Lanzatech Global (LNZA) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $17.4 million, up 35% year-over-year, driven by biorefining licensing, engineering services, and LanzaJet sublicensing, surpassing expectations.

• Adjusted EBITDA loss improved to $(17.8) million, a 25–26% year-over-year improvement; net loss for Q2 2024 was $(27.8) million.

• Increased ownership in LanzaJet to 37% through sublicensing deals, with further tranches possible.

• Secured a $40 million convertible note investment from Carbon Direct Capital, boosting liquidity and supporting growth; up to $150 million available under the agreement.

• Launched CirculAir, a joint SAF and renewable diesel solution with LanzaJet, and advanced commercial projects including a contract with NTPC in India.

Financial highlights

• Q2 2024 revenue: $17.4 million (+35% YoY); gross margin: 68% (42% excluding LanzaJet transaction); gross profit: $11.9 million.

• Biorefining revenue was $13.7 million, including $7.9 million from LanzaJet sublicense; JDA & Contract Research revenue grew 25–27% YoY to $2.8 million.

• CarbonSmart revenue for H1 2024 was $1.8 million, up 79% YoY; Q2 2024 CarbonSmart revenue was $0.9 million.

• Operating expenses were $34.7 million, up 6% YoY but under budget.

• Cash, restricted cash, and investments totaled $75.8 million at quarter-end; post-capital raise, cash exceeds $100 million.

Outlook and guidance

• Full-year 2024 revenue guidance reaffirmed at $90–$105 million, with growth heavily weighted to Q4.

• Adjusted EBITDA loss for 2024 guided at $(65) million to $(55) million, a 25% improvement at midpoint.

• Multiple projects expected to reach final investment decision and begin construction in H2 2024, driving future revenue.

• Liquidity is projected to be sufficient through 2025 with new capital raise; additional financing anticipated.