ABAT Revenue Soars 64% to $7.8 Million in Strong Q3

American Battery Technology Company (NASDAQ: ABAT) reported third-quarter revenue of $7.8 million, a 64 percent jump from the prior quarter, and achieved its first-ever positive gross margin driven by scaled-up recycling operations.

"Demonstrating positive gross margin from operations is a major milestone that many growth companies never achieve and allows us to enable self-sustaining operations of our critical mineral recycling facility," Chief Executive Officer Ryan Melsert said in a statement.

The battery recycler's revenue for the quarter ended March 31 was fueled by a significant ramp-up at its Nevada facility, while cost of goods sold increased only 11 percent to $7.1 million. This resulted in a gross margin of $0.7 million. The company also reported a strong liquidity position with $38.5 million in cash and no debt. While the press release highlighted a non-GAAP adjusted gross margin of $2.0 million, the company's 10-Q filing revealed a quarterly net loss of $33.8 million, or $0.26 per share, widened by $27.6 million in stock-based compensation.

ABAT's primary focus remains on two fronts: expanding its recycling business and developing its primary lithium resource. The company is advancing a second recycling plant in the Southeast U.S. and progressing its Tonopah Flats Lithium Project in Nevada. The project's pre-feasibility study shows a potential after-tax net present value of $2.57 billion. The project was also designated as a Fast-41 covered project, intended to streamline federal permitting.

The company's stock rose 2.59 percent following the announcement, a more muted reaction compared to the average 9.4 percent move seen after its last five earnings-related releases. Peers in the sector showed mixed performance, with Li-Cycle Holdings (LNZA) gaining 9.79 percent while others like Evergreen Services (ESGL) and Novanta (NVRI) saw minor declines.

The positive gross margin marks a significant step toward profitability for the growth-stage company, but the heavy net losses underscore its reliance on external financing and government support to fund its ambitious expansion plans. Investors will be watching for sustained margin improvement and progress on the Tonopah Flats project, with the definitive feasibility study expected to be a key upcoming catalyst.

This article is for informational purposes only and does not constitute investment advice.