Aqua Metals (AQMS) Q2 2026 earnings summary

Executive summary

• Transitioned from technology validation to commercial execution, focusing on a phased, modular critical minerals processing platform centered on the Headwaters ARC project, targeting LFP battery scrap and leveraging proximity to major gigafactories.

• Advanced site diligence and negotiations for a 150,000 sq. ft. Midwest facility, with commercialization staged to reduce execution risk and accelerate operations.

• Early revenue targeted through proven preprocessing of LFP scrap, with higher-value refining and expansion to NMC and other chemistries in future phases.

• Management prioritizes financial flexibility, milestone-based capital deployment, and remains debt-free, seeking project-level and vendor-supported financing.

Financial highlights

• Q2 2026 net loss was $4.5 million ($1.31/share), improved from $6.8 million ($7.44/share) in Q2 2025; net loss for the first half of 2026 was $8.4 million, down from $15.1 million in 2025.

• No commercial revenue recognized in 2026 or 2025; early revenue expected from copper, aluminum, and black mass sales.

• Operating expenses for Q2 2026 were $4.6 million, down from $7.0 million year-over-year; 44.4% decrease in operating expenses for the first half of 2026.

• Cash and cash equivalents were $4.7 million as of June 30, 2026, down from $10.8 million at year-end 2025; working capital was $4.0 million.

• Raised $1.9 million YTD via ATM program and $0.6 million through the employee stock purchase plan.

Outlook and guidance

• Near-term priorities: complete site diligence, secure site control, select equipment and processing partners, advance feedstock/offtake agreements, and finalize capital formation and permitting.

• At final investment decision for Phase I, will provide detailed capital cost, throughput, product mix, and operating cost guidance.

• Phase I must demonstrate positive EBITDA, cash flow, and return on invested capital before proceeding; management expects continued operating losses and negative cash flows until commercialization.

• Additional capital will be necessary to fund ongoing operations and commercialization efforts.