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AB

AMERICAN BATTERY TECHNOLOGY Co (ABAT)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2025 revenue grew 183% QoQ to approximately $2.8M as recycling operations ramped, substantially outpacing cost growth; non-GAAP cash COGS rose ~70% QoQ to $3.9M, evidencing improved operating leverage .
  • Revenue materially beat Wall Street consensus ($2.78M* actual vs $1.24M* estimate; +123% beat), while EPS missed (-$0.11* actual vs -$0.08* estimate) as margins remained negative during scale-up * [GetEstimates]*.
  • Management highlighted accelerating throughput (+70% QoQ), expanding feedstock from AI-related BESS deployments, and strong grant/financing momentum (DOE $144M for plant #2; EXIM LOI $900M; Russell 2000 inclusion), bolstering liquidity ($12.5M cash/restricted at 6/30/25; $25.4M cash as of 9/15/25) .
  • Strategic catalysts: FAST-41 Covered Project status to streamline permitting for Tonopah Flats, continued qualification with OEMs, and near-term margin improvement from scale effects at the Reno recycling plant .

What Went Well and What Went Wrong

What Went Well

  • Throughput scaling and revenue acceleration: “we nearly tripled revenue this quarter compared to the quarter ending March… our revenues are growing at a much faster pace than our costs” (CEO) .
  • Expanded feedstock and market positioning: recycling plant now receives substantial BESS feed materials tied to AI/data center buildout, broadening sources beyond EVs/consumer electronics .
  • Program execution and strategic support: USABC program closed out; DOE contracted $144M grant for second recycling facility; EXIM Bank LOI for $900M low-interest loan for the Tonopah Flats refinery .
  • Quote: “We have an exciting path ahead as we continue the growth in operations… while also accelerating the commercialization of our Tonopah Flats Lithium Project and our second battery recycling facility” (CEO Ryan Melsert) .

What Went Wrong

  • Margins still negative during ramp: GAAP COGS ($5.1M) exceeded revenue ($2.8M) in Q4, yielding a gross loss, despite improved cash COGS .
  • EPS remained negative QoQ given high operating expense base and scaling costs; full-year total operating expenses were $31.4M despite a 30% YoY reduction .
  • Balance sheet still reflects accumulated deficit ($260.1M) and ongoing financing needs as the company scales industrial operations .

Financial Results

Income Statement Highlights (Quarterly)

MetricQ4 2024Q2 2025Q3 2025Q4 2025
Revenue ($USD)$0.343M*$0.332M*$0.980M*$2.776M*
Gross Profit ($USD)-$2.961M*-$2.973M*-$2.690M*-$2.570M*
Gross Margin (%)n/a*n/a*-274.5%*-92.6%*
EBIT ($USD)-$12.082M*-$13.801M*-$10.645M*-$7.774M*
EBITDA ($USD)-$10.524M*-$12.547M*-$9.412M*-$6.480M*
EBITDA Margin (%)n/a*n/a*n/a*-233.5%*
Net Income ($USD)-$23.437M*-$13.401M*-$11.496M*-$10.172M*
Diluted EPS ($USD)-$0.406*-$0.178*-$0.135*-$0.111*

Values with asterisks (*) retrieved from S&P Global.

Non-GAAP Cost Metrics and Operating KPIs

KPI / MetricQ3 2025Q4 2025Notes
Cash Cost of Goods Sold (non-GAAP) ($USD)$2.3M $3.9M Cash COGS +70% QoQ
GAAP COGS ($USD)n/a$5.1M Q4 GAAP COGS reconciliation provided
Throughput Growth QoQn/a+70% First recycling facility ramp
Cash & Restricted Cash$7.8M (end Q3) $12.5M as of 6/30/25; $25.4M as of 9/15/25 Liquidity strengthened

Estimate Comparison (Q4 2025)

MetricConsensus*ActualBeat/Miss
Revenue ($USD)$1.244M*$2.776M*Bold Beat (+123%)
Primary EPS ($USD)-$0.08*-$0.111*Bold Miss (-$0.031)

Values with asterisks (*) retrieved from S&P Global. Actual revenue level corroborated by company press release (“increased to $2.8 million”) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Company revenueFY/Q4Not providedNot providedMaintained (no formal guidance)
Margins (gross/EBITDA)FY/Q4Not providedNot providedMaintained (no formal guidance)
OpExFY/Q4Not providedNot providedMaintained (no formal guidance)
Segment-specificFY/Q4Not providedNot providedMaintained (no formal guidance)
Tax rate / OI&EFY/Q4Not providedNot providedMaintained (no formal guidance)

