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AMERICAN BATTERY TECHNOLOGY Co (ABAT)·Q3 2025 Earnings Summary

Executive Summary

  • ABAT’s fiscal Q3 2025 (three months ended March 31, 2025) revenue rose to $0.98M, roughly tripling sequentially, with cash COGS up only ~9%, improving gross cash margin trajectory . Net loss narrowed sequentially to ~$11.5M, and diluted EPS improved to -$0.14* .
  • Management accelerated 24/7 operations at the first recycling facility and more than doubled recycled mass throughput versus Q2, with continued ramp expected next quarter .
  • Liquidity mixed: cash and equivalents stood at $2.85M*, while total cash on hand (including restricted) was $7.8M; ABAT also executed agreements post-quarter to sell a property for $6.75M and water rights for $4.7M to bolster liquidity .
  • External developments after Q3 pose risk: on Oct 15, 2025, DOE terminated the $57.7M lithium hydroxide grant; subsequent class-action investigations were announced and shares fell ~57% over three sessions—an overhang on the medium-term narrative .

What Went Well and What Went Wrong

What Went Well

  • Throughput and operations: ABAT implemented multi-shift, 24/7 operations and “more than doubled” recycled mass throughput vs prior quarter; company expects continued ramp in Q4 .
  • Revenue and margin trajectory: Quarterly revenue rose to $1.0M, tripling sequentially, while cash COGS increased only 9%, improving gross cash margin dynamics .
  • Primary lithium progress and financing: Completed multi-week continuous pilot producing lithium hydroxide; delivered samples to strategic customers; received an EXIM Bank LOI for a $900M low-interest loan to support commercial mine/refinery .

What Went Wrong

  • Scale vs. profitability: Despite revenue growth, GAAP COGS ($3.7M) and operating costs remain high; non-GAAP cash COGS still exceeded revenue, implying negative gross cash margin .
  • Liquidity constraints: Available cash was $2.8M with $5.0M restricted as of March 31, 2025, necessitating asset sales post-quarter to augment liquidity .
  • Regulatory overhang: DOE terminated the $57.7M LiOH grant on Oct 15, 2025; class-action investigations followed, pressuring the stock and increasing legal/regulatory risk .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($USD)N/A$201,960*$332,440* $979,977*
Net Income ($USD)$(9,995,136)*$(11,694,569)*$(13,400,506) $(11,495,947)*
Diluted EPS ($USD)$(0.1922)*$(0.1695)*$(0.18) $(0.1351)*
EBITDA ($USD)$(8,567,039)*$(8,539,026)*$(12,546,895)*$(9,412,159)*
Gross Profit Margin %N/AN/AN/A-274.49%*
Total Operating Expenses ($USD)$8,606,704 $10,005,124 $10,827,455 $11,625,058*
Cash and Equivalents ($USD)$5,995,134 $5,769,036 $15,623,762 $2,849,257

Values marked with * retrieved from S&P Global.

Additional liquidity detail (outside table):

  • Total cash on hand as of 3/31/2025: $7.8M (available $2.8M, restricted $5.0M) .
  • Post-quarter agreements: property sale for $6.75M (expected close by July 10, 2025) and water rights sale for $4.7M (expected close by May 21, 2025) .

KPIs and Non-GAAP Reconciliation

KPI / Non-GAAPQ2 2025Q3 2025
Recycling throughput change225%+ m/m January vs prior quarter; 350%+ first week of Feb vs prior quarter “More than doubled” mass recycled vs prior quarter; multi-shift 24/7 ops
Revenue from recycled products ($USD)$332,440 $1,000,000
GAAP COGS ($USD)$3,305,743 $3,700,000
Non-GAAP cash COGS ($USD)$2,100,000 (excl. non-cash) $2,300,000 (excl. $1.0M depreciation, $0.4M SBC)
Government grant reimbursements ($USD)$2.3M (six months) $2.0M (Q3; recorded as R&D offset)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Recycling operations rampNext quarter (Q4 FY25)Not previously quantifiedExpects continued acceleration of facility rampMaintained/clarified qualitative ramp
Revenue, margins, OpEx, OI&E, tax rateFY25/Q4None disclosedNone disclosedN/A (no formal guidance)
Primary LiOH commercialization milestonesMulti-yearPilot ongoing; DOE grantsMulti-week continuous pilot completed; samples to customers; EXIM LOI $900MPositive qualitative updates

