Seeking Alpha's transcripts team is responsible for the development of all of our transcript-related projects. We currently publish thousands of quarterly earnings calls per quarter on our site and are continuing to grow and expand our coverage. The purpose of this profile is to allow us to share with our readers new transcript-related developments. Thanks, SA Transcripts Team ...

Core Insights - Alto Ingredients, Inc. is set to participate in the H.C. Wainwright 27th Annual Global Investment Conference on September 9, 2025, in New York City [1] - The company will conduct one-on-one meetings and present at 9:00 am ET, with presentation materials and webcast available on their website [2] Company Overview - Alto Ingredients, Inc. 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 [3]

PART I - FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS.) The unaudited statements show decreased net sales, a shift to a gross loss, and a significantly wider net loss year-over-year Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $149,725 | $153,118 | | **Total Assets** | $393,065 | $401,438 | | **Total Current Liabilities** | $42,513 | $57,804 | | **Long-term debt, net** | $118,323 | $92,904 | | **Total Liabilities** | $185,220 | $176,375 | | **Total Stockholders' Equity** | $207,845 | $225,063 | Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $218,436 | $236,468 | $444,976 | $477,097 | | **Gross profit (loss)** | $(1,937) | $7,553 | $(3,744) | $5,153 | | **Loss from operations** | $(8,108) | $(1,408) | $(17,105) | $(11,740) | | **Net loss** | $(10,997) | $(3,106) | $(22,676) | $(14,831) | | **Net loss per share** | $(0.15) | $(0.05) | $(0.31) | $(0.21) | Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(19,079) | $(12,299) | | **Net cash used in investing activities** | $(10,534) | $(12,097) | | **Net cash provided by financing activities** | $23,893 | $7,327 | | **Net change in cash** | $(5,720) | $(17,069) | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the $7.6 million Kodiak Carbonic acquisition, segment performance shifts, increased debt, and commodity hedging activities - On January 1, 2025, the company acquired Kodiak Carbonic, LLC, a beverage-grade liquid CO2 processor, for **$7.6 million in cash** to achieve further vertical integration[27](index=27&type=chunk)[38](index=38&type=chunk) - Long-term debt increased to **$118.3 million** as of June 30, 2025, from $92.9 million at December 31, 2024, primarily due to increased borrowings on the Kinergy line of credit[55](index=55&type=chunk) - The company recognized net gains of **$4.4 million** and **$11.6 million** from non-designated commodity hedging contracts for the six months ended June 30, 2025 and 2024, respectively[51](index=51&type=chunk)[179](index=179&type=chunk) Gross Profit (Loss) by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Pekin Campus production** | $(5,845) | $10,144 | $(8,920) | $14,410 | | **Marketing and distribution** | $4,002 | $3,172 | $7,916 | $6,702 | | **Western production** | $1,858 | $(3,761) | $601 | $(12,347) | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=21&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS.) Adjusted EBITDA improved by nearly $6.0 million YoY in Q2 2025 due to cost savings and operational enhancements [Financial Review, Current Initiatives and Outlook](index=24&type=section&id=Financial%20Review%2C%20Current%20Initiatives%20and%20Outlook) Adjusted EBITDA improved by nearly $6.0 million YoY despite a net loss, with a focus on high-return projects and Section 45Z tax credits - **Adjusted EBITDA improved by nearly $6.0 million** in Q2 2025 compared to Q2 2024, driven by rightsizing corporate overhead and other efficiency initiatives[94](index=94&type=chunk) - The Western assets segment became profitable, with **gross profit improving by $5.6 million** year-over-year, due to the CO2 facility acquisition and the decision to cold-idle the Magic Valley facility[96](index=96&type=chunk) - The company expects to benefit from the Section 45Z tax credits, estimating up to **$4.0 million in 2025** and **$8.0 million in 2026** for its Colombia plant, with plans to increase credits across all eligible facilities[103](index=103&type=chunk) - A new Illinois law (Senate Bill 1723) **prohibits CO2 sequestration through the Mahomet aquifer**, impacting the company's current carbon capture and storage (CCS) project plans[101](index=101&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q2 2025 saw a 7.6% YoY decrease in net sales and a wider net loss, driven by lower prices and operational issues - The decline in Q2 gross profit was primarily due to a net unfavorable change of **$5.6 million in derivatives**, **$5.5 million from lower market crush margins**, and a **$2.7 million adverse impact** from a loading dock outage[129](index=129&type=chunk)[130](index=130&type=chunk)[132](index=132&type=chunk) - The Pekin Campus segment's gross profit **declined by $16.0 million YoY** in Q2, while the Western Production segment's gross profit **improved by $5.3 million**[133](index=133&type=chunk)[136](index=136&type=chunk) Q2 2025 vs Q2 2024 Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $218,436 | $236,468 | $(18,032) | (7.6)% | | **Gross profit (loss)** | $(1,937) | $7,553 | $(9,490) | NM | | **SG&A expenses** | $6,171 | $8,961 | $(2,790) | (31.1)% | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity for the next twelve months with $30.5 million in cash and available credit - The company believes it has **sufficient liquidity** to meet its needs for at least the next twelve months, with $4.8 million available under its line of credit and $65.0 million potentially available for capital projects[155](index=155&type=chunk) - For the six months ended June 30, 2025, cash used in operations was **$19.1 million**, cash used in investing was **$10.5 million**, and cash provided by financing was **$23.9 million**[161](index=161&type=chunk) Liquidity Position (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash, cash equivalents and restricted cash** | $30,491 | $36,211 | | **Working capital** | $107,212 | $95,314 | | **Long-term debt, noncurrent portion** | $118,323 | $92,904 | [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK.) The company faces significant commodity price risk, with a 10% adverse change potentially impacting pre-tax income by over $12 million - The company's business is sensitive to price changes in ethanol and corn, and it uses derivative instruments to manage this risk[174](index=174&type=chunk)[178](index=178&type=chunk) Market Risk Sensitivity Analysis (Pre-Tax Income Impact) | Commodity | Hypothetical Adverse Change | Approximate Impact (in millions) | | :--- | :--- | :--- | | **Ethanol** | 10% | $(13.5) | | **Corn** | 10% | $(12.9) | [Controls and Procedures](index=41&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES.) