Sky Quarry (SKYQ) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended September 30, 2025, were $12.2M, down 36% year-over-year due to refinery outages and lower crude prices.

• Net loss for the nine months was $9.3M, an improvement from $10.5M in the prior year period.

• The company continues to face significant going concern risks due to recurring losses and negative cash flows.

• Production was limited in Q3 2025 due to crude supplier disruptions and maintenance delays; production is expected to resume in January 2026.

Financial highlights

• Q3 2025 net sales: $1.34M, down from $4.85M in Q3 2024.

• Gross margin for the nine months was negative $1.89M, compared to $180K in the prior year.

• Operating expenses for the nine months rose to $5.06M from $3.86M year-over-year.

• Interest expense for the nine months was $2.25M, down from $4.77M in the prior year.

• Cash on hand at September 30, 2025, was $362K, with negative operating cash flow of $2.0M for the nine months.

Outlook and guidance

• Management expects production to resume in January 2026 after resolving supply and maintenance issues.

• The company is seeking to increase revenues, refinance or repay debt, and raise additional capital to address liquidity needs.