Aqua Metals Inc. ((AQMS)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Aqua Metals Inc. recently held its earnings call, revealing a balanced sentiment with a slight positive tilt. The company highlighted significant achievements, including technological advancements in lithium carbonate production, cost competitiveness, strategic partnerships, and a strengthened financial position. However, the call also addressed financial losses and the need for a reverse stock split to maintain NASDAQ compliance. The overall sentiment suggests potential for future growth and partnerships.
Best-in-Class Lithium Carbonate Production
Aqua Metals has achieved a milestone in lithium carbonate production, producing material with fluorine content below 30 parts per million. This achievement positions the company as a leader in recycled lithium, with approximately 100 kilograms produced for strategic counterparties to evaluate.
Cost Competitiveness Achieved
The company’s internal analysis indicates that its AquaRefining process in the U.S. is cost-competitive with Chinese hydrometallurgical recycling, operating at roughly half the cost of traditional U.S. methods. This positions Aqua Metals favorably in the market.
Strategic Partnerships and Collaboration
Aqua Metals is actively engaging in discussions with potential strategic partners for a phased build-out of a scalable commercial ARC facility. This initiative aims to support a fully domestic closed-loop battery material supply chain.
Strong Financial Position
The sale of the Sierra ARC facility generated approximately $4.3 million, which was used to retire a $3 million Summit building loan, effectively eliminating all company debt. This move strengthens Aqua Metals’ financial standing.
Patent Allowance Secured
Aqua Metals secured a U.S. patent allowance covering foundational aspects of its AquaRefining technology for lithium-ion battery recycling. This development supports future licensing and partnership opportunities.
Financial Loss and Noncash Impairments
The company reported a net loss of approximately $6.8 million for Q2 2025, including noncash impairment and loss on disposal of property and equipment totaling $3.8 million for the quarter.
Reverse Stock Split
Aqua Metals executed a 1-for-10 reverse stock split to regain compliance with NASDAQ listing requirements, reflecting ongoing challenges with stock price and market perception.
Forward-Looking Guidance
Aqua Metals provided comprehensive guidance, highlighting key metrics and developments. The company is designing a modular, scalable commercial ARC facility capable of processing between 10,000 and 60,000 metric tons of black mass annually. They are also initiating trials for sodium sulfate regeneration technology to reduce chemical costs and minimize waste streams. Financially, Aqua Metals ended the quarter with cash and cash equivalents of approximately $1.9 million, which increased to $3.2 million by the date of the call.
In conclusion, Aqua Metals Inc.’s earnings call reflected a balanced sentiment with a slight positive outlook. The company is making significant strides in lithium carbonate production and cost competitiveness, while also strengthening its financial position. Despite facing financial losses and executing a reverse stock split, Aqua Metals is poised for future growth through strategic partnerships and technological advancements.