Comstock Inc. (LODE) Q3 2026 earnings review
Comstock starts its solar recycling plant, while mining cash arrives
Comstock, a Nevada solar-panel recycler and clean-energy developer, started running its first industrial recycling plant while exiting its legacy gold mines. Third-quarter recycling revenue rose 45% from the second quarter to $342,000, while upfront customer billings waiting to be processed climbed to $4.55 million. Selling the mining division brought in $20 million of cash and a $14 million gain, but by our math the business lost $14.8 million without that one-time gain.
| Metals segment revenue | $342K +45% from last quarter |
|---|---|
| Metals deferred revenue | $4.55M +18% from last quarter |
| Net loss (incl. $14M sale gain) | $0.8M $14.8M loss excluding mining gain, by our math |
| Fourth-quarter capacity plan | Unchanged at least 25% of solar recycling capacity |
⚖️ Verdict: 🟢 Bullish
The story got better because the company closed its mining sale on schedule and proved that utility customers are sending solar panels in volume, more than doubling new quarterly billings from a year ago. One caution: continuous plant operations started in late September rather than August, the release dropped last quarter's $5 million second-half revenue target, and the Bioleum biofuels unit entered a board restructuring review.
The question now is whether the Silver Springs plant can process its 10,700-ton pile of solar panels fast enough to cover corporate cash burn before Comstock needs another asset sale. Either hitting the 25% capacity target turns the $4.55 million of deferred revenue into cash profit, or ramp delays keep quarterly losses high while the company waits on Newmark to sell its Nevada land. Fourth-quarter recognized recycling revenue and the full third-quarter expense filing will tell.
🐂 Bull Case
Commercial Solar Recycling Starts and Billings More Than Double
"Our first industry-scale solar recycling facility began continuous operations in late September," said Fortunato Villamagna, president of Comstock Metals, the company's solar panel recycling division. Customers pay upfront tipping fees when they drop off old panels, and Comstock records those fees as deferred revenue until it destroys the panels and issues a certificate.
- Third-quarter new billings: $1.04 million, up 131.1% from $0.45 million a year ago
- Deferred revenue: $4.55 million, up 18.3% from $3.85 million last quarter
- Unprocessed panels on site: 10,700 tons, up 26.9% from June and more than double year-end levels
- Recognized Metals revenue: $341,751, up 45.4% from $235,074 in the second quarter
The jump in upfront billings and stored panels matters because earlier in the year management called panel supply its least certain item. Major utilities and electronics recyclers across the Southwest, Midwest, Southeast and Texas have now signed service contracts, and the new Silver Springs, Nevada plant has issued its first destruction certificates to its top five accounts.
What to watch: fourth-quarter recognized revenue and deferred revenue conversion. If the Silver Springs plant runs smoothly, recognized sales should rise past new billings as the crew works down the 10,700-ton backlog.
Mining Sale Brings $20 Million and Ends Cleanup Costs
Comstock spent the past year trying to exit its gold and silver mines in Nevada so it could fund solar recycling without selling more stock. On August 21, the clean-energy technology group closed that deal with Mackay Gold & Silver Corporation and "divested all of Comstock’s legacy mining assets, liabilities and related costs" for $30.2 million in third-quarter value.
The company collected $20.0 million in immediate cash and two million Mackay shares, and Mackay agreed to pay another $7.0 million by December 2027 while taking over all environmental cleanup bonds. That cash inflow lifted unrestricted cash to $39.5 million and eliminated mining upkeep that previously cost up to $1.5 million a year.
What to watch: whether Comstock converts its two million Mackay shares into cash over the coming quarters. Selling those shares would fund the second recycling plant in Ohio before the December 2027 payment arrives.
Glass Upgrade Runs Early and Silver Pilot Starts Next
Recycling solar panels earns money twice: first from the fee customers pay to dispose of them, and second from selling recovered aluminum, glass and silver-rich dust. Until now, Comstock sold its silver-bearing dust to outside refiners that paid for only about half of the silver inside.
During the third quarter, the engineering team built and started a glass cleaning system ahead of schedule in Silver Springs to produce higher-grade glass. It also finished buying and testing equipment for an in-house, one-ton-per-day silver recovery pilot scheduled to run in the fourth quarter, which should let Comstock keep a much larger share of each panel's metal value.
What to watch: silver recovery yields from the one-ton-per-day pilot in the fourth quarter. A working pilot is required before Comstock spends $8 million on a larger 25-ton-per-day recovery system planned for 2027.
🐻 Bear Case
One-Time Mining Gain Hides a $14.8 Million Underlying Loss
Comstock reported a headline net loss of just $0.8 million, or one cent per share, and highlighted a debt-free balance sheet with $43.5 million in total cash. That near-breakeven headline rests entirely on a one-time $14.0 million accounting gain from selling the legacy mining division in August.
