Aqua Metals, Inc.

For Q1 2026, Aqua Metals reported a net loss of approximately $4 million, or $1.22 per basic and diluted share, versus a net loss of approximately $8.3 million, or $10.27 per basic and diluted share in Q1 2025. Total operating expenses were approximately $4.1 million, down from approximately $8.7 million a year ago, with the year-over-year improvement mainly attributed to prior-year noncash impairment charges that did not recur. The company ended the quarter with approximately $6.8 million in cash and cash equivalents and about $7.5 million in working capital, while cash used in operating activities was approximately $3.8 million. During the quarter, it raised approximately $1.3 million in net proceeds under its ATM program, and approximately $48.6 million remained available under that facility. Guidance was qualitative rather than numeric: management said priorities for the rest of 2026 are site selection, engineering and technical validation, expanding commercial engagement, and evaluating strategic opportunities to accelerate commercialization; no next-quarter or full-year revenue/EPS guidance was provided.

Steve Cotton framed the quarter as a commercialization and strategic broadening period, saying the company is advancing toward its first commercial lithium battery recycling facility while also expanding into critical minerals and energy storage markets. He emphasized that Aqua Metals stayed disciplined through the industry downturn, preserved capital, and continued technical work, which he said leaves the company in a resilient position. He also highlighted technical validation, including more than 5,000 operating hours and battery-grade lithium carbonate from NMC and LFP feedstocks, and said the company believes its process has a competitive cost profile and could support a domestic battery supply chain.

Eric West focused on the financial improvement and capital preservation. He reported a Q1 2026 net loss of approximately $4 million, operating expenses of approximately $4.1 million, cash and cash equivalents of approximately $6.8 million, working capital of approximately $7.5 million, and operating cash use of approximately $3.8 million. He also said the company raised approximately $1.3 million under the ATM, with about $48.6 million remaining available, and noted a provision for credit losses of approximately $437,000 related to Lion Energy exposure. On Lion, he said total exposure tied to the financing activities was approximately $4.1 million and that Aqua remains in a senior secured position behind the ABL lender, while continuing to monitor recovery scenarios and preserve optionality.

Analysts pressed management on why Aqua Metals отказed from the Lion Energy transaction, what recovery is possible on the outstanding exposure, and whether alternative structures are still being discussed. Steve said the original structure no longer fit the company’s capital discipline, risk profile, or shareholder-value objectives, but that the broader strategic thesis around energy storage remains intact and alternatives could include selected assets, technologies, or customer channels in a more capital-efficient format. Eric added that the company’s total Lion-related exposure was about $4.1 million, that a partial reserve was taken under GAAP due to increased uncertainty, and that Aqua’s secured position may still provide recovery paths depending on collateral and restructuring outcomes. On milestones, Steve said the near-term focus is site selection for the first commercial facility, with emphasis on feedstock, infrastructure, permitting, workforce, and strategic partner proximity; he also said commercial relationships with partners such as 6K Energy, Westwin, American Battery Factory, Impossible Metals, and Mobi are deepening but are likely to convert only as site and project structure mature.