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American Battery Technology Co. (ABAT)
NASDAQ:ABAT
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American Battery Technology
(NASDAQ:ABAT)
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Rating:54Neutral
Price Target:
$3.50
▼(-4.37% Downside)
Action:ReiteratedDate:02/07/26
The score is held back primarily by weak financial performance: severe negative margins, sizable losses, and persistent negative operating/free cash flow despite strong revenue growth. Offsetting this, the latest earnings call pointed to improving operations (near cash breakeven at the recycling plant), a strong cash position and zero debt, and progress on longer-term projects and permitting. Technical signals and valuation are mixed/limited, providing neither a strong tailwind nor a clear bargain signal.
Positive Factors
Strong Revenue Growth
Sustained high revenue growth and a record quarter at the recycling facility indicate genuine commercial traction in core recycling operations. Durable demand and scaling economics can support margin improvement as throughput rises and fixed costs are spread across higher volumes.
Strong Cash Position & Zero Debt
A sizable cash balance and minimal leverage give the company runway to fund plant scale-up, permitting, and early project development without immediate refinancing. This financial flexibility lowers short-term funding risk while management pursues commercialization milestones.
Project Progress & Regulatory Wins
A formal PFS and priority permitting (FAST-41) plus CERCLA certification materially derisk long‑lead permitting and feedstock access. These structural advances improve the odds of converting resource potential into a bankable project and long-term lithium‑hydroxide supply.
Negative Factors
Severe Unprofitability
Deep negative margins signal the business has not yet converted revenue into sustainable profit; persistent unprofitability erodes equity and increases reliance on external capital. If margins don't structurally improve with scale, long‑term viability and investor support are at risk.
Persistent Cash Burn
Ongoing negative operating and free cash flow indicate the company consumes cash to run and expand operations. Even with current cash on hand, sustained burn raises dilution and financing risk, potentially forcing equity issuance or non‑recurring funding to sustain growth.
Pre-Commercial Projects; No Committed Offtake
Major value drivers (second recycling plant, Tonopah Flats) are still in design/permits and lack binding offtake or project finance. This leaves substantial execution and timing risk: delays or financing gaps could push out revenue scaling and postpone path to self‑sufficiency.
American Battery Technology (ABAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$482.06M
Dividend YieldN/A
Average Volume (3M)5.08M
Price to Earnings (P/E)―
Beta (1Y)1.71
Revenue Growth821.40%
EPS Growth44.70%
CountryUS
Employees96
SectorIndustrials
Sector Strength72
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-0.07
Shares Outstanding131,709,240
10 Day Avg. Volume2,924,982
30 Day Avg. Volume5,078,147
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)1.84
Price to Sales (P/S)30.33
P/FCF Ratio-4.13
Enterprise Value/Market Cap0.72
Enterprise Value/Revenue36.74
Enterprise Value/Gross Profit-33.47
Enterprise Value/Ebitda-9.14
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.24
Revenue Forecast (FY)$10.30M
American Battery Technology Business Overview & Revenue Model
Company DescriptionAmerican Battery Technology Company operates as a battery materials company. The company explores for resources of battery metals, such as such as lithium, nickel, cobalt, and manganese; and develops and commercializes technologies for the extraction of battery metals, as well as commercializes integrated process for the recycling of lithium-ion batteries. The company was formerly known as American Battery Metals Corporation. American Battery Technology Company was incorporated in 2011 and is headquartered in Reno, Nevada.
How the Company Makes MoneyABAT generates revenue through multiple streams, primarily focusing on the recycling of lithium-ion batteries and the recovery of critical minerals such as lithium, cobalt, and nickel. The company partners with electric vehicle manufacturers, battery producers, and other stakeholders in the clean energy sector to provide recycling solutions that meet regulatory and environmental standards. Additionally, ABAT may explore government grants and incentives aimed at promoting clean energy technologies, as well as engaging in joint ventures or collaborations to expand its market reach. The growing demand for sustainable battery solutions and the increasing focus on circular economy practices contribute significantly to the company's potential earnings.
