NextNRG - Earnings Call - Q1 2025

Executive Summary

• NextNRG delivered triple‑digit top-line growth: Q1 2025 revenue rose 147% YoY to $16.3M with gallons delivered up 183% to 4.7M; gross profit increased 12% to $0.52M as average fuel margin per gallon improved to $0.71.
• Momentum continued post‑quarter: April 2025 preliminary revenue reached $5.82M (+154% YoY) and volumes rose 207%, indicating sustained demand as scale increases.
• Despite strong growth, profitability remains a headwind: GAAP net loss widened QoQ to approximately $8.79M*, and EBITDA was about $(5.05)M* as the company invests to scale and integrates acquisitions.
• Visibility: No formal quantitative guidance provided; management affirmed microgrid deployment on track for Q2 2025 and plans a large bidirectional wireless EV charging pilot later in 2025; earnings call was scheduled for May 22, 2025 at 9:15am ET.

What Went Well and What Went Wrong

What Went Well

• Record growth and execution: “We entered 2025 with tremendous momentum and a clear roadmap to scale, and Q1 results are a reflection of that execution”.
• Enterprise traction and channel maturation: Initiated deliveries to “the world’s largest e‑commerce company” under a multi‑year agreement; executed logistics agreements with major national brands.
• Capacity and footprint expansion: 144 active vehicles, entry into a seventh state, and integration of Shell Oil mobile fleet and Yoshi Mobility assets bolstered national reach and logistics capacity.

What Went Wrong

• Profitability and margin structure: Gross profit margin % was low in Q1 (3.18%) versus Q4 2024 (10.11%) and Q1 2024 (7.00%*), highlighting ongoing mix/scale effects despite higher per‑gallon margin.
• Losses widened QoQ: GAAP net loss of approximately $(8.79)M* vs $(2.85)M* in Q4 2024; EBITDA approximately $(5.05)M* vs $(2.56)M* QoQ as the company scales.
• Limited guidance/visibility: No formal numeric guidance; investors await more detailed disclosures on microgrid pipeline economics, SaaS ramp, and EV charging monetization; Q1 call transcript not yet available.

Transcript

Operator (participant)

Good day, and welcome to the NextNRG first quarter 2025 financial call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. Please note this event is being recorded. I would now like to turn the conference over to Jeff Ramson, CEO of PCG Advisory. Please go ahead.

Jeff Ramson (CEO)

Thank you, Operator. Good morning, everyone, and thank you for joining us today. With me are Michael Farkas, CEO of NextNRG, and Joel Kleiner, CFO. Before we begin, please note that today's call may contain forward-looking statements based on current expectations and assumptions. These are subject to risks and uncertainties, and actual results may differ materially. For a more complete discussion, please refer to our Form 10Q for the quarter ended March 31st, 2025, filed with the SEC. With that, I'll turn the call over to CEO Michael Farkas.

Michael Farkas (CEO)

Thank you, Jeff. Good morning, everyone. The first quarter of 2025 was nothing short of transformational for NextNRG, a true inflection point in our journey. We are not just scaling; we are surging forward with momentum that reflects the strength of our vision and the power of execution. Revenue soared to $16.3 million in Q1 2025, marking a remarkable 146% increase year over year. This explosive growth was fueled by the expansion of our mobile fueling operations and a series of bold, strategic acquisitions that are already delivering outsized returns. On the operational front, our delivery volumes rose to over 4.7 million gallons, up from 1.7 million gallons in Q1 2024, a staggering 183% increase.

This leap underscores the seamless integration of the Shell and Yoshi fleet assets, along with the onboarding of major national accounts, including the world's largest e-commerce company, a partnership that speaks volumes about the caliber of our capabilities. Excuse me. Demand of our fueling solutions is not just growing; it's accelerating. To meet it, we've expanded into multiple new states, extending our footprint across the nation. Meanwhile, our technology pipeline is gaining serious traction. From smart microgrid developments to cutting-edge wireless EV charging, we are laying the digital and physical infrastructure for a distributed, intelligent, and sustainable energy future. NextNRG is not just growing; we are defining the future of energy. One gallon, one watt, and one breakthrough at a time. Now I'll hand it over to our CFO, Joel Kleiner, for a deeper look at our financials.

