Clean Energy(CLNE) - 2025 Q1 - Quarterly Results

Clean Energy Q1 2025 Earnings Report This report details Clean Energy's Q1 2025 financial and operational performance, including key metrics, CEO commentary, and full-year outlook Financial and Operational Highlights In Q1 2025, Clean Energy reported stable revenue but a significant GAAP net loss due to non-cash charges, while Adjusted EBITDA increased and cash position improved Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $103.8 million | $103.7 million | +0.1% | | GAAP Net Loss | $(135.0) million | $(18.4) million | Increased Loss | | GAAP EPS | $(0.60) | $(0.08) | Increased Loss | | Adjusted EBITDA | $17.1 million | $12.8 million | +33.6% | | Cash & Short-Term Investments | $226.6 million | $217.5 million (as of 12/31/24) | +$9.1M QoQ | - The significant net loss in Q1 2025 was driven by non-cash charges totaling $115.0 million, comprising a $64.3 million goodwill write-down and $50.7 million in accelerated depreciation[6] - RNG gallons sold decreased 12.8% to 50.6 million in Q1 2025 from Q1 2024, a decline attributed to cold weather conditions reducing RNG supply[6] - Strategic activities included executing new RNG supply agreements with transit agencies and resuming the share repurchase program, with $26.1 million remaining capacity as of March 31, 2025[6] CEO Commentary CEO Andrew J. Littlefair highlighted the stability of recurring business, increased cash despite non-cash charges, and continued focus on heavy-duty truck engine adoption and RNG volume growth - The company benefits from a stable, recurring business with long-term customers like transit and waste companies, providing resilience against market volatility[4] - Strategic focus is on accommodating the adoption of the Cummins X15N engine in the heavy-duty truck market and increasing RNG production volumes from dairy projects[4] - Despite significant non-cash charges, the underlying operations resulted in a net increase in cash and investments during the quarter[4] Detailed Financial Results (Q1 2025) Q1 2025 results were impacted by a non-cash Amazon warrant charge, AFTC credit expiration, and substantial goodwill impairment and accelerated depreciation, yet Adjusted EBITDA improved - Revenue was reduced by $17.3 million in non-cash Amazon warrant charges, an increase from $12.9 million in Q1 2024[5] - The company recorded no Alternative Fuel Tax Credit (AFTC) revenue in Q1 2025, compared to $5.4 million in Q1 2024, as the credit expired on December 31, 2024[5] - Net loss was significantly impacted by a goodwill impairment of $64.3 million and accelerated depreciation of $50.7 million from the abandonment of LNG station assets at 55 Pilot Flying J locations[7] - RIN and LCFS revenues increased by a net $0.4 million year-over-year, with a $4.0 million increase in LCFS revenue offsetting a $3.6 million decrease in RIN revenue[5] Non-GAAP Financial Measures The company uses non-GAAP measures like Adjusted EBITDA and Non-GAAP income per share to clarify core operating performance, showing a turnaround to positive Non-GAAP net income and increased Adjusted EBITDA in Q1 2025 Reconciliation of GAAP to Non-GAAP Net Income (Loss) (in thousands) | (in thousands) | Q1 2024 | Q1 2025 | | :--- | :--- | :--- | | GAAP Net loss attributable to Clean Energy | $(18,443) | $(134,967) | | Amazon warrant charges | 12,897 | 17,338 | | Accelerated depreciation expense | — | 50,660 | | Impairment of goodwill | — | 64,328 | | Other adjustments (Stock-based comp, etc.) | 3,216 | 4,561 | | Non-GAAP net income (loss) | $(2,330) | $1,486 | Reconciliation of GAAP Net Loss to Adjusted EBITDA (in thousands) | (in thousands) | Q1 2024 | Q1 2025 | | :--- | :--- | :--- | | GAAP Net loss attributable to Clean