Li-Cycle (LICY) Q4 2024 earnings summary

Executive summary

• Total revenue rose 53% year-over-year to $28.0 million for 2024, driven by higher recycling service revenue and new contracts.

• Net loss was $137.7 million, nearly unchanged from 2023, as improved revenue and lower costs were offset by higher other expenses.

• Adjusted EBITDA loss improved to $90.5 million from $156.4 million in 2023, reflecting cost reductions and revenue growth.

• Cash and cash equivalents stood at $22.6 million as of December 31, 2024.

• A special committee is evaluating financial and strategic alternatives, including a potential transaction with Glencore.

Financial highlights

• Product revenue was $16.1 million and recycling service revenue $11.9 million, with service revenue more than doubling year-over-year.

• Cost of sales decreased 6% to $76.6 million, mainly due to lower inventory adjustments and material costs.

• SG&A expenses fell 19% to $75.3 million, driven by restructuring and cost-saving initiatives.

• R&D costs dropped to $1.6 million from $5.7 million, reflecting project pauses.

• Other expense was $12.2 million, compared to other income of $24.7 million in 2023, due to higher interest and debt extinguishment losses.

Outlook and guidance

• Additional financing is required to meet obligations and continue as a going concern; failure to secure funding may result in significant operational changes or bankruptcy.

• The company is focused on cash management and exploring strategic alternatives, including the Glencore proposal.