International Battery Metals Ltd. Reports Third Quarter Fiscal Year 2026 Financial Results
MWN-AI** Summary
International Battery Metals Ltd. (IBAT), specializing in modular direct lithium extraction (DLE) technology, has released its financial results for the third quarter of fiscal year 2026 ending December 31, 2025. CEO Joseph Mills highlighted a strategic focus on market demands, stating that the lithium sector is evolving, with a growing emphasis on reliable partnerships and efficient solutions. The company aims to establish itself as a long-term partner in the lithium supply chain as it seeks to secure commercial deployments of its technology.
Significant business highlights for the quarter include ongoing brine testing and technical evaluations with potential clients in the U.S., Argentina, and the Middle East, as well as actively pursuing commercial discussions surrounding its existing DLE plant. Financially, IBAT reported revenue of $30,000, a notable rebound from a loss in the previous year. Although operating costs remained consistent at $450,000, selling, general, and administrative expenses decreased to $1.8 million.
The quarter also saw a $3.8 million gain in the change in fair value of warrant liability, contrasting with a significant loss in the prior year. Net income reached $0.8 million, a stark turnaround from a loss of $10.9 million last year. Cash reserves stood at $9.1 million, reflecting prudent cost management while prioritizing customer engagement.
IBAT is preparing to host a conference call on February 26, 2026, to discuss these results in detail. The company underscores its commitment to innovation and strategic agreements as it transitions into a crucial player in the expanding lithium market. International Battery Metals Ltd. is based in Houston, Texas, and is poised for ongoing developments in lithium extraction technologies.
MWN-AI** Analysis
International Battery Metals Ltd. (TSXV: IBAT, OTCQB: IBATF) has recently reported its third quarter financial results for the fiscal year 2026, showcasing a strategic pivot towards commercializing its modular direct lithium extraction (MDLE) technology. The company's focus on execution amidst a burgeoning lithium market indicates an opportunity for investors seeking growth in the green energy sector.
Revenue for the quarter hit $30,000, a significant recovery from a prior loss of $4,000, driven by service revenue from brine testing activities. Although the operating loss reduced slightly to $3 million from $3.3 million, the company’s narrow focus on cost discipline is evidenced by a reduction in selling, general, and administrative expenses. Moreover, a notable turnaround was seen in the fair value of warrant liabilities, swinging to a $3.8 million gain from a $7.6 million loss.
With cash reserves of $9.1 million and an equity financing boost of $2 million, IBAT is well-positioned to pursue further commercial agreements. CEO Joseph Mills emphasized engaging with customers in diverse markets like the U.S., Argentina, and the Middle East, which suggests a strategic effort to expand its market reach and client base.
Investors should note the rise in demand for lithium driven by electric vehicle production and clean energy transitions, positioning IBAT favorably as a technology provider. Furthermore, the company's disciplined approach to its business strategy will likely generate long-term value.
However, as with any emerging tech firm, investors should remain cautious of potential risks, including market volatility and operational challenges. Overall, IBAT presents an intriguing opportunity within the lithium extraction space, suitable for investors with a risk tolerance for early-stage market positions.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Continued Advancement Towards Commercial Positioning of Modular Direct Lithium Extraction (DLE) Technology
International Battery Metals Ltd. (“IBAT” or the “Company”) (TSXV: IBAT) & (OTCQB: IBATF), an advanced technology provider of modular direct lithium extraction (DLE) systems, today reported financial results for its third quarter fiscal year 2026, ended December 31, 2025.
Joseph Mills, Chief Executive Officer of IBAT, commented:
“The third quarter was about focus and execution. Over the past several months, we have focused on where the lithium market is, what customers actually need and how IBAT fits into that supply framework. Demand for lithium continues to grow, governments are prioritizing secure supply chains, and resource owners are becoming more disciplined in how they move projects forward. In that environment, technology alone is not enough. Customers want reliable partners who can deliver efficient solutions and partner with them for the long term."
“Our modular DLE (MDLE) plant has already operated in the field, and that experience is a differentiator for IBAT. We understand what works, what needs refinement and how to engineer the next deployment more efficiently. At the same time, we are being thoughtful about how we structure our commercial agreements. We are evaluating licensing, cost-plus deployments and strategic participation models that position us for long-term value creation. Our goal is straightforward. Secure commercial deployments, execute with discipline and build IBAT into a durable partner in the evolving lithium supply chain.”
Third Quarter Fiscal Year 2026 Business Highlights
- Continued brine testing and technical evaluation activities with prospective customers in the United States, Argentina and the Middle East;
- Company focused on commercial discussions, including the deployment of the existing MDLE plant;
- Maintained disciplined cost structure while prioritizing customer engagement and proposal development;
- Continued positioning of IBAT’s modular DLE technology as a scalable component within a broader lithium production flowsheet;
- Raised an additional $2.0 million of new equity financing.
