UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to _______ Commission File Number: 000-21467 ALTO INGREDIENTS, INC. (Exact name of registrant as specified in its charter) | Delaware | 41-2170618 | | --- ...

Alto Ingredients (ALTO) came out with a quarterly loss of $0.15 per share versus the Zacks Consensus Estimate of a loss of $0.18. This compares to a loss of $0.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +16.67%. A quarter ago, it was expected that this ethanol producer would post a loss of $0.15 per share when it actually produced a loss of $0.16, delivering a surprise of -6.67%.Over the last four quarters, the company ...

Financial Data and Key Metrics Changes - Adjusted EBITDA improved by nearly $6,000,000 compared to the previous year, reflecting successful productivity initiatives [6] - Consolidated net loss was $11,300,000 for Q2 2025, compared to a net loss of $3,400,000 in Q2 2024, primarily due to higher unrealized non-cash derivative losses and lower crush margins [21] - Net sales were $218,000,000, which is $18,000,000 lower than the prior year due to fewer gallons sold and lower average prices [17] Business Line Data and Key Metrics Changes - Sold 86,700,000 gallons compared to 95,100,000 gallons in the same quarter last year, reflecting a rationalization of unprofitable business [17] - Gross profit improved by $5,600,000 at Western facilities, with the addition of the Alto Carbonic Liquid CO2 Processing Facility contributing to a $3,000,000 improvement at the Columbia plant [21] - The Marketing and Distribution segment improved due to the integration of bulk volume customers and transitioning away from low-return businesses [8] Market Data and Key Metrics Changes - The annual uptick in demand from the summer driving season helped lift ethanol prices and improved crush spreads, with market crush averaging $0.30 per gallon for July [14][18] - The 45Z credit extensions through 2029 and new eligibility restrictions are expected to benefit domestic renewable fuel production [11] - Current carbon intensity scores indicate that Columbia will qualify for 10¢ per gallon for 2025 and up to 20¢ for 2026, equating to approximately $4,000,000 in 2025 and $8,000,000 in 2026 [12] Company Strategy and Development Direction - The company is focusing on short-term projects with immediate returns while laying groundwork for longer-term capital-intensive projects [7] - Evaluating projects to lower carbon intensity and capture benefits from 45Z regulations, as well as improving efficiency and productivity [7][24] - The regulatory environment is seen as positive, creating opportunities for the company to capitalize on [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operational improvements and the potential for positive margins for the remainder of the summer [14] - The company is working on alternatives for CO2 sequestration following regulatory changes and is focused on optimizing the value of CO2 production [7][11] - Management highlighted the importance of repairing the dock to restore operational efficiency and capitalize on European sales opportunities [29] Other Important Information - The company has rightsized corporate overhead to align with its current footprint, aiming for annual savings of approximately $8,000,000 [9] - The annual meeting of stockholders resulted in the election of two new board members and the appointment of a new Chairman and Vice Chair [16] - The company is actively working with Guggenheim on Western asset optimization and monetization plans [24] Q&A Session Summary Question: Outlook for operational benefits from the Carbonic acquisition - Management indicated that there is still substantial capacity for growth at the Carbonic facility, with room to increase production [27][28] Question: Impact of dock damage on export strategy to Europe - Management confirmed that while dock damage has created challenges, they have developed workarounds and are exceeding initial sales projections for Europe [29][30] Question: Clarification on the Eagle Alcohol improvement - Management clarified that the $1,100,000 improvement was a one-time event related to deferred acquisition costs [34] Question: Further reductions in SG&A - Management noted ongoing efforts to scrutinize spending and negotiate better terms with suppliers, which collectively will have a meaningful impact [36] Question: Details on the Western asset monetization process - Management stated that they are in discussions with prospective buyers and evaluating opportunities, with the process taking time due to the unique nature of the assets [44][45]

Elevating Essential Products Leading producer of specialty alcohols and high quality ingredients Q2 2025 INVESTOR PRESENTATION reported on August 6, 2025 1 Safe Harbor Statement Statements and information contained in this communication that refer to or include Alto Ingredients' estimated or anticipated future results or other non- historical expressions of fact are forward looking statements that reflect Alto Ingredients' current perspective of existing trends and information as of the date of the communic ...

Alto Ingredients, Inc. Reports Second Quarter 2025 Results - Western Assets Increased Gross Profit by $5.6 Million, Compared to Q2 2024 - Pekin, IL, August 6, 2025 – Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients, reported its financial results for the quarter ended June 30, 2025. Exhibit 99.1 "In 2025, our higher productivity and efficiency initiatives positively impacted our financial position. These successes refl ...

