Second Quarter 2026
Filed Aug 13, 2026TMC Provides Second Quarter 2026 Corporate Update
The net loss narrowed from the prior-year quarter and liquidity was approximately $143 million, but exploration and evaluation expense rose to $56.1 million, including $37.2 million in Allseas-related initial and negotiated costs, while commercial operations remain dependent on permitting, execution and government funding.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Exploration and evaluation expensesother | $56.1 million | – | – |
| General and administrative expensesother | $15.6 million | – | – |
| Operating lossGAAP | $71,717 thousand | – | – |
| Charge on Allseas settlementGAAP | $7,868 thousand | – | – |
| Nauru warrant costGAAP | - | – | – |
| Equity-accounted investment loss (income)GAAP | $1,525 thousand | – | – |
| Gain on dilution of investmentGAAP | $(18,469) thousand | – | – |
| Change in fair value of warrant liabilityGAAP | $(2,162) thousand | – | – |
| Foreign exchange loss (gain)GAAP | $(146) thousand | – | – |
| Interest incomeGAAP | $(1,040) thousand | – | – |
| Fees and interest on borrowings and credit facilitiesGAAP | $714 thousand | – | – |
| Loss and comprehensive loss for the period, before taxGAAP | $60,007 thousand | – | – |
| Income tax expenseGAAP | $116 thousand | – | – |
| Net loss and comprehensive loss for the period, after taxGAAP | $60.1 million | – | – |
| Net loss per share - Basic and dilutedGAAP | $0.14 | – | – |
| Weighted average number of common shares outstanding - basic and dilutedGAAP | 433,243,064 | – | – |
| Net cash used in operating activities for the quarter ended June 30, 2026GAAP | $20.1 million | – | – |
| Net cash used in operating activities for the six months ended June 30, 2026GAAP | $(20,715) thousand | – | – |
| Net cash (used in) generated from investing activities for the six months ended June 30, 2026GAAP | $(916) thousand | – | – |
| Net cash provided by financing activities for the six months ended June 30, 2026GAAP | $2,775 thousand | – | – |
| CashGAAP | $98.7 million | – | – |
| Financial debtGAAP | no financial debt | – | – |
| Current liquidity available from cash on hand and credit facilitiesother | approximately $143 million | – | – |
Q4 2027 outlook
- NoteCommissioning targeted to begin in Q4 2027, subject to regulatory approvals.
- NoteThe commercial system is expected to have a nameplate production capacity of 3.0 million wet tonnes of nodules per annum.
- NoteThe Company continues to expect the permit in advance of targeted Q4 2027 offshore collection system commissioning.
- NoteThe Company believes that its cash position will be sufficient to meet its working capital and capital expenditure commitments for at least the next twelve months from today.
What drove it
- The second quarter of 2026 included $37.2 million in settlement of initial costs and other negotiated costs owed to Allseas following the signing of a development and operating agreement.
- Exploration and evaluation expense also reflected higher share-based compensation expense and an increase in prefeasibility study costs.
- General and administrative expense reflected higher share-based compensation and payroll costs.
- Allseas continued engineering, project management and vessel-use activities under its definitive agreement with TMC.
- TMC USA entered into a Master Services Agreement with Mariana Minerals for concept development and technical design work for a proposed processing and refining industry park at the Port of Brownsville, Texas.
- TMC and Eco Minerals entered into a Mutual Master Services Agreement for vessel charter, marine survey, mapping, sampling and autonomous survey services, subject to vessel availability.
Concerns
- The Company said there has been a delay of a few months in the USA-A consolidated application certification process.
- NOAA certification is an intermediate eligibility determination and not the final issuance of a license or permit.
- Commissioning is targeted to begin in Q4 2027 and is subject to regulatory approvals.
- The Company stated that future domestic onshore capital spending is contingent on a majority of funding coming from U.S. government sources.
- The Company does not currently intend to pursue other capital market transactions until one or more U.S. agency funding processes are completed.
- The filing identifies risks relating to the scope, timing and outcome of NOAA review, public comments, lack of a mandatory statutory deadline under DSHMRA, possible legal challenges, contractor performance, commercial-scale processing and access to capital.
What to watch
- Progress and final outcome of NOAA review of the USA-A consolidated application and USA-B exploration license application.
- Timing of the permit relative to targeted Q4 2027 offshore collection system commissioning.
- Results of funding processes with multiple U.S. agencies and whether funding terms support planned domestic onshore capital spending.
- Allseas' engineering, development, commissioning and operation of the commercial collection system with a nameplate capacity of 3.0 million wet tonnes of nodules per annum.