Management remains focused on securing one or more commercial deployments aligned with its overall commercial strategy.
Third Quarter Financial Highlights (fiscal year 2026 versus fiscal year 2025)
- Revenue: $30,000 compared to ($4,000), reflecting service revenue from brine testing activities.
- Operating Costs (excluding depreciation): $450,000 compared to $468,000.
- Selling, General and Administrative Expenses (excluding depreciation): $1.8 million compared to $2.1 million.
- Operating Loss: ($3.0) million compared to ($3.3) million.
- Change in Fair Value of Warrant Liability: $3.8 million gain compared to a ($7.6) million loss.
- Net Income and Diluted Earnings Per Share (EPS): $0.8 million, or $0.00 per share, compared to a net loss of ($10.9) million, or ($0.04) per share.
- Cash: $9.1 million as of December 31, 2025, compared to $10.7 million at March 31, 2025.
Conference Call Information
The Company will host a conference call tomorrow, Thursday, February 26, 2026, at 11:00 a.m. Eastern Time to discuss financial and operational results.
Dial-in and Webcast Information
Date/Time: Thursday, February 26, at 11:00 a.m. Eastern Time
Toll-Free (North America): (800) 715-9871
Toll/International: +1 (646) 307-1963
Conference Call ID: 8716727
Webcast Link: https://app.webinar.net/P7qXNw8E52b
EasyConnect 'Dial-Me In':
Participants visit the address https://registrations.events/easyconnect/8716727/recAHzvY1JZfBaJq0/ and enter their details. The system will dial out to them and connect them into the conference. They do not need to pre-register for this service.
Replay Information
Toll-Free (North America) +1 (800) 770-2030
Toll/International: +1(609) 800-9909
Conference Call ID: 8716727
Expiration: Replay will expire on Thursday, March 12, 2026, 11:59 p.m. Central Time.
About International Battery Metals Ltd.
International Battery Metals Ltd. is a direct lithium extraction technology company focused on advancing the development of lithium from brine resources. The Company delivers a proprietary DLE process through a modular plant design and architecture built around its media and column systems. Depending on customer requirements, IBAT integrates its DLE process into existing customer flowsheets or specifications or delivers a full flowsheet solution using its proprietary DLE design in conjunction with strategic partnerships. With operational field deployment experience, International Battery Metals is positioned to support the next phase of lithium project development as global battery demand continues to expand. The Company is headquartered in Houston, Texas.
Special Note Regarding Forward-Looking Statements
This press release and our earning call include information regarding the Company’s future financial and operational performance and plans, targets, aspirations, expectations, and objectives of management, constitute forward-looking statements within the meaning of the Section 21E of the Exchange Act and forward-looking information within the meaning of Canadian provincial and territorial securities laws. We refer to all of these as forward-looking statements. Forward-looking statements are forward-looking in nature and, accordingly, are subject to risks and uncertainties. All statements other than statements of historical fact included in this quarterly report regarding the prospects of the Company’s industry or its prospects, plans, financial position or business strategy may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking words such as “plans,” “expects,” “does not expect,” “is expected,” “look forward to,” “budget,” “scheduled,” “estimates,” “forecasts,” “will continue,” “intends,” “the intent of,” “have the potential,” “anticipates,” “does not anticipate,” “believes,” “should,” “should not,” or variations of such words and phrases that indicate that certain actions, events or results “may,” “could,” “would,” “might,” “will,” “be taken,” “occur,” “be achieved,” or the negative of these terms or variations of them or similar terms and include, without limitation, statements regarding our expectations or beliefs regarding:
- our expectations regarding industry demand for lithium;
- our beliefs regarding demand for our current MDLE Plant and MDLE Plant technology;
- our strategies for attracting customers and deploying our MDLE Plant; and
- our expectations regarding the amount and timing of our future financing requirements and fund raising process.
Our forward-looking statements, included in this quarterly report and elsewhere, represent management’s expectations as of the date that they are made, and we undertake no obligation to update these statements. Our forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. However, these forward-looking statements are subject to a number of risks and uncertainties, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results, level of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements include those risks set forth in our SEC filings and risks related to:
- industry demand and market prices for lithium;
- our ability to attract and negotiate a definitive agreement with a customer for our current MDLE Plant;
- our ability to customize the MDLE Plant to meet the needs of a customer, including our ability to fund such customizations;
- our ability to protect our intellectual property rights in our technology;
- the success or failure of management’s efforts to continue to develop the next generation of our MDLE Plant technology;
- rapid technological change that could cause our technology to become obsolete or not cost-effective;
- the loss of key members of our management team;
- our ability to expand in existing and new markets; and
- our ability to obtain adequate or timely funding to operate our business and meet our future capital expenditure requirements.
