Aqua Metals (AQMS) Q4 2025 earnings summary

Executive summary

• Achieved major technical milestones in 2025, including commercial-scale demonstration of LFP battery recycling, production of high-purity lithium carbonate, nickel-cobalt MHP, and iron phosphate from black mass feedstocks, and over 4,000 hours of proven AquaRefining runtime.

• Advanced commercialization strategy by focusing the first ARC/AquaRefining facility on two core feedstock streams, aiming for faster, more capital-efficient deployment and improved margins.

• Strengthened balance sheet with $20 million in new capital raised, eliminated all long-term debt, and improved financial stability for 2026.

• Entered or advanced multiple strategic partnerships, MOUs, and commercial agreements, expanding addressable markets beyond battery recycling to critical minerals, deep sea nodules, and energy storage.

• Progressed due diligence and negotiations for the potential acquisition of Lion Energy, which could create an integrated battery materials and energy storage company with immediate revenue and diversified products.

Financial highlights

• Ended 2025 with $10.8 million in cash and cash equivalents and no long-term debt.

• Raised $20 million in new capital during 2025, including a $13 million institutional investment and $7 million from ATM and equity line programs.

• Full year 2025 net loss was $22.6 million (-$15.15 per share), an improvement from $24.6 million (-$38.20 per share) in 2024.

• Operating expenses were $23.3 million, including $9.1 million in non-cash impairment and disposal charges; underlying expenses declined year-over-year.

• Immediate revenue scale projected at ~$50 million in 2025 through Lion Energy acquisition, transforming from pre-revenue to revenue-generating.

Outlook and guidance

• Focused on advancing engineering, permitting, and site selection for the first commercial ARC/AquaRefining facility, with site selection expected later in 2026.

• Modular technology enables scalable growth from 10,000 MT/year to 60,000 MT/year as feedstock increases.

• Anticipates measured increase in cash usage as commercialization activities ramp up, with continued cost discipline.

• Expects to leverage strategic partnerships and potential Lion Energy acquisition to expand into energy storage and gigafactory supply chains.