Stardust Power (SDST) Q2 2026 Earnings Call: Liquidity and Refinery Financing in Focus

Key Takeaways

• Stardust Power remained pre-revenue in Q2 2026 as it continued developing the Muskogee lithium refinery. Construction financing remains management’s highest corporate priority.
• The company reported a Q2 net loss of $3.9 million, compared with $3.7 million a year earlier. Loss per share narrowed to $0.35 from $0.59, primarily due to a higher weighted-average share count following capital raises.
• Cash and cash equivalents declined to approximately $0.5 million at June 30, 2026, from $3.5 million at December 31, 2025. The company said its working-capital and capital-expenditure needs over the next 12 months depend on raising additional capital.
• Stardust Power established a $5 million at-the-market equity program during Q2. As of the 10-Q filing date, the ATM had generated approximately $2.9 million in additional net proceeds after quarter-end.
• Project work included geotechnical and subsurface investigations to support detailed design and constructability planning. Management said key permits, including those required for construction and commissioning, are already in place.
• The company continues discussions with prospective feedstock suppliers, offtake counterparties, government stakeholders and strategic financing partners, but management said there were no material developments to announce.

Core Financial Data

Business and Operational Performance

Stardust Power’s Q2 2026 activities focused on project readiness, execution-risk reduction and financing preparation for the Muskogee refinery. Third-party contractors conducted geotechnical and subsurface investigations to support detailed engineering and constructability planning.

The company was also selected as the industrial partner in a U.S. Department of Energy-funded research initiative led by Ohio University. The program focuses on next-generation lithium extraction technologies and evaluating potential future domestic feedstock sources.

Management continued workforce, regulatory and community engagement in Muskogee and across Oklahoma. After quarter-end, executives met with Oklahoma’s congressional delegation and representatives from federal agencies in Washington, D.C.

Commercial discussions with potential feedstock suppliers, offtake counterparties and strategic financing partners remained active. Management’s priorities are to strengthen the project’s commercial foundations, progress engineering and site readiness, and expand relationships across the domestic critical-minerals ecosystem.

Financing and Liquidity

Stardust Power established a $10 million equity line of credit with B. Riley Principal Capital II in Q1 2026. The company had generated approximately $1.35 million in proceeds from that facility by the earnings call.

During Q2, the company established a $5 million ATM equity program with B. Riley Securities and raised approximately $151,000 in gross proceeds during the quarter. It subsequently generated approximately $2.9 million in additional net proceeds through the ATM as of the 10-Q filing date.

Management said these facilities provide financial flexibility, but broader project financing is still required before refinery construction can advance.

Risks and Focus Areas

• Stardust Power remains pre-revenue and said its ability to fund working capital and capital expenditures over the next 12 months depends on additional equity, debt or other financing.
• Construction financing remains the company’s highest corporate priority, while commercial and strategic discussions have not yet produced a material announcement.
• The company is evaluating alternatives to address Nasdaq continued-listing requirements, including the minimum market-value threshold.
• Equity facilities increase access to capital but also contributed to a higher weighted-average share count.
• Management declined to provide forward-looking guidance or estimates during the call.

Analyst Q&A Highlights

No questions were submitted during the Q&A session.

Full Earnings Call Transcript

Complete Earnings Call Transcript

Management Remarks

Operator

Thank you. Good afternoon and welcome to Stardust Power, Inc's Q2 2026 earnings call. My name is Tawanda and I'll be your operator today. Before this call, Stardust Power issued its financial results for the quarter ended June 30, 2026. Joining us on today's call are Startups Powers founder and CEO, Roshan Pajari, and CFO, Uday Devasper. their remarks we will open the call for questions. Before we begin, Joanna Gonzalez, Starters Powers Director of Investor Relations and Communications, will make a brief introductory statement. Ms. Gonzalez, please proceed.

Johanna Gonzalez

Thank you, operator, and good afternoon, everyone. Before management begins their formal remarks today, we would like to remind everyone that some statements we're making today may be considered forward-looking statements under securities laws and involve a number of risks and uncertainties. As a result, we caution you that there are a number of factors. of which are beyond our control, which could cause actual results, outcomes, and events, and the timings of such results, outcomes, and events to differ materially from those described in the forward-looking statements. more detailed risks, uncertainties, and assumptions related to our forward-looking statements. Please see the disclosures in our earnings release and public filings made with the SEC. We disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. We refer you to our filings with the SEC for detailed disclosures and descriptions of our business, as well as uncertainties and other variable circumstances, including but not limited to risks and uncertainties identified under the caption risk factors in our recent filings. You may get Stardust Power's SEC filings by visiting on the SEC's website at www.sec.gov.