- Whether the Mariana Minerals program establishes plant feasibility and design basis on acceptable terms.
- Whether contemplated definitive agreements and processing collaboration with Eco Minerals proceed, subject to government financing and required approvals.
Balance sheet and cash flow
- Cash of approximately $98.7 million as of June 30, 2026.
- No financial debt as of June 30, 2026.
- Current liquidity available from cash on hand and credit facilities of approximately $143 million as of June 30, 2026.
- Cash - end of period: $98,655 thousand.
- Cash - beginning of period: $117,633 thousand.
- (Decrease) increase in cash for the six months ended June 30, 2026: $(18,856) thousand.
- Investments: $32,842 thousand as at June 30, 2026.
- Royalty liability: $145,000 thousand as at June 30, 2026.
- Allseas obligation settled with equity: $43,176 thousand for the three months ended June 30, 2026.
Analysis
TMC reported a net loss of $60.1 million, or $0.14 per share, for the quarter ended June 30, 2026, compared with a net loss of $74.3 million, or $0.20 per share, for the quarter ended June 30, 2025. The company remains in a development phase, and the release did not report revenue, gross profit, gross margin or operating segments. Operating loss was $71,717 thousand, compared with $21,975 thousand in the prior-year quarter.
The principal cost movement was exploration and evaluation expense of $56.1 million, compared with $10.5 million in the prior-year quarter. TMC attributed the second-quarter expense to $37.2 million of settlement of initial and other negotiated costs owed to Allseas, higher share-based compensation expense and increased prefeasibility study costs. General and administrative expense was $15.6 million, compared with $11.5 million, reflecting higher share-based compensation and payroll costs. Other items included a $7,868 thousand charge on the Allseas settlement and a $(18,469) thousand gain on dilution of investment.
Liquidity was approximately $143 million from cash on hand and credit facilities as of June 30, 2026. Cash was approximately $98.7 million and the company reported no financial debt. TMC said $20.1 million of cash was used in operations during the quarter, including $9 million of equity-award withholding remittances. For the six months ended June 30, 2026, net cash used in operating activities was $(20,715) thousand, net cash used in investing activities was $(916) thousand, and net cash provided by financing activities was $2,775 thousand. The company stated that its cash position is sufficient for working-capital and capital-expenditure commitments for at least the next twelve months from today.
Operationally, TMC is advancing both its offshore system and a proposed U.S. processing route. Allseas continued engineering, project management and vessel-use work on the Hidden Gem commercial collection system. The system is expected to have a nameplate production capacity of 3.0 million wet tonnes of nodules per annum, with commissioning targeted to begin in Q4 2027, subject to regulatory approvals. TMC USA also entered into a phased Master Services Agreement with Mariana Minerals for feasibility and design work at the Port of Brownsville, while the Eco Minerals agreement is intended to provide exclusive vessel-charter access and survey capabilities, subject to vessel availability.
The central milestones remain regulatory and funding dependent. The USA-A and USA-B applications continue through NOAA review, and management disclosed a delay of a few months in the USA-A consolidated application certification process while maintaining an expectation of a permit in advance of Q4 2027 commissioning. TMC is engaged in confidential funding processes with multiple U.S. agencies, does not currently intend to pursue other capital-market transactions until one or more processes are completed, and states that a majority of funding for future domestic onshore capital spending must come from U.S. government sources.
Management, verbatim
The regulatory picture is becoming clearer as our applications continue to progress through NOAA’s review process.
Gerard Barron, Chairman & CEO of TMC
As I’ve said before, our future onshore capital spending domestically is contingent on a majority of the funding coming from U.S. government sources.
Gerard Barron, Chairman & CEO of TMC
A secure U.S. critical seabed minerals supply chain is moving from policy ambition to physical execution, and TMC is proud to play a leading role.
Gerard Barron, Chairman & CEO of TMC
Not in the filing
stated, not guessed- Total revenue was not reported.
- Segment revenue and segment comparisons were not reported.
- Gross profit and gross margin were not reported.
- Non-GAAP operating income, net income and EPS were not reported.
- Free cash flow was not reported.
- A quarterly cash flow statement was not reported; only a press-release statement of quarterly cash used in operations was provided.
- Share repurchases and dividends were not reported.
- Prior-quarter comparisons for reported income-statement, cash-flow and balance-sheet metrics were not reported.
- Percentage year-over-year and quarter-over-quarter changes were not reported for the listed metrics.
- Financial revenue, gross-margin, operating-expense and tax-rate guidance were not reported.
- Previous-quarter outlook was not provided.
AlphaAI 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.