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of June 30, 2025[181](index=181&type=chunk) - **No changes in internal control over financial reporting** occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[182](index=182&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=42&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS.) Ordinary course legal proceedings are not expected to have a material adverse effect on the company's financials - The company is subject to ordinary course legal proceedings but **does not expect them to have a material adverse impact** on its financial condition or operations[186](index=186&type=chunk) [Risk Factors](index=42&type=section&id=ITEM%201A.%20RISK%20FACTORS.) The company faces significant business, financial, and regulatory risks, including commodity volatility and CCS project hurdles [Risks Related to our Business](index=42&type=section&id=Risks%20Related%20to%20our%20Business) Profitability is highly dependent on volatile commodity spreads, and the business is exposed to operational disruption risks - The company's results are **highly dependent on its ability to manage volatile commodity prices** for inputs like corn and natural gas against the prices of its alcohol and essential ingredient products[189](index=189&type=chunk) - Disruptions in production or distribution, such as the damage to the Pekin Campus loadout dock in April 2025, can **negatively impact logistics and increase costs**[199](index=199&type=chunk) - The company may suffer losses from hedging activities, which are used to mitigate price volatility but also **expose the company to counterparty and market risks**[196](index=196&type=chunk)[197](index=197&type=chunk) [Risks Related to our Finances](index=47&type=section&id=Risks%20Related%20to%20our%20Finances) A history of net losses, substantial indebtedness, and significant execution risks for capital projects threaten financial stability - The company has a history of significant losses, including a **consolidated net loss of $23.3 million** for the first six months of 2025[211](index=211&type=chunk) - The Carbon Capture and Storage (CCS) project is subject to significant risks, including regulatory hurdles and new Illinois legislation (Senate Bill 1723) that **prohibits sequestration through the Mahomet aquifer**, impacting current plans[212](index=212&type=chunk)[213](index=213&type=chunk) - The ability to qualify for and receive anticipated **Section 45Z tax credits is uncertain** and depends on producing low carbon fuel at specific volumes and carbon intensities[218](index=218&type=chunk) [Risks Related to Legal and Regulatory Matters](index=49&type=section&id=Risks%20Related%20to%20Legal%20and%20Regulatory%20Matters) Dependence on renewable fuel mandates and new state laws impacting the CCS project pose significant regulatory risks - The domestic market for fuel-grade ethanol is **significantly impacted by federal mandates**, and any changes to these regulations could materially harm results[233](index=233&type=chunk) - The company's CCS project may be adversely affected by the SAFE CCS Act and Illinois Senate Bill 1723, which impose new safety requirements, a **moratorium on pipeline construction**, and prohibit sequestration in a key aquifer[227](index=227&type=chunk)[228](index=228&type=chunk) - The recent Supreme Court decision overturning the Chevron doctrine may result in **less favorable agency interpretations of laws and regulations**, potentially affecting the Renewable Fuel Standard and tax credits[240](index=240&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS.) The company reported no unregistered sales, withheld shares for tax obligations, and does not plan to pay dividends - **No unregistered sales of equity securities** occurred during the period[257](index=257&type=chunk) - The company **does not intend to pay cash dividends** on its common stock in the foreseeable future[263](index=263&type=chunk) Repurchases of Equity Securities (Q2 2025) | Month | Number of Shares Withheld | Deemed Purchase Price Per Share | Aggregate Purchase Price | | :--- | :--- | :--- | :--- | | **April** | 340,886 | $1.12 | $381,792 | | **May** | — | $— | $— | | **June** | — | $— | $— | [Defaults Upon Senior Securities](index=56&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES.) The company reports no defaults upon senior securities during the period - There were **no defaults upon senior securities**[265](index=265&type=chunk) [Mine Safety Disclosures](index=56&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES.) The company has no mine safety disclosures to report for the period - There are **no mine safety disclosures**[266](index=266&type=chunk) [Other Information](index=56&type=section&id=ITEM%205.%20OTHER%20INFORMATION.) No directors or officers reported the adoption or termination of Rule 10b5-1 trading arrangements during the quarter - **No directors or officers reported** the adoption or termination of a Rule 10b5-1 trading arrangement during the quarter[267](index=267&type=chunk) [Exhibits](index=57&type=section&id=ITEM%206.%20EXHIBITS.) The filing includes required CEO/CFO certifications and Inline XBRL data files as exhibits - The report includes required certifications from the CEO and CFO (Exhibits 31.1, 31.2, 32.1) and XBRL data files[268](index=268&type=chunk)