I would like to remind everyone that this call is being recorded and will be made available for replay via a link available in the Investor Relations section of the Status Power website.

Roshan Pujari

I will turn the call over to Status Power CEO Roshan Pujari. Thank you, Joanna, and good afternoon everyone. Thank you for joining us today. During the second quarter, we continue to advance commercial relationships, project development activities, and financing initiatives that are fundamental to moving the Stardust Power lithium refinery towards construction. While lithium prices have strengthened from the lows experienced in late 2025, we still view the market through a long-term lens. The strategic importance of establishing a secure domestic critical mineral supply chain continues to be reinforced by wider industry investment and U.S. government support, and our focus remains on positioning Stardust Power to participate in that long-term opportunity. We've said previously building a large scale industrial project is a discipline process that progresses through a series of technical, commercial and financing milestones.

While we might not always be able to give public announcement on those milestones, our focus remains on the planning work that meaningfully reduces project risk, strengthens the project path towards financing, and supports long-term value creation for our shareholders. We remain disciplined in how we allocate our time and resources with our efforts centered on the commercial, strategic, and financing activities that will position the project for construction. This afternoon, I'll provide an update on our progress during the quarter before turning the call over to Uday to review our financial results in more detail. Our work during the quarter centered on activities that improve project readiness, reduce execution risk, and strengthen the refinery's path towards financing and construction. The company engaged third party contractors to perform geotechnical and subsurface investigations at our Mississauga site to identify and test specific locations. for verification efforts. This work supports detailed design and constructability planning while reducing execution risk and strengthening progress. Importantly, with key permits already in place, including those required for construction and commissioning, these activities further position the refinery for EPC as commercial and financing milestones are achieved.

We were pleased to be selected as the industrial partner in a U.S. Department of Energy funded research initiative led by Ohio University focused on next generation lithium extraction technologies. This collaboration strengthens our position within the domestic critical minerals ecosystem while supporting the evaluation of potential future domestic feedstock sources. Alongside these project development activities, we continue to move forward our government, industry, and community engagement efforts. During the quarter, we continue to strengthen our engagement across the Muskogee community and the state of Oklahoma through a range of workforce, regulatory and community initiatives. We were proud to sponsor and participate in events, including the public service recognition week and the fair. While also engaging with state environmental leaders through the environmental Federation of Oklahoma regulatory newsreel and participating in workforce development discussions focused on building Oklahoma.

Oklahoma's Future Manufacturing Talent Pipeline. In June, our Managing Director for Oklahoma, John Reisenberg, graduated from the nine-month Leadership Muskogee Program. further strengthening the company's relationships across local government, business, and community organizations. Well done, John. These initiatives are all an important part of preparing for the future operation of the refinery. Building strong relationships with local leaders, regulatory agencies, educational institutions, and community organizations helps establish the partnerships needed to support workforce development, operational readiness, and the long-term success of the project. Following the quarter end, members of our executive team recently traveled to Washington, D.C. to meet with Oklahoma's congressional delegation and representatives from key federal agencies. These discussions reinforced the strategic importance of expanding domestic critical capacity and the role Stardust Power can play in supporting a more secure U.S. battery materials supply chain. Beyond engineering and execution planning, we strengthened the commercial and strategic foundations of the project during the quarter. Our discussions with prospective feedstock suppliers, potential offtake counterparties, government stakeholders, and potential strategic financing partners remained active throughout the quarter.

While there are no material developments to announce at this time, these discussions continue as we assemble the commercial, technical, and strategic elements necessary to support project financing and the long-term development of the refinery. Construction financing remains our highest corporate priority, and our team continues to focus on the commercial, technical, and strategic work required to position the project for future financing opportunities while maintaining a disciplined approach to capital allocation. Looking ahead, our priorities remain unchanged. First, we will continue strengthening the commercial and strategic foundations that support project financing. Second, we will continue progressing engineering in site readiness to further mature the project and reduce execution risk. And third, we will continue expanding relationships across the domestic critical mineral ecosystem with prospective customers, feedstock suppliers, strategic partners, and government stakeholders. We recognize that shareholders remain focused on our progress towards financing and long term project execution. remain committed to communicating material developments as they occur.

Large industrial projects are built through disciplined execution across a series of commercial, technical, and financing milestones. While those milestones are not always visible quarter to quarter, our attention remains on the work meaningfully improves the project's readiness and position Stardust Power for long-term success. We remain confident in the strategic positioning of the Muskogee Refinery and believe the work completed this quarter further strengthens the project long-term financing and development pathway. And with that, I'll hand over to our CFO, Uday Devaspur.

