American Resources (AREC) Q3 2025 earnings summary

Executive summary

• Revenue for the quarter and nine months ended September 30, 2025, declined significantly year-over-year, primarily due to the suspension of coal production and lower royalty and metal recovery income.

• The company remains in the development stage for its ReElement and Electrified Materials segments, with limited revenue contributions from these new business lines.

• Net loss narrowed for both the quarter and nine-month period compared to 2024, driven by reduced operating expenses, especially in general and administrative costs.

Financial highlights

• Total revenue for Q3 2025 was $50,165, down from $235,443 in Q3 2024; nine-month revenue was $95,349, down from $333,557 year-over-year.

• Net loss for Q3 2025 was $6.3 million, compared to $8.9 million in Q3 2024; nine-month net loss was $21.6 million, compared to $27.0 million in 2024.

• Operating expenses for Q3 2025 decreased by $4.0 million year-over-year, mainly due to lower general and administrative expenses.

• Cash used in operating activities for the nine months was $10.7 million, an improvement from $17.5 million in the prior year.

• As of September 30, 2025, cash and cash equivalents were $2.1 million, with a working capital deficit of $75.7 million.

Outlook and guidance

• Management anticipates increased revenues from ReElement and Electrified Materials in 2025 but expects continued reliance on financing to support operations.

• The company plans to fund liquidity needs through additional debt and equity financing, given the current working capital deficit and limited revenue.