Westwater Resources Reports $4.7 Million Net Loss for Q1 2026 Amid Increased Costs

Westwater Resources, Inc. reported a net loss of $4.7 million, or $0.04 per share, for the three months ended March 31, 2026, compared to a net loss of $2.7 million, or $0.04 per share, for the same period in 2025. The increase in loss was attributed to higher costs associated with permitting activities for the Coosa Graphite Deposit, increased stock-based compensation expenses, and greater product development costs. Total operating expenses rose to $4.6 million from $2.6 million year-over-year, driven by a significant increase in general and administrative expenses, which reached $3.5 million, up from $2.3 million in the prior year.

The company's financial position showed a decrease in total assets, which fell to $189.1 million as of March 31, 2026, from $194.5 million at the end of 2025. Cash and cash equivalents also declined to $41.5 million from $48.6 million. Westwater's liabilities decreased to $10.4 million from $13.0 million, primarily due to a reduction in current liabilities. The company issued approximately 1.0 million shares of common stock during the quarter, generating net proceeds of $1.2 million under its ATM Sales Agreement, leaving approximately $70.6 million available for future sales under this agreement.

Strategically, Westwater continues to advance its projects, particularly the Kellyton Graphite Plant and the Coosa Graphite Deposit, both located in Alabama. The company is actively engaged in permitting processes for the Coosa Graphite Deposit and has retained a third-party firm to assist with these efforts. Construction activities at the Kellyton Graphite Plant have been ongoing, albeit at a reduced pace due to funding constraints. The company has incurred approximately $129.6 million in costs related to the Kellyton project to date and maintains a cost estimate of $245 million for Phase I, with about $115 million yet to be spent.

Operationally, Westwater has not yet generated revenue from its graphite operations, as it remains in the development stage. The company is focused on securing additional funding to complete construction of the Kellyton Graphite Plant and is exploring various financing options, including government programs and project-level financing alternatives. The company’s ability to raise funds may be impacted by market conditions, interest rates, and other economic factors. Management believes that the current cash balance is sufficient to cover planned expenditures for at least the next year, but acknowledges the uncertainty surrounding future financing needs.

Looking ahead, Westwater Resources is prioritizing the completion of the Kellyton Graphite Plant and the development of the Coosa Graphite Deposit. The company is also exploring new customer agreements following the termination of previous contracts with SK On and FCA. As it navigates these challenges, Westwater remains committed to advancing its business plan while managing costs and preserving capital until additional financing is secured.