Sky Quarry 2025 Q1 Earnings Misses Targets as Net Loss Widens by 35%

Sky Quarry (SKYQ) reported its fiscal 2025 Q1 earnings on May 15th, 2025. Sky Quarry missed expectations with a 42.2% revenue decrease year-over-year and a larger net loss. Despite operational advancements, the company faces challenges with supply streams and commodity prices. Looking ahead, Sky Quarry is optimistic about future growth, driven by strategic partnerships and facility expansions, aiming to boost output significantly. The company plans to enhance operational performance and address lower commodity prices in the upcoming quarters.

Revenue

Sky Quarry's total revenue fell to $6.33 million in the first quarter of 2025, marking a substantial decrease from $10.95 million in the same period of the previous year. The revenue was composed of $1.85 million from diesel, $2.72 million from liquid asphalt, $1.62 million from VGO, $120,486 from naphtha, and $10,744 from other sources.

Earnings/Net Income

Sky Quarry's earnings per share (EPS) saw a decline, with losses widening to $0.16 per share in 2025 Q1, compared to a $0.15 per share loss in the previous year, representing a 6.7% increase in losses. Additionally, the net loss widened to $-3.33 million, up by 35.4% from the $-2.46 million loss recorded in the previous year. The EPS underperformed expectations, reflecting ongoing financial challenges.

Price Action

Post-Earnings Price Action Review

The strategy of purchasing Sky Quarry (SKYQ) shares after a revenue decline on earnings report release dates and holding for 30 days has historically yielded an 86.01% return over the past five years. This strategy has significantly outperformed the S&P 500's return of 106.58% over the same period. The approach underscores the potential to capture price increases following initial earnings-related stock drops. This pattern reflects investor confidence in the company's recovery prospects and its ability to rebound from temporary financial setbacks. Despite current challenges, the historical performance indicates a robust potential for gains post-earnings, suggesting that investors may still find value in adopting this strategy moving forward.

CEO Commentary

Guidance

Additional News

Sky Quarry recently signed two non-binding Letters of Intent with R & R Solutions and Southwind RAS, targeting significant expansions in the Southwest and Midwest regions. These partnerships are poised to increase Sky Quarry's access to asphalt shingle supplies, potentially unlocking new revenue streams and enhancing processing capabilities. Additionally, the company has engaged TAR360 to optimize operations at the Foreland Refinery, aiming to scale production significantly. This strategic move follows the anticipated decline in California's refining capacity, positioning Sky Quarry to capitalize on regional market shifts. As part of its ongoing commitment to shareholder value, Sky Quarry continues to explore innovative solutions to bolster its market presence and operational efficiency.