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Sky Quarry Reports 2nd Quarter 2025 Financial Results

1. Sky Quarry's Q2 revenue rose 35% year-over-year to $4.54 million. 2. Net loss decreased to $2.21 million, improving from $3.56 million loss last year. 3. Foreland Refinery will ramp to 800,000 barrels/year, boosting regional fuel supply. 4. Applied for a recycling permit for an integrated energy facility in Utah. 5. Initiated digital asset strategy to tokenize energy commodities and expand market channels.

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FAQ

Why Bullish?

The significant revenue growth and reduction in net loss suggest improving financial health, similar to past recoveries seen in energy firms after strategic shifts. Increased capacity and new facilities further position SKYQ favorably in a growing market.

How important is it?

The article discusses significant operational improvements and future growth plans directly impacting profitability, making it relevant to stakeholders and investors in SKYQ.

Why Long Term?

The strategic growth plans and operational expansions may take time to fully impact revenue, reflecting trends in prior successes of other companies in the sector that saw delayed financial returns from new projects.

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ENVNEEPCG
August 15, 2025 18:30 ET  | Source: Sky Quarry Inc WOODS CROSS, Utah, Aug. 15, 2025 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (NASDAQ: SKYQ) ("Sky Quarry" or the "Company"), an integrated energy solutions company focused on sustainable resource recovery, today reported its financial and operational results for the second quarter ended June 30, 2025. Key Financial and Operational Highlights Generated $4.54 million in Q2 revenue, a 35% increase from Q2 2024, driven by regained supply volumes and ongoing operational improvements.Unveiled a strategic growth plan to ramp operations at the Foreland Refinery to its full permitted production capacity of up to 800,000 barrels per year, positioning the Company to meet growing regional fuel demand.Submitted an application for a recycling permit to develop an integrated energy facility in Utah that will recover valuable oil from waste asphalt shingles, supporting a fully integrated supply chain for the Company’s operations.Launched a strategic digital asset initiative to explore the tokenization of real-world energy commodities, with the goal of opening new market channels and building a long-term digital treasury. 2nd Quarter 2025 Financial Results Revenues were $4.54 million for the three months ended June 30, 2025, compared to $3.38 million for the comparable period in 2024, representing an increase of 35%. For the six months ended June 30, 2025, revenues were $10.87 million, compared to $14.33 million in the prior year period, a decrease of 24%. Gross profit for the three months ended June 30, 2025 was a loss of $117,529, compared to a loss of $485,589 in Q2 2024, an improvement of $368,060. For the six months ended June 30, 2025, gross profit was a loss of $843,060, compared to a profit of $83,860 in the prior year period, a decrease of $926,920. Total operating expenses were $1.62 million for the three months ended June 30, 2025, compared to $0.97 million in Q2 2024. For the six months ended June 30, 2025, operating expenses totaled $3.56 million, up from $2.58 million in the prior year period. Net loss was $2.21 million for the three months ended June 30, 2025, compared to $3.56 million for the same period in 2024. For the six months ended June 30, 2025, net loss was $5.54 million compared to $6.03 million in the prior year period. Net cash used in operating activities for the six months ended June 30, 2025 was $0.73 million, compared to $2.60 million in the prior year period. About Sky Quarry Inc. Sky Quarry Inc. (NASDAQ: SKYQ) and its subsidiaries are, collectively, an oil production, refining, and a development-stage environmental remediation company formed to deploy technologies to facilitate the recycling of waste asphalt shingles and remediation of oil-saturated sands and soils. Our waste-to-energy mission is to repurpose and upcycle millions of tons of asphalt shingle waste, diverting them from landfills. By doing so, we can contribute to improved waste management, promote resource efficiency, conserve natural resources, and reduce environmental impact. For more information, please visit www.skyquarry.com. Forward-Looking Statements This press release may include ''forward-looking statements.'' All statements pertaining to our future financial and/or operating results, future events, or future developments may constitute forward-looking statements. The statements may be identified by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project,” or words of similar meaning. Such statements are based on the current expectations and certain assumptions of our management, of which many are beyond our control. These are subject to a number of risks, uncertainties, and factors, including but not limited to those described in our disclosures. Should one or more of these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance, or our achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. We neither intend, nor assume any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. You are urged to carefully review and consider any cautionary statements and the Company’s other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in the Company’s Form 10-K as filed with the SEC on March 31, 2025, as well as the Company’s Form 10-Q as filed with the SEC on May 15, 2025. Forward-looking statements speak only as of the date of the document in which they are contained. Investor RelationsJennifer Standley Director of Investor