds, and $20.5M in other bonds. A Tax Credit Transfer Commitment was entered to sell ITCs for an expected $39.9M net proceeds. Warranty liabilities were $1.3M.
No share buybacks or dividends were reported. The company raised $63.8M in debt proceeds (CRC Senior Notes $27.6M net, Cross Trails Bridge Loan $10.0M gross) and repaid $27.8M, resulting in net debt increase of $36.0M. Capital expenditures of $15.2M were primarily for energy storage projects. An equity purchase agreement with Hudson provided $1.2M in gross proceeds from share sales, with an additional $25.0M commitment available.
The company operates as a single reportable segment. Revenue disaggregation by product line for the six months ended June 30, 2025: sale of energy storage products $12.6M, tolling revenue $0.4M, O&M services $0.6M, software licensing $0.2M, and IP licensing $3.3M. No geographic mix was disclosed.
Operating cash flow (CFO) turned positive at $12.6 million for the six months ended June 30, 2025, compared to a negative $11.8 million in the prior-year period. This improvement occurred despite a net loss of $56.1 million, driven by substantial non-cash charges ($18.3 million stock-based compensation, $3.8 million provision for credit losses) and favorable working capital changes, notably a $56.1 million increase in contract liabilities. Capital expenditures (capex) of $15.2 million decreased from $21.1 million, but still exceeded CFO, resulting in negative free cash flow of approximately $2.6 million. The company did not pay dividends or repurchase shares. Financing activities provided $32.1 million, primarily from debt issuance ($63.8 million) net of repayments and costs. Overall, cash generation improved but remains reliant on non-operating sources and working capital swings.