- Western Assets Increased Gross Profit by $5.6 Million, Compared to Q2 2024 - PEKIN, Ill., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients, reported its financial results for the quarter ended June 30, 2025. “In 2025, our higher productivity and efficiency initiatives positively impacted our financial position. These successes reflect our commitment to projects with near-term returns ...

Company Overview - Alto Ingredients, Inc. (NASDAQ: ALTO) is a leading producer and distributor of specialty alcohols, renewable fuels, and essential ingredients, serving various markets including Health, Home & Beauty, Food & Beverage, Industry & Agriculture, Essential Ingredients, and Renewable Fuels [6]. Board of Directors Update - Gilbert Nathan has been appointed as Chair and Dianne Nury as Vice-Chair of the board of directors, with Alan R. Tank and Jeremy T. Bezdek elected as new directors during the annual meeting on June 25, 2025 [1][2]. - Gilbert Nathan expressed his honor in serving as Chairman and emphasized the importance of the new board members' experience in enhancing shareholder value [2]. - Bryon McGregor, CEO of Alto Ingredients, highlighted the significance of the new directors' expertise in renewable energy and capital raising for the company's growth strategy and commitment to sustainability [2]. New Board Members' Expertise - Jeremy T. Bezdek brings over 30 years of experience in leadership, business development, M&A, and strategy execution across energy, renewables, and advanced manufacturing sectors. He has served on ten boards since 2010 and has a strong background in managing multi-billion-dollar investments [2][3]. - Alan R. Tank has over three decades of executive leadership in agriculture, food, and renewable energy sectors. He has held advisory roles in decarbonization opportunities and has co-owned a family farm, showcasing his diverse experience in the industry [4][5].

