Safe & Green (SGBX) investor relations material

Executive summary

• Revenue declined 43% year-over-year for both the three and six months ended June 30, 2025, mainly due to fewer construction jobs in progress.

• Gross margin turned negative, with a gross loss of $1.3M for the six months, compared to a gross loss of $0.4M in the prior year.

• Net loss attributable to common stockholders was $7.3M for the six months, an improvement from $9.1M loss in the prior year, aided by income from discontinued operations.

• Significant business developments included the acquisition of NAHD, County Line, and Sherman Oil, expanding into oil and gas and environmental segments.

• The company faces substantial doubt about its ability to continue as a going concern due to recurring losses, negative working capital, and negative operating cash flows.

Financial highlights

• Six-month revenue was $1.29M, down from $2.18M year-over-year; three-month revenue was $0.72M, down from $1.21M.

• Gross margin for the six months was (57)%, compared to 33% in the prior year.

• Operating loss for the six months was $5.5M, compared to $3.4M in the prior year.

• Net loss per share for the six months was $(0.92), compared to $(10.01) in the prior year.

• EBITDA and Adjusted EBITDA remained negative, with Adjusted EBITDA at $(4.8M) for the six months.

Outlook and guidance

• Management expects to become cash flow positive in the second half of 2025, contingent on securing additional funding and increasing revenues.

• Backlog as of June 30, 2025, was $1.2M, expected to convert to revenue within one year.

• The company is actively seeking additional debt or equity financing and may need to alter its business plan if funding is not secured.