Udaychandra Devasper

Thank you, Roshan. Good afternoon, everyone, and thank you for joining our earnings call for the Q2 2026 earnings period. Before we begin, I want to clarify that we will not be providing forward-looking guidance or estimates during this call. Our focus will be on discussing our past performance and the current state of our business. We encourage you to refer to our filings with the SEC for more detailed information. During and subsequent to Q2 26, we continue to make meaningful progress in strengthening our financial position and expanding our access to capital. We remain focused on maintaining the flexibility needed to support our near-term operating requirements while positioning the company to advance key commercial project opportunities in q126 we established a 10 million equity line of credit or eloc with b riley principal capital 2 providing the company with the ability to access capital over time at our discretion subject to market conditions and the terms of the agreement In Q2 26, we also established a $5 million at the market or ATM equity program with BID Securities, giving us an additional capital raising tool to support working capital and project advancement. Since establishing the E-Lock facility, we have successfully utilized it to generate approximately $1.35 million of additional capital proceeds.

We also selectively utilized our ATM facility during the quarter as well, raising approximately 151,000 gross proceeds, while subsequent to quarter end, we have continued to access our available capital market facilities. And as of the date of our 10Q filing, the ATM facility had generated an additional approximately dollars 2.9 million in net proceeds. Together, these facilities enhance our financial flexibility as we continue advancing commercial discussions and pursuing broader project financing initiatives. Turning now to our financial results for the second quarter of 2026. The company remains free revenue as we continue to advance development of the Muscogee refinery. As previously disclosed, our ability to meet working capital and capital expenditure requirements over the next 12 months remains dependent on our ability to raise additional capital to equity, debt, or other financing sources. As of June 30, 2026, we had cash and cash equivalents of approximately $0.5 million compared to $3.5 million as of December 31, 2025. change reflects funding, operating activities, and continued investment in advancing the Muskogee Refinery during the first half of the year.

Throughout the quarter, we remain disciplined in managing operating expenditures while continuing to invest in activities that support engineering, commercial development, and long-term project value. For the second quarter, we reported a net loss of $3.9 million compared to $3.7 million in the prior year period. The year-over-year increase primarily reflects financing-related costs associated with our capital structure, partially offset by favorable changes in the fair value of our warrant libraries. General and administrative expenses continue to support engineering, commercial, and corporate activities as we advance the process. Our basic and diluted loss per share was 35 cents compared to 59 cents in the prior year quarter, primarily reflecting the higher weighted average shares of selling following capital raises completed over the past year. For the first six months of 2026, net cash used in operating activities was $4 million compared to $4.5 million during the same period in 2035, reflecting continued investment in advancing the business while maintaining disciplined cash management. Net cash used in investing activities totaled $0.2 million for the first six months of 2026 compared to $2.2 million in the prior year period, primarily reflecting a more disciplined and phased deployment of capital as the project continues to advance to engineering validation.

With several important project developments, my source achieved, including completion of final major permitting and FPL pre engineering. Our current investment profile is increasingly focused on targeted pre construction and strategic development activities as we position the Muskogee refinery for construction. Net cash provided by financing activities was $1.3 million compared to $8.4 million in the first six months of 2025, reflecting proceeds from our equity facilities, part partially offset by debt-free things. The prior year period benefited from increased proceeds from public offerings, during the first half of 2025. Regarding our compliance with NASDAQ listing requirements, we continue to actively evaluate all available alternatives to address our continued listing requirements, including those related to minimum market value threshold. We remain committed to maintaining our NASDAQ listing while acting in the best interest of our shareholders. To conclude, while we remain a free revenue company, our financial priorities remain clear. engineering discipline, liquidity management, advancing product readiness, and supporting broader financing strategy for our findings.

We believe the financing tools now in place, together with continued commercial execution and project execution, provide a solid foundation as we pursue the next stage of development. As always, we remain committed to discipline capital allocation, prudent liquidity management, and creating long-term value for our shareholders. With that, I conclude my remarks and now turn it back to Roshan.

Roshan Pujari

Before we conclude, I'd like to reiterate that our focus remains on disciplined execution and advancing the work that meaningfully strengthens the project's path toward financing and construction. Thank you to our shareholders for your continued support and Stardust power. We appreciate your time today and look forward to updating you on our progress next quarter. With that, we are happy to take your questions.

Operator

Thank you. Ladies and gentlemen, to ask the question, please press star 11 on your telephone, then wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. That's star 1-1 to ask the question. I'm sure no questions in the queue. Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.

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[Call has ended.]