Executive Summary

Q3 2025 revenue from continuing operations was $3.192M, down 29% YoY; net loss from continuing operations widened to $(1.550)M and diluted EPS was $(0.15) versus $(0.10) in Q3 2024 .
Management disclosed a foreign currency gain of $0.219M in Q3 (vs a $0.061M loss in Q3 2024), partially offsetting operating headwinds .
Barnwell sold all U.S. oil and natural gas assets for $2.300M cash (post-quarter on Aug 8); expects ~$(0.7)M loss on sale in Q4 2025; proceeds to fund Twining field workovers and reduce working capital deficit .
Due to proxy contest costs and tariff-driven oil price impacts, management raised substantial doubt about going concern and is evaluating funding options (debt, equity, partial/full sale of Kukio partnership interests) .
Catalyst path: resolution of shareholder dispute (annual meeting rescheduled to Sep 10, 2025) and visible progress on Twining optimization and funding plans .

What Went Well and What Went Wrong

What Went Well

Foreign currency tailwind: Q3 recorded a $0.219M FX gain (vs $0.061M loss a year ago), reflecting CAD/USD moves; ~$0.280M positive impact versus prior year .
Lower non-cash charges YoY: ceiling test impairment fell to $0.200M vs $0.599M in Q3 2024; depletion expense decreased $0.449M on lower depletion rates following prior-year impairments .
Strategic portfolio action: sale of U.S. O&G assets for $2.300M to fund Twining workovers and reduce working capital deficit; “The sale … provides capital to invest in the well workovers and optimization opportunities in our Twining field … [and] assist in reducing our working capital deficit” — CEO Craig Hopkins .

What Went Wrong

Elevated G&A: Q3 general and administrative up $0.565M (+43%) due to $0.657M non-recurring proxy/legal fees, partially offset by $0.348M estimated insurance recoveries; continuing costs expected until the annual meeting .
O&G revenue pressure: Q3 O&G operating results declined by $0.299M YoY, driven by a $1.299M drop in O&G revenues, despite lower impairment and depletion .
Liquidity and going concern: management disclosed substantial doubt about going concern due to proxy/tariff impacts; investigating but has not secured funding (debt, equity, or Kukio interest sale) .

Financial Results

Core P&L vs Prior Quarter and Prior Year

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD Millions)	$4.506	$3.569	$3.192
Net Loss from Continuing Ops ($USD Millions)	$(1.018)	$(1.538)	$(1.550)
Diluted EPS – Continuing Ops ($USD)	$(0.10)	$(0.15)	$(0.15)

Margins (S&P Global)

Metric	Q1 2025	Q2 2025	Q3 2025
EBITDA ($USD Millions)	$0.18*	$(0.41)*	$(0.55)*
EBITDA Margin %	3.93%*	(11.43%)*	(17.29%)*
Net Income Margin %	(42.82%)*	(33.82%)*	(48.56%)*
Values retrieved from S&P Global.*

KPIs and Operating Items

KPI	Q1 2025	Q2 2025	Q3 2025
Weighted Avg Shares (Basic & Diluted)	10,047,173	10,053,534	10,053,534
Working Capital / Cash & Equivalents	$0.642M WC; $1.957M cash	$(0.057)M WC deficit; $1.432M cash	N/A disclosed; post-Q earnings asset sale $2.300M cash
FX Impact ($USD Millions)	$(0.351) FX loss	N/A	$0.219 FX gain
Non-cash Impairment (Ceiling Test)	$0.613M impairment (US O&G)	$0.052M impairment	$0.200M impairment
Depletion Change (YoY)	N/A	$(0.589)M vs prior year	$(0.449)M vs prior year

Segment Highlights

Segment	Q1 2025	Q2 2025	Q3 2025
Oil & Natural Gas	Prices fell: oil (2%), gas (40%), NGL (8)%; production fell: oil (17%), gas (21%), NGL (17%)	Production down; impairment $0.052M; depletion down $0.589M YoY	O&G revenues down $1.299M YoY; impairment $0.200M; depletion down $0.449M YoY
Contract Drilling	Rig sale proceeds $0.585M; pursuing Water Resources sale/wind-down	Completed sale of Water Resources for $1.050M; recorded $(0.193)M loss; segment in discontinued ops	N/A
Land Investment (Kukio Partnerships)	N/A	Operating results decreased $0.500M (pre-NCI) due to no lot sales this quarter	Considering partial or complete sale of interests as funding option

