Aqua Metals, Inc. (AQMS)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 was a balance-sheet and technology execution quarter: AQMS eliminated all long-term debt, raised liquidity via the $4.3M Sierra ARC asset sale, and ended the quarter with $1.93M cash (≈$3.2M as of the call), while advancing best-in-class lithium carbonate purity (<30 ppm fluorine) and producing >1 tonne of high-purity NMC mixed hydroxide cake for partner sampling .
• Reported net loss of $6.77M (–$7.44 per share) included a ~$3.77M non-cash impairment/loss on asset sale; YoY operating costs declined materially on workforce reductions (plant ops $0.78M vs $2.37M YoY; G&A $2.20M vs $3.43M YoY) .
• Management highlighted internal cost analysis indicating AquaRefining is cost competitive with Chinese hydromet recycling and ~50% of traditional U.S. hydromet costs—an important strategic proof-point for commercialization and potential partnerships .
• Potential stock reaction catalysts: reverse stock split to address Nasdaq compliance, industry-facing technology showcase with ~100 attendees (OEMs and battery ecosystem), foundational U.S. patent allowance enabling licensing/JV models, and debt-free status supporting strategic optionality .

What Went Well and What Went Wrong

What Went Well

• “Best-in-class” lithium carbonate purity advanced: <30 ppm fluorine; ~100 kg produced and sampling with strategic counterparties; >1 tonne NMC mixed hydroxide cake produced for qualification .
• Strengthened balance sheet and liquidity: $4.3M Sierra ARC sale; Summit loan ($3.0M) retired; no long-term debt; cash $1.93M at quarter-end and ~$3.2M as of call .
• Cost competitiveness and scalability: internal analysis shows cost parity with China and ~50% of U.S. hydromet; started design of modular ARC facility (10–60k tpa) and showcased technology to >100 industry stakeholders .

What Went Wrong

• Operating loss driven by non-cash impairment: ~$3.77M impairment/loss on disposal tied to Sierra ARC transaction in Q2; YTD impairment ~$9.0M .
• Continued pre-revenue profile and net loss: Q2 net loss of $6.77M; with no formal revenue recognized, profitability remains dependent on commercialization, offtake, and financing .
• Nasdaq compliance risk addressed via 1:10 reverse split; still contingent on successful appeal and maintaining bid price; capital access and project financing remain key external dependencies .

Financial Results

Note: Aqua Metals reported no revenue in Q2 2025; expense-led P&L with material non-cash items. Where marked with an asterisk (*), values were retrieved from S&P Global.

EPS and Net Loss

Values retrieved from S&P Global*

Profitability (EBITDA proxy)

Values retrieved from S&P Global*

Operating Expenses YoY (Selected)

Revenue

Balance Sheet / Liquidity KPIs

Segment breakdown: Not applicable; company is pre-commercial with a single operations focus.

Guidance Changes

AQMS did not provide formal numerical guidance (revenue, margins, OpEx, tax, etc.) for Q3/Q4 2025 or FY 2025. Management emphasized “build-when-they-come” commercialization contingent on offtake/feedstock partnerships and financing .

Earnings Call Themes & Trends

Management Commentary

• “We produced lithium carbonate with fluorine content below 30 ppm… likely a best-in-class result globally for recycled lithium… ~100 kg… for strategic counterparties to evaluate.”
• “An internal study showed that AquaRefining in the U.S. is cost competitive with Chinese hydromet… and operates at approximately half the cost of traditional U.S. hydromet methods.”
• “We completed the sale of the Sierra ARC facility… generating roughly $4.3M of cash… used to retire the $3.0M Summit building loan… with the payoff… the company now has no debt.”
• “We effected a one-for-ten reverse stock split [on 8/4/25]” to support Nasdaq compliance efforts.
• Patent allowance: “With this allowance in hand, we can now pursue further high margin licensing, joint ventures, and other tech enablement types of deals…”

Q&A Highlights

• Technology and economics: Management detailed the <30 ppm F lithium carbonate milestone and flexibility to deliver nickel as metal, carbonate, or NMC cake to match partner needs; internal study highlights parity with China and ~50% U.S. hydromet cost, driven by chemical regeneration and waste avoidance .
• Policy tailwinds: Industry alignment around incentives to keep black mass domestic; DOD cobalt stockpiling cited as supportive signal for U.S. recycling buildout .
• Capital structure and runway: Reverse split tied to Nasdaq compliance; asset sale and debt payoff expand runway to pursue strategic partnerships with better terms .
• Market context: Management noted lithium price moves after a China mine shutdown and framed the need for “rational prices” to support non-China production economics .

Estimates Context

• Street consensus (S&P Global) for Q2 2025 EPS and Revenue was not available; therefore no beat/miss determination can be made. Values retrieved from S&P Global*
• As an indicator of profit/loss trend, EBITDA actuals tracked by S&P Global were negative but improving sequentially: Q4 2024 $(3.76)M, Q1 2025 $(3.14)M, Q2 2025 $(2.99)M*.

Values retrieved from S&P Global*

Key Takeaways for Investors

• AQMS is advancing toward commercialization with tangible product-quality milestones (<30 ppm F lithium carbonate) and multi-form nickel products validated for partner sampling—key prerequisites for bankable offtake .
• The internal cost study (parity with China; ~50% U.S. hydromet) and modular ARC plan (10–60k tpa) strengthen the scalability and investability narrative for partner-enabled builds and/or licensing .
• Balance-sheet de-risking (asset sale, zero debt, reduced OpEx) improves negotiating leverage and extends runway to secure offtake/feedstock and project financing on better terms .
• Policy engagement (domestic black mass incentives) and DOD stockpiling may catalyze U.S. recycling economics; AQMS positions as a domestic, lower-waste alternative .
• Near-term trading: Headlines around debt elimination, reverse split/Nasdaq compliance, technology showcase, and patent allowance can be catalysts; absence of revenue and ongoing losses remain overhangs until commercial contracts land .
• Medium term: Licensing/JV optionality offers a capital-light path; sequential improvement in EBITDA and disciplined OpEx suggest operating leverage once commercial throughput begins .

Cross-References and Notes

• Q2 2025 results and exhibits: press release/8-K and financial tables .
• Q2 2025 earnings call: full transcript for operational, financial, and Q&A context –.
• Other Q2-related press releases: NAATBatt showcase (Aug 6), reverse split (July 31), tour announcement (July 1), patent allowance (June 2) .
• Prior quarters: Q1 2025 and Q4 2024 calls provide trend and strategy continuity – –.