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NEXTNRG, INC. (NXXT)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 delivered record revenue and margin expansion: revenue $22.86M (+232% YoY) and gross margin 10.7% (company cites 11%), up from ~8% in Q2, driven by mobile fueling scale and supplier discounts .
  • Versus S&P Global consensus, revenue beat by ~9% ($22.86M vs $20.93M*) while GAAP EPS missed (-$0.12 vs -$0.05*); EBITDA remained negative amid interest expense and non‑cash items [functions.GetEstimates].
  • Liquidity remains the key risk: quarter-end cash ~$0.65M, working capital deficit ~$30.0M, going‑concern language, and continued reliance on high‑cost debt and MCA financing .
  • Management emphasized platform scaling (mobile fueling density, microgrids, wireless EV charging) and signed PPAs (28 years of contractual profitable revenue) as catalysts for margin progression and mix shift over time .

What Went Well and What Went Wrong

  • What Went Well

    • Record top line with continued sequential growth: $22.86M (+232% YoY; +$3.16M QoQ) as the mobile fueling division posted its strongest revenues and margins to date .
    • Margin execution: gross profit $2.44M, margin 10.7% (company states 11%), up from ~8% in Q2 on volume-based supplier discounts and route density gains .
    • Strategic wins and pipeline: management highlighted PPAs (28-year contractual profitable revenue), expanding markets (entered 11 new markets), and fleet additions (99 trucks) supporting scale-up and infrastructure cross‑sell . “Our fully connected energy ecosystem continues to deliver measurable results, positioning NextNRG to lead the transition to intelligent, distributed power.” — CEO .

  • What Went Wrong

    • Profitability still distant: operating loss $(9.00)M and net loss $(14.97)M; interest expense $(4.39)M and a $(1.59)M loss on settlement weighed on results .
    • Liquidity/going-concern: cash ~$0.65M, working capital deficit ~$29.97M, substantial doubt about ability to continue as a going concern absent additional financing .
    • Dilution/financing complexity: continued use of convertible notes, MCAs, and share issuance (including for fees/services); stock-based comp in Q3 was ~$5.56M, press release flags non‑cash items as a driver of losses .

Financial Results

MetricQ3 2024Q2 2025Q3 2025
Revenue ($M)$6.99 $19.70 $22.86
Gross Profit ($M)$0.61 $1.60 $2.44
Gross Margin %8.7% (0.61/6.99) 8.0% (company) 10.7% (2.44/22.86)
Operating Income ($M)$(2.98) $(30.8) (incl. ~$25.5M SBC) $(9.00)
Net Income ($M)$(10.62) $(36.10) $(14.97)
Diluted EPS ($)$(0.71) N/A$(0.12)
Q3 2025 Actual vs S&P Global ConsensusQ3 2025 Consensus*Q3 2025 Actual
Revenue ($M)$20.93*$22.86
Primary EPS ($)$(0.05)*$(0.12)

Values with asterisk (*) retrieved from S&P Global.

Segment revenue (Q3 2025):

  • Energy Infrastructure: $0.00M
  • Mobile Fuel Delivery: $22.86M

KPIs and intra-quarter markers:

  • July 2025 revenue: $8.19M (+236% YoY), first time >$8M monthly .
  • August 2025 revenue: $7.51M (+222% YoY); sequential dip vs July due to a one‑off mid‑summer retail event surge in July per management .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/Q4None disclosedNone disclosedN/A
Gross MarginFY/Q4None disclosedQualitative: “margin expansion” emphasizing supplier discounts/efficiencies N/A
EBITDA/EPSFY/Q4None disclosedNone disclosedN/A
Energy Infrastructure (PPAs/microgrids)Multi‑yearN/ASigned two PPAs providing 28 years of contractual profitable revenue (no $ disclosed) New qualitative detail

