International Battery Metals (IBAT) Q2 2026 earnings summary

Executive summary

• CEO highlighted a strategic shift to align technology and business model with evolving customer needs and market realities, focusing on scalable, low-cost, and environmentally responsible DLE technology.

• Plant upgrades are being considered to address lower lithium concentrations in new opportunities, with potential capital expenditures ranging from $1 million to $10 million for capacity expansion.

• Three revenue models are being pursued: technology licensing, plant sales with licensing, and strategic partnerships with resource owners.

• Commercial traction is increasing, with multiple brine testing engagements and an exclusive collaboration agreement signed with NESR in the Middle East.

Financial highlights

• Second quarter 2026 revenue was $64,000, up from $7,500 in the first quarter, but down from $639,000 in the same quarter last year due to the end of a major contract.

• Operating expenses were approximately $500,000, flat year-over-year.

• SG&A expenses decreased to $2.2 million from $2.9 million last year, mainly due to lower non-cash stock compensation and legal fees.

• Net income for the quarter was $3 million, down from $16.7 million last year, primarily due to lower non-cash warrant liability income.

• Net income per share was $0.01, compared to $0.07 last year.

Capital allocation and financing

• Cash on hand as of September 30, 2025, was $9.4 million, down from $10.7 million on March 31, 2025.

• Completed private placements totaling $7 million in gross proceeds, with additional purchase rights for $2 million through year-end.

• Management believes current cash and recent funding are sufficient for at least the next 12 months.