Joel Kleiner (CFO)

Thank you, Michael. The first quarter of 2025 was a defining chapter in NextNRG's growth story. For the first three months ended March 31st, NextNRG generated $16.3 million in revenue, a 146% increase from $6.6 million in Q1 2024. This powerful performance was driven by a triple force of increased fleet volume, strategic pricing initiatives, and rapid geographic expansion. Cost of sales rose to $15.8 million, up from $6.1 million the previous year, resulting in gross profit of approximately $517,000. While gross margins narrowed due to strategic spending on fleet scaling and other expansion costs, initiatives like volume-based discounting and delivery optimization position us for improved margins in the quarters ahead. Operating expenses totaled $6.3 million, the bulk of which, $5.5 million, was G&A, with an additional $733,000 in depreciation and amortization.

This brought our loss from operations to $5.8 million, up from $1.9 million in the same period last year. A reflection of our aggressive investment in infrastructure, talent, and innovation to support future gains. We also reported $3.2 million in net and other net expenses, primarily driven by interest on debt financing. This brought our net loss available to common shareholders to $8.9 million, or $1.60 per share, compared to $2.7 million, or $1.48 per share in Q1 2024. Despite these near-term losses, our balance sheet reflects growing strength. The closing quarter was $2.1 million in cash, a 31% increase from $1.6 million at year end. Accounts receivable also saw significant growth, rising to $3.9 million, more than doubling from $1.6 million in Q1 2024, reflecting the strong sales momentum.

Additionally, we successfully raised over $50 million in equity financing during the quarter, a strong vote of confidence in our strategy and a critical infusion of capital to fuel our bold national expansion. Back to you, Michael.

Michael Farkas (CEO)

Thanks, Joel. As we look ahead, our focus is anchored in five bold growth initiatives that position NextNRG at the forefront of energy innovation. Number one, we're making significant progress on our first smart microgrid deployment in Northern Florida, a major milestone in our vision to create resilient, intelligent energy systems that operate at the edge of the grid. In South Florida, we're developing a cutting-edge wireless EV charging pilot featuring bi-directional capabilities, a glimpse into a future where vehicles aren't just consumers of energy but active participants in the grid. Number three, our mobile fueling operations are accelerating at full throttle. We're now live in more than a dozen major cities and expanding rapidly, delivering convenience and sustainability at scale. Number four, we're unlocking new revenue streams by activating SaaS and licensing models tied to our proprietary energy infrastructure technologies.

We are finally finalizing a partnership with a seasoned industry financer in the sustainable energy sector, and together we will secure financing, advance our technology, and scale our one gigawatts of utility microgrid projects in our pipeline. We believe we are uniquely positioned at the nexus of mobile logistics, AI-powered energy infrastructure, and clean transportation. Thank you to our employees, partners, and shareholders. Your belief in our mission powers everything we do.

Operator (participant)

At this time, we will now begin the question-and-answer session.

Jeff Ramson (CEO)

I'm sorry, I was on mute. I'm going to share questions that we received from investors. Michael, where are you with wireless charging?

Michael Farkas (CEO)

Great question. As mentioned earlier, we are in the process of deploying and developing a prototype pilot in South Florida. That's the first time anywhere on the planet is going to incorporate wireless charging and bi-directional capabilities. That's something that we have a patent on, and we're going to be deploying that technology. In addition, because of the needs of certain customers of ours, especially those that are heavily invested in warehouses, logistics, delivery, and so on, and through conversations with our biggest customer, we see that there's a major need of this technology, not just outside on the streets, but literally in these facilities, and not just for passenger vehicles, but for forklifts and robotics and all these types of equipment that are currently being used by these companies.

Because of them not being able to be charged wirelessly and in motion, they need a substantial amount more of that equipment in order that once it's charging and offline, they have other equipment operating. Through our technology, certain equipment, these vendors would be able to reduce the amount by a third and other equipment by a half and considerably change the entire footprint of these locations. This technology that we have on the wireless charging side is not just for passenger vehicles and delivery vehicles, but it could really be used, and I believe the biggest beneficiaries are going to be inside the buildings, inside these manufacturing facilities, inside these logistical centers. We are very excited about being able to show our technology in that environment as well.