RelationsIr@skyquarry.comCompany Websitewww.skyquarry.com Sky Quarry Inc.Condensed Consolidated Balance SheetsAs of June 30, 2025 and December 31, 2024 (Unaudited)       June 30,2025 December 31, 2024     ASSETS         Current assets:    Cash $173,795  $385,116 Accounts receivables 622,521  1,123,897 Prepaid expenses and other assets 403,665  339,124 Inventory 1,999,351  3,149,236 Total current assets 3,199,332  4,997,373      Property, plant, and equipment 5,635,527  6,160,318 Oil and gas properties 8,887,940  8,534,967 Restricted cash 801,816  2,929,797 Right-of-use asset 1,066,943  1,115,785 Goodwill 3,209,003  3,209,003      Total assets $22,800,561  $26,947,243      LIABILITIES AND SHAREHOLDERS’ EQUITY         Current liabilities:    Accounts payable and accrued expenses $4,245,605  $4,046,319 Current portion of operating lease liability 77,824  38,422 Current portion of finance lease liability 16,964  16,120 Warrant liability 358,441  459,067 Lines of credit 1,133,633  1,260,727 Current maturities of notes payable 5,890,981  6,578,017 Total current liabilities 11,723,448  12,398,672      Notes payable, less current maturities, net of debt issuance costs 2,244,970  2,000,560 Operating lease liability, net of current portion -  77,824 Finance lease Liability, net of current portion 966,661  971,690 Total Liabilities 14,935,079  15,448,746      Commitments and contingencies         Shareholders’ Equity:    Common stock $0.0001 par value: 100,000,000 shares authorized: 22,110,161 and 19,027,208 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 2,211  1,903 Additional paid in capital 37,585,087  35,674,391 Accumulated other comprehensive loss (211,383)  (209,708) Accumulated deficit (29,510,433)  (23,968,089) Total shareholders’ equity 7,865,482  11,498,497      Total liabilities and shareholders’ equity $22,800,561  $26,947,243         Sky Quarry Inc.Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)For 6 months Ended June 30, 2025 and 2024         ThreeMonths Ended June 30, 2025 ThreeMonthsEnded June 30, 2024 Six Months Ended June 30, 2025 SixMonthsEnded June 30, 2024Net sales$4,541,472  $3,375,244  $10,874,439  $14,327,574         Cost of goods sold4,658,440  3,860,833  11,717,499  14,243,714 Gross margin(116,968)  (485,589)  (843,060)  83,860         Operating expenses:       General and administrative1,620,696  971,378  3,554,426  2,579,262 Depreciation and amortization2,916  1,473  4,944  2,945 Total operating expenses1,623,612  972,851  3,559,370  2,582,207         Loss from operations(1,740,580)  (1,458,440)  (4,402,430)  (2,498,347)         Other income (expense):       Interest expense(318,708)  (2,105,821)  (1,191,176)  (3,414,266) Gain (loss) on extinguishment of debt29,093  -  (56,660)  (108,887) Gain (loss) on warrant valuation(174,354)  -  100,626  - Other income (expense)(4,101)  26,858  3,376  21,552 Gain (loss) on sale of assets-  (25,075)  3,920  (25,075) Other expense, net(468,070)  (2,104,038)  (1,139,914)  (3,526,676)         Loss before provision for income taxes(2,208,650)  (3,562,478)  (5,542,344)  (6,025,023)         Provision for income taxes-  -  -  -         Net loss(2,208,650)  (3,562,478)  (5,542,344)  (6,025,023)         Other comprehensive loss       Exchange loss on translation of foreign operations(2,097)  -  (1,675)  (8,134)         Net loss and comprehensive loss$(2,210,747)  $(3,562,478)  $(5,544,019)  $(6,033,157)         Loss per common share       Basic and diluted$(0.10)  $(0.22)  $(0.27)  $(0.37) Weighted average shares outstanding       Basic and diluted21,589,413  16,347,767  20,422,497  16,426,722              Sky Quarry Inc.Condensed Consolidated Statements of Cash Flows (Unaudited)For 6 months Ended June 30, 2025 and 2024            2025  2024 CASH FLOWS FROM OPERATING ACTIVITIES    Net loss $(5,542,344)  $(6,025,023) Adjustments to reconcile net loss to cash used in operating activities:    Share based compensation 309,354  459,968 Depreciation and amortization 557,454  369,521 Amortization of debt issuance costs 807,636  1,540,875 Amortization of right-of-use asset 48,842  34,528 Gain on revaluation of warrant liabilities (100,626)  - Loss on extinguishment of debt 56,660  108,887 Loss (gain) on sale of assets (3,920)  25,075      Changes in operating assets and liabilities:    Accounts receivable 501,376  2,683,467 Prepaid expenses and other assets (64,541)  (265,732) Inventory 1,149,885  (771,672) Accounts payable and accrued expenses 1,589,955  (728,797) Operating lease liability (39,132)  (33,472) Net cash used in operating activities (729,401)  (2,602,375)      CASH FLOWS FROM INVESTING ACTIVITIES         Proceeds from sale of assets 14,060  - Purchase of exploration and evaluation assets (352,973)  (656,964) Purchase of property, plant, and equipment (42,383)  (714,752) Net cash used in investing activities (381,296)  (1,371,716)      CASH FLOWS FROM FINANCING ACTIVITIES         Proceeds on lines of credit 8,338,455  16,377,043 Payments on lines of credit (8,465,550)  (18,426,517) Proceeds from note payable 574,380  15,054,104 Payments on note payable (1,670,741)  (8,847,174) Payment of debt issuance costs -  (1,043,187) Payments on finance lease (3,474)  - Proceeds on issuance of preferred Stock -  307,921 Preferred stock offering costs   (40,874) Proceeds on issuance of common stock -  1,138,077 Common stock offering costs -  (340,885) Net cash provided by (used in) financing activities (1,226,930)  4,178,508      Effect of exchange rate on cash (1,675)  (8,134)      Increase (decrease) in cash and restricted cash (2,339,302)  196,283 Cash and restricted cash, beginning of the period 3,314,913  4,680,836      Cash and restricted cash, end of the period $975,611  $4,877,119        

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