By Amit Chowdhry Today at 5:41 PM

LanzaTech reduced second-quarter operating expenses by 67% year over year as an extensive cost-reduction and organizational restructuring program helped the carbon management company narrow its adjusted EBITDA loss by about 74%.

Operating expenses fell to $11.7 million from $35.1 million in Q2 2025. Adjusted EBITDA loss improved to $7.6 million from $29.7 million, representing a reduction of more than $22 million from the prior-year period.

LanzaTech attributed the improvement to transformation, cost optimization and organizational streamlining initiatives implemented during 2025. Those actions reduced personnel, contractor, legal and other operating expenses as management reshaped the business around commercial project deployment.

The company is attempting to transition from an R&D-led operating model toward one that places greater emphasis on commercial projects, technology licensing and monetization of its technology through partnerships and equity positions.

Revenue remained relatively stable despite the restructuring. Q2 revenue was $9 million compared with $9.1 million a year earlier. A $1 million decline in Joint Development Agreement revenue and a $500,000 decrease in LanzaJet sublicensing revenue were largely offset by stronger engineering and other services revenue.

Engineering and other services revenue increased to $3.3 million from $1.9 million, reflecting the initiation of new customer projects and greater engineering activity.

Reported Q2 net income reached $184.3 million compared with a $32.5 million loss in the prior-year period. The swing was primarily caused by a significant non-cash unrealized gain on LanzaTech’s investment in Beijing Shougang LanzaTech Technology, or SGLT.

The SGLT investment generated a $208.1 million non-cash unrealized gain following the joint venture’s public listing and subsequent changes in its quoted market value. SGLT completed an IPO on the Hong Kong Stock Exchange in June that raised approximately $75 million and initially implied a roughly $750 million market capitalization.

By August 12, SGLT’s market capitalization had increased to approximately $1.32 billion. LanzaTech retained an approximately 8.38% interest that management estimated was worth around $110 million at that point.

LanzaTech is also progressing several commercialization initiatives. In May, the company selected North Sea Port in Ghent, Belgium, as the permanent site for its FLITE sustainable aviation fuel project. The facility is targeting annual production of 79,000 tonnes of SAF and 9,000 tonnes of renewable diesel.

Management estimates FLITE could generate approximately $115 million in annualized offtake revenue, with additional revenue opportunities possible beyond that amount.

LanzaTech is separately pursuing what it says could become the world’s first ISCC EU certification pathway for recycled carbon fuels in China. Certification would establish methodology, carbon accounting and traceability standards required to access regulated markets under the European Union’s Renewable Energy Directive and is also recognized by the U.K. Department for Transport.

Liquidity also improved during the first half. LanzaTech ended June with $48.9 million of total cash and restricted cash, compared with $17.1 million of cash, restricted cash and investments at year-end. The increase primarily reflected $50 million of gross proceeds from common-stock issuances, partially offset by operating cash usage and a $3 million investment in LanzaJet Series A preferred stock.

LanzaTech has reintroduced financial guidance following the restructuring. Full-year 2026 revenue is expected to range from $50 million to $55 million, with operating expenses of $51 million to $55 million and an adjusted EBITDA loss of $22 million to $26 million.

KEY QUOTES:

“Our Second Quarter results reflect the actions we have taken to reshape LanzaTech for the current market. We have reduced costs, renegotiated key contracts and refocused capital spend as we move from an R&D-led model toward commercial project deployment. These actions are improving our year over year operating results and creating a more disciplined platform for revenue growth and long-term profitability.”

“As we execute our near-term cost reduction and profitability improvement strategy, we continue to advance milestones that support commercialization and future value capture. Our work towards the world’s first ISCC EU certification for recycled carbon fuel is a critical step in opening mandated European fuel markets to CarbonSmart ethanol. We believe this creates new commercial optionality across multiple end markets. SAF remains a core medium-term opportunity, supported by leading alcohol-to-jet technology, while certified carbon-smart ethanol gives us near-term access to direct-use markets such as marine and road transport. That breadth is a strategic asset, giving us flexibility, resilience, and multiple paths to monetize our technology today, while certification work like ISCC EU keeps us well positioned in mandated markets as they expand. Together, these markets support our focus on converting commercial progress into revenue growth and a clearer path to sustainable profitability.”

Dr. Jennifer Holmgren, CEO of LanzaTech