Financial Performance - Alto Ingredients reported a quarterly loss of $0.15 per share, better than the Zacks Consensus Estimate of a loss of $0.18, but worse than a loss of $0.05 per share a year ago, indicating an earnings surprise of +16.67% [1] - The company posted revenues of $218.44 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.10%, but down from $236.47 million in the same quarter last year [2] - Over the last four quarters, Alto Ingredients has surpassed consensus EPS estimates just once and topped consensus revenue estimates three times [2] Stock Performance - Alto Ingredients shares have declined approximately 33.3% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The current Zacks Rank for Alto Ingredients is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $238.64 million, and for the current fiscal year, it is -$0.39 on revenues of $937.57 million [7] - The estimate revisions trend for Alto Ingredients was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Consumer Products - Discretionary industry, to which Alto Ingredients belongs, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

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]

Financial Performance - Western asset gross profit improved by $56 million from a loss of $(38) million in Q2 2024 to a profit of $18 million in Q2 2025[31] - Adjusted EBITDA improved by $57 million, from $(59) million to $(02) million comparing Q2 2024 to Q2 2025[32, 34] - The company's borrowing availability was $70 million as of June 30, 2025, including $5 million under the operating line and $65 million under the term loan facility[33] Regulatory and Market Opportunities - The 45Z credit is extended through the end of 2029, increasing the focus on domestic production[14] - National year-round E15 adoption could potentially increase U S ethanol demand by 50%, or 5-7 billion gallons annually[14] - California could see an increase of approximately 670 million gallons per year in ethanol demand when transitioning from E10 to E15, pending approval[14] Strategic Initiatives - The company is applying for 45Z credits for Alto Columbia and Alto Pekin Dry Mill, estimated to total approximately $18 million over the next two years[15] - The company is prioritizing projects to lower carbon intensity to capture more benefits from 45Z[7] - The company aims to increase CO2 utilization at the Pekin campus and at Columbia, building upon the successful Carbonic acquisition[7]

