OPAL Fuels (OPAL) - 2025 Q3 - Quarterly Results

Revenue and Income - Revenue for Q3 2025 was $83.4 million, a decrease of 1% year-over-year, while revenue for the nine months ended September 30, 2025, was $249.2 million, an increase of 13% compared to the prior year[4] - Total revenues for the three months ended September 30, 2025, were $83,357,000, a slight decrease of 0.8% compared to $84,047,000 for the same period in 2024[36] - Net income for the nine months ended September 30, 2025, was $20,229,000, compared to $19,692,000 for the same period in 2024, reflecting an increase of 2.7%[37] - Operating income for the three months ended September 30, 2025, was $3,588,000, down 70.8% from $12,309,000 in the same period of 2024[36] - Net income for the three months ended September 30, 2025, was $11,386, a decrease from $17,107 in the same period of 2024, representing a decline of approximately 33.5%[44] - The company reported a basic net income per share of $0.05 for the three months ended September 30, 2025, down from $0.09 in the same period of 2024[36] Adjusted EBITDA and Expenses - Adjusted EBITDA for Q3 2025 was $19.5 million, down 37% from $31.1 million in Q3 2024, while for the nine months it was $56.0 million, down 17% from $67.4 million in the same period last year[7] - Adjusted EBITDA for the three months ended September 30, 2025, was $19,456, compared to $31,103 for the same period in 2024, indicating a decrease of about 37.5%[44] - The total Adjusted EBITDA for the nine months ended September 30, 2025, was $56,028, compared to $67,407 for the same period in 2024, reflecting a decline of about 16.8%[44] - The company incurred total operating expenses of $79,769,000 for the three months ended September 30, 2025, compared to $71,738,000 in 2024, marking an increase of 11.1%[36] Production and Capacity - RNG production increased by 30% year-over-year to 1.3 million MMBtu for Q3 2025 and 25% to 3.5 million MMBtu for the nine months ended September 30, 2025[7] - The Atlantic RNG Project commenced commercial operations in October 2025, contributing approximately 0.3 million MMBtu to OPAL Fuels' annual design capacity[7] - The company’s annual design capacity now stands at 9.1 million MMBtu across twelve operating projects[3] - The CMS Concord RNG facility in North Carolina began construction in October 2025, representing approximately 0.7 million MMBtu of annual design capacity[8] Financial Position and Liquidity - As of September 30, 2025, OPAL Fuels reported liquidity of $183.8 million, including $138.4 million of unused capacity under its $450.0 million senior secured credit facility[14] - Total assets increased to $916.7 million as of September 30, 2025, up from $881.1 million at the end of 2024[34] - Current liabilities decreased to $83.5 million as of September 30, 2025, compared to $103.6 million at the end of 2024[35] - Stockholders' equity attributable to the company improved to $7.5 million as of September 30, 2025, from a deficit of $148.4 million at the end of 2024[35] - Cash and cash equivalents increased to $29.9 million as of September 30, 2025, compared to $24.3 million at the end of 2024[34] - OPAL Fuels expects available cash and other assets to be sufficient to meet existing commitments for at least twelve months from the date of the report[15] Investments and Capital Expenditures - For the nine months ended September 30, 2025, OPAL Fuels invested $60.9 million in RNG projects and fueling stations, a decrease from $72.8 million in the prior year[16] - The company's share of capital expenditures in unconsolidated entities for the same period was $17.9 million[16] Fueling Stations and Services - At September 30, 2025, the company had 47 operating fueling stations and 16 under construction, with an additional 25 owned by third parties[8] - The Fuel Station Services segment sold 38.9 million GGEs of transportation fuel in Q3 2025, an increase of 1% year-over-year, with RNG accounting for 20.4 million GGEs, up 4%[7] Tax Credits and Guidance - The company completed the sale of IRA Investment Tax Credits totaling over $40 million in 2025, with $17.3 million completed in Q3[3] - The company maintains its full-year 2025 guidance despite a lower D3 RIN price environment[8] Other Financial Metrics - Cash flows from operating activities for the nine months ended September 30, 2025, increased to $40,017,000 from $31,917,000 in 2024, representing a growth of 25.3%[37] - The company reported a net cash used in investing activities of $69,933,000 for the nine months ended September 30, 2025, compared to $86,546,000 in 2024[38] - The weighted average shares outstanding of Class A common stock for the three months ended September 30, 2025, was 28,279,527, an increase from 27,709,203 in the same period of 2024[36] Interest and Financing - The company’s interest and financing expense for the three months ended September 30, 2025, was $6,898,000, an increase from $5,026,000 in 2024[36] - Interest and financing expense for Q3 2025 was $6,898, up from $5,027 in Q3 2024, reflecting an increase of approximately 35.3%[44]