Comstock Inc. Reports 84% Revenue Growth in Q1 2025, Faces Increased Losses

Comstock Inc. reported a significant increase in revenue for the first quarter of 2025, generating $785,815 compared to $425,951 in the same period last year, marking a growth of approximately 84%. This increase was primarily driven by higher revenues from the company's Metals Segment, which accounted for $748,765, largely due to decommissioning services and sales of recycled materials. However, the company also faced a cost of goods sold of $886,796, reflecting the operational challenges of its first commercial demonstration facility, which is currently operating below full capacity.

The company's total operating expenses rose to $6,937,767, up from $5,075,514 in the prior year, largely due to a substantial increase in research and development costs, which surged to $3,303,918 from $892,013. This increase was attributed to higher expenses related to renewable fuel projects and significant rent expenses associated with research and development activities. Despite a decrease in selling, general, and administrative expenses, the overall loss from operations widened to $7,038,748, compared to a loss of $4,649,563 in the previous year.

In terms of strategic developments, Comstock has made notable investments, including a $500,000 investment in Hexas Biomass Inc. for exclusive rights to its intellectual properties in liquid fuels applications. The company also entered into a series of agreements with Marathon Petroleum Corporation, which included a $14 million equity investment and the acquisition of payment-in-kind assets valued at $12 million. These strategic moves are part of Comstock's broader goal to enhance its capabilities in renewable fuels and metals recycling.

Operationally, Comstock's cash and cash equivalents increased significantly to $3,906,773 as of March 31, 2025, up from $954,271 at the end of 2024. The company reported a working capital surplus of $7,076,579, indicating a solid liquidity position. However, it also recorded a net loss of $9,093,931 for the quarter, compared to a loss of $6,918,320 in the prior year. The company attributed this loss to increased operational costs and expenses related to its ongoing projects.

Looking ahead, Comstock aims to capitalize on its recent strategic investments and operational improvements to drive future growth. The company plans to fund its operations through revenues from its solar panel recycling business, government grants, and equity financing. Management expressed confidence in their ability to sustain operations and meet commitments over the next twelve months, although they acknowledged the inherent risks associated with securing additional financing and the potential impact of market conditions on their business.