Executive Summary

Q3 2025 revenue fell to $22.69M, diluted EPS was -$0.21, and adjusted EBITDA was -$6.84M; YoY revenue declined 56% and net income swung to a $9.33M loss, while sequential net loss narrowed for the third straight quarter (Q1: -$17.64M, Q2: -$10.42M, Q3: -$9.33M) .
Management idled biodiesel production in July amid IRA 45Z uncertainty and high feedstock costs, but began replenishing inputs and targeted a late Q4 restart; soybean oil’s record U.S. harvest could ease input costs .
Chemicals demand improved late in the quarter; management cited multiple processes at full capacity, a backlog of new projects ramping in 2026, and completion of a major backward-integration capital project coming online in Q4 .
Liquidity remains solid (cash and equivalents $85.56M) and the quarterly dividend of $0.06/share was paid in Q3; the December dividend is planned .
Potential stock catalysts: late-Q4 biodiesel restart and commercialization of the backward-integration project, alongside improving chemicals demand .

What Went Well and What Went Wrong

What Went Well

Sequential loss reduction for the third consecutive quarter; “We’ve achieved a third consecutive quarter of reduced net losses, moving from $17.6 in Q1 to $10.4 in Q2, and further down to $9.3 in Q3” — Roeland Polet, CEO .
Chemicals demand improved in late Q3, with several processes ramping to full capacity; strong backlog expected to drive production at Batesville ramping in 2026 .
Completed major capital project to backward integrate a key raw material; production coming online in Q4 with qualification underway (supports both internal use and external sales) .

What Went Wrong

Consolidated revenue down 56% YoY to $22.69M; gross margin swung to a loss (-$6.83M) and net loss widened to -$9.33M, driven by biofuels weakness under IRA 45Z uncertainty and input pricing .
Biofuel revenue collapsed YoY ($7.11M vs $33.21M) and biofuel segment gross profit remained negative (-$2.42M) in Q3; chemicals segment also posted gross loss (-$4.41M) in Q3 .
Operating cash flow turned slightly negative YTD (-$1.30M), reflecting reduced throughput and turnaround costs; adjusted EBITDA was deeply negative for nine months (-$32.72M) .

Financial Results

Quarterly trend (Q1 → Q3 2025)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$17.54	$35.67	$22.69
Diluted EPS ($USD)	-$0.40	-$0.24	-$0.21
Net Income ($USD Millions)	-$17.64	-$10.42	-$9.33
Adjusted EBITDA ($USD Millions)	-$16.06	-$9.82	-$6.84

YoY and QoQ comparison

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD Millions)	$51.14	$35.67	$22.69
Gross Profit ($USD Millions)	$0.38	-$8.77	-$6.83
Operating Income ($USD Millions)	-$2.89	-$11.93	-$9.74
Net Income ($USD Millions)	$1.20	-$10.42	-$9.33
Diluted EPS ($USD)	$0.03	-$0.24	-$0.21
Adjusted EBITDA ($USD Millions)	-$0.97	-$9.82	-$6.84

Segment breakdown

Segment	Q3 2024 Revenue ($MM)	Q2 2025 Revenue ($MM)	Q3 2025 Revenue ($MM)	Q3 2024 Gross Profit ($MM)	Q2 2025 Gross Profit ($MM)	Q3 2025 Gross Profit ($MM)
Custom Chemicals	$15.32	$14.25	$14.46	$3.41	$4.68	-$4.41
Performance Chemicals	$2.61	$2.37	$1.12	—	—	—
Chemicals (Total)	$17.93	$16.62	$15.58	$3.41	$1.67	-$4.41
Biofuel	$33.21	$19.05	$7.11	-$3.02	-$10.43	-$2.42
Total	$51.14	$35.67	$22.69	$0.38	-$8.77	-$6.83

KPIs and balance sheet/cash

KPI	Q1 2025	Q2 2025	Q3 2025
RINs Held (MM units)	2.3 (FMV $2.08M)	0.5 (FMV $0.60M)	0.4 (FMV $0.36M)
Cash & Equivalents ($MM)	$97.07	$95.15	$85.56
Capital Expenditures ($MM)	$4.00 (YTD)	$9.48 (YTD)	$14.82 (9M)
Cash from Operations ($MM)	-$5.40 (Q1)	-$0.18 (6M)	-$1.30 (9M)
Dividend per Share ($)	$0.06 paid (Q1)	$0.06 paid (Q2)	$0.06 paid (Q3); $0.06 planned (Dec)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Regular quarterly dividend ($/share)	FY 2025	$0.06/share per quarter planned (Jun, Sep, Dec)	$0.06 paid in Q3; $0.06 planned for Dec	Maintained
Biodiesel production timing	2H 2025–early 2026	Resume later in 2025 or early 2026; plant idled in June	Replenishing inputs; preparing for late Q4 restart	Raised/accelerated timing (clarified earlier restart)
Chemicals commercialization	Q4 2025–Q1 2026	Multiple projects to begin production by end of Q4 and Q1 2026	Backlog to ramp at Batesville in 2026; processes at full capacity late Q3	Maintained trajectory; execution progress
Backward integration project	Q3–Q4 2025	Nearing completion; final commissioning in Q3	Construction completed; production online in Q4; qualification in progress	Achieved milestone (completed)
Revenue/EPS/margins guidance	FY/Q4 2025	Not provided	Not provided	No formal guidance

Earnings Call Themes & Trends

Note: No Q3 2025 earnings call transcript was found in company filings or press release sources; MarketBeat listed a conference call date/time but no transcript link .

