10-Q: Energy Vault Reports Q2 2026 Results, Revenue Up, Losses Persist

Energy Vault Holdings, Inc. announced its second quarter 2026 financial results, showing a substantial increase in revenue driven by energy storage product sales and tolling agreements, but also reporting continued net losses and increased debt.

Summary

• Energy Vault Holdings, Inc. reported revenue of $17.4 million for Q2 2026, up from $8.5 million in Q2 2025, and $39.2 million for the six months ended June 30, 2026, up from $17.0 million in the prior year period.
• The company experienced a net loss of $29.7 million for Q2 2026, compared to a net loss of $34.9 million in Q2 2025. For the six months ended June 30, 2026, the net loss was $62.2 million, compared to $56.1 million in the prior year period.
• Total operating expenses increased to $30.0 million in Q2 2026 from $30.7 million in Q2 2025, and increased to $59.0 million for the six months ended June 30, 2026 from $56.4 million in the prior year period.
• Cash and cash equivalents increased to $93.0 million as of June 30, 2026, from $58.3 million as of December 31, 2025.
• Total debt increased significantly, with long-term debt rising to $165.0 million as of June 30, 2026, from $38.0 million as of December 31, 2025, largely due to the issuance of Senior Convertible Notes and 2026 Debentures.
• The company has a developed pipeline of $4.3 billion and a backlog of $1.5 billion as of June 30, 2026.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as having a negative sentiment due to significant net losses, increased debt, and ongoing operational challenges, despite revenue growth.

Positives

• Revenue increased significantly, with Q2 2026 revenue at $17.4 million (up from $8.5 million in Q2 2025) and six-month revenue at $39.2 million (up from $17.0 million in the prior year period).
• Energy storage product sales increased by $7.0 million in Q2 2026 and $21.8 million for the six-month period, driven by Australian EPC projects.
• Tolling and PPA revenue increased by $1.6 million in Q2 2026 and $3.2 million for the six-month period, due to owned energy storage systems being placed in service.
• Cash and cash equivalents increased to $93.0 million as of June 30, 2026, providing improved liquidity.
• The company secured significant new contracts, with contracted bookings of $234.1 million in Q2 2026 and $248.6 million for the six-month period.
• The developed pipeline stands at $4.3 billion and backlog at $1.5 billion as of June 30, 2026, indicating future revenue potential.

Negatives

• The company reported a net loss of $29.7 million for Q2 2026 and $62.2 million for the six months ended June 30, 2026.
• General and administrative expenses increased by $3.5 million in Q2 2026 and $7.3 million for the six-month period, largely due to higher legal and professional fees and project development costs.
• Interest expense increased significantly, by $1.7 million in Q2 2026 and $5.0 million for the six-month period, reflecting higher average debt balances.
• Long-term debt increased substantially to $165.0 million as of June 30, 2026, from $38.0 million as of December 31, 2025.
• The company recorded a $2.0 million impairment of its investment in KORE equity securities.
• Gross profit margin decreased to 25.9% for the six months ended June 30, 2026, from 43.4% in the prior year period, primarily due to lower IP licensing revenue.

Risks

• The company's performance and future success depend on factors that present significant opportunities but also pose risks and challenges, including the impact of tariffs and trade policy on input costs and supply chain.
• U.S. energy storage regulation and legislation, including the Inflation Reduction Act and the One Big Beautiful Bill Act, introduce uncertainties regarding eligibility, compliance, and the timing and magnitude of benefits.
• Reliance on third-party project delivery models (EPC and EEQ) exposes the company to risks associated with changes in the cost or availability of raw materials, equipment, and technical/construction services.
• The competitive market for energy storage solutions may lead to increased competition, pricing pressure, margin compression, and delays in project execution.
• The company's ability to source B-VAULT products and other equipment economically could be adversely affected by tariffs, trade restrictions, export controls, or retaliatory measures.
• The company has historically incurred negative operating cash flows and operating losses and may continue to do so in the future.
• The company's financial instruments, including convertible debentures and warrant liabilities, are subject to fair value fluctuations, with significant unobservable inputs used in their valuation.
• The company is subject to credit risk from customers and commodity price risk from fluctuating market prices of raw materials used in components.

