EPS of $-7.64 decreased by 758.4% from previous year
Net income of -5.21M
"N/A" - N/A
Aqua Metals Inc (0HH6.L) QQ3 2024 Results Analysis – Elevated Cash Burn and Deficits in Lead-Recycling Industrials
Executive Summary
Aqua Metals Inc. faced a challenging QQ3 2024 quarter, recording meaningful cash burn and ongoing losses that underscore the company’s fragile near-term liquidity profile. Although the period shows some stabilization in certain metrics versus earlier quarters, the company posted a negative EBITDA and net income, reflecting high operating costs relative to the limited revenue base disclosed in the dataset. Reported figures indicate operating cash flow deterioration and a free cash flow decline, reinforcing caution for near-term liquidity needs.
Key Performance Indicators
Operating Income
-5.21M
QoQ: 15.43% | YoY:-5.29%
Net Income
-5.21M
QoQ: 15.28% | YoY:-14.58%
EPS
-7.64
QoQ: 23.14% | YoY:-758.43%
Revenue Trend
Margin Analysis
Key Insights
Gross Profit: -1.617 million; Gross Profit Margin not calculable from the primary line item due to data gaps, but the four-quarter table implies a negative gross profit margin given revenue uncertainties.
EBITDA: -4.808 million; EBITDA Margin is materially negative (using the approximate 1.617 million revenue reference yields roughly -297% when annualized into the quarter).
Operating Income: -5.211 million; Operating Margin not disclosed due to revenue data gaps, but clearly negative.
Net Income: -5.210 million; Net Income Margin not determinable from complete revenue data in the primary section; YoY change implied by earnings metrics is negative (yoy -14.58%).
Earnings per Share (EPS): -7.64; Shares outstanding (weighted average) 681,619.
Financial Highlights
Revenue and profitability in QQ3 2024 show continued pressure. The income data are partially incomplete in the dataset, with revenue listed as null in the primary income statement segment but a revenue value of 1.617 million appears in the quarterly four-quarter table for Q3 2024. Cost of revenue totaled 1.617 million, yielding a gross loss of 1.617 million. Key profitability metrics (from the available data) include:
- Gross Profit: -1.617 million; Gross Profit Margin not calculable from the primary line item due to data gaps, but the four-quarter table implies a negative gross profit margin given revenue uncertainties.
- EBITDA: -4.808 million; EBITDA Margin is materially negative (using the approximate 1.617 million revenue reference yields roughly -297% when annualized into the quarter).
- Operating Income: -5.211 million; Operating Margin not disclosed due to revenue data gaps, but clearly negative.
- Net Income: -5.210 million; Net Income Margin not determinable from complete revenue data in the primary section; YoY change implied by earnings metrics is negative (yoy -14.58%).
- Earnings per Share (EPS): -7.64; Shares outstanding (weighted average) 681,619.
- Cash Flow: Operating cash flow -3.635 million; Capital expenditures (Capex) -1.465 million; Free cash flow -5.10 million; Net change in cash -4.883 million; Cash at end of period 2.95 million vs. 7.833 million at period start.
Balance sheet indicators and liquidity:
- Total assets: 28.483 million; Total liabilities: 7.585 million; Total stockholders’ equity: 20.898 million.
- Cash and equivalents: 2.95 million; Net debt: 0.844 million; Total debt: 3.794 million.
- Current ratio: 0.589; Quick ratio: 0.543; Cash ratio: 0.418. Working capital and liquidity are constrained, signaling funding risk without external financing.
- Retained earnings: -240.327 million (indicative of a long history of cumulative losses).
- PPE net: 17.215 million; Intangible assets: 0.164 million; Equity base remains sizable, but the business shows negative earnings and ongoing cash burn, creating a need for external funding or significant revenue acceleration.
Overall takeaway: QQ3 2024 shows a company still operating with significant cash burn and negative profitability metrics, with a fragile liquidity position that relies on financing activity. The data set includes some volatility in quarterly results (QoQ improvements in net income and EPS are reported, but are still negative in absolute terms). Investors should monitor liquidity catalysts (financing arrangements, asset divestitures, or revenue growth) and any management actions targeting cost reductions and revenue expansion.
