Executive Summary

Q3 2023 revenue was $4.0M, down vs Q2 2023 ($5.1M) and roughly flat year over year ($4.1M in Q3 2022); manufacturing & construction services revenue rose 48% YoY to $4.0M as medical revenue remained nil .
Gross loss widened to $(0.536)M vs $(0.165)M YoY and vs $0.034M in Q2; operating expenses fell sharply vs Q2 to $2.4M (from $5.6M), but were modestly higher YoY (from $2.3M), driving a net loss of $(3.6)M and diluted EPS of $(0.23) .
Strategic milestones: completed spin-off of Safe and Green Development Corp. (NASDAQ: SGD); Louisiana licensure achieved; multi-million modular contract awarded; LOI to sell Lago Vista for $11.5M to fund a JV with a premier developer .
Management pivoted cash flow targets to Q1 2024 and highlighted $25M annualized revenue potential from the Waldron facility as capacity expands; this shift and asset monetization are key near-term stock catalysts .

What Went Well and What Went Wrong

What Went Well

Manufacturing & construction services revenue increased 48% YoY to $4.0M, reflecting strong demand and repeat business with a long-standing private infrastructure client .
Spin-off of SG DevCo completed; company expects significant synergies as SG DevCo executes on a >$800M pipeline expected to drive SG Echo manufacturing growth. “We anticipate ongoing and significant synergies with SG DevCo… pipeline… exceed $800 million” .
Operating discipline: “Reduced operating expenses by more than $2 million since Q1 2023, resulting in savings that are expected to be realized in 2024,” supporting improved 2024 cash flow trajectory .

What Went Wrong

Gross loss widened to $(0.536)M amid the absence of medical revenue, pressuring margins vs Q2 and prior year .
Net loss remained elevated at $(3.6)M (EPS $(0.23)), worse than $(2.5)M in Q3 2022, reflecting expenses allocated to SG DevCo and WELLglobal Health build-outs and interest expense .
The company deferred its cash flow positivity target to Q1 2024 (from prior expectations around Q3 2023), increasing near-term execution risk around the capacity ramp and mix shift .

Financial Results

Consolidated Metrics (chronological: oldest → newest)

Metric	Q3 2022	Q1 2023	Q2 2023	Q3 2023
Revenue ($USD Millions)	$4.1	$5.5	$5.1	$4.0
Gross Profit (Loss) ($USD Thousands)	$(165)	$(69)	$34	$(536)
Operating Expenses ($USD Millions)	$2.3	$2.8	$5.6	$2.4
Net Loss ($USD Millions)	$(2.5)	$(3.2)	$(5.6)	$(3.6)
Diluted EPS ($USD)	$(0.18)	$(0.22)	$(0.37)	$(0.23)
Adjusted EBITDA ($USD Millions)	$(1.5)	$(2.0)	$(2.3)	$(1.4)

Segment Revenue

Segment	Q1 2023	Q2 2023	Q3 2023
Manufacturing/Construction Services ($USD Millions)	$5.5	$5.1	$4.0
Medical ($USD Millions)	N/A disclosed	N/A disclosed	$0.0 (no medical revenue)

Note: Q3 2022 manufacturing & construction services revenue was not disclosed; only the YoY increase (+48%) was provided .

KPIs and Balance Sheet Indicators

KPI	Mar 31, 2023	Jun 30, 2023	Sep 30, 2023
Cash & Short-term Investments ($USD Millions)	$1.5	$1.6	$0.713
Stockholders’ Equity ($USD Millions) – press release	$12.6	$9.3	$5.7
Stockholders’ Equity ($USD Millions) – earnings call	—	—	$6.4

Discrepancy noted: Q3 2023 stockholders’ equity was cited as $5.7M in the press release and $6.4M on the call .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash flow positivity	Q3 2023 (prior) → Q1 2024 (current)	SG Echo to turn cash flow positive in Q3 2023	Company expects cash flow positive in Q1 2024	Lowered/Deferred
Operating expenses	2024 impact	N/A	>$2M reduction since Q1 2023; savings expected to be realized in 2024	Introduced
Waldron facility revenue potential	Next 12 months	Up to $25M annualized revenue potential (first disclosed Q1 2023)	Up to $25M annualized revenue potential reiterated	Maintained
SG DevCo spin-off	2023	SEC approval; record date Aug 21, 2023	Completed; SGBX retains 70% interest; 30% distributed to shareholders	Executed
Lago Vista asset monetization	2023–2024	Sale expected by Q2–Q3 2023; refinancing ~ $2.0M net proceeds	New LOI to sell Lago Vista for $11.5M; proceeds to fund JV equity	Updated terms/timing