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS.) The company reported a Q1 2025 net loss of $11.7 million on sales of $226.5 million, alongside decreased cash, increased long-term debt, and negative operating cash flow [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly increased to $402.2 million while total liabilities grew to $188.3 million, resulting in a decrease in stockholders' equity Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $26,778 | $35,469 | | Total current assets | $153,461 | $153,118 | | Total Assets | $402,209 | $401,438 | | **Liabilities & Equity** | | | | Total current liabilities | $53,116 | $57,804 | | Long-term debt | $110,664 | $92,904 | | Total Liabilities | $188,289 | $176,375 | | Total Stockholders' Equity | $213,920 | $225,063 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Net sales decreased 5.9% year-over-year to $226.5 million, while the gross loss improved and the net loss per share remained relatively stable Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $226,540 | $240,629 | | Gross loss | $(1,807) | $(2,400) | | Loss from operations | $(8,997) | $(10,332) | | Net loss | $(11,679) | $(11,725) | | Net loss attributable to common stockholders | $(11,991) | $(12,040) | | Net loss per share, basic and diluted | $(0.16) | $(0.17) | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $18.2 million, a significant negative shift from the prior year, driven by changes in working capital Q1 2025 vs Q1 2024 Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(18,231) | $1,429 | | Net cash used in investing activities | $(7,810) | $(6,043) | | Net cash provided by financing activities | $17,001 | $1,206 | | **Net decrease in cash** | **$(9,040)** | **$(3,408)** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail the Kodiak Carbonic acquisition, segment performance shifts, commodity risk management, and an increase in long-term debt - On January 1, 2025, the company acquired Kodiak Carbonic, a beverage-grade liquid CO2 processor, for **$7.6 million in cash** to provide vertical integration and access to new markets[26](index=26&type=chunk)[39](index=39&type=chunk) - The company **cold-idled its Magic Valley facility** on December 31, 2024, to minimize financial losses from margin compression and intends to resume operations when regional economic conditions improve[30](index=30&type=chunk) Gross Profit (Loss) by Segment (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Pekin Campus production | $(3,073) | $4,268 | | Marketing and distribution | $3,914 | $3,532 | | Western production | $(1,258) | $(8,460) | - As of March 31, 2025, total long-term debt was **$110.7 million**, up from **$92.9 million** at year-end 2024, primarily due to increased borrowings on the Kinergy line of credit[54](index=54&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS.) Management discusses improved Adjusted EBITDA driven by cost savings and acquisitions, despite challenges from lower prices and operational disruptions - **Adjusted EBITDA improved to $(4.4) million** in Q1 2025 from $(7.1) million in Q1 2024, benefiting from the cold-idling of the Magic Valley plant (**$4.8M savings**) and the acquisition of the CO2 facility (**$2.9M contribution**)[92](index=92&type=chunk)[106](index=106&type=chunk) - The company **reduced headcount by 16%** in Q4 2024 and Q1 2025, expecting approximately **$8 million in annual savings** starting in Q2 2025[93](index=93&type=chunk) - The company's Pekin Campus loadout dock was damaged in April due to rising river levels, negatively impacting production and logistics while temporary solutions are in place[97](index=97&type=chunk) - The company's Carbon Capture and Storage (CCS) initiative faces potential challenges from proposed Illinois legislation that could restrict sequestration activity near the Mahomet Aquifer[100](index=100&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Consolidated net sales decreased 5.9% due to lower volumes, though gross loss improved from cost savings, while net interest expense increased Q1 2025 vs Q1 2024 Results Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $226,540 | $240,629 | (5.9)% | | Cost of goods sold | $228,347 | $243,029 | (6.0)% | | Gross loss | $(1,807) | $(2,400) | (24.7)% | | SG&A expenses | $7,190 | $7,932 | (9.4)% | | Interest expense, net | $2,729 | $1,634 | 67.0% | - The Pekin Campus segment's gross profit declined by **$7.3 million to a gross loss of $2.2 million**, entirely due to lower ethanol margins[121](index=121&type=chunk) - The Western Production segment's gross loss improved by **$7.1 million**, primarily due to the cold-idling of the Magic Valley facility[123](index=123&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company believes it has sufficient liquidity for the next twelve months, supported by cash, credit availability, and compliance with debt covenants Liquidity Position (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents and restricted cash | $27,171 | $36,211 | | Working capital | $100,345 | $95,314 | | Long-term debt, noncurrent portion | $110,664 | $92,904 | - As of March 31, 2025, the company had **$11.7 million in unused borrowing availability** under its Kinergy line of credit and **$65.0 million potentially available** under its Orion term loan[129](index=129&type=chunk) - Net assets of approximately **$55.6 million at subsidiaries were restricted** and not available for transfer to the parent company due to credit facility terms[132](index=132&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK.) The company is primarily exposed to commodity price risk for ethanol and corn, which it manages using non-speculative derivative instruments - The company's business is sensitive to changes in the prices of ethanol and corn and uses derivative instruments to manage this risk but not for trading or speculative purposes[148](index=148&type=chunk) Market Risk Sensitivity Analysis (in millions) | Commodity | Approximate Adverse Change to Pre-Tax Income (from 10% price change) | | :--- | :--- | | Ethanol | $(7.0) | | Corn | $(6.9) | [Item 4. Controls and Procedures](index=36&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES.) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes during the quarter - Management, including the CEO and CFO, concluded that as of March 31, 2025, the company's **disclosure controls and procedures were effective** at a reasonable assurance level[155](index=155&type=chunk) - **No material changes** to the company's internal control over financial reporting occurred during the most recently completed fiscal quarter[156](index=156&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=38&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS.) Management believes that pending legal matters from the ordinary course of business will not have a material adverse effect on the company - Based on currently available facts, management believes that pending legal proceedings **will not adversely affect the company's financial condition**, results of operations, or cash flows in any material respect[161](index=161&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=ITEM%201A.%20RISK%20FACTORS.) The company faces significant risks from commodity price volatility, production disruptions, government regulations, and the execution of its CCS initiative - Business results are highly dependent on the **volatile and uncertain prices of corn, natural gas, alcohols, and essential ingredients**, which can cause results to fluctuate significantly[164](index=164&type=chunk) - Capital improvement projects, particularly the **CCS initiative, face significant execution, financing, and regulatory risks**, and may not achieve expected results, including projected EBITDA[189](index=189&type=chunk)[190](index=190&type=chunk) - The fuel-ethanol industry is **highly dependent on federal and state laws**, such as the Renewable Fuel Standard (RFS), and changes could materially harm results[210](index=210&type=chunk) - The **CCS project in Illinois may be adversely affected by new state legislation** that imposes stringent requirements and could restrict storage locations, adding costs and potential delays[203](index=203&type=chunk)[204](index=204&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS.) The company paid dividends on its preferred stock but has no history of or plans for paying dividends on its common stock - The company paid **$0.3 million in dividends on its Series B Preferred Stock** for the three months ended March 31, 2025[239](index=239&type=chunk) - The company has **never declared or paid cash dividends on its common stock** and does not currently intend to do so[239](index=239&type=chunk) [Item 3. Defaults Upon Senior Securities](index=52&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES.) Not applicable [Item 4. Mine Safety Disclosures](index=52&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES.) Not applicable [Item 5. Other Information](index=52&type=section&id=ITEM%205.%20OTHER%20INFORMATION.) No directors or officers reported the adoption or termination of a Rule 10b5-1 trading arrangement during the first quarter of 2025 - **No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement** during the three months ended March 31, 2025[243](index=243&type=chunk) [Item 6. Exhibits](index=53&type=section&id=ITEM%206.%20EXHIBITS.) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data files

