International Battery Metals (IBAT) Q3 2026 earnings summary

Executive summary

• Advanced commercial positioning and deployment of modular direct lithium extraction (DLE/MDLE) technology, focusing on customer needs, long-term partnerships, and environmentally responsible lithium chloride production from brine.

• Continued brine testing and technical evaluations with over 15 brine resources and prospective customers in the US, Argentina, South America, and the Middle East.

• No commercial product sales yet; revenue generated from preliminary brine testing for potential customers.

• MDLE Plant previously deployed at US Magnesium, idled due to low lithium demand and prices, now being marketed to new customers.

• Strategic shift toward offering full flow sheet solutions, from brine pretreatment to battery-grade lithium carbonate, in response to evolving customer needs.

Financial highlights

• Revenue of $30,000 for the quarter ended December 31, 2025, up from negative $4,000 year-over-year, driven by service revenue from brine testing; remains in a pre-commercial phase.

• Net income was $0.8 million, or $0.00 per share, compared to a net loss of $10.9 million, or $(0.04) per share, year-over-year, primarily due to a $3.8 million non-cash gain from warrant liability revaluation.

• Operating expenses were approximately $450,000, flat year-over-year; SG&A expenses decreased to $1.8 million from $2.1 million.

• Cash on hand at December 31, 2025, was $9.1 million, down from $10.7 million at March 31, 2025; working capital of $9.6 million.

• For the nine months ended December 31, 2025: revenue of $101,000, net income of $5.4 million, compared to a net loss of $3.8 million in the prior year period.

Outlook and guidance

• Aims to secure one or more commercial commitments within the next 6-12 months, targeting deployment of the existing facility and additional agreements for late 2026 or early 2027.

• Plans to deploy a modular pilot facility for customer brine testing and feasibility studies, with customizations requiring $1–10 million depending on customer needs.

• Management believes current capital is sufficient for at least twelve months, but additional fundraising is anticipated within six months for high-end customizations.

• Continues to enhance technology and engineering to reduce costs and increase scalability, maintaining focus on being a low-cost, efficient DLE operator.

• Evaluating licensing, cost-plus deployments, and strategic participation models for long-term value creation.