LanzaTech Reports 48% Revenue Decline and Increased Net Loss in Q2 2025

LanzaTech Global, Inc. reported a significant decline in financial performance for the second quarter of 2025, with total revenues of $9.1 million, down 48% from $17.4 million in the same period last year. The decrease was primarily attributed to a substantial drop in licensing revenue, which fell from $7.5 million to $1.1 million, as well as declines in engineering services and contract research. The company also recorded a net loss of $32.5 million for the quarter, compared to a loss of $27.8 million in the prior year, reflecting a 17% increase in losses.

For the first half of 2025, LanzaTech's total revenues were $18.6 million, a 33% decrease from $27.6 million in the same period of 2024. The company’s net loss for the six months ended June 30, 2025, was $51.7 million, slightly improved from a loss of $53.3 million in the previous year. The decline in revenue was driven by reduced licensing income and project completions, although sales of CarbonSmart products increased significantly, contributing $8 million in the first half of 2025 compared to $1.8 million in the same period last year.

In terms of operational developments, LanzaTech has been focusing on streamlining its business and reducing costs. The company has also been actively pursuing strategic financing options, including a recent agreement to issue 20 million shares of Series A Convertible Senior Preferred Stock for $40 million. This financing is part of a broader strategy to enhance liquidity and support ongoing operations, as the company anticipates that its existing cash reserves will not be sufficient to fund operations for the next twelve months.

As of June 30, 2025, LanzaTech had cash and cash equivalents of $37.4 million, down from $43.5 million at the end of 2024. The company’s accumulated deficit increased to $1.02 billion, reflecting ongoing operational losses. LanzaTech is also facing challenges related to its internal controls, as noted in its filing, with material weaknesses still present in accounting for complex transactions and revenue recognition. The company is taking steps to address these issues while navigating a competitive landscape in the carbon refining industry.

Looking ahead, LanzaTech's management has expressed concerns about its ability to continue as a going concern, emphasizing the need for additional capital to support its business strategy. The company is actively evaluating various liquidity-enhancing initiatives, including potential partnerships and asset-related opportunities, to stabilize its financial position and achieve its operational goals.