Energy Vault Shares Navigate Investor Caution Amid Growth Plans

Shares of Energy Vault have pulled back from their recent multi-week rally, with a notable decline at yesterday's market open. Investor sentiment is currently tempered by a combination of regulatory developments and the market's ongoing reaction to the company's latest financial report.

The immediate catalyst for the share price movement was the company's submission of a Registration Statement on Form S-3 to the U.S. Securities and Exchange Commission (SEC). This filing paves the way for potential future capital-raising activities, which could include the issuance of convertible notes. The terms outlined, featuring an initial interest rate of 7% and a conversion price starting at a minimum of $0.60 per share, have introduced concerns among shareholders about potential equity dilution.

This regulatory news arrives as the market continues to process Energy Vault's third-quarter 2025 results, released in November. The company fell short of analyst consensus for both revenue and earnings. While it reported significant year-over-year revenue growth and a narrowing net loss, the disappointment from missing targets has lingered.

Should investors sell immediately? Or is it worth buying Energy Vault?

A Focus on Long-Term Expansion

Despite these short-term headwinds, Energy Vault continues to execute its strategic expansion. A core component of this strategy is the "Asset Vault" platform, a subsidiary dedicated to building and operating energy storage systems globally. This initiative recently received a substantial boost from a $300 million investment by Orion Infrastructure Capital.

The company's project pipeline is expanding steadily, supported by recent acquisitions in Australia and Texas, alongside a market entry into Switzerland in early December. Energy Vault's contracted backlog stood at $920 million at the end of Q3, more than double the figure from the start of the year. These long-term agreements are designed to establish stable, recurring revenue streams.

Maintaining an Ambitious Forward Outlook

For the full 2025 fiscal year, management has reaffirmed its revenue guidance range of $200 to $250 million. Considerable expectations are placed on the "Asset Vault" platform, which is projected to contribute an adjusted EBITDA of $150 million by 2029. Analyst perspectives on the stock remain divided, reflected in a wide range of price targets. The next significant moves for the share price will likely depend on the company's execution of its ambitious growth roadmap and whether its capital market activities exert sustained pressure on the shareholder structure.