Jeff Ramson (CEO)

Another question I have here is, how do you view NextNRG's differentiation versus other mobile fueling or microgrid players in the market?

Michael Farkas (CEO)

Excellent question. I think when you understand our business and you look at the EzFill component and you look at our smart microgrid technologies and you look at a smart microgrid and you combine all of this together, you really realize that it's a solution that's necessary. There's no other company today that can literally fill your internal combustion engine vehicle at your facility now, assist you with providing charging services for the vehicles that you're using today that may need some wires, and then also provide you with wireless charging in the future. It is not only that. The smart microgrid component allows us to generate that electricity at your location so you do not have to rely solely upon the grid.

The biggest problem today, and most people do not realize this, for fleets to be able to go ahead and electrify, it is not about getting a charging station anymore. It is not about getting the vehicles. Those are plenty. You get massive of those. The problem today is actually getting the power at these locations to be able to provide the fuel for those vehicles. The only company today that can really hold your hand and take you through that entire process and assist you in not only producing the energy for your vehicles but for your entire facility. That is what having all of these different components of our business allows us to do. We could fill your vehicle today with EzFill. We could charge your vehicle today using typical means. In the future, we will be able to use wireless charging.

At the same time, we'll be able to power your facility, store the energy there, and then allow that energy to be used not only for your fleets and for mobility, but literally for your electronics, for your air conditioning, for your computers, for your robotics. That really separates us from every other single player out there. There is no one that has these capabilities internally. More importantly, nobody has the technology, the IT, and the patents that we do that allow us to provide these services.

Jeff Ramson (CEO)

Great. One other question. Can you talk about AI-powered energy infrastructure and maybe some examples of how it's being implemented?

Michael Farkas (CEO)

Yes. Okay. When you're looking at a broad-based grid scale deployment of AI, it really hasn't been done except for one place, which is Florida Power & Light. The technology that was developed in that $850 million Department of Energy collaboration between NextEra Energy, Florida Power & Light, FIU, which is the university that we got the technology from, and the Department of Energy, that really was the first implementation of AI and machine learning broad-based deployment throughout the utility grid. What happened was that technology took FPL from being one of the worst-performing utilities in the United States to literally the most efficient in the world. All of that technology that was developed under that program ultimately is now ours. We acquired a company that licensed all of that technology. There was a portfolio of patents.

Four of them pertain to smart microgrid and utility operating system technologies, and three of them were focused on wireless EV charging. It's very important to note that on our utility operating system technology, that's really where you see the deployment of AI throughout the grid. The efficiencies that Florida Power & Light receives now allowed them in 2024 to reduce the cost of electricity to their consumers twice. No other utility in the world was able to do that. Really what this technology does is it allows utility grids to better predict what actual demand is going to be.

The way utility grid works today is there's supply and demand, and they always need to create way more supply than demand requires because if not, if there's ever a spike, that's when you have brownouts and blackouts and issues that you see in Puerto Rico and what we saw in Europe the last couple of weeks. What our technology does, it's able to monitor and understand and predict what that actual demand is going to be, and then we're able to supply the right amount of electricity for that. You're talking savings 10%, 12%, 15%, and even 17%. These are massive, massive savings. It's very, very, very beneficial for utilities to implement this technology. No one has done it besides FPL. Our role now, after gaining control of this technology, is to allow and assist other utilities to deploy that exact same technology.

Jeff Ramson (CEO)

Got it. Got it. Okay. Great. I don't have any other questions here, Michael.

Operator (participant)

This concludes our question and answer session. I would like to turn the conference back over to Michael Farkas for any closing remarks.

Michael Farkas (CEO)

Yes. It was a pleasure. Keep on focusing on looking at what we're doing. Every day we're having additional developments. We're at really an amazing point of the business. We're starting to really see a major convergence between all of these different services. There are many, many fleet operators out there, hundreds of millions of vehicles globally that need services that we provide. Little by little, we're getting that traction, and we believe that we're going to make a big impact in the energy markets globally. Thank you.

Operator (participant)

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.