[Management Commentary and Business Update](index=1&type=section&id=Management%20Commentary%20and%20Business%20Update) Management initiatives improved Q2 2025 financial position, with Western assets profitable and corporate reorganization exceeding savings goals, anticipating regulatory credit benefits - Western assets generated a gross profit, increasing by **$5.6 million** compared to Q2 2024, aided by a liquid CO2 facility acquisition and cold-idling the Magic Valley facility[1](index=1&type=chunk)[3](index=3&type=chunk) - The marketing and distribution segment's performance improved through integrating bulk sales customers and focusing on profitable third-party ethanol marketing relationships[3](index=3&type=chunk) - A corporate reorganization was implemented, exceeding the annualized savings target of approximately **$8 million** in the second quarter[3](index=3&type=chunk) - Positive regulatory developments, specifically the 45Z credit extension, are expected to create opportunities for up to nearly **$18 million** in credits for at least two plants over the next two years[4](index=4&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) Net sales declined and gross profit shifted to loss in Q2 and H1 2025, with widening net losses, though cash and borrowing availability improved sequentially [Q2 2025 Financial Results (vs. Q2 2024)](index=1&type=section&id=Q2%202025%20Financial%20Results%20%28vs.%20Q2%202024%29) Q2 2025 saw net sales decline, a shift to gross loss, and a widened net loss due to unfavorable derivatives and lower market crush Q2 2025 vs. Q2 2024 Financial Highlights | Financial Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Sales | $218.4 million | $236.5 million | | Gross Profit (Loss) | ($1.9 million) | $7.6 million | | SG&A Expenses | $6.2 million | $9.0 million | | Net Loss Attributable to Common Stockholders | ($11.3 million) | ($3.4 million) | | Net Loss Per Share | ($0.15) | ($0.05) | | Adjusted EBITDA | ($0.2 million) | ($5.9 million) | - The decline in gross profit was impacted by a net unfavorable change of **$5.6 million** in derivatives and an average market crush that was **$0.10** lower than in Q2 2024[5](index=5&type=chunk) [H1 2025 Financial Results (vs. H1 2024)](index=2&type=section&id=H1%202025%20Financial%20Results%20%28vs.%20H1%202024%29) H1 2025 net sales decreased, resulting in a gross loss and a widened net loss compared to the prior year H1 2025 vs. H1 2024 Financial Highlights | Financial Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Sales | $445.0 million | $477.1 million | | Gross Profit (Loss) | ($3.7 million) | $5.2 million | | SG&A Expenses | $13.4 million | $16.9 million | | Net Loss Attributable to Common Stockholders | ($23.3 million) | ($15.5 million) | | Net Loss Per Share | ($0.31) | ($0.21) | | Adjusted EBITDA | ($4.6 million) | ($13.0 million) | - The year-over-year gross profit decline was affected by a net unfavorable impact of **$7.2 million** from derivatives[7](index=7&type=chunk) [Balance Sheet and Liquidity](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity) Cash and equivalents increased sequentially to $29.8 million, with total borrowing availability of $70 million as of June 30, 2025 Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $29,768 | $35,469 | | Total Current Assets | $149,725 | $153,118 | | Total Assets | $393,065 | $401,438 | | Long-term debt, net | $118,323 | $92,904 | | Total Liabilities | $185,220 | $176,375 | | Total Stockholders' Equity | $207,845 | $225,063 | - The company had **$70 million** in borrowing availability as of June 30, 2025[8](index=8&type=chunk) [Segment Performance](index=10&type=section&id=Segment%20Performance) Q2 2025 segment performance varied, with Western production turning profitable, Pekin Campus shifting to a loss, and Marketing and distribution improving gross profit Gross Profit (Loss) by Segment (Q2, in thousands) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Pekin Campus production | $(5,845) | $10,144 | | Marketing and distribution | $4,002 | $3,172 | | Western production | $1,858 | $(3,761) | Gross Profit (Loss) by Segment (H1, in thousands) | Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Pekin Campus production | $(8,920) | $14,410 | | Marketing and distribution | $7,916 | $6,702 | | Western production | $601 | $(12,347) | [Key Operating Metrics](index=8&type=section&id=Key%20Operating%20Metrics) Q2 2025 saw decreased alcohol gallons sold, stable production, increased corn costs, and a significant drop in market board corn crush per gallon Alcohol Sales and Production (Gallons in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total renewable fuel gallons sold | 66.8 | 74.1 | | Specialty alcohol gallons sold | 19.9 | 21.0 | | **Total gallons sold** | **86.7** | **95.1** | | **Total production gallons** | **59.2** | **58.6** | Cost and Market Metrics | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Consolidated corn cost per bushel | $4.98 | $4.68 | | Board corn crush per gallon | $0.11 | $0.21 | [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA, a non-GAAP measure, improved significantly to negative $0.2 million in Q2 2025, driven by lower derivative losses and reduced acquisition expenses - Management defines Adjusted EBITDA as net income (loss) adjusted for interest, taxes, depreciation, amortization, asset impairments, unrealized derivative gains/losses, and acquisition-related expenses[11](index=11&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net loss | $(10,997) | $(3,106) | | Total adjustments | $10,766 | $(2,821) | | **Adjusted EBITDA** | **$(231)** | **$(5,927)** | [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Alto Ingredients will host a conference call and webcast on August 6, 2025, at 5:00 p.m. ET to discuss Q2 2025 financial results - Event: Q2 2025 Results Conference Call[9](index=9&type=chunk) - Date and Time: Wednesday, August 6, 2025, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time[9](index=9&type=chunk) - Access: The webcast will be available on the company's website. Dial-in and replay information is also provided[10](index=10&type=chunk)

