Summary of Aqua Metals Q2 2026 Earnings Call

1Key Financial Results and Metrics

Net Loss: Approximately $4 million, or $1.22 per share, an improvement from a net loss of $8.3 million, or $10.27 per share, in Q1 2025.

Operating Expenses: Reduced to approximately $4.1 million from $8.7 million year-over-year.

Cash Position: Ended the quarter with approximately $6.8 million in cash and cash equivalents, and working capital of about $7.5 million.

Cash Used in Operations: Approximately $3.8 million during the quarter.

ATM Program: Raised approximately $1.3 million in net proceeds, with about $48.6 million remaining available under the program.

2Strategic Updates and Business Highlights

AquaRefining Platform: Continued advancement towards commercialization, with site selection and engineering work for the first commercial lithium battery recycling facility underway.

Technical Milestones: Successfully produced battery-grade lithium carbonate from multiple recycled feedstocks (NMC and LFP) with independent validation confirming industry-grade specifications.

Manganese Sulfate Production: Achieved approximately 99.8% purity, showcasing broader applicability across critical minerals.

Strategic Partnerships: Ongoing relationships with companies like 6K Energy and American Battery Factory, with discussions evolving towards deeper technical and commercial engagement.

3Forward Guidance and Outlook

Priorities for 2026: Focus on advancing site selection, engineering, technical validation, and expanding commercial engagement.

Market Positioning: Aqua Metals aims to become a key player in the domestic battery material supply chain, leveraging its validated technology and competitive cost profile.

Future Milestones: Expect progress on site selection and potential commercial agreements as the market for domestic refining solutions strengthens.

4Bad News, Challenges, or Points of Concern

Lion Energy Acquisition: Decided not to proceed with the acquisition due to misalignment with capital discipline and risk profile, although the strategic value of energy storage integration remains.

Credit Exposure: Recorded a provision for credit losses of approximately $437,000 related to Lion Energy, with total exposure at about $4.1 million.

Market Volatility: The company faced significant downturns in the battery materials industry, with lithium prices previously dropping below $10,000 per metric tonne, although prices have since recovered.

5Notable Q&A Insights

Lion Energy Transaction: Management emphasized the need for a more capital-efficient structure to pursue energy storage opportunities, while maintaining a focus on shareholder value.

Commercial Relationships: Discussions with partners are ongoing, with a focus on sequencing agreements based on site selection and project financing.

Future Milestones: Key upcoming milestones include site selection for the commercial facility and further technical validations, with a disciplined approach to growth and capital management. This summary encapsulates the essential financial and strategic elements discussed during the earnings call, providing a balanced view of Aqua Metals' current position and future direction.