Energy Vault's Convertible Notes Offering Pressures Stock Amid Dilution Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 12 2026
0mins
Source: Benzinga
Energy Vault's stock fell by 20.81% as it crossed below the 5-day SMA, reflecting investor concerns following the announcement of a $140 million convertible notes offering.
The convertible notes offering raised liquidity but triggered a significant stock drop due to dilution concerns, despite the company upgrading its Q4 revenue outlook to between $150 million and $155 million, surpassing analysts' expectations. This indicates strong demand in renewable energy storage, yet the stock's bearish trend is evident as it trades significantly below its 20-day and 100-day SMAs.
The implications of this offering suggest a complex situation for Energy Vault, as while the capital raised can enhance financial flexibility, the dilution fears have negatively impacted investor confidence, leading to a sharp decline in stock price.
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Analyst Views on NRGV
Wall Street analysts forecast NRGV stock price to fall
3 Analyst Rating
2 Buy
0 Hold
1 Sell
Moderate Buy
Current: 5.130
Low
2.00
Averages
3.73
High
5.19
Current: 5.130
Low
2.00
Averages
3.73
High
5.19
About NRGV
Energy Vault Holdings, Inc. develops, deploys and operates utility-scale energy storage solutions designed to transform the approach to sustainable energy storage. The Company's offerings include proprietary battery, gravity and green hydrogen energy storage technologies supporting a variety of customer use cases delivering energy system dispatching and optimization. Each storage solution is supported by its technology-agnostic energy management system software and integration platform. Its technology portfolio delivers customized short, long and multi-day/ultra-long duration energy storage solutions to help utilities, independent power producers and large industrial energy users. Its solutions include B-Vault, G-Vault, H-Vault and software solutions. Its software solutions include Vault-OS Energy Management System, Vault-Bidder, and Vault-Manager. Its projects include Calistoga Resiliency Center, Cross Trails Battery Energy Storage System (BESS), SOSA Energy Center, and McMurtre BESS.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strategic Acquisition: Energy Vault has successfully acquired an 850 MW Battery Energy Storage System (BESS) development portfolio from BayWa r.e. AG, establishing its direct operational platform in Japan, which is expected to drive growth in the global renewable energy sector.
- Project Potential: The portfolio includes 350 MW of advanced-stage projects anticipated to reach Notice to Proceed (NTP) in the second half of 2027, with Commercial Operation Dates (COD) expected to begin in mid-2028, potentially generating over $180 million in annual recurring EBITDA for the company.
- Market Advantage: The Japanese projects are designed with three-hour storage duration, providing higher EBITDA per MW than typical projects in the U.S., enhancing long-term revenue potential, while Japan's relatively low financing costs further strengthen project economics.
- Team Integration: This acquisition not only brings a premium project pipeline but also integrates an experienced local development team from BayWa r.e., ensuring successful scaling in Japan's complex energy market to meet the growing demand for flexible storage solutions.
See More
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- Share Reduction Details: SB Investment Advisers disclosed in an SEC filing that it sold 3 million shares of Energy Vault Holdings in Q1 2026, with an estimated transaction value of $12.38 million, indicating a potential decrease in confidence in the company.
- Stake Percentage Change: Following the sale, SB Investment's stake in Energy Vault was reduced to 0.66% from 0.9% in the previous quarter, reflecting changes in its assets under management.
- Company Financial Performance: As of May 15, 2026, Energy Vault's shares were priced at $5.93, having surged approximately 500% over the past year, despite the company facing a net loss of $103.6 million, highlighting ongoing profitability challenges.
- Future Outlook: Despite the reduction, SB Investment still holds over 15.5 million shares of Energy Vault, suggesting optimism regarding the company's long-term infrastructure strategy, especially given the 156% year-over-year revenue growth and 108% increase in backlog.
See More
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- Asset and Revenue Outlook: In its Q1 report, Energy Vault revealed total assets exceeding 1 GW, with an expected annual recurring adjusted EBITDA run rate of over $180 million, surpassing previous guidance and reflecting strong performance in energy infrastructure projects.
