XCF Global (SAFX) Q2 2025 earnings summary

Executive summary

• Completed a business combination and became a publicly traded company on NASDAQ in June 2025, focusing on renewable fuels, primarily sustainable aviation fuel (SAF).

• Initial SAF and renewable naphtha production began in Q1 2025 at the Reno facility, with ramp-up at 50% of nameplate capacity; temporary renewable diesel production ongoing.

• Owns additional dormant biodiesel plants in Florida and North Carolina, with plans for further build-out and SAF conversion.

• All revenue for the period derived from renewable diesel sales and environmental credits under a contract with Phillips 66.

Financial highlights

• Reported revenue of $6.6 million for the three and six months ended June 30, 2025, compared to zero in the prior year period.

• Net income of $110.3 million for Q2 2025 and $102.8 million for the six months ended June 30, 2025, versus net losses of $3.8 million and $7.8 million in the prior year periods.

• Gross loss of $1.2 million for the quarter and six months, reflecting negative margins during SAF conversion ramp-up.

• Significant non-recurring gains: $206.2 million from change in fair value of warrants, $16.1 million unrealized gain on derivative asset, and $4.8 million gain from change in fair value of note payable.

• Operating expenses surged to $39.0 million for the six months, including $13.2 million in severance and $11.9 million in professional fees.

• Cash and cash equivalents at June 30, 2025, were $410,891; working capital deficit of $229.3 million.

Outlook and guidance

• SAF production at Reno facility expected to resume as early as Q1 2026, but timing and ability to reach full capacity remain uncertain.

• Plans to construct additional SAF and renewable fuels facilities in Nevada, Florida, and North Carolina, contingent on securing significant additional funding.

• Ongoing efforts to resolve loan and lease defaults and secure new financing; ability to continue as a going concern is uncertain.