By our math, stripping out that one-off mining gain leaves an underlying quarterly loss of $14.8 million, worse than the $9.4 million loss in the first quarter. Unrestricted cash rose by $8.1 million from June's $31.4 million balance even though the mining sale brought in $20.0 million, meaning operations, capital spending and investments consumed about $11.9 million during the quarter by our math.
What to watch: quarterly operating expenses and cash burn in the full third-quarter filing with the Securities and Exchange Commission. If quarterly cash outflow stays near $12 million after the mining exit, the $39.5 million unrestricted cash balance will tighten before the second plant is built.
Late September Start Leaves Second-Half Sales Goal Unmentioned
Last quarter, Comstock projected $5 million in second-half solar recycling revenue, assuming the Silver Springs facility ran at 25% of capacity or higher from August through December. Instead, continuous operations started in late September, leaving the third quarter with just $341,751 in recognized Metals revenue.
Chief executive Corrado De Gasperis said the plant is "currently ramping up to operate at a rate of at least 25% of our capacity, if not higher, during the fourth quarter." Because the continuous start slipped by roughly seven weeks, hitting the earlier $5 million second-half mark would require $4.66 million in fourth-quarter sales by our math, and this release omitted any dollar revenue target.
What to watch: whether management reconfirms or drops the $5 million second-half revenue figure on the webinar. Even at a 25% run rate — about 6,250 tons in a quarter by our math — reaching $4.66 million in three months is a steep climb from $341,751.
Bioleum Biofuels Unit Enters Restructuring and Board Review
Comstock holds a $65 million preferred stock investment in Bioleum Corporation, its separated woody-biomass renewable fuels business that management previously valued at $292 million and pitched as an independent public-listing candidate. Earlier this year, executives warned that Bioleum had cash runway only to the end of summer while seeking outside investors.
Instead of announcing a new funding round in the third quarter, the release disclosed "Continued Bioleum restructuring, cost reductions and Board-level strategic assessment of the business." This follows a $16.4 million write-down of decarbonizing technologies in the second quarter and shows the fuels division is cutting expenses rather than scaling toward an initial public offering.
What to watch: the outcome of the board's strategic assessment and whether Comstock records another impairment on its $65 million Bioleum book basis at year-end. Any write-down or distress sale would shrink the non-core asset pool meant to fund future share buybacks.
👓 Other Themes
Newmark Hired for Land Sale and Buyback Approved
Sierra Springs Opportunity Fund (SSOF), the Northern Nevada real estate venture in which Comstock now holds a 48.64% stake across 2,200 acres, hired commercial real estate firm Newmark Group to explore selling or partnering its industrial and data-center land. Meanwhile, Comstock's board authorized a repurchase of up to 15 million shares — nearly 20% of the company by our math — funded strictly by future non-core asset sales "without reducing the capital committed to Comstock Metals’ growth plan."
💲 Other KPIs
Total cash rose from $31.4 million in June to $43.5 million, split between $39.5 million in unrestricted cash and $4.0 million in restricted cash. The balance fell from $53.0 million in March to $31.4 million in June before the $20.0 million mining sale cash arrived in August. The Nevada group carries zero debt.
Share count held steady from last quarter's 75.95 million and stood at 76.1 million on November 4. Compared with a year ago, common shares are up 48.3% by our math from 51.3 million following the early-2026 stock offering and the 1.75 million shares issued in April to settle a Bioleum obligation.
🔮 Guidance
Unchanged on rate, delayed on start. De Gasperis plans to run the Silver Springs recycling plant at 25% of capacity or higher in the fourth quarter, after continuous operations began in late September rather than August. On a 100,000-ton annual line, a 25% rate equals about 6,250 tons per quarter by our math, compared with 10,700 tons of panels already sitting in the yard.
Unchanged. Villamagna expects the one-ton-per-day pilot plant to operate during the fourth quarter to extract high-value silver and other metals from recycling leftovers, after finishing bench testing and equipment procurement in the third quarter.
❓ Key Questions
Does the $5 million second-half revenue target still stand?
Last quarter's filing projected $5 million in second-half Metals revenue assuming an August plant start. After recognizing $341,751 in the third quarter and starting continuous operations in late September, management did not mention a dollar revenue outlook in this release.
What drove the $14.8 million underlying loss in Q3?
Excluding the $14.0 million mining sale gain, the quarterly net loss widened to $14.8 million by our math, while unrestricted cash fell by about $11.9 million before mining proceeds. The press release did not include an income statement or expense breakdown.
Will Bioleum require another write-down or outside rescue?
Comstock still carries Bioleum on its books at $65 million after writing off $16.4 million in the second quarter. With Bioleum now in restructuring and under a board strategic review, investors need to know its remaining cash runway and valuation.
When will Newmark bring binding offers for Silver Springs land?
Comstock increased its stake in Sierra Springs Opportunity Fund to 48.64% and hired Newmark Group to monetize the 2,200-acre property. Because the new 15-million-share buyback depends on asset sales, the timeline for a land deal determines when repurchases can begin.