Note: The company did not issue quantitative revenue/EPS guidance in Q3 materials reviewed .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025, Q2 2025)Current Period (Q3 2025)Trend
AI/Tech platform (Utility OS, analytics)Q1: Utility OS deployment underway; focus on AI/ML microgrids and wireless charging pilots . Q2: Continued roadmap progress; partnership with Hudson for infra buildout .Continued build and inbound interest; positioning to demo bidirectional wireless EV charging; “energy intelligence grid” emphasis .Steady execution; moving toward pilots/demos
Mobile fueling scale and marginsQ1: Record volumes; margin per gallon expansion ($0.71) . Q2: Record months; margin growth; expanding to OK/TX, enterprise wins .Record quarter; margin to ~11% from ~8% QoQ via supplier discounts and density .Improving scale and mix supporting margin
Energy infrastructure commercializationQ1: Northern FL microgrid slated Q2’25 start; pilots in planning . Q2: Advancing microgrids/wireless; PPAs not disclosed .Two PPAs signed (28-year revenue), no dollar range; early commercialization narrative .Early monetization signals
Liquidity & financingQ1: Raised $15M equity; cash $2.1M . Q2: Financial restructuring reduced monthly burn by ~$1M .Q3 cash ~$0.65M; going-concern note; additional convertible notes in October–November .Deteriorated cash; ongoing financing reliance
Customer/market expansionQ1: Entered 4 new markets; enterprise fleet wins . Q2: 7th state; Sunbelt Rentals expansion .Entered 11 new markets; 99 trucks added; building density around anchors .Broadening footprint

Management Commentary

  • “Our third quarter performance reflects disciplined execution across all fronts and strong market validation for our integrated energy solutions… With 232% year-over-year revenue growth, margin expansion… we are demonstrating the strength of our strategy” — Michael D. Farkas, CEO .
  • “We are entering an exciting phase where our technology, infrastructure, and operational expertise converge… positioning NextNRG to lead the transition to intelligent, distributed power.” — CEO .
  • “Revenue is growing, margins are expanding, and our mobile fueling and energy infrastructure initiatives are driving strong measurable results… our strongest financial performance to date.” — CEO (prepared remarks, earnings call) .

Q&A Highlights

  • Commercialization signals in energy infrastructure: management cited two PPAs with 28‑year contractual profitable revenue; focus on on‑site generation/storage to meet rising grid constraints (data center AI demand discussed) .
  • Margin drivers: volume‑based supplier discounts and route density; mobile fueling remains the primary engine for near‑term gross profit expansion .
  • Liquidity trajectory: reiterated burn reduction steps (prior restructuring) but acknowledged low cash and ongoing need to access capital markets/convertibles as reflected post‑quarter .
  • Fleet/market expansion: 99 trucks added, entry into 11 new markets to support growth and customer density, aiding future unit economics .

Estimates Context

  • Q3 2025: Revenue beat and EPS miss vs S&P Global consensus. Revenue $22.86M vs $20.93M*; Primary EPS $(0.12) vs $(0.05)* [functions.GetEstimates].
  • Implied revisions risk: Street likely to lift revenue run‑rate assumptions given sustained monthly cadence and density gains, but maintain conservative profitability timelines given interest expense, dilution risk, and going‑concern language .

Values with asterisk (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Momentum is real on the top line with improving unit economics; Q3 revenue beat and margin expansion validate scale benefits in mobile fueling .
  • Profit/FCF remain constrained by financing costs and non‑cash items; interest expense and loss on settlements continue to pressure EPS/EBITDA .
  • Liquidity is the core overhang (cash ~$0.65M; going‑concern); watch for near‑term financings/convertible conversions and associated dilution .
  • Early infrastructure monetization (PPAs) and upcoming wireless EV charging demos could re‑rate the longer‑term mix toward higher‑quality recurring revenues if executed .
  • Short‑term trading: revenue beat vs consensus is positive; EPS miss and going‑concern disclosure likely cap upside until funding clarity improves .
  • Medium‑term thesis: if management sustains double‑digit gross margin progression and converts pipeline (PPAs/microgrids) while normalizing financing costs, path to break‑even strengthens; otherwise, dilution and debt costs could outpace operating gains .
  • Monitoring list: monthly revenue cadence (seasonality after July spike), gross margin %, funding actions, any quantified infra revenue ramp, and interest expense trajectory .

Supporting details and additional references:

  • Q3 2025 8‑K press release with headline metrics and margin commentary .
  • Q2 2025 8‑K press release for sequential context and SBC disclosure .
  • Q1 2025 8‑K press release for trend analysis (revenue, gross profit, margin per gallon, volumes) .
  • Q3 2025 10‑Q for full financial statements, segment detail, liquidity/going‑concern, debt/interest .
  • Monthly intra‑quarter 8‑Ks (July, August) for intra‑quarter cadence and color .
  • Earnings call transcript/highlights for PPAs, fleet/market expansion, and qualitative commentary .