Core Insights - Alto Ingredients, Inc. reported a gross profit increase of $5.6 million in Q2 2025 compared to Q2 2024, despite facing challenges in net sales and gross loss [1][4][6]. Financial Performance - For the three months ended June 30, 2025, net sales were $218.4 million, down from $236.5 million in the same period of 2024 [6][15]. - Cost of goods sold decreased to $220.4 million from $228.9 million year-over-year [6][15]. - The company experienced a gross loss of $1.9 million, compared to a gross profit of $7.6 million in Q2 2024 [6][15]. - Selling, general and administrative expenses were reduced to $6.2 million from $9.0 million [6][15]. - Interest expense increased to $2.8 million from $1.7 million [6][15]. - The net loss attributable to common stockholders was $11.3 million, or $0.15 per share, compared to a net loss of $3.4 million, or $0.05 per share, in Q2 2024 [6][15]. - Adjusted EBITDA was negative $0.2 million, an improvement from negative $5.9 million in the prior year [6][15]. Operational Highlights - The Western assets generated gross profit due to the acquisition of a liquid CO2 facility and strategic operational adjustments, including cold-idling the Magic Valley facility [2][3]. - The marketing and distribution segment improved through the integration of bulk sales customers and the continuation of profitable third-party ethanol marketing relationships [2][3]. - The company capitalized on operational flexibility by selling higher-margin ISCC export products into Europe [2][3]. Regulatory Environment - Positive regulatory developments, such as the extension of the 45Z credit through 2029, are expected to enhance the earnings profile and intrinsic valuation of the company's facilities [3]. - The company anticipates applying for credits amounting to nearly $18 million over the next two years based on targeted carbon intensity scores [3]. Sales and Production Metrics - Total renewable fuel gallons sold decreased to 66.8 million in Q2 2025 from 74.1 million in Q2 2024 [22][23]. - Specialty alcohol gallons sold were 19.9 million, down from 21.0 million year-over-year [22][23]. - The average market price for ethanol was $1.72 per gallon, slightly lower than the previous year [23][24].

Company Overview - Alto Ingredients, Inc. is a leading producer and distributor of specialty alcohols, renewable fuels, and essential ingredients [3] - The company serves a diverse range of markets including Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels [3] Upcoming Financial Results - Alto Ingredients will release its second quarter 2025 financial results after the market closes on August 6, 2025 [1] - A conference call will be hosted by management at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on the same day [1] Webcast and Replay Information - The webcast will be archived for replay on the Alto Ingredients website for one year [2] - A telephonic replay will be available from 8:00 p.m. Eastern Time on August 6, 2025, through 8:00 p.m. Eastern Time on August 13, 2025 [2]

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].