Income Statement
Metric
Value
YoY Change
QoQ Change
Gross Profit
-1.62M
7.34%
31.86%
Operating Income
-5.21M
-5.29%
15.43%
Net Income
-5.21M
-14.58%
15.28%
EPS
-7.64
-758.43%
23.14%
Key Financial Ratios
currentRatio
0.59
returnOnAssets
-18.3%
returnOnEquity
-24.9%
debtEquityRatio
0.18
operatingCashFlowPerShare
$-0.53
freeCashFlowPerShare
$-0.75
priceToBookRatio
1.28
priceEarningsRatio
-1.28
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings call transcript was provided in the dataset. No direct management quotes are available from the QQ3 2024 materials to quote here. If a transcript becomes available, we would group quotes by themes (strategy, operations, market conditions) and annotate their significance.
N/A
— N/A
N/A
— N/A
Forward Guidance
No formal forward guidance is included in the provided data. Given the current quarterly results, management commentary (if released separately outside this dataset) would likely need to address: (1) steps to reduce cash burn (cost optimization, capex discipline, SG&A controls), (2) pathways to revenue growth or operating leverage in lead-recycling activities, (3) liquidity management including potential new financing, and (4) milestones for technology or process improvements that could improve gross margins. Investors should monitor any forthcoming quarterly updates for profitability targets, runway to cash break-even, and any strategic pivot (e.g., partnership, licensing, or capability expansion) that could impact the cost structure or revenue trajectory.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0HH6.L Focus
0.00%
0.00%
-24.90%
-1.28%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The QQ3 2024 results portray Aqua Metals as a high-risk, high-uncertainty investment. The company faces meaningful cash burn and negative profitability, with liquidity constraints that could necessitate additional financing to fund ongoing operations. While the equity base and asset holdings offer some leverage, the lack of positive cash flow and uncertain near-term revenue trajectory weigh on the investment case. A potential upside exists if the company can accelerate revenue growth, achieve operating leverage, or secure favorable licensing/partnership arrangements that reduce unit costs. Until such catalysts materialize and liquidity is stabilized, the investment outlook remains speculative, suitable only for risk-tolerant investors willing to accept potential dilution and funding risk.
Key Investment Factors
Growth Potential
Aqua Metals operates in a niche lead-recycling segment within the waste management industrials space. Potential growth levers include scaling production capacity, securing licensing or technology partnerships, and expanding market share if regulatory and environmental incentives favor metal recycling. Any improvement in processing efficiency or reduction in lead material costs could meaningfully improve gross margins from current levels.
Profitability Risk
High near-term liquidity risk given a current ratio below 1 and negative free cash flow. Ongoing losses and negative EBITDA present a funding risk, requiring external financing or equity dilution. Revenue visibility is limited in the dataset, and the business is exposed to commodity price volatility for lead, regulatory risk, and potential competitive pressure from larger waste-management players or alternative recycling technologies.
Financial Position
The balance sheet shows a substantial equity base (approx. $20.9 million) against net debt of roughly $0.844 million and total debt of about $3.794 million. Cash on hand is modest at $2.95 million, with a current ratio of 0.589 signalling liquidity stress without new financing. A long cumulative deficit (retained earnings around -$240.3 million) remains a material overhang on equity, and sustained operating losses will need to be addressed through improved profitability or capital allocation strategies.
SWOT Analysis
Strengths
Material asset base, including property, plant and equipment totaling ~$17.2 million helps underpin production capacity.
Equity base (~$20.9 million) provides a cushion for potential future financing needs.
Net debt is modest (~$0.844 million) relative to asset base, indicating manageable leverage if cash flows improve.
Weaknesses
Significant quarterly and cumulative losses with negative EBITDA and net income.
Liquidity risk evidenced by current ratio of 0.589 and negative free cash flow.
Revenue visibility is uncertain; inconsistent revenue reporting in the dataset complicates margin interpretation.
Long track record of losses (retained earnings deeply negative) constrains financial flexibility.
Opportunities
Regulatory push toward recycling and circular economy initiatives could create favorable demand dynamics for lead recycling.
Potential partnerships, licensing, or technology licensing arrangements could unlock non-operating revenue streams.
Operational improvements and cost discipline could yield meaningful leverage if revenue growth is achieved.
Threats
Lead price volatility and environmental/regulatory compliance costs could impact margins.
Competition from larger waste-management or recycling technologies could erode market share.
Need for external financing or equity issuance could lead to dilution and increased funding risk.