- Positive Market Response: NRGV stock surged nearly 31% last week, trending on Stocktwits as retail users expressed confidence in its future performance, believing the stock will benefit from the intersection of energy and technology amid ongoing geopolitical tensions.
- Strong 2026 Guidance: Although the latest quarterly earnings per share fell short of expectations, Energy Vault's backlog reached $1.35 billion, indicating a 108% year-on-year growth, with projected revenue between $225 million and $300 million for the full year, showcasing a solid foundation for future growth.
See More
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See More
Energy Vault Grants Stock Awards to New Employees
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- Grant Conditions: The stock units will vest over four years, contingent on continued employee service, while performance-based units require achieving target share prices, aligning employee interests with the company's long-term goals to enhance motivation and retention.
- Industry Innovation: Energy Vault's energy storage solutions, including battery, gravity, and green hydrogen technologies, aim to provide safe and reliable energy dispatch for utilities and large industrial users, significantly reducing levelized energy costs and enhancing market competitiveness.
- Integration Advantage: The company's unique technology portfolio and energy management system software support various customer needs, helping clients optimize energy use and further solidifying its leadership position in the sustainable energy storage sector.
See More
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- Significant Revenue Growth: Energy Vault reported Q1 2026 revenue of $21.9 million, reflecting a 156% year-over-year increase, primarily driven by higher energy storage project deliveries and initial contributions from Asset Vault, demonstrating strong momentum in its transition to an energy infrastructure platform provider.
- Strong Contract Backlog: The company's contract backlog grew to over $1.3 billion, with over 99% uptime across operating projects, ensuring long-term high-margin and recurring revenue streams while laying a solid foundation for future project expansions.
- Optimistic EBITDA Outlook: Management anticipates a recurring EBITDA run rate visibility of over $180 million, ahead of plan, indicating confidence in new projects and technology investments that could drive future profitability.
- Improved Financial Position: By upsizing a $150 million convertible senior notes offering, Energy Vault significantly enhanced its balance sheet, repaying $45 million in higher-cost debt, which is expected to support future financing and expansion efforts.
See More
Energy Vault Acquires 850 MW Battery Storage Portfolio in Japan
- Strategic Acquisition: Energy Vault has successfully acquired an 850 MW Battery Energy Storage System (BESS) development portfolio from BayWa r.e. AG, establishing its direct operational platform in Japan, which is expected to drive growth in the global renewable energy sector.
- Project Potential: The portfolio includes 350 MW of advanced-stage projects anticipated to reach Notice to Proceed (NTP) in the second half of 2027, with Commercial Operation Dates (COD) expected to begin in mid-2028, potentially generating over $180 million in annual recurring EBITDA for the company.
- Market Advantage: The Japanese projects are designed with three-hour storage duration, providing higher EBITDA per MW than typical projects in the U.S., enhancing long-term revenue potential, while Japan's relatively low financing costs further strengthen project economics.
- Team Integration: This acquisition not only brings a premium project pipeline but also integrates an experienced local development team from BayWa r.e., ensuring successful scaling in Japan's complex energy market to meet the growing demand for flexible storage solutions.
See More
SB Investment Advisers Reduces Stake in Energy Vault Holdings
- Share Reduction Details: SB Investment Advisers disclosed in an SEC filing that it sold 3 million shares of Energy Vault Holdings in Q1 2026, with an estimated transaction value of $12.38 million, indicating a potential decrease in confidence in the company.
- Stake Percentage Change: Following the sale, SB Investment's stake in Energy Vault was reduced to 0.66% from 0.9% in the previous quarter, reflecting changes in its assets under management.
- Company Financial Performance: As of May 15, 2026, Energy Vault's shares were priced at $5.93, having surged approximately 500% over the past year, despite the company facing a net loss of $103.6 million, highlighting ongoing profitability challenges.