Future Outlook

The company anticipates continued net losses for the foreseeable future and is not guaranteed to achieve or maintain profitability. Management believes current cash on hand is sufficient for at least the next twelve months. The company may seek additional capital through equity and/or debt financings. Future revenue is expected to be driven by the company's backlog, bookings, and developed pipeline.

Management Comments

• Management believes that its cash and cash equivalents on hand as of the filing date of this Quarterly Report will be sufficient to fund the Companys operating activities and meet its obligations as they become due for at least the next twelve months.
• Management believes that the estimates, judgment, and assumptions used are reasonable based upon information available at the time they are made.
• Management believes that the presentation of non-GAAP financial measures is useful to securities analysts and investors to evaluate ongoing results of operations when considered alongside GAAP measures.

Industry Context

StockSavvy.ai notes that Energy Vault operates in the rapidly growing energy storage sector, driven by renewable energy integration and grid resilience needs. However, the industry faces challenges from evolving regulations, supply chain disruptions, and intense competition, which are reflected in the company's financial performance.

Comparison to Industry Standards

• The company's gross profit margin for the six months ended June 30, 2026, was 25.9%, a significant decrease from 43.4% in the prior year period, which may be lower than industry averages for established energy storage providers, particularly due to the impact of lower IP licensing revenue.
• The substantial increase in debt, with long-term debt rising to $165.0 million, indicates a higher leverage ratio compared to some peers, potentially impacting financial flexibility.
• The company's continued net losses, despite revenue growth, highlight the capital-intensive nature of the energy storage sector and the challenges in achieving profitability, a common theme for many emerging companies in this space.

Legal Proceedings

• Energy Vault has been and continues to be involved in legal proceedings that arise in the ordinary course of business, the outcome of which, if determined adversely to Energy Vault, would not individually or in the aggregate have a material adverse effect on Energy Vaults business, financial condition, and results of operations.

Related Party Transactions

• During the three and six months ended June 30, 2026, the Company paid $0.2 million and $0.4 million, respectively, in marketing and sales costs to a company owned by an immediate family member of an officer of the Company. During the three and six months ended June 30, 2025, the Company paid $0.2 million and $0.5 million, respectively. At June 30, 2026 and December 31, 2025, the Company had $0.1 million in payables due to this related party.

Stakeholder Impact

• Shareholders may experience dilution due to ongoing equity issuances under ATM programs and equity purchase agreements.
• Creditors and debt holders face increased risk due to the substantial rise in the company's debt levels.
• Customers may be impacted by potential price increases or supply chain disruptions due to tariffs and trade policies.
• Employees may be affected by cost-control measures leading to headcount reductions in certain departments.

Next Steps

• Continue to monitor developments in U.S. energy storage regulation and legislation.
• Explore alternative sourcing options for materials and components to mitigate tariff and trade restriction impacts.
• Focus on increasing energy storage revenue through continued adoption of solutions and execution of projects.
• Manage project costs and delivery schedules, considering potential impacts of tariffs, supply constraints, and inflation.
• Continue to pursue project-level capital to support the development, construction, ownership, and operation of energy storage assets.
• Evaluate the impact of recently adopted and issued accounting standards.

Key Dates

Recommendation

While revenue growth is positive, the persistent net losses, significant increase in debt, and rising G&A expenses suggest caution. The company's future outlook depends heavily on its ability to execute on its large pipeline and backlog while navigating regulatory and supply chain challenges. The current financial performance warrants a 'hold' rating until a clearer path to profitability emerges.

Keywords

energy storage, battery energy storage system, BESS, renewable energy, infrastructure, EPC, tolling, PPA