Business Context and Reporting Period
Company: Energy Vault Holdings, Inc. (NRGV)
Filing Type: Form 10-Q (Unaudited)
Reporting Period: Quarter and six months ended June 30, 2026
Business Overview: An integrated global energy infrastructure platform building, owning, and operating flexible energy systems for utilities, industrial customers, and the AI/data center market. The company operates as a single reportable segment.
Key Financial Metrics
| Metric (in thousands) | Q2 2026 | Q2 2025 | 6M 2026 | 6M 2025 |
|---|---|---|---|---|
| Revenue | $17,369 | $8,512 | $39,248 | $17,046 |
| Gross Profit | $5,376 | $2,516 | $10,164 | $7,392 |
| Gross Margin | 31.0% | 29.6% | 25.9% | 43.4% |
| Net Loss | $(29,692) | $(34,932) | $(62,177) | $(56,106) |
| Operating Cash Flow | — | — | $(84,361) | $12,629 |
| Cash & Equivalents (End of Period) | $93,043 | — | $93,043 | — |
| Total Debt (Principal) | $264,201 | — | $264,201 | — |
Note: Q2 2025 Operating Cash Flow is not explicitly provided in the text; only the six-month figure is available.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 104% year-over-year for Q2 2026 ($17.4M vs. $8.5M) and 130% for the six months ended June 30, 2026 ($39.2M vs. $17.0M). Growth was driven by energy storage product sales (Australian EPC projects) and tolling/PPA revenue from owned systems.
- Expense Trends: General and Administrative (G&A) expenses increased significantly ($22.7M in Q2 2026 vs. $19.1M in Q2 2025) due to higher legal fees and project development costs, partially offset by lower stock-based compensation. R&D and Sales & Marketing expenses decreased due to headcount reductions.
- Debt Structure: Total debt principal increased from $99.6M (Dec 31, 2025) to $264.2M (June 30, 2026). This includes the issuance of $150M in Senior Convertible Notes and $80M in 2026 Convertible Debentures.
- Cash Flow Shift: Operating cash flow turned negative, using $84.4M for the six months ended June 30, 2026, compared to providing $12.6M in the prior year period. This was driven by a higher net loss, increased payments to suppliers, and cash used for project deposits.
Guidance, Outlook, and Risks
- Outlook: Management believes current cash and restricted cash ($148.0M total) are sufficient to fund operations for at least the next 12 months. The company expects to recognize over $500M in revenue from new data center BESS equipment contracts announced in August 2026.
- Backlog & Pipeline: Backlog stands at $1.52B (2.6 GWh) and the developed pipeline is $4.34B (2.6 GW) as of June 30, 2026.
- Key Risks:
- Tariffs & Trade: Ongoing volatility in U.S. trade policy (Section 301 tariffs, IEEPA rulings) impacts input costs and supply chain availability for B-VAULT products.
- Liquidity & Debt Covenants: The company recently secured waivers for debt service coverage ratio noncompliance on the Cross Trails Credit Agreement and CRC Senior Notes. Future compliance depends on project performance and potential equity cures.
- Regulatory: Changes in tax incentives (IRA, One Big Beautiful Bill Act) and FEOC/PFE restrictions could impact project economics.
- Unusual Items: Recorded a $2.0M impairment on KORE Power equity securities and a $5.4M loss on debt extinguishment during the six months ended June 30, 2026.
Investor Verification Checklist
- Debt Covenants: Verify the status of the debt service coverage ratio waivers for Cross Trails and CRC Senior Notes and the timeline for the next testing dates.
- Revenue Recognition: Confirm the timing of revenue recognition for the new $500M+ data center contracts announced post-period end.
- Restricted Cash: Assess the liquidity impact of $55.0M in restricted cash, which is largely collateralized for debt and project guarantees.
- Tariff Exposure: Evaluate the company's progress in sourcing non-Chinese suppliers to mitigate Section 301 tariff risks.
- Convertible Debt: Review the conversion terms and potential dilution associated with the $150M Senior Convertible Notes and $80M 2026 Debentures.