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Introduction & Market Context
Energy Vault Holdings Inc. (NYSE:NRGV) released its second quarter 2025 financial results on August 7, showcasing significant year-over-year revenue growth while maintaining a strategic focus on expanding its owned and operated energy storage assets. The company’s stock closed at $1.40 on August 7, up 19.66% for the day, though pre-market trading on August 8 showed an 11.43% decline, reflecting continued volatility in investor sentiment.
The energy storage company is executing a strategic pivot from primarily being a technology provider to establishing a portfolio of owned and operated assets, aiming to build a base of recurring revenue and EBITDA. This transition comes amid growing global demand for grid-scale energy storage solutions to support renewable energy integration.
Quarterly Performance Highlights
Energy Vault reported Q2 2025 revenue of $8.5 million, representing a 126% increase year-over-year, though remaining flat compared to Q1 2025. Gross margin reached 29.6%, an improvement from 27.8% in the same quarter last year but a significant decrease from the 57.1% achieved in Q1 2025.
As shown in the following performance summary:
The company’s backlog grew to $954 million as of August 7, 2025, representing a 120% increase year-to-date. This substantial backlog growth indicates strong future revenue potential as these projects move toward execution. Energy Vault also reported adjusted EBITDA of ($13.7 million), an 11% improvement compared to Q2 2024, though a deterioration from Q1 2025’s ($11.3 million).
The company’s cash position strengthened to $58.1 million, a 23% improvement compared to Q1 2025, reversing the previous declining trend in cash reserves.
A more detailed breakdown of the quarterly financial results shows the comparative performance across key metrics:
Strategic Initiatives
The most significant strategic development announced in the Q2 presentation is Energy Vault’s exclusive agreement for a $300 million preferred equity investment to launch "Asset Vault," an initiative designed to accelerate the company’s transition to an owner-operator business model.
This investment is expected to accelerate Energy Vault’s timeline for generating annual recurring EBITDA of over $100 million within the next 3-4 years from projects currently in operation and under active development. The initiative represents a fundamental shift in the company’s business model, moving from primarily selling technology to building a portfolio of owned assets that generate long-term, predictable cash flows.
Energy Vault’s commercial pipeline continues to expand, with a developed pipeline of 5.9 GWh valued at $2.4 billion as of August 7, 2025:
Project Updates
Energy Vault highlighted several key projects that demonstrate its execution capabilities and strategic direction. The Cross Trails project in Texas represents the company’s first fully owned and operated energy storage system in the United States, having achieved commercial operation in May 2025 after a remarkably quick six-month deployment timeline.
In California, the Calistoga Resiliency Center (CRC) has reached operation-ready status, with a ribbon-cutting ceremony held on August 1, 2025. This project represents the first of its kind as a long-duration hybrid hydrogen/battery energy storage system.
The company is also expanding internationally with the Stoney Creek project in New South Wales, Australia. This 125MW/1,000MWh battery energy storage system will be Energy Vault’s first fully owned and operated project in Australia and is backed by a 14-year Long-Term Energy Service Agreement with AEMO Services.
These projects form the foundation of Energy Vault’s growing portfolio of owned and operated assets, which the company expects to generate approximately $30 million in project-level annual EBITDA over 15-20 year operational lifespans.
Financial Outlook
Energy Vault projects continued improvement in its cash position and asset base through the remainder of 2025. The company expects its cash position to reach $60-75 million by Q3 2025, supported by returns from energy asset investments and strengthened liquidity from project financing, investment tax credits ( ITC (NSE:ITC)), and preferred equity investments.
The company’s financial strategy appears focused on leveraging project financing and tax incentives to support its transition to asset ownership while maintaining adequate liquidity. This approach aims to balance growth investments with cash preservation, addressing previous investor concerns about cash burn rates.
Forward-Looking Statements
Energy Vault’s presentation indicates a clear strategic direction focused on building a geographically balanced portfolio of owned and operated energy storage assets to generate long-term, recurring revenue and EBITDA. The $300 million preferred equity investment for Asset Vault represents a significant vote of confidence in this strategy.
While the company has demonstrated strong year-over-year revenue growth and backlog expansion, the sequential flatness in revenue and decline in gross margin from Q1 to Q2 2025 suggest potential execution challenges that investors will be watching closely. The significant pre-market stock decline following the earnings release indicates continued investor uncertainty despite the positive long-term strategic developments.
Energy Vault’s success will depend on its ability to efficiently deploy capital into its owned asset portfolio while maintaining financial discipline and delivering on its project execution timelines. The company’s target of achieving $100 million in recurring annual EBITDA represents an ambitious goal that would significantly transform its financial profile if achieved within the projected 3-4 year timeframe.
Full presentation:
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