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Going Concern	FY 2025	Substantial doubt disclosed (Q2)	Substantial doubt reaffirmed; uncertainty on fees and O&G cash inflows	Maintained
Funding Plan	FY 2025	Exploring debt, non-core asset sales, Kukio interests	Exploring debt, equity issuance, partial/complete Kukio sale; no secured timing/amounts	Maintained/Expanded
O&G Portfolio	H2 2025	Evaluating non-core US O&G property sales	Sold all U.S. O&G assets; expect ~$(0.7)M loss on sale in Q4	Executed sale; quantified loss
Operations Focus (Twining)	H2 2025	New well performing; potential to drill two more pending capital	Proceeds to fund Twining workovers/optimization to offset declines	Maintained focus; operational plan clarified
Corporate Actions	2025 Annual Meeting	Proxy contest ongoing; costs to continue	Annual meeting rescheduled to Sep 10, 2025; costs continue until resolved	Timing update

No formal revenue/EPS/margin quantitative guidance was provided in Q3 materials; management commentary focused on liquidity, funding, and operational priorities .

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available in the document set reviewed; therefore, themes are based on press releases and 8-Ks [ListDocuments results 0 for earnings-call-transcript].

Topic	Previous Mentions (Q1, Q2)	Current Period (Q3)	Trend
Tariffs/Macro	Tariff impacts cited; reduced oil prices; concern for O&G cash inflows (Q2)	Tariff impacts continue; uncertainty on fees and cash inflows	Persistent headwind
Regulatory/Legal (Proxy Contest)	Potential contest flagged (Q1); ongoing costs (Q2)	Costs increased; meeting rescheduled to Sep 10; going concern raised	Intensifying costs; governance overhang
Asset Portfolio Actions	Rig sale, plan for Water Resources sale/wind-down (Q1)	Completed Water Resources sale; discontinued ops loss recognized (Q2)	U.S. O&G assets sold with expected loss (Q3)
Operations – Twining Field	New well performing; potential additional wells pending capital (Q1)	Seeking streamlined costs to invest more (Q2)	Proceeds to fund workovers/optimization to offset declines (Q3)
FX Exposure	$0.351M FX loss (Q1)	N/A	$0.219M FX gain (Q3)
AI/Technology Initiatives	Not discussed	Not discussed	N/A

Management Commentary

“The sale of our U.S. oil and natural gas properties provides capital to invest in the well workovers and optimization opportunities in our Twining field … [and] assist in reducing our working capital deficit due to ongoing costs associated with shareholder disputes. Looking forward, the Company will need to raise additional capital…” — Craig D. Hopkins, CEO .
“Our current proxy contest has negatively impacted the Company’s liquidity and hindered its investment and growth opportunities… With a streamlined cost structure, Barnwell should be positioned to invest more in operations.” — Craig D. Hopkins, CEO (Q2) .
“A potential proxy contest in the near term could harm the company’s liquidity… Our new well is performing as anticipated, and we are well-positioned to drill two additional wells … once sufficient capital is secured.” — Craig D. Hopkins, CEO (Q1) .

Q&A Highlights

No Q3 2025 earnings call transcript was found; therefore, no Q&A highlights or clarifications are available from a call [ListDocuments results 0 for earnings-call-transcript].

Estimates Context

S&P Global consensus EPS and revenue estimates for Q3 2025 were not available; Primary EPS Consensus Mean and Revenue Consensus Mean lacked coverage, indicating limited analyst attention. No estimate comparison can be made [GetEstimates].
Actual Q3 2025 revenue was $3.192M and diluted EPS (continuing ops) was $(0.15) . Values retrieved from S&P Global where noted.*

Key Takeaways for Investors

Liquidity and governance overhang: substantial doubt regarding going concern and ongoing proxy-related costs remain primary risks until funding is secured and the annual meeting (Sep 10) resolves the dispute .
Portfolio simplification continues: divestiture of U.S. O&G assets completed; expect ~$(0.7)M loss in Q4, but proceeds earmarked to stabilize Twining production via workovers .
Operating trajectory: revenue declined and losses widened YoY; non-cash charges (impairment/depletion) lower YoY, but G&A inflation from legal/proxy costs compressed margins .
Macro sensitivity: management cited tariff-driven oil price weakness as a headwind to O&G cash inflows; watch commodity backdrop for near-term trading implications .
Funding watchlist: debt/equity raise or monetization of Kukio partnership interests are the critical catalysts; absence of secured timing/amounts keeps risk elevated .
Twining execution: near-term operational focus on workovers/optimization to offset declines; monitor production stabilization and capex efficiency as capital becomes available .
Coverage gap: lack of consensus estimates and call transcript reduces external validation; stock may be more headline- and event-driven around governance resolution and funding announcements [GetEstimates] .

BARNWELL INDUSTRIES INC (BRN)·Q3 2025 Earnings Summary