- Future Outlook: Despite the reduction, SB Investment still holds over 15.5 million shares of Energy Vault, suggesting optimism regarding the company's long-term infrastructure strategy, especially given the 156% year-over-year revenue growth and 108% increase in backlog.
See More
Energy Vault Partners with Eskom for Strategic Development
- Strategic Partnership: Energy Vault has entered into a strategic development agreement with South Africa's state-owned utility Eskom to deploy up to 4 GWh of long-duration energy storage across 16 member states by 2035, indicating the company's potential for global expansion in the energy sector.
- Asset and Revenue Outlook: In its Q1 report, Energy Vault revealed total assets exceeding 1 GW, with an expected annual recurring adjusted EBITDA run rate of over $180 million, surpassing previous guidance and reflecting strong performance in energy infrastructure projects.
- Positive Market Response: NRGV stock surged nearly 31% last week, trending on Stocktwits as retail users expressed confidence in its future performance, believing the stock will benefit from the intersection of energy and technology amid ongoing geopolitical tensions.
- Strong 2026 Guidance: Although the latest quarterly earnings per share fell short of expectations, Energy Vault's backlog reached $1.35 billion, indicating a 108% year-on-year growth, with projected revenue between $225 million and $300 million for the full year, showcasing a solid foundation for future growth.
See More
Jim Cramer Expresses Negative Views on Multiple Companies
- Purecycle Technologies Struggles: Jim Cramer highlights that Purecycle Technologies has almost no revenue and is losing a fortune, suggesting investors should avoid this stock, indicating its unfavorable market perception.
- High Risk for Energy Vault Holdings: Cramer describes Energy Vault Holdings as a pure speculative stock that is also losing a fortune, implying its investment value is extremely low and investors should exercise caution.
- Everspin Technologies Overvalued: While Everspin Technologies is profitable, Cramer warns that its price-to-earnings ratio is at 90 times, advising investors to be careful, suggesting that market expectations for its future growth may be overly optimistic.
- Challenges for Rocket Companies: Cramer expresses a negative view on Rocket Companies, stating that even if Kevin Warsh might cut rates, the rising oil prices causing inflation make such cuts unlikely, indicating significant pressure on the company's future prospects.
See More
Energy Vault Grants Stock Awards to New Employees
- Stock Award Program: Energy Vault announced the grant of 2.35 million restricted stock units and performance-based restricted stock units to six new employees effective April 29, 2026, highlighting the company's commitment to talent acquisition to strengthen its team for future growth.
- Grant Conditions: The stock units will vest over four years, contingent on continued employee service, while performance-based units require achieving target share prices, aligning employee interests with the company's long-term goals to enhance motivation and retention.
- Industry Innovation: Energy Vault's energy storage solutions, including battery, gravity, and green hydrogen technologies, aim to provide safe and reliable energy dispatch for utilities and large industrial users, significantly reducing levelized energy costs and enhancing market competitiveness.
- Integration Advantage: The company's unique technology portfolio and energy management system software support various customer needs, helping clients optimize energy use and further solidifying its leadership position in the sustainable energy storage sector.
See More
Energy Vault Q1 2026 Earnings Call Highlights
- Significant Revenue Growth: Energy Vault reported Q1 2026 revenue of $21.9 million, reflecting a 156% year-over-year increase, primarily driven by higher energy storage project deliveries and initial contributions from Asset Vault, demonstrating strong momentum in its transition to an energy infrastructure platform provider.
- Strong Contract Backlog: The company's contract backlog grew to over $1.3 billion, with over 99% uptime across operating projects, ensuring long-term high-margin and recurring revenue streams while laying a solid foundation for future project expansions.
- Optimistic EBITDA Outlook: Management anticipates a recurring EBITDA run rate visibility of over $180 million, ahead of plan, indicating confidence in new projects and technology investments that could drive future profitability.
- Improved Financial Position: By upsizing a $150 million convertible senior notes offering, Energy Vault significantly enhanced its balance sheet, repaying $45 million in higher-cost debt, which is expected to support future financing and expansion efforts.
See More
