Energy Vault Reports Revenue Increase to $8.5 Million in Q1 2025

Energy Vault Holdings, Inc. reported its financial results for the first quarter of 2025, revealing a revenue increase to $8.5 million, up from $7.8 million in the same period last year. The growth was primarily driven by $3.6 million in revenue from intellectual property licensing, operation and maintenance services, and software licensing, which were not present in the prior-year period. However, this was partially offset by a decline of $2.8 million in sales of energy storage products. The company recorded a gross profit of $4.9 million, resulting in a gross profit margin of 57.1%, compared to 26.7% in the previous year, largely due to the higher-margin IP licensing revenue.

In terms of operational performance, Energy Vault's total operating expenses decreased slightly to $25.8 million from $26.7 million year-over-year. Notably, research and development expenses fell significantly by $3.1 million to $3.8 million, attributed to cost-control measures and a reduction in headcount. Conversely, general and administrative expenses rose by $2.2 million, reflecting increased personnel-related costs. The company reported a net loss of $21.2 million, which was consistent with the loss of $21.1 million from the previous year.

Energy Vault's balance sheet showed total assets of $217.4 million as of March 31, 2025, an increase from $183.9 million at the end of 2024. The company’s cash and cash equivalents decreased to $17.8 million from $27.1 million, while restricted cash rose significantly to $29.3 million, primarily due to the CRC Bridge Loan. The company’s liabilities also increased, with total liabilities reaching $102.5 million, up from $57.6 million at the end of the previous year, largely due to the new debt incurred.

Strategically, Energy Vault is transitioning from a build-and-transfer model to also owning energy storage assets in select markets. The company has made significant moves, including a licensing agreement with an Indian infrastructure company to deploy its B-Vault technology and a commitment to sell investment tax credits expected to generate approximately $39.9 million. Additionally, the company is actively exploring alternative sourcing options for its products in response to recent tariffs imposed on imports from China, which have significantly impacted its cost structure.

Looking ahead, Energy Vault anticipates continued challenges due to macroeconomic factors, including inflation and supply chain disruptions. The company has a backlog of $648 million and a developed pipeline valued at $2.1 billion, which it expects to convert into revenue. Management believes that its current cash position, along with anticipated proceeds from tax credits and equity financing, will be sufficient to fund operations for at least the next twelve months. However, the company acknowledges the ongoing risks associated with its business model and market conditions, which could affect its ability to achieve profitability in the future.