0001828536-26-000050
SEC filingRevenue surged 156% YoY to $21.9M led by EPC projects, but gross margin collapsed to 21.9% from 57.1% due to lower-margin product mix.
For the three months ended March 31, 2026, Energy Vault reported revenue of $21.9 million, a 156% increase from $8.5 million in the same period of 2025. The growth was driven primarily by a $14.8 million surge in energy storage product sales, reflecting progress on Australian EPC projects, and $1.5 million in new tolling and PPA revenue from owned systems placed in service in H2 2025. These gains were partially offset by a $3.2 million decline in IP licensing revenue, which had benefited from a one-time license in the prior year. Gross profit decreased slightly to $4.8 million from $4.9 million, as the high-margin IP revenue was replaced by lower-margin product and tolling revenue. Consequently, gross margin contracted sharply to 21.9% from 57.1%. Operating expenses rose 12.5% to $29.0 million, driven by a $3.7 million increase in general and administrative expenses (legal, project development, property taxes) and higher depreciation ($1.9 million) from the Snyder CDU, partially offset by cost controls in sales and marketing and R&D. Loss from operations widened to $24.2 million from $20.9 million. Below the line, interest expense jumped to $3.5 million (vs $0.1 million) due to new debt, and a $5.2 million loss on debt extinguishment contributed to a net loss of $32.5 million, compared to $21.1 million in Q1 2025.
Revenue segmentation reveals a dramatic mix shift. Energy storage product sales accounted for 90% of total revenue ($19.7 million vs $4.9 million), up from 57% in the prior year. This reflects the company's focus on EPC delivery, particularly the Australian projects. Tolling and PPA revenue emerged as a new contributor ($1.5 million), representing 7% of revenue, as owned assets began commercial operation. In contrast, IP licensing—historically a high-margin, low-cost revenue stream—collapsed to just $15 thousand from $3.3 million, indicating that such one-time licenses are not recurring. Operation and maintenance and software licensing remained modest at under $1 million combined. The segment shift explains the gross margin deterioration: product and tolling revenues carry higher associated costs, while IP licensing had no cost of revenue.
Management's forward-looking commentary is cautious. The company highlights tariff impacts (IEEPA invalidation, new Section 122 surcharges) and supply chain risks, which could affect project pricing and competitiveness. The backlog remained flat at $1.3 billion, but net bookings plummeted to $14.5 million from $225.7 million, signaling a slowdown in new contract signings. The developed pipeline grew to $3.5 billion (3.2 GW), offering potential but with uncertain conversion. Recent developments include a 14-year LTSA for the EBOR project (100 MW/870 MWh) in Australia, a supply agreement with Peak Energy for sodium-ion batteries, and a strategic framework with Crusoe for modular data centers. Liquidity was bolstered by $150 million in senior convertible notes issuance (net $145.1 million) and senior secured debentures (up to $75 million), but the company burned $53.8 million in operating cash flow in Q1 2026. Management expects existing cash and cash equivalents ($55.2 million) plus restricted cash to fund operations for at least twelve months, but the negative operating cash flow and weak bookings raise concerns. No formal guidance was provided, but the tone emphasizes tariff uncertainty, competitive pricing pressure, and the need for project-level financing.
As of March 31, 2026, Energy Vault held cash and cash equivalents of $55.2 million and total restricted cash of $61.9 million, totaling $117.1 million in cash, cash equivalents, and restricted cash. Total assets decreased to $298.0 million from $312.9 million at year-end 2025. Total debt (excluding lease obligations) was $171.7 million, up from $94.6 million at December 31, 2025, primarily due to the issuance of $150.0 million in Senior Convertible Notes. The company's accumulated deficit widened to $519.9 million, and stockholders' equity fell to $30.5 million from $67.5 million. The company qualifies as an emerging growth company and has elected the extended transition period for new accounting standards.
Energy Vault had non-cancelable purchase obligations of $5.0 million as of March 31, 2026, all expected to be paid within the next twelve months. The company also disclosed $29.3 million in outstanding letters of credit, $17.5 million in bank guarantees, $88.6 million in performance and payment bonds, and $12.5 million in other bonds. Asset retirement obligations related to the CRC energy storage system were $1.1 million. Contingent commitments include up to $5.6 million for the McMurtre BESS project upon reaching notice to proceed and $1.4 million upon commercial operation. Additionally, the Mesa Del Sol project involves a potential land purchase of $120.1 million, with an initial closing of $57.4 million by December 18, 2026. Remaining performance obligations under ASC 606 totaled $142.4 million, with 68% expected to be recognized as revenue over the next 12 months.
Energy Vault did not repurchase shares or pay dividends during the quarter. Capital expenditures were $7.1 million, primarily for owned energy storage systems and construction in progress. The company issued $150.0 million in 5.25% Senior Convertible Notes due 2031, using $20.5 million to purchase capped calls, and received net proceeds of $145.1 million. Proceeds were used to repay $56.5 million of existing debt, including $53.6 million for Convertible Debentures. The net debt increase was $93.5 million. The company also collected $11.8 million from investment tax credit transfers.
The company operates as a single reportable segment. Revenue for Q1 2026 was $21.9 million, up from $8.5 million in Q1 2025, driven by sales of energy storage products ($19.7 million) and tolling/PPA revenue ($1.5 million). No geographic segment breakdown was provided in the notes.