分组1 - Alto Ingredients reported a quarterly loss of $0.16 per share, slightly worse than the Zacks Consensus Estimate of a loss of $0.15, but an improvement from a loss of $0.17 per share a year ago, indicating a -6.67% earnings surprise [1] - The company posted revenues of $226.54 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.05%, but down from $240.63 million in the same quarter last year [2] - Alto Ingredients has underperformed the market, with shares down approximately 45.6% year-to-date compared to the S&P 500's decline of 4.7% [3] 分组2 - The earnings outlook for Alto Ingredients is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.09 on revenues of $234.34 million, and -$0.27 on revenues of $957.81 million for the current fiscal year [7] - The Zacks Industry Rank places the Consumer Products - Discretionary sector in the bottom 32% of over 250 Zacks industries, suggesting that the industry outlook could significantly impact stock performance [8]

Financial Data and Key Metrics Changes - In Q1 2025, net sales were $227 million, a decrease of $14 million compared to Q1 2024, attributed to various factors including operational decisions [18] - The average sales price per gallon increased to $1.93 in Q1 2025 from $1.86 in Q1 2024, reflecting improved domestic market prices for ethanol [18] - Adjusted EBITDA improved to negative $4.4 million from negative $7.1 million in Q1 2024, indicating operational improvements [20] Business Line Data and Key Metrics Changes - The company sold 89.6 million gallons in Q1 2025, down from 99 million gallons in Q1 2024, due to idling the Magic Valley facility [18] - ISCC certified renewable fuel sales increased, providing a $1.4 million benefit from premium pricing compared to domestic renewable fuel sales [19] - The Columbia facility's performance improved by $2.9 million compared to Q1 2024, benefiting from the integration of Alto Carbonic [28] Market Data and Key Metrics Changes - Seasonal market patterns in 2025 showed improved crush margins each month during Q1, although high inventory levels limited margin expansion [12] - The company noted that without a significant reduction in ethanol supply, substantial improvements in crush spreads may be constrained [13] - The recent E15 fuel waiver by the EPA is expected to positively impact ethanol demand, particularly in California [14][15] Company Strategy and Development Direction - The company is focused on diversifying revenue streams and mitigating commodity volatility through initiatives in beverage-grade CO2 and ISCC renewable fuel [23][24] - Regulatory developments, such as the potential national adoption of year-round E15, are seen as opportunities for industry growth [25] - The company is actively evaluating alternatives for revenue streams and optimizing its operations to drive long-term shareholder value [25] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about margin improvements with increased demand expected from the summer driving season, despite concerns over tariffs and export uncertainties [13] - The company is assessing the long-term impact of Illinois legislation on CO2 sequestration and is working with state leaders to address potential legal challenges [17] - Management highlighted the importance of optimizing feedstock sourcing to improve the viability of the Magic Valley facility in the future [46] Other Important Information - The company expects to save approximately $8 million annually from workforce reductions, with benefits starting in Q2 2025 [8][29] - A temporary load dock was damaged due to rising river levels, impacting production and logistics, with ongoing assessments for long-term remediation [11][35] Q&A Session Summary Question: Was the acquisition of the liquid CO2 facility accretive during the first quarter? - Yes, the integration of the Columbia facility and Carbonic has already shown significant positive benefits, improving operations by $2.9 million compared to Q1 2024 [27][28] Question: Will the $8 million in annual savings come from operating expenses or cost of goods sold? - The savings will come from a 13% reduction in both cost of goods sold and SG&A expenses, expected to be realized in Q2 2025 [29] Question: What impact might the Illinois bill have on CO2 sequestration plans? - The bill could require relocating drilling sites, which would necessitate amending existing permits [30][32] Question: What was the estimated cost of the temporary solution for the damaged load dock? - The company is currently assessing long-term remediation options and working with insurance to mitigate financial impacts [35] Question: What conditions would justify a restart at the Magic Valley facility? - Significant changes in corn prices and feedstock sourcing would need to occur for a restart to be considered viable [46]