LanzaTech Global Q2 Earnings Call Highlights

Key Points

• Q2 revenue was broadly flat at $9 million, but operating expenses fell 67% to $11.7 million, narrowing the adjusted EBITDA loss to $7.6 million from $29.7 million a year earlier.
• LanzaTech is advancing ISCC EU certification for its China-produced ethanol, which could open European and U.K. regulated fuel markets and support stronger demand and pricing as early as the fourth quarter.
• The company ended June with $45 million in cash and reinstated 2026 guidance for $50 million–$55 million of revenue, a $22 million–$26 million adjusted EBITDA loss and $51 million–$55 million of operating expenses.

LanzaTech Global NASDAQ: LNZA reported second-quarter 2026 revenue that was broadly flat from a year earlier, while sharply lower operating expenses helped narrow its adjusted EBITDA loss as the company continues shifting from an R&D-led model toward project development and commercialization.

The company reported second-quarter revenue of $9 million, compared with $9.1 million in the same quarter of 2025. Operating expenses declined 67% to $11.7 million from $35.1 million, while adjusted EBITDA loss narrowed to $7.6 million from a loss of $29.7 million a year earlier.

Chief Executive Officer Jennifer Holmgren said the quarterly results reflected “a meaningful transformation in the business,” citing more stable revenue, a reduced operating expense base and improved adjusted EBITDA. She said LanzaTech has reduced headcount, renegotiated contracts and redirected spending toward commercialization priorities.

Revenue Mix and Cost Reductions

For the second quarter, LanzaTech recorded $3.9 million in biorefining revenue, $1.3 million from joint development and contract research, and $3.8 million in CarbonSmart product revenue.

Biorefining revenue increased from $2.9 million in the prior-year period, driven by higher engineering and other services revenue. Joint development and contract research revenue declined from $2.3 million as projects with existing customers were completed. CarbonSmart product revenue was essentially unchanged year over year.

Cost of revenue rose to $7.2 million from $6.2 million, primarily due to higher engineering and services costs and a modest increase in costs tied to CarbonSmart product sales. Gross profit was $1.8 million, producing an approximately 20% gross margin, compared with gross profit of $2.9 million in the prior-year quarter.

For the first six months of 2026, total revenue increased 13% to $21 million from $18.6 million. First-half gross profit was $5.6 million, or a 26% gross margin, compared with $4.8 million in the year-earlier period.

Research and development expense fell to $2 million in the second quarter from $14.9 million a year earlier, while selling, general and administrative expense declined to $8.8 million from $19.1 million. Chief Financial Officer Sushmita Koyanagi attributed the reductions to workforce cuts, lower contractor and external R&D spending, lower legal and professional fees, and reduced facilities-related costs.

Certification Efforts Target Regulated Fuel Markets

Management emphasized progress toward ISCC EU certification for recycled carbon fuels at its China facility. Holmgren said the certification process is intended to enable the company’s CarbonSmart ethanol to be sold into European regulated aviation, road transportation and marine fuel markets, as well as the U.K. market, where the certification is recognized by the Department for Transport.

LanzaTech is in active negotiations for what it expects to be its first sale of ISCC EU-certified ethanol, timed with completion of the certification process, Holmgren said. The company expects certified ethanol sales to potentially support stronger demand and pricing beginning in the fourth quarter, according to Koyanagi.

Holmgren said the process is taking time because the company is helping establish a certification pathway for a new fuel category rather than applying through an existing pathway. She said the first China facility is serving as a pilot and that future plant certifications are expected to move faster once the framework is in place.

The company identified European road transport as its most immediate commercial opportunity for certified ethanol, while continuing to view sustainable aviation fuel and marine fuels as important near-term markets.

Project and Platform Updates

In May, LanzaTech selected North Sea Port in Ghent, Belgium, as the permanent site for what it described as Europe’s first commercial-scale alcohol-to-jet sustainable aviation fuel facility using the LanzaJet process. The facility is targeted to produce about 79,000 tons of sustainable aviation fuel and 9,000 tons of renewable diesel annually.

Holmgren said the site selection and environmental impact assessment scoping notification were steps toward a final investment decision. The company is also advancing projects involving biomass and agricultural residues in India and carbon dioxide-rich gases in China.

LanzaTech said its Project Dragon, Humber and Project Flight developments would each represent roughly 23 million gallons of annual sustainable aviation fuel production and approximately $150 million in potential annual offtake revenue.

The company also highlighted its 8.3% ownership stake in the Shougang LanzaTech joint venture, which completed an initial public offering on the Hong Kong Stock Exchange in June. Holmgren said the joint venture’s market capitalization was roughly $1.32 billion as of Aug. 12, implying an estimated value of about $110 million for LanzaTech’s retained stake.

LanzaTech additionally announced a multiyear partnership with BRIGHT at the Technical University of Denmark to build a next-generation biofoundry. Holmgren said the partner-supported model would allow the company to pursue carbon-to-value biotechnology opportunities in a capital-efficient manner.

Cash Position and 2026 Outlook

Cash and cash equivalents totaled $45 million at June 30, while cash equivalents and restricted cash totaled $48.9 million, up from $17.1 million at the end of 2025. Koyanagi said the increase was primarily driven by proceeds from the issuance of common stock.

LanzaTech reintroduced full-year financial guidance, forecasting:

• Revenue of $50 million to $55 million;
• Adjusted EBITDA loss of $22 million to $26 million; and
• Operating expenses of $51 million to $55 million.

Koyanagi said the outlook reflects expectations for project timing, partner activity, continued cost discipline and progress on commercialization milestones. Management said its focus for the remainder of 2026 is to execute commercial opportunities, complete certification work and maintain the lower cost structure established through its restructuring efforts.

About LanzaTech Global (NASDAQ:LNZA)

LanzaTech Global, Inc is a carbon recycling company that specializes in capturing industrial emissions and converting them into sustainable fuels and chemicals through a proprietary gas fermentation process. By utilizing metal- and microbe-catalyzed conversion technologies, the company transforms waste carbon monoxide and carbon dioxide streams from steel mills, refineries, and other industrial sites into ethanol, jet fuel precursors, and other commodity chemicals. These products can be used as drop-in replacements for petrochemicals, helping to reduce greenhouse gas emissions and advance circular economy initiatives.

Founded in 2005 and headquartered in Skokie, Illinois, LanzaTech has developed its platform through research collaborations and commercial demonstration plants.

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