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
IRA 45Z (CFPC) and regulatory clarity	Q1: BTC expired; CFPC uncertainty pressuring biofuels . Q2: “greater clarity” from reconciliation bill but feedstock prices remained abnormally high; idled plant in June .	Continued uncertainty cited; preparing for late-Q4 restart as input markets improve .	Improving outlook (planning restart)
Biodiesel production status	Q1: Restarted end of March after turnaround . Q2: Idled in June; RIF implemented .	Idled in July; replenishing inputs; late-Q4 restart targeted .	Stabilizing; restart approaching
Chemicals demand/backlog	Q1: Turnaround reduced chemicals volumes . Q2: Pipeline expanded; commercialization by end-Q4/Q1 2026 .	Demand improved late Q3; several processes at full capacity; backlog to ramp 2026 .	Improving
Capital project (backward integration)	Q1: On track for late summer 2025 . Q2: Final commissioning expected in Q3 .	Construction completed; online in Q4; qualification in progress .	Completed milestone
Cash/dividends	Q1: $97.07M cash; $0.06 quarterly dividend paid . Q2: $95.15M cash; $0.06 quarterly dividend paid; future payments noted .	$85.56M cash; $0.06 Q3 dividend paid; $0.06 planned for Dec .	Stable dividends; declining cash
RIN inventory	Q1: 2.3M RINs (FMV $2.08M) . Q2: 0.5M RINs (FMV $0.60M) .	0.4M RINs (FMV $0.36M) .	Decreasing

Management Commentary

“We’ve achieved a third consecutive quarter of reduced net losses, moving from $17.6 in Q1 to $10.4 in Q2, and further down to $9.3 in Q3… we are gaining clearer understanding of the regulatory support level under IRA 45Z for biodiesel… This has allowed us to begin replenishing biodiesel raw material inventories in preparation for a late Q4 restart of production.” — Roeland Polet, CEO .
“One of the key inputs we use for biodiesel production is soybean oil. The U.S. is experiencing a record harvest… which could lead to further decreases in input costs for biodiesel.” .
“Our chemicals business… experienced some improvement in demand during the quarter. Several of our processes ramped up to full capacity in the latter part of the quarter… We have built a strong backlog of new projects… ramping up in 2026… During Q3, we completed the construction of our major capital project… production is coming online in Q4.” .
HQ consolidation: administrative and headquarters activities moving from St. Louis to Batesville to improve back-office efficiency .

Q&A Highlights

No Q3 2025 earnings call transcript was available in filings or investor press release sources; MarketBeat listed a call date/time but did not provide a transcript link .
Clarifications from the release: LIFO inventory impact was a smaller negative in Q3 YoY ($0.358M vs $1.456M prior-year quarter), and nine-month LIFO adjustment was a larger positive vs prior year ($3.893M vs $2.885M), partially offsetting gross profit declines .

Estimates Context

Consensus estimates from S&P Global for Q3 2025 EPS and revenue were unavailable at the time of query; actual results are shown below for context .
Where estimates are unavailable, we anchor comparison on reported actuals and trends across prior quarters.

Metric	Q1 2025 Actual	Q2 2025 Actual	Q3 2025 Actual	Consensus (Q3 2025)
Revenue ($USD Millions)	$17.54	$35.67	$22.69	N/A
Diluted EPS ($USD)	-$0.40	-$0.24	-$0.21	N/A

Note: S&P Global consensus estimates were not available for FF for the specified periods at query time via the GetEstimates tool; actual values are taken from company filings and releases.

Key Takeaways for Investors

Sequential loss narrowing in Q3 (-$9.33M vs -$10.42M in Q2, -$17.64M in Q1) signals improving run-rate despite revenue pressure; adjusted EBITDA (-$6.84M) also improved sequentially .
Late-Q4 biodiesel restart preparation plus a record soybean harvest that could lower input costs offer near-term catalysts for margin recovery in biofuels, subject to IRA 45Z clarity .
Chemicals demand improvement and full-capacity runs late in Q3, combined with a robust 2026 backlog, support a medium-term mix shift toward more resilient chemicals contribution .
Backward-integration project completion (online in Q4) should reduce raw material cost volatility and open external sales pathways, potentially enhancing gross margins .
Liquidity ($85.56M cash) and maintained quarterly dividend ($0.06/share) provide downside support, though continued operating cash flow weakness (-$1.30M for 9M) and negative adjusted EBITDA (-$32.72M for 9M) warrant caution .
Biofuel segment remains the primary drag (Q3 biofuel revenue $7.11M vs $33.21M YoY; segment gross loss -$2.42M), making regulatory developments and input pricing pivotal for near-term inflection .
With no formal revenue/EPS guidance and limited visibility on IRA 45Z mechanics, position sizing should account for regulatory risk; monitor December dividend affirmation and Q4 production restart execution .

FutureFuel Corp. (FF)·Q3 2025 Earnings Summary