Opal Fuels (OPAL) Q3 2025 earnings summary

Executive summary

• Achieved Q3 2025 Adjusted EBITDA of $19.5 million and RNG production of 1.3 million MMBtu, up 30% year-over-year, with full-year guidance maintained despite lower RIN prices and ISSC pathway expiration.

• Revenue for Q3 2025 was $83.4 million, down 1% year-over-year; nine-month revenue rose 13% to $249.2 million, driven by Fuel Station Services and RNG Fuel growth.

• Net income for Q3 2025 was $11.4 million, down 33% year-over-year; nine-month net income was $20.2 million, up 3%.

• Strategic growth continues with the Atlantic RNG facility online, CMS RNG project construction started, and annual design capacity reaching 9.1 million MMBtu across 12 operating projects.

• Maintained strong liquidity, ending Q3 with $183.8 million, including $29.9 million in cash and $153.9 million in unused credit capacity.

Financial highlights

• Q3 2025 revenue was $83.4 million and adjusted EBITDA was $19.5 million, down from $84 million and $31.1 million year-over-year due to lower RIN prices and ISCC pathway expiration.

• RNG Fuel revenue for Q3 2025 decreased 11% year-over-year to $22.9 million; Fuel Station Services revenue grew 14% to $51.7 million.

• Renewable Power revenue fell 32% in Q3 2025 to $8.7 million, mainly due to the termination of an ISCC Carbon Credit contract.

• Monetized $17 million in investment tax credits in Q3, totaling over $40 million year-to-date.

• Gross margin for Q3 2025 was 16%, down from 26% in Q3 2024.

Outlook and guidance

• Full-year 2025 guidance is maintained, with adjusted EBITDA projected between $90 million and $110 million, and RNG production expected in the range of 5.0 to 5.4 million MMBtu.

• Q4 expected to benefit from higher D3 RIN prices, sequential production growth, fuel station services, and initial 45Z tax credit recognition.

• Burlington and Cottonwood RNG projects (1.1 million MMBtu) expected online in 2026; Kirby RNG (0.7 million MMBtu) in 2027.

• Anticipated capital expenditures of $144.3 million over the next 12 months for RNG projects, fuel stations, and equity method investments.

• Available cash and expected cash flows are sufficient to meet commitments for at least 12 months.