Shares of Energy Vault Holdings surged 13.1% to $4.05 on August 12, extending a rally that began days earlier when the company announced a blockbuster AI data-center contract. The back-to-back catalysts — a landmark deal and a blowout quarter — have investors asking whether this sub-$1-billion company can convert a towering backlog into real profits.
Revenue Doubled, But the Company Is Still Burning Cash. Q2 revenue hit $17.4 million, up 104% year over year and above the $14.4 million analyst estimate.
Gross profit rose 114% to $5.4 million , with GAAP gross margin reaching 31.0%. That sounds impressive — until you see the other side of the ledger. Operating loss widened to $24.7 million and net loss reached $29.7 million.
Operating cash flow was negative $30.6 million.
The company ended the quarter with $148 million in cash against $165 million in long-term debt. Revenue is growing fast, but the business is still spending far more than it earns.
A Single AI Contract Could Dwarf the Entire Year's Revenue. Energy Vault signed its largest-ever contract to supply 1.25 gigawatts of battery storage and power infrastructure for AI data centers in Texas, expecting $500–$600 million in revenue during the second half of 2026 and 2027. That one deal alone could exceed the raised full-year guidance of $270–$310 million. The system lets data centers operate independently from the grid, with deployments beginning within four to twelve months. If execution matches the timeline, it transforms the company's revenue trajectory.
The Backlog Is Massive — and Increasingly Recurring. Backlog surged to roughly $2 billion, up about 107% year over year, with approximately 40% expected to convert to revenue within 12–18 months.
About 60% of the backlog represents long-term, recurring revenue from owned energy infrastructure assets — a steadier, higher-quality income stream. That mix matters: it means the company isn't solely dependent on one-time project deliveries.
Institutional Money Is Flowing In, But the Valuation Gap Is Wide. BlackRock added over 9 million shares in Q2, a 418% increase in its position.
With roughly 178 million shares outstanding , the stock trades at a market cap near $720 million at today's price — barely one-third of its backlog. That discount reflects legitimate execution risk: converting a $2 billion pipeline while burning $30 million a quarter requires either strong cash conversion in the second half or fresh capital. The next two quarters will reveal whether the AI boom made this company — or just made its backlog look good.