No formal numerical guidance ranges were disclosed in the press release or call materials; management emphasized margin improvement with scale rather than specific ranges .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2025)Trend
AI/data center BESS feedstockQ2: Process enhancements; ramp plans . Q3: Ramping throughput; OEM qualifications .BESS feedstock now substantial; presented at Argonne supercomputer event to DOE leadership .Expanding scope and visibility.
Recycling operations scale-upQ2: Downtime led to >225% monthly, >350% weekly throughput vs prior quarter . Q3: 24/7 ops; multi-shift; revenue $1.0M .Throughput +70% QoQ; revenue ~tripled QoQ .Positive acceleration; economies of scale improving.
Regulatory/permitting (FAST-41)Q2: PFS preparation; 4th drill program . Q3: Continued claystone-to-LiOH execution .Tonopah Flats selected as Transparency Priority, then promoted to Covered Project; permitting coordination accelerated .Meaningful progress; de-risking path to commercialization.
Financing/grantsQ2: DOE $144M grant contracted; financing inflows; EXIM LOI $900M . Q3: Balance on contracted grants $205.7M .Continued grant programs; cash balance increased; Russell index inclusion boosting institutional interest .Strengthened funding visibility and liquidity.
Product performance/qualificationQ2/Q3: OEM qualifications; pilot LiOH production .USABC project closed; >100 full-scale auto cells using recycled metals showed comparable performance .Validation supports commercial offtake.
R&D execution (pilot LiOH)Q2: Continuous multi-week pilot run; design for 30k tpa refinery . Q3: Continued pilot operations .DOE AMMTO $2.3M grant closed; multi-ton/day pilot operating; samples sent to customers; EPC Black & Veatch engaged .Advancing toward commercial scale.

Management Commentary

  • “We have again nearly tripled quarterly revenue… signaling a clear trajectory towards profitability as the company continues to ramp its operations.” (Press release summary) .
  • “We nearly tripled revenue this quarter… revenues are growing at a much faster pace than our costs.” (CEO) .
  • “We were selected… for a competitive grant… $144,000,000 to now construct a second battery recycling plant.” (CEO) .
  • “Tonopah Flats… approved to become a Covered Project… very significant acceleration of these permitting efforts.” (CEO) .
  • “Cash balance… just over $25,000,000 as of September 15.” (CEO) ; $12.5M cash/restricted at 6/30/25 (company materials) .

Q&A Highlights

  • The published transcript contains prepared remarks; no Q&A portion was included, and management directed investors to the Annual Shareholder Meeting for more detailed, forward-looking operations discussion .
  • Management reiterated expectations for margin improvement with scale at the Reno plant and continued inflows from contracted grants and tax credits to support ramp plans .

Estimates Context

  • Q4 FY2025 revenue: actual $2.776M* vs consensus $1.244M* → Bold Beat (+123%); EPS: actual -$0.111* vs consensus -$0.08* → Bold Miss (-$0.031) [GetEstimates]*.
  • The scale-driven revenue surprise should prompt upward revisions to near-term revenue models; however, persistent negative margins and higher operating costs likely temper EPS revisions until further scale reduces COGS and OpEx burdens .

Values with asterisks (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term trading: strong top-line beat and throughput momentum are positive catalysts; watch for follow-through on margin improvement and any incremental BESS-related feedstock announcements tied to AI/data centers .
  • Medium-term thesis: validated recycled metals in full-scale auto cells and progressing LiOH pilot-to-commercial pathway de-risk customer qualification and offtake potential .
  • Funding and permitting: DOE $144M grant, EXIM LOI $900M, and FAST-41 Covered status materially enhance financing visibility and shorten time-to-permit for Tonopah Flats .
  • Liquidity improved ($12.5M at 6/30; $25.4M at 9/15), supported by Russell inclusion and warrant exercises; monitor cash burn vs ramp pace .
  • Profit trajectory hinges on scaling recycling operations; cash COGS rising far slower than revenue signals improving unit economics—evidence to track over coming quarters .
  • No formal numerical guidance was issued; focus on operational milestones (throughput, customer qualifications, permitting) and potential offtake agreements to bridge to sustainable profitability .

Sources

  • Q4 FY2025 8-K press release and schedules .
  • Q4 FY2025 earnings call transcripts .
  • Q3 FY2025 and Q2 FY2025 earnings materials .

Values with asterisks (*) retrieved from S&P Global.