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2023, Q2 2023)	Current Period (Q3 2023)	Trend
Production capacity expansion	Waldron facility CO for 58k sqft; potential $25M annualized revenue	Waldron up and running; additional 58k sqft; McLean design phase; planning St. Mary’s GA; targeting 1.1M sqft across facilities	Expanding capacity
SG DevCo spin-off & pipeline	Spin-out expected within ~90 days ; SEC approval & record date 8/21	Spin-off completed; >$800M pipeline; SGBX retains 70% interest; synergies expected	Executed; synergistic
Non-dilutive financing/asset monetization	Lago Vista refinance ~$2.0M; sale expected Q2–Q3	New LOI for $11.5M sale; proceeds to fund JV; balance sheet focus	Advancing monetization
Licensing & regulatory	—	Louisiana licensure for modular tagging; building licensed footprint (FL, TX, CO, AZ, NM), pursuing CA, GA, OR, NV	Regulatory footprint expanding
Medical strategy	Partnerships with The Peoples Health Care, Teamsters 848; HALO Precision Diagnostics; modules by year-end	Rebranded WELLglobal Health; modular “WELLness Suites”; progress and interest noted	Progressing commercialization
Commercial contracts	Domino’s QSR units delivered; additional units planned	Awarded multi-million modular contract to infrastructure client; repeat business emphasized	Backlog building

Management Commentary

“During the third quarter of 2023, the Company experienced a 48% year-over-year increase in manufacturing & construction services revenue, building on our recent momentum… We anticipate ongoing and significant synergies with SG DevCo… pipeline… exceed $800 million and are expected to drive further manufacturing revenue growth for SG Echo” — Paul Galvin, CEO .
“We continued to focus on leveraging our asset base to secure non-dilutive financing… entered into a new, non-binding LOI to sell our Lago Vista site for $11.5 million… proceeds… invested as equity in a new joint venture” — Tricia Kaelin, CFO .
“In 2024, our plan is to shift a portion of our business from lower-priced high-volume projects to a higher price point and lower volume… we expect to see an improvement in cash flow, most notably first quarter 2024” — Paul Galvin, CEO .
“We are making progress at WELLglobal Health… state-of-the-art pre-constructed modular, eco-friendly ‘WELLness Suite’… generating strong interest across the industry” — Delphine O’Rourke, President & CEO of WELLglobal Health .

Q&A Highlights

The Q&A portion of the Q3 2023 earnings call transcript was not accessible due to a retrieval error in the transcript database; highlights below rely on prepared remarks and disclosures only .

Estimates Context

Wall Street consensus estimates (S&P Global) for Q3 2023 were unavailable at the time of retrieval due to an SPGI request limit error; therefore, beat/miss vs consensus cannot be assessed. Estimates will need to be re-queried to update post-publication comparisons [GetEstimates error].

Metric	Period	Consensus	Actual	Surprise
Revenue ($USD Millions)	Q3 2023	N/A	$4.0	N/A
Diluted EPS ($USD)	Q3 2023	N/A	$(0.23)	N/A

Key Takeaways for Investors

Mix shift and capacity build: revenue fell sequentially to $4.0M with a gross loss, but management is pivoting to higher-price, lower-volume projects and expects cash flow improvement starting Q1 2024 — watch Waldron/McLean ramps and margin recovery trajectory .
Execution on strategic actions: SG DevCo spin-off is complete, with SGBX retaining 70% and targeting synergies from a >$800M pipeline — potential manufacturing volume tailwind if projects advance on schedule .
Asset monetization as funding bridge: $11.5M Lago Vista LOI to seed JV equity represents a material liquidity lever and could de-risk near-term operating cash needs if closed .
Regulatory and commercial momentum: Louisiana modular tagging licensure and new multi-million modular contract support repeat business/market access; footprint expansion into additional states is a medium-term growth enabler .
Cost discipline: >$2M OpEx reduction since Q1 2023 with savings expected in 2024; combined with capacity utilization, this underpins the Q1 2024 cash flow target .
Near-term risk: absence of medical revenue and widened gross loss in Q3, plus deferred cash flow positivity, elevate execution risk — monitor backlog conversion and pricing/mix improvements in Q4 and Q1 .
Data discrepancy: reconcile stockholders’ equity ($5.7M press vs $6.4M call) when the 10-Q posts; this impacts leverage and liquidity analysis for positioning .

Supporting Documents

Q3 2023 8-K 2.02 press release and exhibit .
Q3 2023 earnings call transcript (prepared remarks accessible; Q&A retrieval error) .
Prior quarters’ earnings press releases: Q2 2023 (Aug 14) ; Q1 2023 (May 11) .

SAFE & GREEN HOLDINGS CORP. (SGBX)·Q3 2023 Earnings Summary