NET Power Inc. Reports $206.9 Million Net Loss and Strategic Shift in Latest 10-Q Filing

NET Power Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2026. The company recorded a net loss of $206.9 million for the quarter, compared to a loss of $83.7 million in the same period last year. This resulted in a loss per share of $0.91, a substantial increase from the $0.36 loss per share reported in the prior year. For the first half of 2026, the net loss totaled $232.7 million, down from $455.6 million in the first half of 2025. The company's total operating expenses surged to $209.9 million for the quarter, primarily due to a $193.7 million impairment charge related to its Developed Technology Asset Group, which has been fully impaired.

In terms of operational changes, NET Power has shifted its focus from developing its Oxy-Combustion Cycle technology to traditional natural gas power generation, with plans to accommodate carbon capture in future phases. The company has suspended development activities under its joint development agreement with Baker Hughes, which has contributed to a significant reduction in research and development expenses, down 84% year-over-year. The company is currently developing its Project Permian site in West Texas, which is designed to support up to 1 GW of power generation capacity. However, the initial phase is not expected to include carbon capture technology.

The company’s liquidity position has also deteriorated, with cash and cash equivalents decreasing to $117.9 million from $199.4 million at the end of 2025. Total liquidity, which includes available-for-sale securities, fell to $308.4 million from $376.1 million. Current liabilities were reported at $17.6 million as of June 30, 2026. The company indicated that it has sufficient liquidity to meet its obligations for the next 12 months, but it will require additional capital to fund future commitments, particularly for Project Permian.

NET Power's strategic developments include ongoing negotiations with Entropy Inc. regarding the potential deployment of its post-combustion carbon capture technology, although no definitive agreements have been reached. The company has not entered into any binding power offtake agreements, which are critical for securing project financing. The lack of such agreements, combined with the suspension of its previous technology development, raises concerns about the company's ability to execute its revised business strategy effectively.

Looking ahead, NET Power faces several risks, including the need to secure binding agreements for power offtake, navigate regulatory challenges in Texas, and manage supply chain issues related to equipment procurement. The company has acknowledged that its ability to raise capital may be limited by its current market capitalization and the ongoing volatility of its stock price. As it continues to adapt its business model, the company remains focused on developing its Project Permian site while addressing the financial and operational challenges that lie ahead.