No formal quantitative financial guidance was provided in Q3 materials .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 FY25)Trend
Recycling throughput & operationsQ2: temporary pause for upgrades; 225%+ Jan m/m; 350%+ early Feb; revenue $332k Multi-shift 24/7 ops; “more than doubled” mass recycled; revenue $1.0M Strong positive ramp
Gross cash margin dynamicsQ2: cash COGS $2.1M vs $332k revenue Cash COGS $2.3M vs $1.0M revenue; improved gross cash margin (rev up ~200%, cash COGS +9%) Improving but still negative
Primary lithium hydroxide pilotQ2: pilot producing LiOH; DOE grants in place Multi-week continuous run; samples to customers; designed 30k tpy LiOH refinery; EXIM LOI $900M Advancing commercialization
Grants & government supportQ2: DOE $150M contracted for 2nd recycling plant; tax credits (48C) Q3 report continues grant reimbursements; later (Oct) DOE terminated $57.7M LiOH grant Mixed; later deterioration
Liquidity & financingQ2: cash $15.6M; restricted $5.0M; institutional activity increased Q3: total cash $7.8M (avail $2.8M); asset sale agreements for >$11M combined Tight near-term cash; actions to bolster
Regulatory/permittingQ2 remarks reflect DOE project progress Q3: n/a; post-quarter: DOE grant termination noted by legal releases Heightened risk post Q3

Management Commentary

  • Recycling momentum: “ABTC has implemented multi-shift, 24/7 operations at its first battery recycling facility and substantially increased throughput… more than doubling the mass of battery material recycled… compared to the previous quarter.”
  • Margin trajectory: “Quarterly revenue [~200% increase] with cash cost of goods sold increasing by only 9%,” signaling improving gross cash margin .
  • Primary lithium: “Successfully completed a continuous, multi-week operation… produced large quantities of lithium hydroxide… material… delivered to strategic customers” with a designed 30,000 tpy refinery and EXIM LOI for $900M .
  • Grants offset: “Company reimbursements from government grants increased to $2.0 million… shown as an offset to research and development” .

Q&A Highlights

  • A dedicated Q3 FY25 earnings call transcript was not found in source materials; Q4 FY25 prepared remarks emphasized strong sequential revenue increase vs March quarter, economies of scale in recycling, growing institutional ownership, and increased cash balance as of mid-September .
  • No Q&A specific to Q3 was available; no additional guidance clarifications found .

Estimates Context

  • S&P Global consensus estimates for Q3 FY25 were unavailable for EPS and Revenue; the feed returned actuals only and no estimate counts for ABAT, indicating limited sell-side coverage for the quarter (no consensus available)*.
  • Implication: With no consensus, “beats/misses” cannot be formally assessed; buyside should focus on operational ramp indicators (throughput, revenue-to-cash COGS progression) and liquidity actions .

Values retrieved from S&P Global.

Key Takeaways for Investors

  • Operational ramp is real and accelerating: throughput more than doubled and revenue tripled sequentially; monitor Q4 execution to confirm sustained 24/7 stability and margin scaling .
  • Margins are trending better but still negative: cash COGS > revenue; watch for inflection from volume scaling and process improvements in Q4–FY26 .
  • Liquidity remains tight: available cash was $2.8M at quarter-end; asset sales (> $11M) should help near-term liquidity—track closings and timing .
  • Primary lithium commercialization is advancing with customer sampling and 30k tpy refinery design; EXIM LOI is a potential financing catalyst, subject to diligence and regulatory progress .
  • Post-quarter regulatory shock: DOE termination of the $57.7M LiOH grant and ensuing investigations materially increase risk; this event likely pressured valuation and raises funding/permitting uncertainties .
  • Trading setup: Near term, stock likely reacts to ramp confirmation and liquidity milestones; medium term hinges on securing alternative funding to replace DOE grant support and demonstrating positive gross cash margins at scale .
  • With limited sell-side coverage, internal modeling should emphasize production throughput, realized pricing for recycled outputs, cash COGS trajectory, and capital sources (asset sales, EXIM, equity/warrants) .