Sky Quarry 2025 Q2 Earnings Narrowed Losses Despite Revenue Gains

Sky Quarry (SKYQ) reported its fiscal 2025 Q2 earnings on August 14, 2025, showing mixed results with significant revenue growth but continued net losses. The company improved its bottom-line performance year-over-year, although its stock remains under pressure.

Sky Quarry’s total revenue for the second quarter of 2025 rose 34.6% year-over-year to $4.54 million, reflecting strong performance across its key product lines. Diesel generated $1.76 million, contributing the largest share of revenue, followed by Liquid Asphalt at $1.40 million and VGO at $1.31 million. Naphtha and other segments added $75,996 and $1,933, respectively, completing the total of $4.54 million.

Sky Quarry reported a narrowed net loss of $2.21 million in 2025 Q2, a 38.0% reduction from the $3.56 million loss in the same quarter of 2024. On a per-share basis, the company’s loss decreased to $0.10, a 54.5% improvement from $0.22 in 2024 Q2. While the company has made strides in reducing losses, it continues to report negative earnings, which is a negative for investors.

The stock price of Sky Quarry has remained relatively flat in the latest trading day, rising 14.41% over the past week, but declining sharply by 23.19% month-to-date. This volatility reflects the market’s cautious response to the earnings report and underlying business concerns.

A post-earnings investment strategy based on buying shares following the company’s revenue increase quarter-over-quarter and holding for 30 days proved highly ineffective over the past three years. This strategy yielded a -90.30% return, significantly underperforming the benchmark return of 7.43%, with an excess return of -97.72%. The annualized return (CAGR) was -95.54%, highlighting the steep depreciation of the stock under this approach. The investment also had a Sharpe ratio of -0.70, signaling a high-risk, low-return profile.

David Chisholm, CEO of Sky Quarry, acknowledged the challenges the company faces, particularly from macroeconomic pressures and customer service issues, including device functionality and user experience problems. He emphasized the company’s ongoing investments in customer support innovation and product reliability to drive long-term value. Despite these challenges, Chisholm expressed cautious optimism about Sky Quarry’s future performance and reiterated the company’s commitment to improving service quality and customer engagement.

The company did not provide forward-looking guidance during the earnings call, and no specific quantitative targets for future revenue, earnings per share (EPS), or capital expenditures were announced. Chisholm declined to offer detailed projections for the company’s future performance, leaving investors without clear expectations for the next reporting period.

Additional News
In Nigeria, the Punch newspaper reported on several developments on August 15, 2025. The EFCC arraigned suspects in a sting operation related to illegal mining in Akwa Ibom, while the police in Lagos dismantled an armed robbery operation operating from a refuse dump. The political landscape saw the PDP inaugurating a 44-member zoning committee and demanding total loyalty from state leaders.

Significant events also included a pledge by the Dangote Group to provide full medical support for the injured sister of BBNaija contestant Phyna. Meanwhile, a road crash in Kano resulted in 12 deaths and five injuries, drawing public attention to traffic safety. The newspaper also highlighted flood-related challenges in Yobe State, where the governor ordered immediate humanitarian support for affected communities.

These updates reflect a mix of political, economic, and social developments in Nigeria, offering broader context to the earnings report of Sky Quarry.