fourth quarter of fiscal year 2026 (FY26)
Filed Aug 20, 2026ABAT reports record quarterly revenue and gross profit as a black-mass export directive creates a material revenue risk.
Revenue increased and gross profit reached a record positive level as cost of goods sold declined, while the company reported $50.3 million of cash and $0.0 million of debt. However, sales of black mass represent the majority of revenue, substantially all current black-mass customers are outside the United States, and a federal directive could prevent foreign sales absent an exception or adjustment.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $8.2 million | 5.1% | – |
| Cost of goods soldother | $6.9 million | -2.8% | – |
| Gross profitother | $1.3 million | 86% | – |
| Income from interestother | $0.3 million | – | – |
| Cashother | $50.3 million | 31% | – |
| Unrestricted cashother | $49.5 million | – | – |
| Restricted cashother | $0.8 million | – | – |
| Debtother | $0.0 million | – | – |
What drove it
- Substantially increased throughput and implementation of operational effectiveness of recycling operations.
- Implementation of operational efficiencies decreased cost of goods sold.
- Continued processing of high-value recycled products from Battery Energy Storage Systems supporting datacenters and artificial intelligence facilities, end-of-life electric and hybrid vehicles, and consumer electronics.
- Continued innovation and cost-down optimizations improved gross margins and facility utilization.
- New supply-chain partnerships with BESS facilities and automotive OEMs are intended to provide near-term and long-term material flows.
- The $57 million U.S. Department of Energy grant supporting the $115 million construction of the first processing train at the Tonopah Flats Lithium Project was reinstated.
Concerns
- The reported results are preliminary, unaudited estimates and may differ materially from actual results after financial-statement preparation and review.
- KPMG LLP has not audited, reviewed, compiled, or performed procedures with respect to the preliminary financial data.
- A federal directive takes effect on August 27, 2026, requiring U.S. entities selling black mass to allocate 100% of monthly sales to U.S. persons unless an exception or adjustment is obtained.
- Sales of black mass represent the majority of total revenue, and substantially all current black-mass customers are located outside the United States in OECD countries.
- The company stated that loss of foreign black-mass sales revenue could materially adversely affect revenue, results of operations, financial condition, cash flows, and its ability to fund ongoing operations and growth initiatives.
- The company may be required to seek alternative income sources, reduce operating costs, or pursue additional financing if it cannot obtain relief from the directive.
What to watch
- Whether the Bureau of Industry and Security grants an exception or adjustment to the domestic allocation requirement for black mass.
- Whether the company obtains a temporary license to continue exports while its exception request is pending.
- The effect of the August 27, 2026 directive on foreign black-mass customer sales and the development of domestic customers.
- Publication of full audited fiscal year 2026 financials, expected within 90 days of June 30, 2026.
- Further scale-up, throughput, facility utilization, and operational efficiencies at the Nevada recycling facility.
- Progress on the Definitive Feasibility Study, permitting, and construction planning for the Tonopah Flats Lithium Project.
Balance sheet and cash flow
- $50.3 million cash, including $49.5 million in unrestricted cash and $0.8 million in restricted cash.
- $0.0 million debt, Company currently holds zero debt.
Analysis
ABAT reported preliminary unaudited fourth-quarter FY26 revenue of $8.2 million, up 5.1% from the previous quarter. Cost of goods sold declined 2.8% from the previous quarter to $6.9 million, producing $1.3 million of gross profit. The company described this as its largest ever positive gross profit from operations, with the 86% quarter-over-quarter increase attributed to scale-up, increased throughput, and operational efficiencies at its Nevada recycling facility.
The operational commentary points to a recycling mix that includes Battery Energy Storage Systems supporting datacenters and artificial intelligence facilities, end-of-life electric and hybrid vehicles, and consumer electronics. Management also cited continued cost-down optimization and improved facility utilization. The filing says the facility's ability to handle CERCLA-classified waste and new supply-chain partnerships with BESS facilities and automotive OEMs support its role as a revenue engine and future material flows.
Liquidity was reported at $50.3 million of cash, comprising $49.5 million of unrestricted cash and $0.8 million of restricted cash, while debt was $0.0 million. The company also received reinstatement of a $57 million Department of Energy grant supporting the $115 million construction of the first processing train at the Tonopah Flats Lithium Project. It has initiated the Definitive Feasibility Study and completed and submitted baseline studies for the NEPA review process.
The material issue is the Department of Commerce directive effective August 27, 2026. The company states that black-mass sales constitute the majority of total revenue and that substantially all current black-mass customers are outside the United States in OECD countries. Unless BIS grants an exception or adjustment, the directive's domestic allocation requirement could prevent exports and materially disrupt revenue, operations, cash flows, and funding capacity. The company has submitted an exception request, but stated there is no assurance of approval, commercially favorable terms, or timely relief.
These figures remain preliminary estimated unaudited financial results. The company states its review has not been completed and additional adjustments may be identified, including potentially material adjustments. Full audited fiscal year 2026 financials are expected within 90 days of the fiscal year end of June 30, 2026.
Management, verbatim
We are excited to demonstrate continued scale-up at our Nevada critical mineral recycling facility and the impacts of continued implementation of operational efficiencies, as they exemplify the competitiveness of our technology and market position.
Ryan Melsert, CEO
We are proud of our long-standing partnership with the U.S. Department of Energy, as demonstrated by the fact that very few of the recently terminated grants have been able to successfully appeal the decisions and have their contracts reinstated.
Ryan Melsert, CEO
Not in the filing
stated, not guessed- GAAP basis for reported revenue, cost of goods sold, gross profit, interest income, cash, and debt.
- Non-GAAP metrics and reconciliations.
- Prior-year revenue, cost of goods sold, gross profit, interest income, cash, and debt.
- Gross margin.
- Operating expenses.
- Operating income or loss.
- Net income or loss.
- GAAP EPS.
- Non-GAAP EPS.
- Operating cash flow.
- Free cash flow.
- Capital expenditures.
- Share repurchases.
- Dividends.
- Debt maturities or other debt details.
- Revenue by reportable segment.
- Forward financial guidance.
- Prior outlook for comparison.
- The prior-quarter cash balance.
- The full audited fiscal year 2026 financial statements.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.