How LAC (Lithium Americas) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a lithium exploration and development company like LAC makes money is essential for investors and anyone interested in the business of critical minerals. In this post, we break down LAC's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick LAC Overview

LAC operates as a pre-revenue lithium exploration and development company focused on advancing its Thacker Pass project in Nevada, one of the largest known lithium claystone deposits globally. Revenue comes from other income sources, such as interest or grants, as the company is in the development stage without significant commercial production yet. The business model centers on project permitting, engineering, and financing to reach production, with no major revenue segments reported in Q3 2025.

Revenue Breakdown

• Total Revenue (Q3 2025): $0 (+0% YoY)
  • No segment revenue reported.
  • Growth is powered by development milestones, though the company remains pre-commercial.

Gross Profit and Margins

• Gross Profit: $0 (0% gross margin)
  • Cost of Revenue: $0 (+0% YoY)
  • LAC maintains minimal margins due to its pre-revenue development stage, with no cost of goods sold as operations focus on project advancement rather than production.
• Most costs come from operating expenses, primarily general and administrative functions.

Operating Income and Expenses

• Operating Income: -$9.7M (N/A margin)
• Operating Expenses: $9.7M (+0% YoY)
  • R&D: $0 (+0% YoY, 0% of revenue) — No specific R&D breakout reported.
  • SG&A: $9.7M (+73.2% YoY, N/A% of revenue) — Covers general administrative, permitting, engineering, and overhead costs essential for advancing the Thacker Pass project.
  • LAC continues to prioritize innovation and project development while controlling costs in a capital-intensive exploration phase.

Net Income

• Pre-Tax Income: N/A
• Income Tax: $0 (0% effective tax rate)
• Net Income: $197.7K (+2351.7% YoY, N/A% net margin)
• LAC converts other income into a small profit due to non-operating gains, despite operating losses from development spending.

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What Drives LAC's Money Machine?

• Other Income: 100% of reported income at $197.7K — Likely from interest income, government grants, or one-time items supporting operations.
• Project Development: Key metric is progress on Thacker Pass, with SG&A reflecting investments in feasibility studies and permitting.
• Strategic Investments: Heavy focus on engineering and environmental approvals to unlock future lithium production.
• Future growth areas: Commercial lithium production from Thacker Pass, though not yet profitable and pre-revenue.

Visualizing LAC's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after significant development costs, other income results in a small positive net income.

Key Takeaways

• LAC's money comes overwhelmingly from other income sources
• High gross and net margins illustrate the power of LAC's asset-light development model prior to production
• Heavy investment in project advancement, balanced by efficiency in minimal operating costs
• Ongoing growth is driven by Thacker Pass milestones and lithium market demand

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FAQ About LAC's Income Statement

1. What is the main source of LAC's revenue in 2025?

LAC generates over 100% of its income from other sources like $197.7K in "Other" income. No operational revenue segments are reported as the company is pre-production.

2. How profitable is LAC in Q3 2025?

LAC reported net income of $197.7K in Q3 2025, with operating losses offset by other income, reflecting moderate profitability in a development stage driven by non-operating gains.

3. What are the largest expense categories for LAC?

The biggest expenses on LAC's income statement are operating expenses, particularly Sales, General & Administrative (SG&A) costs. SG&A investment reached $9.7M in Q3 2025, as LAC prioritizes project permitting and engineering.

4. Why does the development division operate at a loss?

Development activities, despite generating no revenue, posted an operating loss of $9.7M in Q3 2025. This is because LAC aggressively invests in Thacker Pass advancement, believing these will drive long-term lithium production—even if unprofitable today.

5. How does LAC's effective tax rate compare to previous years?

LAC's effective tax rate in Q3 2025 was 0%, consistent with previous years. This low rate is primarily due to pre-profitability status and lack of taxable income from operations.