Energy Vault 2025 Q1 Earnings Misses Targets as Net Loss Widens 0.2%

Energy Vault (NRGV) reported its fiscal 2025 Q1 earnings on May 13th, 2025. The company missed the Zacks Consensus Estimate for revenues by a substantial margin, posting $8.53 million against expectations. Net loss figures remained challenging, demonstrating ongoing financial headwinds. Guidance remains in line with previous estimates, with strategic plans aimed at improving cash flow and reducing operating expenses in the coming quarters.

Revenue
Energy Vault's revenue in 2025 Q1 increased by 10.0% to $8.53 million from $7.76 million in 2024 Q1. The sale of energy storage products was the largest contributor, generating $4.89 million. Intellectual property licensing followed, bringing in $3.25 million. Operation and maintenance services added $276,000, while software licensing accounted for $112,000. The overall revenue growth reflects diverse business segments.

Earnings/Net Income
Energy Vault's EPS remained unchanged at $-0.14 in 2025 Q1 compared to 2024 Q1, while the net loss widened to $-21.17 million, marking a slight 0.2% increase from the previous year. Continued losses over five years indicate persistent financial struggles.

Price Action
The stock price of Energy Vault surged 24.47% during the latest trading day, 58.06% over the last full trading week, and 65.15% month-to-date.

Post-Earnings Price Action Review
Investing in Energy Vault Holdings Inc (NRGV) despite revenue misses is considered high-risk, with potential for substantial losses. The stock has underperformed, declining about 66.5% year-to-date versus the S&P 500’s -3.8% drop, indicating a challenging market environment. Energy Vault's history of missing earnings and revenue expectations, coupled with negative financial metrics like a net margin of -73.37% and return on equity of -47.41%, suggests ongoing struggles. Analysts have set a low price target, indicating potential downside from the current price. While recent strategic developments such as the 10-year licensing agreement in India offer long-term prospects, they lack immediate positive catalysts for price recovery. The risk of further decline remains due to financial difficulties and revenue challenges. Investors should weigh their risk tolerance and investment horizon carefully, considering historical performance and current market conditions.

CEO Commentary
"We made good progress in the quarter across a series of growth drivers including first battery project construction in Australia...Our geographic customer diversity and existing owned storage assets...has helped to offset a very volatile U.S. market environment...Importantly, as expected, Q1 also saw the first project financing close and thus a 57% increase in total cash for the quarter...including already executed contracts for monetization of our investment tax credits," said Robert Piconi, Chairman and CEO of Energy Vault.

Guidance
Near-term targets include reducing quarterly adjusted operating expenses by 15-25%, aiming for a run rate of $12-14 million compared to $16.2 million in Q1 2025. The 57 MW / 114 MWh Cross Trails project financing is expected to close during Q2 2025, yielding approximately $20 million in gross proceeds, with an additional $12 million anticipated from the transfer and sale of investment tax credits.

Additional News
Energy Vault recently appointed Dylan Hixon, a leading technology investor, to its Board of Directors, enhancing strategic leadership and vision. The company also received notice from the NYSE on continued listing standards, reflecting challenges but maintaining operational resolve. Additionally, Energy Vault issued its 2024 Sustainability Report, achieving the highest S&P Global rating in the energy storage industry, showcasing its commitment to environmental responsibility and industry leadership.