Comstock Inc. (LODE)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 was a transition quarter: Comstock eliminated all debt, raised equity, and fully funded the scale-up of its industry-scale solar panel recycling, while reported revenue remained minimal and losses widened sequentially as investments ramped .
• Metals billings accelerated (cumulative $2.9M YTD, with ~$1.8M deferred as of 9/30), and management lifted 2025 metals billings outlook from “well over $3.0M” to “over $3.5M,” positioning for commissioning in Q1 2026 and full run-rate in Q2 2026, contingent on final permits expected by year-end .
• Liquidity strengthened: cash rose to $31.7M as of quarter-end (vs. $0.95M at year-end 2024) and net current assets reached $21.3M; Bioleum closed a $20M Series A and has a $13M Marathon SAFE linked to assets, underpinning fuels development without corporate-level debt .
• Near-term stock catalysts: issuance of final Nevada permits (December timeline), equipment arrival/commissioning (Q1 2026), expanding MSAs, and clarity on Bioleum Series A completion/offtake agreements; Street consensus for revenue/EPS was unavailable, limiting beat/miss framing .

What Went Well and What Went Wrong

• What Went Well

  • Balance sheet reset: “Eliminated all debt instruments (convertible and promissory notes) and other significant payables,” with cash at $31.7M on 9/30/25 and net current assets at $21.3M .
  • Metals commercialization advancing: $5.1M in equipment deposits for the first industry-scale facility; permits “imminent” in Q4 2025; commissioning targeted for Q1 2026 and full operations in Q2 2026 .
  • Bioleum strategically financed: $20M Series A closed; Marathon contributed a $13M SAFE in assets (+$1M cash upon external milestones), with right-of-way to offtake and collaboration, reducing parent-level funding burden .

• What Went Wrong

  • Reported revenue declined YoY and QoQ: Q3 revenue was $54k (vs. $556k YoY; $300k in Q2 prelim), reflecting timing/deferral and early-stage mix; gross margin was deeply negative as COGS exceeded revenue .
  • Operating losses persisted: Q3 net loss was $(12.9)M (vs. $(15.0)M) YoY; sequentially worse vs. $(7.8)M in Q2 prelim as OpEx, development spending, and non-cash items weighed .
  • Execution risk remains: scale-up hinges on timely permit issuance, logistics/storage scaling, and commissioning; management emphasized dependency on capacity and regulatory timing to unlock revenue and cash flow .

Financial Results

Notes: Q2 2025 values from preliminary 8‑K (no per-share EPS disclosed). “Vs. Est.” not shown because S&P Global consensus was unavailable.

Segment revenue mix (three months ended September 30):

KPIs and Balance Sheet Highlights:

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Fortifies Capital Base, Eliminates Debt Obligations and Funds Industry‑scale Metals Launch” (Q3 results release header) .
• “Cash & cash equivalents were $31.7 million as of September 30, 2025… Increased net current assets to $21.3 million” .
• “We have ordered all of the equipment for our fully automated, industry‑scale solar recycling system… permits… imminent and on schedule” — Dr. Fortunato Villamagna, President of Comstock Metals .
• “Permits issued by Christmas; equipment synchronized to arrive in December; commissioning during the first quarter; fully up and running in the second quarter” — Corrado De Gasperis (fireside chat) .

Q&A Highlights

• Metals scale-up timing and logistics: Management reiterated final permits by year-end, commissioning in Q1 2026, and full operations in Q2 2026; emphasized concurrent ramp in intake MSAs and storage/logistics build-out .
• Financing strategy: Bioleum’s $20M Series A and Marathon SAFE support fuels without parent debt; management is cautious on equity dilution, having eliminated converts and highlighted access to project-level/USDA financing for metals .
• Mining approach: Optionality to monetize or JV amid strong gold/silver backdrop; PEA for Dayton planned to frame economics/sensitivities .

Estimates Context

• Wall Street (S&P Global) consensus estimates for Q3 2025 revenue and EPS were unavailable for LODE; therefore, no beat/miss assessment could be made using S&P Global data. Values retrieved from S&P Global.

Key Takeaways for Investors

• Balance sheet de-risked: no debt outstanding, $31.7M cash, and net current assets of $21.3M provide runway into 2026 commissioning milestones .
• Metals revenue inflection is tied to permits and commissioning: final permits by Christmas, equipment arrival in December, commissioning Q1 2026, with MSAs underpinning throughput ramp; 2025 billings raised to >$3.5M .
• Deferred revenue/backlog is building: $1.9M current and $1.9M long-term deferred revenue; $2.9M billed YTD (with ~$1.8M deferred) indicates pipeline ahead of recognition .
• Bioleum platform maturing: $20M Series A and $13M Marathon SAFE in place; Oklahoma grant tranches and municipal bond allocation support project development without corporate leverage .
• Reported revenue will likely remain volatile until commissioning; COGS/OpEx timing and non-cash derivative items will affect quarterly optics near-term .
• Watch near-term catalysts: permit issuances, equipment deliveries, additional MSAs/offtakes, and progress on Bioleum’s commercial agreements and financing milestones .
• With Street estimates unavailable, trading around milestones (permits, commissioning, MSAs) rather than earnings beats/misses is the likely near-term setup. Values retrieved from S&P Global.

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Sources:

• Q3 2025 10-Q and exhibits (financials, segment data, cash/debt, derivatives, grants, leases):
• Q3 2025 8‑K and press release (debt elimination, cash, permits/capex, billings outlook):
• Fireside Chat (permits by Christmas, commissioning timeline, MSAs scaling, silver market):
• Q2 2025 8‑K (preliminary revenue and net loss):
• Q1 2025 8‑K and call (initial metals billings guidance, permits/commissioning, financing roadmap):