American Battery Technology Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Positive
The call communicated substantial operational momentum and several key achievements — record quarterly revenue for the recycling facility, approaching cash breakeven on a cash basis, a strong cash position and zero debt, regulatory certifications (CERCLA) and FAST-41 designation, and an attractive PFS for the Tonopah Flats project. Offsetting these positives are that the company remains modestly loss-making on an accounting basis after noncash items, large-scale projects remain pre-commercial and dependent on definitive feasibility, offtake agreements and financing, and some reliance on non-operating funding sources. On balance the positives (revenue inflection, cash strength, certifications, project progress) outweigh the outstanding development and financing risks.Q2-2026 Updates
Positive Updates
Record Quarterly Revenue and Interest Income
Generated approximately $4.8M in product sales plus $0.3M in interest income for total revenue and interest of ~$5.1M for the quarter (quarter ending December), the highest revenue level for the company's recycling facility and greater than revenue from the previous four quarters combined.
Near Cash Breakeven on Recycling Plant
Cash operating expenses for the facility were about $4.9M versus $5.1M in revenue and interest, indicating the recycling plant is approaching cash breakeven and is positioned to improve margins with further ramp and operational efficiencies.
Strong Cash Position and No Debt
Reported cash balance of approximately $48M at quarter end (transcript references $48.7M and later $47.9M), driven by fall market actions and warrant exercises; company has paid off remaining debt/convertible notes and currently reports zero debt.
Operational Scale-Up and Efficiency Gains
Scaled operations at the first commercial recycling facility with operational efficiencies, reduced unit costs through economy of scale and workforce improvements; management reports revenue increased by a much larger factor than operating costs during the period.
Expansion Plans — Second Recycling Facility
Announced design and construction progress for a second battery recycling facility in the Southeast U.S.; local partnerships and site activities are underway to move the project forward.
Tonopah Flats Lithium Project Progress and Attractive PFS
Published a Pre-Feasibility Study (PFS) for a 30,000 tonne/year lithium hydroxide facility with a 45-year life-of-mine, an after-tax net present value of ~8%, and modeled production cost of just over $4,300 per ton, positioning it as a cost-competitive claystone-to-hydroxide project.
Substantial Resource and Reserve Base
PFS reports approximately 21.3 million tonnes of accessible lithium hydroxide resource/reserve, with a portion upgraded to proven and probable reserves, supporting long-term project scale.
Regulatory and Permitting Acceleration
Tonopah Flats designated a FAST-41 priority project with a federal liaison and weekly coordination; baseline studies complete and NEPA process underway with DOI and DOE, intended to accelerate federal permitting and commercialization timelines.
Rare Certifications and Diverse Feedstock Sources
Received CERCLA certification enabling receipt of materials from stationary facilities across the U.S.; receiving substantial feed from automotive, stationary grid (BESS), consumer electronics, and EPA cleanup projects (Moss Landing), diversifying inputs to recycling operations.
Strengthened Management Team
Announced hire of Alex Flores as Chief Financial Officer (20+ years experience in battery and automotive sectors), supporting financial and operational scaling efforts.
Negative Updates
Operating Loss Including Noncash Items
When including noncash expenses (depreciation and stock-based compensation), total costs were about $6.4M versus $5.1M in revenue and interest, implying an approximate net operating deficit of ~$1.3M for the quarter despite approaching cash breakeven.
Key Projects Still Pre-Commercial
Second recycling facility is in design/construction (not yet producing) and the Tonopah Flats project remains in permitting/DFS phase; definitive feasibility, bankable design, offtake agreements and project financing remain to be secured for large-scale commercialization.
Dependence on Non-Operating Funding Actions
Quarterly cash boost was materially influenced by fall market actions and existing shareholders exercising warrants; company also relies on government grants — both are sources of funding that may not be sustainable long-term without operating profitability.
