Li-Cycle Holdings Corp. reported significant financial developments in its Q3 2024 10-Q filing, highlighting both revenue growth and ongoing challenges. For the three months ended September 30, 2024, the company generated total revenue of $8.4 million, a notable increase from $4.7 million in Q3 2023. This growth was driven by a substantial rise in recycling service revenue, which reached $4.0 million, up from $1.2 million in the same period last year. For the nine months ended September 30, 2024, total revenue was $21.0 million, compared to $11.9 million in the prior year.

Despite the revenue increase, Li-Cycle reported a net loss of $25.2 million for Q3 2024, an improvement from a net loss of $44.0 million in Q3 2023. For the nine-month period, the net loss was $96.3 million, down from $125.9 million in the same timeframe in 2023. The company’s operating cash flow for the nine months was $92.5 million, slightly higher than $89.3 million in 2023.

Li-Cycle's financial position reflects ongoing strategic adjustments, including a Cash Preservation Plan initiated in November 2023, which involved workforce reductions and the suspension of certain projects. The company has paused construction at its Rochester Hub since October 2023, pending a strategic review. As part of its restructuring, Li-Cycle reduced its workforce by approximately 17% and incurred related expenses of $0.8 million in cost of sales and $5.6 million in selling, general, and administrative expenses.

In terms of financing, Li-Cycle closed a private placement for a senior secured convertible note with Glencore plc totaling $75.0 million in March 2024. Additionally, on November 7, 2024, the company entered into a loan facility agreement with the U.S. Department of Energy for up to $475 million to support the Rochester Hub project. The company is actively seeking further financing to restart construction and address liquidity needs.

As of September 30, 2024, Li-Cycle had $42.1 million in cash and cash equivalents, a decrease from $80.3 million at the end of 2023. The company also reported $5.9 million in committed purchase orders for equipment and services, down from $8.3 million at the end of 2023. The anticipated cost to complete the Rochester Hub project is estimated at $486.7 million, with total project costs projected at $960.2 million.

Li-Cycle's operational focus remains on enhancing recycling capabilities and expanding partnerships with major electric vehicle manufacturers, despite the challenges posed by market conditions and internal restructuring efforts.