Energy | $(18,443) | $(134,967) | | Interest, Taxes, Depreciation & Amortization | (4,118) | (1,747) | | Accelerated depreciation expense | — | 50,660 | | Impairment of goodwill | — | 64,328 | | Amazon warrant charges | 12,897 | 17,338 | | Other adjustments | 2,470 | 4,372 | | Adjusted EBITDA | $12,806 | $17,085 | Business Performance Metrics In Q1 2025, total fuel volume decreased due to lower RNG sales, while total revenue remained flat, with product revenue slightly increasing despite AFTC credit loss Fuel and O&M Volume (in million GGEs) | Volume Type | Q1 2024 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | RNG | 58.0 | 50.6 | -12.8% | | Conventional Natural Gas | 17.0 | 16.1 | -5.3% | | Total Fuel Volume | 75.0 | 66.7 | -11.1% | | O&M Services Volume | 65.4 | 61.6 | -5.8% | Sources of Revenue (in millions) | Revenue Source | Q1 2024 | Q1 2025 | | :--- | :--- | :--- | | Fuel Sales | $68.2 | $76.3 | | RIN Credits | $8.8 | $5.2 | | LCFS Credits | $(0.2) | $3.8 | | AFTC | $5.4 | $— | | Station Construction | $5.6 | $5.6 | | O&M Services | $13.7 | $12.8 | | Total Revenue | $103.7 | $103.8 | 2025 Full-Year Outlook Clean Energy projects a 2025 GAAP net loss between $(225) million and $(220) million, primarily due to significant non-cash charges, while anticipating Adjusted EBITDA of $50 million to $55 million Full-Year 2025 Guidance | Metric | 2025 Outlook | | :--- | :--- | | GAAP Net Loss | $(225) million to $(220) million | | Adjusted EBITDA | $50 million to $55 million | - The 2025 GAAP net loss outlook includes major non-cash charges: $64.3 million for goodwill impairment, ~$55 million for accelerated depreciation, and ~$53 million for Amazon warrant charges[19] 2025 Outlook: Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | (in thousands) | 2025 Outlook | | :--- | :--- | | Net loss attributable to Clean Energy | $ (225,000) - (220,000) | | Add back: Taxes, Interest, D&A | $74,600 | | Add back: Accelerated depreciation | $55,000 | | Add back: Impairment of goodwill | $64,300 | | Add back: Stock-based compensation | $11,000 | | Add back: Amazon warrant charges | $53,000 | | Add back: Other adjustments | $16,100 | | Adjusted EBITDA | $ 50,000 - 55,000 | Condensed Consolidated Financial Statements The condensed consolidated financial statements reveal a significant decrease in total assets and stockholders' equity due to a goodwill write-down, with the Q1 2025 net loss driven by impairment and accelerated depreciation Condensed Consolidated Balance Sheets As of March 31, 2025, total assets decreased to $1.12 billion from $1.24 billion, primarily due to goodwill elimination, leading to a significant drop in total stockholders' equity Balance Sheet Summary (in thousands) | Account | Dec 31, 2024 | Mar 31, 2025 | | :--- | :--- | :--- | | Cash, cash equivalents & Short-term investments | $219,532 | $228,739 | | Goodwill | $64,328 | $— | | Total Assets | $1,243,891 | $1,116,592 | | Total Liabilities | $524,360 | $513,694 | | Total Stockholders' Equity | $719,531 | $602,898 | Condensed Consolidated Statements of Operations For Q1 2025, total revenues remained flat at $103.8 million, but operating expenses surged to $230.1 million due to a goodwill impairment and increased depreciation, resulting in a $135.0 million net loss Statement of Operations Summary (in thousands) | Account | Q1 2024 | Q1 2025 | | :--- | :--- | :--- | | Total Revenue | $103,709 | $103,764 | | Cost of Sales | $75,601 | $76,003 | | Depreciation and amortization | $11,182 | $62,267 | | Impairment of goodwill | $— | $64,328 | | Total operating expenses | $113,020 | $230,062 | | Operating loss | $(9,311) | $(126,298) | | Net loss attributable to Clean Energy | $(18,443) | $(134,967) | | Net loss per share | $(0.08) | $(0.60) |