Energy Vault Forecasts 355% Revenue Surge, Secures ~$155M in Convertible Notes
Energy Vault expects Q4 FY2025 revenue of $150-155 million – a 355% year-over-year increase and roughly fivefold sequential jump – beating consensus and building a $920-954 million contract backlog. The company forecasts gross margins of 18-22%, adjusted EBITDA of $5-10 million, and is raising ~$154.8 million through upsized convertible notes.
1. Q4 FY2025 Preliminary Estimates
The company expects Q4 FY2025 revenue of $150-155 million, representing a 355% year-over-year increase and roughly fivefold sequential jump, surpassing consensus. Contract revenue backlog stood at $920-954 million heading into the quarter, driven by accelerated project deployments.
2. Profitability Improvements
Gross profit is forecast at $28-33 million, lifting margins to 18-22% from 8% in Q4 2024. Adjusted EBITDA is projected at $5-10 million, a swing to profitability from a $13.4 million loss, while net loss is expected to narrow to $9.5-22.1 million.
3. Convertible Notes Offering
On February 11, the company priced $140 million of convertible senior notes in a private placement, upsized from $125 million with a $20 million overallotment option. If fully exercised, proceeds total approximately $154.8 million, with $35-45 million earmarked for redeeming existing debt.
4. Growth Drivers and Strategy
Energy Vault’s growth has been driven by rapid scaling of its Asset Vault energy storage strategy and expansion of battery storage projects in Australia. The company develops and deploys gravity-based grid-scale storage systems, hybrid platforms, and battery solutions across global markets.