Li-Cycle (LICY) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $8.4 million, up 133% year-over-year, driven by higher recycling services and favorable market adjustments.

• Net loss improved to $8.2 million from $31.9 million in Q2 2023, reflecting cost reductions and higher revenue.

• SG&A expenses decreased 39% year-over-year to $15.3 million due to restructuring and cost initiatives.

• Advanced Rochester Hub project strategy, with construction paused pending additional financing; total project cost estimate unchanged at $960 million.

• Progressed on DOE loan process for up to $375 million and explored additional financing to support liquidity.

Financial highlights

• Q2 2024 revenue was $8.4 million, up from $3.6 million in Q2 2023; H1 2024 revenue was $12.6 million, up from $7.2 million.

• Adjusted EBITDA loss improved to $23.4 million from $41.3 million in Q2 2023.

• Cash and cash equivalents were $57.0 million as of June 30, 2024, down from $109.1 million at March 31, 2024.

• Cost of sales decreased 4% year-over-year to $19.4 million; SG&A fell 38–39% to $15.3 million.

• Capital expenditures for H1 2024 were $15.4 million, significantly lower than $164.9 million in H1 2023 due to the Rochester Hub construction pause.

Outlook and guidance

• Continuing to work with the DOE to finalize loan documentation and satisfy conditions for disbursement.

• Significant additional funding is required to restart the Rochester Hub; capital expenditures expected to remain low until construction resumes.

• Exploring strategic and financing alternatives to enhance liquidity and support ongoing operations.

• Further details on Spoke optimization and strategic initiatives expected in Q3 2024.

• Expects long-term industry growth driven by EV adoption and supply chain localization.