AirJoule Technologies Corporation (NASDAQ: AIRJ) reported a net loss of $8.5 million for the second quarter of 2026, a reversal from the net income of $2.5 million recorded in the same period of 2025. The company closed the quarter with $41.4 million in cash, reflecting the impact of a registered direct offering that brought in $14.2 million in net proceeds during June 2026.

The quarterly results were heavily influenced by non-operational items related to its joint venture and share liabilities. While operational expenses remained relatively stable, the company recorded an equity loss from its investment in AirJoule, LLC of $2.5 million for the quarter. Additionally, changes in the fair value of earnout and subject vesting shares liabilities contributed approximately $5.1 million to other expenses.

Financial Performance

Total operating expenses for the three months ended June 30, 2026, amounted to $4.1 million, comprising $3.8 million in general and administrative costs, $172,807 in research and development, and $118,047 in sales and marketing. This represents a slight increase from the $4.2 million in operating losses reported in Q2 2025, though the composition shifted with lower R&D spend this quarter.

Interest income for the quarter stood at $292,929, partially offsetting the operational and non-operational losses. The company also reported an income tax benefit of $2.9 million. Total joint venture operating expenses for the second quarter were approximately $5 million, with AirJoule Technologies contributing $2.5 million in additional capital to support productization and deployment activities.

Operational Highlights

Despite the financial headwinds, AirJoule advanced several key commercial and technological milestones during the quarter:

• Kubota Partnership: Entered into an exclusive sales agreement with Kubota Corporation for multi-unit residential developments in Texas and California. Two AirJoule Core systems are scheduled for deployment near Corpus Christi and Irvine starting in Q3 2026. This partnership addresses water scarcity constraints that currently stall residential projects in these regions.
• Prime System Commissioning: Successfully commissioned its first full-scale AirJoule Prime system at its Newark, Delaware facility in May 2026. The system is operating outdoors and progressing toward specifications of up to 2,000 liters per day at less than 200 watt-hours per liter.
• Data Center Validation: Completed the technology acceleration program with the Net Zero Innovation Hub for Data Centers. The company expects to ship its first Prime system to Europe in Q3 2026 to demonstrate waste-heat-to-water conversion.
• UAE Expansion: Received one of the first Expo City Dubai Green Licences and shipped an AirJoule Core system to the UAE for customer demonstrations and performance validation.

Liquidity and Outlook

AirJoule’s combined cash position across the parent company and its joint venture totaled $43.0 million with no debt. The company updated its 2026 spend framework to expect approximately $27 million to $28 million in combined cash spend, up from the previously communicated $25 million. Management stated that current liquidity is sufficient to fund operations and planned commercial deployments into 2028.

Looking ahead, the company expects modest paid deployment revenue at the joint venture during 2026, with more meaningful commercial revenue anticipated beginning in 2027 as Core and Prime deployments come online. Management noted that design-for-manufacturing work is on track for contract manufacturing conversations in 2027.

What the Numbers Show

The divergence between the operational loss and the net loss highlights the significant impact of mark-to-market adjustments on AirJoule’s reported profitability. The $8.5 million net loss was driven primarily by a $5.1 million hit from changes in fair value of share-based liabilities and a $2.5 million equity loss from the joint venture, rather than core operational inefficiencies. With operating expenses holding steady around $4.1 million per quarter and cash reserves strengthened by recent capital raises, the company is positioned to fund its transition from R&D to commercial deployment without immediate liquidity pressure.

AirJoule Technologies Corporation shares surged 23.6% to $4.67 on Wednesday after the climate-tech company announced a commercial partnership with Kubota Corporation to address water constraints in U.S. residential developments. The agreement includes an initial purchase of two AirJoule Core systems and grants Kubota exclusive sales rights for multi-unit residential projects in Texas and California. This collaboration targets deployments beginning in Q3 2026, aiming to provide reliable water resources in areas where traditional infrastructure is cost-prohibitive or unavailable.

Kubota has purchased two AirJoule Core systems for initial deployments at sites near Corpus Christi, Texas, and Irvine, California. These projects will pair AirJoule's atmospheric water generation technology with Kubota's water infrastructure expertise, including wastewater treatment, water reclamation, pipe systems, and operation and maintenance capabilities. The operational data generated will validate AirJoule's performance across various environmental conditions, accelerating commercial adoption.

Exclusive Sales Agreement

Under the exclusive sales agreement, Kubota will market, sell, and distribute AirJoule systems for multi-unit residential developments in Texas and California. The companies may consider broader commercial collaboration based on the results of these initial deployments, customer needs, and the feasibility of integrating AirJoule systems with Kubota's wastewater reclamation equipment and digital infrastructure capabilities.

Addressing Water Scarcity

The partnership focuses on solving several key challenges identified by residential developers in water-constrained markets:

• Regulatory Compliance: In states like California, developers must demonstrate 20-year water resource security to obtain permits. The integrated solution aims to meet these requirements without relying on traditional water sources.
• Water Quality: AirJoule's platform produces water meeting stringent U.S. drinking water standards, including those set by California.
• Infrastructure Cost Avoidance: The decentralized approach eliminates the need for expensive and time-consuming extensions of centralized water pipes.
• Water Resource Uncertainty: The technology provides a climate-independent water source, addressing issues like groundwater depletion and contamination.

Management Commentary

"This partnership with Kubota represents an important milestone as we commercialize AirJoule," said Matt Jore, Chief Executive Officer of AirJoule Technologies. "By partnering with Kubota on the initial deployments in Texas and California and for residential development sales, we are well-positioned to capture significant market share while solving a critical societal challenge."

Wataru Kondo, Director and Senior Managing Executive Officer at Kubota Corporation, added, "The AirJoule technology, combined with our water reclamation systems and smart infrastructure platform, positions us to deliver a complete, integrated solution. We see significant near-term demand from our developer network."