Lengthy Permitting Timeline and Ongoing Regulatory Work
Permitting and NEPA work for Tonopah Flats has been ongoing since 2023; although FAST-41 designation accelerates processes, federal permitting remains a multi-step and multi-year effort with inherent timing and approval risks.
No Mention of Signed Offtake or Project Financing
Management described progressing toward bankable design and investor engagement but provided no confirmed offtake agreements or committed project financing in the call, which are necessary next steps to de-risk construction of the mine/refinery.
Minor Internal Reporting Inconsistency
Transcript references two close but different cash balance figures (~$48.7M and ~$47.9M) for the quarter end, which introduces a small inconsistency in public commentary.
Company Guidance
The call guided investors toward continued scaling and margin improvement at the company’s two business lines: recycling and claystone-to-lithium hydroxide, noting record quarterly product revenue of about $4.8M plus ~$0.3M interest (total ~$5.1M) for the quarter ended December — versus cash operating expenses of about $4.9M (and including noncash charges of ~$6.4M) — and that this quarter’s revenue exceeded the prior four quarters combined; management said the first recycling plant is approaching breakeven with further operational efficiencies and additional feed (including material from the Moss Landing EPA cleanup) expected to expand margins. They reported a cash balance of roughly $48M (cited ~ $48.7M / ~$47.9M) and zero debt after paying off convertible notes, and plan to use cash to scale the Reno plant, add value‑add processes, build a second Southeast recycling facility, and advance the Tonopah Flats project: a PFS-modeled 30,000 tpa facility with a 45‑year life of mine, an after‑tax NPV of ~8%, production cost just over $4,300/ton, and ~21.3 million tonnes of lithium‑hydroxide resource/reserve; the company is working toward a Definitive Feasibility Study and cited FAST‑41 priority status and CERCLA certification to accelerate permitting and feed.American Battery Technology Financial Statement Overview
Summary
Revenue growth is very strong (+88.1% TTM), but fundamentals are dominated by severe unprofitability (negative gross profit; gross margin -92.8%, EBIT margin -310.9%, net margin -436.3%) and sizable net losses (~$41.2M TTM). Cash flow is a key weakness with negative operating cash flow (~-$33.1M) and free cash flow (~-$34.8M). The balance sheet is a relative positive with minimal debt (~$0.1M) versus equity (~$119.0M), but continued losses risk eroding that strength.Income Statement
TTM (Trailing-Twelve-Months) revenue growth is very strong (+88.1%), showing the company is scaling from a small base. However, profitability remains deeply negative: gross profit is negative and margins are severely pressured (gross margin -92.8%, EBIT margin -310.9%, net margin -436.3%). Losses are sizable (TTM net loss of ~$41.2M), and while the annual FY2025 revenue increased vs. FY2024, the business has not yet demonstrated an improving earnings profile.12
Very Negative
Balance Sheet
Leverage is very low in the latest period (TTM total debt ~$0.1M vs. equity ~$119.0M; debt-to-equity ~0.00), which reduces refinancing risk and provides financial flexibility. Total assets are ~$123.3M supported by a meaningful equity base. The key weakness is ongoing value erosion from losses, reflected in negative returns on equity (TTM return on equity around -47%), meaning the balance sheet strength could deteriorate if losses and cash burn continue.68
Positive
Cash Flow
Cash generation is a major headwind: TTM operating cash flow is negative (~-$33.1M) and free cash flow is also negative (~-$34.8M), indicating the business is consuming cash to operate and invest. While free cash flow growth is modestly positive in the latest period, cash burn remains persistent across years, raising funding risk over time despite low debt.18
Very Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.45M | 4.29M | 343.50K | 0.00 | 0.00 | 0.00 |
| Gross Profit | -10.38M | -10.57M | -2.96M | 0.00 | 0.00 | 0.00 |
