Sky Quarry Reports Q1 GAAP EPS of -$0.16, Revenue Down 42.7% YoY to $6.3M.

Sky Quarry Inc. reported Q1 GAAP EPS of -$0.16 and revenue of $6.3M, a decrease of 42.7% YoY. The company's financial performance is down compared to the same period last year.

Sky Quarry Inc. (NASDAQ: SKYQ) released its first-quarter (Q1) 2025 financial results, showing a significant decline in both earnings and revenue. The company reported a GAAP EPS of -$0.16 and revenue of $6.3 million, marking a 42.7% year-over-year (YoY) decrease compared to the same period last year [1].

The company's financial performance was impacted by several factors. The revenue decline was primarily driven by ongoing challenges in reestablishing supply streams following the Foreland Refinery outage and refurbishment in mid-2024, as well as lower commodity prices. WTI crude prices fell from $87 per barrel in April 2024 to $71 per barrel at the end of Q1 2025 [1].

Sky Quarry's gross profit turned negative in Q1 2025, with a loss of $726,000 compared to a gross profit of $569,000 in the prior-year period. Operating expenses increased to $1.94 million, up from $1.61 million in Q1 2024, reflecting higher general and administrative costs, non-cash share-based compensation, and depreciation [1].

Despite these challenges, the company reported a net loss of $3.3 million for the first quarter of 2025, compared to a net loss of $2.5 million in the same period last year. Net cash used in operating activities for the three months ended March 31, 2025, was approximately $2.0 million, compared to $1.2 million for the same period in 2024 [1].

Sky Quarry's management highlighted the company's continued growth across operations and progress in executing its waste-to-energy strategy. The company signed non-binding Letters of Intent with Southwind RAS in the Midwest and R & R Solutions in the Southwest, representing potential access to over 1.5 million tons of asphalt shingle supply annually. Additionally, the company engaged TAR360 to optimize operations at Foreland Refinery, aiming to increase throughput by up to 400% from current 20,000 barrels per month to 100,000 barrels [2].

While the company faces significant financial challenges, management remains optimistic about the potential for future growth. The company's success hinges on converting LOIs to binding agreements, completing PR Spring upgrades, and successfully increasing Foreland's throughput to improve margins and reduce cash burn [2].

References:
[1] https://seekingalpha.com/news/4449649-sky-quarry-gaap-eps-of-0_16-revenue-of-6_3m
[2] https://www.stocktitan.net/news/SKYQ/sky-quarry-reports-first-quarter-2025-financial-ao0mw5gbax24.html