Safe and Green 2025 Q2 Earnings Record High Net Loss Widens 190.7%

Safe and Green (SGD) reported its fiscal 2025 Q2 earnings on August 15, 2025. The results significantly missed expectations with a substantial widening of net losses and no indication of guidance adjustments.

The company reported a 190.7% increase in net loss year-over-year, with Q2 2025 net loss amounting to $5.72 million compared to $1.97 million in the same quarter of the prior year. Earnings per share deteriorated from a loss of $0.13 to $2.29, marking a 1661.5% wider loss. The company noted this was the highest net loss in fiscal Q2 over the past two years.

Revenue
Safe and Green’s total revenue in Q2 2025 surged by 3226.5% to $1.40 million from $42,162 in Q2 2024. The bulk of this increase came from the Resource segment, which generated $425,197 in revenue, while the ZEI segment contributed the majority at $977,314. In contrast, the Real Estate Development and Technology segments remained revenue-neutral. The consolidated revenue for the company reached $1.40 million, reflecting strong growth in select business areas.

Earnings/Net Income
The company's earnings performance continued to decline, with both net loss and loss per share reaching record highs for the quarter. The EPS of $2.29 reflects a significant deterioration in profitability compared to $0.13 in the prior year, indicating a negative performance on the earnings front.

Price Action
Safe and Green's stock price has demonstrated a sharp rebound, with an 8.18% gain on the latest trading day, a 3.48% increase for the week, and a substantial 26.65% surge month-to-date.

Post Earnings Price Action Review
A trading strategy based on purchasing SGD shares following a quarter-over-quarter revenue increase on the earnings report date and holding for 30 days yielded a disastrous outcome over the past three years, returning -98.87%. This underperformed the benchmark by 146.19%, with a Sharpe ratio of -0.39 and a maximum drawdown of 0.00%, effectively wiping out capital.

CEO Commentary
CEO John Green acknowledged the company's struggles in Q2 2025, particularly in the energy transition market, which impacted both revenue and net income. He emphasized the importance of sustainable infrastructure and digital transformation as long-term growth drivers. Green also reiterated the company's commitment to operational efficiency, cost control, and alignment with global decarbonization goals, despite near-term volatility.

Guidance
The CEO expects revenue to stabilize in Q3 2025 and to show modest growth in Q4. He also anticipates a reduction in net losses as the company optimizes operations and scales high-margin projects.

Additional News
In the three weeks following the earnings release, Safe and Green made strategic announcements to bolster its long-term sustainability goals. The company signed a new partnership with a European renewable energy firm to co-develop offshore wind projects, signaling a shift toward large-scale clean energy infrastructure. Additionally, SGD announced the appointment of a new Chief Sustainability Officer, indicating a renewed focus on environmental strategy and stakeholder communication. Lastly, the board approved a restructuring initiative to reduce overhead costs and streamline operations, which is expected to take effect by the end of Q3.