International Battery Metals Ltd. Condensed Consolidated Balance Sheets As of December 31, 2025 and March 31, 2025 (In thousands) | ||||||||
December 31, | March 31, | |||||||
2025 | 2025 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 9,129 | $ | 10,737 | ||||
Accounts receivable | 474 | 459 | ||||||
Inventory | 1,061 | 1,061 | ||||||
Other current assets | 303 | 273 | ||||||
Total current assets | 10,967 | 12,530 | ||||||
Plant and Equipment, net | 27,346 | 28,450 | ||||||
Intangible assets, net | 2,459 | 3,266 | ||||||
Right of use asset | 164 | 232 | ||||||
Total assets | $ | 40,936 | $ | 44,478 | ||||
Current liabilities | ||||||||
Accounts payable | $ | 798 | $ | 1,293 | ||||
Accrued liabilities | 503 | 533 | ||||||
Obligation to issue shares, related party | - | 679 | ||||||
Lease obligation, current | 97 | 89 | ||||||
Total current liabilities | 1,398 | 2,594 | ||||||
Warrant liability | 6,084 | 15,151 | ||||||
Lease obligation, long-term | 70 | 143 | ||||||
Total liabilities | 7,552 | 17,888 | ||||||
Commitments and contingencies | ||||||||
Shareholders' equity | ||||||||
Share capital, no par, 316,573 and 268,993 common shares issued and outstanding, respectively, as of December 31, 2025 and March 31, 2025 | 67,530 | 66,156 | ||||||
Accumulated deficit | (34,146 | ) | (39,566 | ) | ||||
Total shareholders' equity | 33,384 | 26,590 | ||||||
Total liabilities and shareholders' equity | $ | 40,936 | $ | 44,478 |
International Battery Metals Ltd. Condensed Consolidated Statements of Income (Loss)(Unaudited) For the Three and Nine Months Ended December 31, 2025 and 2024 (In thousands, except per share amounts) | ||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
REVENUE | ||||||||||||||||
Service | $ | 30 | $ | - | $ | 101 | $ | - | ||||||||
Reimbursable | - | (4 | ) | - | 881 | |||||||||||
Total Revenue | 30 | (4 | ) | 101 | 881 | |||||||||||
COST OF REVENUE | 22 | - | 34 | - | ||||||||||||
GROSS MARGIN | 8 | (4 | ) | 67 | 881 | |||||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||||||
Operating costs, excluding depreciation | 450 | 468 | 1,559 | 2,543 | ||||||||||||
Selling, general and administrative expenses, excluding depreciation | 1,800 | 2,097 | 6,274 | 6,725 | ||||||||||||
Reimbursable expenses | - | (4 | ) | - | 881 | |||||||||||
Amortization of intangible assets | 269 | 269 | 807 | 807 | ||||||||||||
Depreciation | 503 | 499 | 1,505 | 1,057 | ||||||||||||
Operating loss | (3,014 | ) | (3,333 | ) | (10,078 | ) | (11,132 | ) | ||||||||
Excess fair value of warrants over private placement proceeds | - | - | - | (659 | ) | |||||||||||
Loss on warrants modification | - | - | (2,444 | ) | - | |||||||||||
Change in fair value of warrant liability | 3,768 | (7,576 | ) | 17,939 | 7,945 | |||||||||||
Other income | - | - | 3 | - | ||||||||||||
Net income (loss) before income tax provision | 754 | (10,909 | ) | 5,420 | (3,846 | ) | ||||||||||
Net income (loss) | $ | 754 | $ | (10,909 | ) | $ | 5,420 | $ | (3,846 | ) | ||||||
Net income (loss) and comprehensive (loss) income per share, basic | $ | 0.00 | $ | (0.04 | ) | $ | 0.02 | $ | (0.02 | ) | ||||||
Net income (loss) and comprehensive income (loss) per share, diluted | $ | 0.00 | $ | (0.04 | ) | $ | 0.02 | $ | (0.02 | ) | ||||||
Weighted average shares outstanding, basic | 306,233 | 242,908 | 288,150 | 236,966 | ||||||||||||
Weighted average shares outstanding, diluted | 310,685 | 242,908 | 290,337 | 236,966 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260225569329/en/
Investor Relations Contact:
Brian Siegel, IRC, MBA
Senior Managing Director
Hayden IR
(346) 396-8696
brian@haydenir.com
FAQ**
How does International Battery Metals Ltd IBATF plan to sustain its competitive edge in the lithium extraction market considering the rapid technological changes and growth in demand for lithium?
What specific strategies is International Battery Metals Ltd IBATF employing to secure long-term commercial agreements for its modular direct lithium extraction technology?
Given the recent improvements in financial performance, what are International Battery Metals Ltd IBATF's expectations for revenue growth in the upcoming quarters?
How does International Battery Metals Ltd IBATF intend to navigate the risks associated with expanding its operations in markets like the U.S., Argentina, and the Middle East?
**MWN-AI FAQ is based on asking OpenAI questions about International Battery Metals Ltd (OTC: IBATF).
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