Comstock Inc. quarterly report, Q3 FY2026

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Comstock Inc. (NYSE American: LODE) — Q3 2026 Form 10-Q

Reporting period: Quarter and nine months ended September 30, 2026; unaudited. Amounts are U.S. dollars. Comstock is developing solar-panel recycling and metal recovery, renewable fuels, and strategic investments. It completed the sale of its former mining business on August 21, 2026.

Financial performance and position

  • Q3 revenue: $367,251, up from $54,079 a year earlier. Metals generated $341,751, mainly from decommissioning services; the first commercial recycling facility began continuous operations late in the quarter.
  • Q3 earnings: Net loss was $753,455 ($0.01 per share), compared with a $12.9 million loss ($0.31 per share) in Q3 2025. The quarter recorded $14.0 million of mining-sale gain, which drove reported operating income of $2.2 million; excluding that gain, operations remained substantially loss-making. A $3.1 million derivative fair-value loss was a significant offset.
  • Nine-month results: Revenue was $953,531, down 19% from $1.18 million. Net loss widened to $35.6 million from $29.8 million ($0.49 versus $0.94 loss per share). Operating loss was $33.7 million, despite $15.4 million of gains on property, mineral and royalty sales.
  • Margins and expenses: Cost of goods sold exceeded revenue in both the quarter and nine-month period, reflecting early facility commissioning and startup costs. The filing does not provide a useful positive gross margin; gross loss was $606,061 for Q3 and $1.79 million for nine months. Nine-month SG&A increased $8.0 million to $22.0 million, while R&D decreased $0.9 million to $6.8 million.
  • Unusual charges: Bioleum-related impairment charges totaled $16.4 million in the first nine months: $13.6 million of technology intangibles, $1.7 million of capitalized engineering costs and $1.0 million of an investment. The company said certain technologies were no longer relevant to its plans.
  • Cash flow: Nine-month operating cash use was $25.3 million, versus $18.5 million in 2025; investing cash use was $8.5 million, versus $11.1 million. Financing provided $56.4 million, mainly from stock issuance. Cash rose to $39.5 million from $17.0 million at year-end 2025; this excludes $4.0 million of restricted cash.
  • Liquidity and obligations: Current assets were $47.7 million and current liabilities $14.4 million, for working capital of $33.3 million. Management reported no outstanding debt, but the balance sheet includes a $10.9 million Marathon SAFE liability, $12.1 million of operating lease liabilities, and other obligations. The company reported an accumulated deficit of $414.3 million.
  • Equity and dilution: Common shares outstanding increased to 76.0 million at September 30 from 51.9 million at December 31, 2025. A January 2026 offering and over-allotment generated approximately $53.1 million net; the ATM program had $94.2 million of capacity remaining at quarter-end.

Material changes and transactions

  • The mining-asset sale generated $20 million cash, 2 million restricted Mackay Parent shares valued at $4.38 million, and a $14.0 million recognized gain. A further $7 million is due within 18 months, recorded at $5.84 million present value; up to $2 million may be paid in shares. Potential additional consideration includes a $10 million contingent payment and a 1.5% net smelter returns royalty, both excluded from recognized sale gain because receipt is uncertain. Mackay assumed the associated reclamation obligations.
  • Comstock invested heavily in Sierra Springs Opportunity Fund (SSOF), increasing its ownership from 16.99% to 47.63% at quarter-end; it remained an equity-method investment and was not consolidated. The investment carrying value was $49.2 million. After quarter-end, another $1.5 million investment increased ownership to 48.64%.
  • The first industry-scale solar recycling facility was commissioned and placed in continuous service. Management describes capacity of up to 100,000 tons per year per production line, with initial scale-up planned at approximately 25,000 tons. Metals deferred revenue for unprocessed services was $4.55 million at quarter-end.
  • After quarter-end, the board authorized a repurchase program of up to 15 million shares; the program is discretionary and does not require the company to repurchase shares.

Outlook, risks and contingencies

  • Management believes existing and expected funding sources will cover operations and commitments for the 12 months after issuance of the financial statements. It cites cash, mining-sale proceeds, recycling receipts, asset monetizations and possible subsidiary-level equity funding; additional financing is not assured.
  • The Great Basin pipeline agreement requires escalating financial assurance, expected to reach approximately $39 million by December 31, 2026 and $54 million by December 31, 2027. The company had deposited $4 million at quarter-end and $2 million more on October 9, leaving an estimated incremental requirement of approximately $19 million under the stated surety arrangement. Expected SSOF or third-party support was not finalized. If the facilities proceed, 20-year transportation charges are expected to begin in November 2028; termination or default could require reimbursement of project costs.
  • Management says it is on track for its 2026 Metals objectives, including commissioning the first plant, securing supply contracts, advancing further sites and developing metal recovery. It estimates approximately $15 million of capital expenditures for each additional facility and plans at least four more over five years. Revenue growth depends on customer contracts, pricing and operating performance.
  • Bioleum remains development-stage and generated no revenue through the period described for Hexas. Management plans to pursue demonstration projects and non-dilutive funding; further impairment or financing needs remain possible.
  • Two material lawsuits are disclosed: former Bioleum shareholders’ claims concerning governance and alleged inducement, and a developer’s claims alleging unpaid license commitments and seeking intellectual-property-related relief. The company disputes both; management does not consider a loss probable but says an adverse outcome could be material. Loss ranges are not estimable.
  • Other risks include uncertainty over Mackay’s deferred and contingent consideration, restricted-share value and marketability; execution and scale-up of recycling operations; dependence on financing and asset sales; and potential additional Fuels impairments. Management reported disclosure controls effective at September 30, 2026.

Important facts for investors to verify

  • Whether the commercial recycling plant achieves planned throughput, yields, customer volumes and positive unit economics, and when deferred service revenue converts to recognized revenue and cash.
  • How the company will meet Great Basin collateral requirements, whether SSOF or surety financing is finalized, and the resulting effect on unrestricted liquidity.
  • Timing, collectability and security value for Mackay’s $7 million deferred payment, plus the prospects for contingent consideration and the royalty.
  • SSOF’s valuation, governance and related-party arrangements, including the proposed exchange of company land for SSOF property interests and additional SSOF equity.
  • Potential outcomes and financial exposure from the Bioleum and developer litigation, and whether further Bioleum impairments or funding needs arise.
  • Cash runway and prospective dilution, including the balance between the authorized share repurchase and the company’s capital, operating and collateral needs.