NET Power Inc. Reports $373.6 Million Net Loss and Stagnant Revenue in Latest 10-Q Filing

NET Power Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending March 31, 2025. The company recorded a net loss of $373.6 million, a substantial increase from a loss of $41.6 million in the same period last year. This loss was primarily driven by a goodwill impairment charge of $359.8 million, reflecting a reassessment of the company's business plan and a decrease in market capitalization. Total operating expenses surged to $474.6 million, compared to $38.8 million in the prior year, largely due to increased research and development costs and project development expenses.

The company's revenue remained stagnant at $0 for both the current and previous fiscal periods, indicating ongoing challenges in generating income from its operations. General and administrative expenses rose by 36% to $8.7 million, while research and development expenses more than doubled to $22.6 million, reflecting intensified efforts in technology development and testing at the Demonstration Plant. Additionally, project development costs increased significantly as the company began expensing costs related to its first utility-scale project, Project Permian, which has faced delays and cost overruns.

In terms of operational metrics, NET Power's cash and cash equivalents decreased to $300.0 million from $329.2 million at the end of 2024. The company also reported a total liquidity position of $500.8 million, down from $530.2 million. The decrease in cash flow from operating activities was notable, with a net cash outflow of $20.4 million for the quarter, compared to $2.7 million in the same period last year. This increase in cash usage is attributed to higher expenditures related to R&D and project development.

Strategically, NET Power has initiated a value engineering process for Project Permian to address higher-than-expected cost estimates. The company has paused further long-lead equipment releases while it assesses the project's feasibility. Additionally, NET Power has made organizational changes, including the termination of certain management team members, which is expected to incur severance costs between $3.0 million and $3.3 million. The company anticipates that these strategic adjustments will help streamline operations and improve financial performance moving forward.

Looking ahead, NET Power remains focused on advancing its technology and commercializing its power generation system. The company plans to continue its research and testing efforts at the Demonstration Plant while navigating the challenges associated with Project Permian. However, the need for additional funding to support the construction of its first utility-scale plant remains a critical concern, as the company aims to secure the necessary capital to facilitate its growth and operational objectives.