| EBITDA | -37.99M | -41.58M | -50.56M | -21.86M | -33.43M | -37.67M |
| Net Income | -41.25M | -46.76M | -52.50M | -22.19M | -33.54M | -41.76M |
Balance Sheet | ||||||
| Total Assets | 123.34M | 84.46M | 77.68M | 74.66M | 52.86M | 21.26M |
| Cash, Cash Equivalents and Short-Term Investments | 47.89M | 7.47M | 7.00M | 2.32M | 29.01M | 12.84M |
| Total Debt | 250.41K | 8.04M | 6.50M | 6.18M | 275.56K | 0.00 |
| Total Liabilities | 4.36M | 13.86M | 16.21M | 13.79M | 3.23M | 1.82M |
| Stockholders Equity | 118.98M | 70.60M | 61.47M | 60.87M | 49.63M | 19.44M |
Cash Flow | ||||||
| Free Cash Flow | -36.28M | -31.47M | -29.43M | -28.20M | -25.26M | -14.84M |
| Operating Cash Flow | -33.05M | -28.92M | -16.74M | -13.37M | -10.18M | -7.76M |
| Investing Cash Flow | -3.23M | -2.55M | -12.97M | -36.72M | -15.08M | -7.08M |
| Financing Cash Flow | 64.35M | 36.94M | 34.39M | 23.42M | 41.41M | 26.85M |
American Battery Technology Technical Analysis
Neutral
3.66
Price Trends
4.15
Negative
4.52
Negative
3.38
Positive
Market Momentum
-0.17
Positive
46.96
Neutral
48.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABAT, the sentiment is Neutral. The current price of 3.66 is below the 20-day moving average (MA) of 3.88, below the 50-day MA of 4.15, and above the 200-day MA of 3.38, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 46.96 is Neutral, neither overbought nor oversold. The STOCH value of 48.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ABAT.
American Battery Technology Risk Analysis
American Battery Technology disclosed 40 risk factors in its most recent earnings report. American Battery Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
American Battery Technology Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $482.06M | -9.33 | -43.52% | ― | 821.40% | 44.70% | |
52 Neutral | $104.36M | -3.75 | -14.20% | ― | ― | -80.01% | |
44 Neutral | $353.57M | ― | ― | ― | ― | ― | |
44 Neutral | $295.83M | ― | -4.25% | ― | ― | -10.45% |
* Industrials Sector Average
ABAT
American Battery Technology
3.84
2.84
284.00%
WWR
Westwater Resources
0.91
0.19
25.83%
LZM
Lifezone Metals
4.51
-0.87
-16.17%
CRML
Critical Metals Corp
10.88
8.97
469.63%
IONR
ioneer Limited Sponsored ADR
4.26
0.41
10.65%
American Battery Technology Corporate Events
Business Operations and StrategyExecutive/Board Changes
American Battery Technology appoints new CFO, reshapes leadership compensation
Positive
Jan 29, 2026
On January 25, 2026, American Battery Technology Company’s board appointed Alejandro Flores Arteaga as chief financial officer, effective February 9, 2026, bringing more than two decades of global automotive and manufacturing finance experience, including securing a multibillion-dollar U.S. Department of Energy loan for EV battery manufacturing and managing large capital expenditure programs. Under his offer letter, Flores will be an at-will employee with a $280,000 base salary, a performance-based annual cash bonus targeted at 75% of salary, and significant performance-tied equity incentives in the form of restricted stock units and warrants that vest over time. Interim CFO Jesse Deutsch will retire from the company effective February 9, 2026, receiving a $50,000 cash bonus in connection with his departure, while chief mineral resource officer Scott Jolcover notified the company on January 26, 2026 of his plan to retire effective January 31, 2026, transitioning to a consulting role that preserves the vesting of his existing equity and binds him to non-compete and non-solicitation commitments. In a further move to align leadership compensation with execution, on January 27, 2026 the company amended the offer letters of chief executive and chief technology officer Ryan Melsert and chief operating officer Steven Wu to define detailed performance-based milestone criteria governing their 2026 bonus equity awards, signaling a broader emphasis on performance-linked incentives across the senior management team.
The most recent analyst rating on (ABAT) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on American Battery Technology stock, see the ABAT Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.