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CleanCore Solutions, Inc. (ZONE)·Q4 2025 Earnings Summary

Executive Summary

  • Record Q4 momentum but small base: management reported “first ever quarter exceeding $1 million in U.S. sales,” driven by large customer orders and initial Sanzonate synergies . However, a going‑concern emphasis will appear in the FY2025 audit, elevating risk and likely capping multiple expansion near‑term .
  • Order visibility into Q1 FY2026: $876k of a $1.37m PO shipped/invoiced in Q4 with $491k scheduled to ship in Q1; a new $261k PO from the same customer is also slated for Q1, supporting near‑term revenue cadence .
  • Cost structure pressure and losses persist: FY2025 G&A rose to ~$7.08m (vs. ~$2.47m FY2024) on listing‑related costs and stock comp; FY2025 net loss widened to ~$6.74m (incl. ~$3.20m non‑cash stock comp) .
  • Estimates coverage thin: S&P Global showed no consensus for Q4 FY2025 EPS or revenue; only actual revenue data were available, limiting “beat/miss” framing and increasing reliance on company disclosures (see tables; values with asterisks are from S&P Global) [GetEstimates].

What Went Well and What Went Wrong

  • What Went Well

    • Record U.S. revenue: “first ever quarter exceeding $1 million in U.S. sales,” supported by large customer orders and expanding demand for aqueous ozone systems .
    • Order momentum/visibility: $876k of a $1.37m PO shipped in Q4; $491k scheduled for Q1; new $261k PO from the same customer scheduled for Q1, underpinning near‑term growth .
    • Strategic progress: Sanzonate acquisition “delivering results” with new European contract opportunities and an expanded international pipeline .

  • What Went Wrong

    • Going‑concern audit emphasis: FY2025 audited financials will include an auditor report with going‑concern disclosure, heightening financing and execution risk .
    • Elevated opex and dilution risk signals: FY2025 G&A increased to ~$7.08m (from ~$2.47m), driven by stock comp, professional fees, salaries/benefits, and D&O insurance tied to the NYSE American listing; FY2025 net loss expanded to ~$6.74m .
    • Accounting noise and data limitations: ~$230k of revenue previously recorded in Q3 was reversed and reclassified as intercompany following Sanzonate, complicating trend reads; lack of Street consensus reduces clarity around “beat/miss” [GetEstimates].

Financial Results

MetricQ2 2025Q3 2025Q4 2025
Revenue ($USD)$257,000 $558,000 $892,751*
Diluted EPS (Cont. Ops)$(0.1231)*$(0.0967)*$(0.4196)*
Gross Margin %24.10%*55.77%*47.92%*
EBITDA ($USD)$(924,068)*$(676,875)*$(3,543,443)*
EBITDA Margin %N/M*(121.32%)*N/M*
EBIT Margin %N/M*(128.48%)*N/M*
U.S. Revenue (disclosed)N/AN/A>$1,100,000

Notes:

  • Company disclosed that ~$230k of revenue recorded in Q3 was reversed and reclassified as intercompany sales in Q4 due to Sanzonate acquisition effects .
  • N/M = not meaningful (negative revenue margins or undefined).
  • Values marked with an asterisk (*) were retrieved from S&P Global.

Segment/Geography (as disclosed)

  • U.S.: Q4 U.S. revenue exceeded $1.1m .
  • International: Not quantified; management cited an expanding European pipeline post‑Sanzonate .

Key Operating/Balance Metrics

KPIQ4 2025Notes
Large customer PO shipped in Q4$876,000 Of $1.37m PO; remainder scheduled for Q1 FY2026
Carryover scheduled to ship in Q1 FY2026$491,000 From the same $1.37m PO
New PO from same customer (Q1 FY2026)$261,000 Scheduled for Q1
Debt converted to equity>$600,000 Balance sheet “enhancements”
Cash from warrant conversions>$400,000 Liquidity support
FY2025 revenue~$2.07m Up from ~$1.61m FY2024
FY2025 net loss~$(6.74)m Includes ~$3.20m non‑cash stock comp
Going‑concern in FY2025 auditYes To be included in FY2025 10‑K audit report

S&P Global disclaimer: Values marked with an asterisk (*) were retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Formal Revenue GuidanceFY2026None disclosedNone disclosedMaintained
Profitability/MarginsFY2026None disclosedNone disclosedMaintained
Q1 Shipments VisibilityQ1 FY2026N/A$491k scheduled shipments; $261k new PO slated Q1 New disclosure (visibility)
Liquidity/Going‑ConcernFY2025 AuditN/AGoing‑concern audit emphasis to appear in FY2025 10‑K New risk disclosure

Management did not provide numerical revenue/earnings/margin guidance; disclosures were limited to shipment timing and risk statements .

Earnings Call Themes & Trends

No Q4 FY2025 earnings call transcript was located; themes reflect company press releases.

TopicPrevious Mentions (Q2 FY2025, Q3 FY2025)Current Period (Q4 FY2025)Trend
Large Orders / Customer MomentumQ2: rollout with a leading enterprise software company; sector pilots; regulatory tailwinds from EPA bans . Q3: major international NY airport deployment .$1.37m PO (with $876k shipped in Q4, $491k to Q1) and a new $261k PO; first U.S. quarter >$1.1m Improving (orders/visibility)
Government Channel (GSA)Q3: Awarded GSA MAS IDIQ; only aqueous ozone provider on GSA; expands addressable market .Not specifically updated in Q4 releaseStable
International ExpansionQ3: Closed Sanzonate Europe; multi‑million‑dollar pipeline .Sanzonate “delivering results,” expanding European pipeline Improving (pipeline)
Cost Structure / OpexQ2: Shift to direct sales model increased costs . Q3: G&A up YoY .FY2025 G&A ~$7.08m (vs. ~$2.47m FY2024), stock comp a key driver Deteriorating (elevated base)
Accounting/One‑offs—~$230k Q3 revenue reversed/reclassified as intercompany in Q4 (Sanzonate integration) Mixed (integration noise)
Liquidity / Audit Risk—Going‑concern audit emphasis in FY2025 10‑K Deteriorating (risk)
RegulatoryQ2: EPA bans as demand tailwind .Not reiterated in Q4Stable/under review

Management Commentary

  • “We are extremely pleased to report record fourth quarter revenue, marked by our first ever quarter exceeding $1 million in U.S. sales.” — Clayton Adams, CEO
  • “The large purchase orders received and partially shipped in Q4 demonstrate customer confidence … and provide visibility into continued growth.”
  • “We … strengthened our balance sheet by converting debt to equity and receiving cash from warrant exercises, positioning us to pursue new opportunities with greater financial flexibility.”

Q&A Highlights

  • No Q4 FY2025 earnings call transcript was found in our document set; management commentary is limited to the press release disclosures [Search: no transcript found].

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 FY2025 EPS and revenue was not available; S&P only reflected actual revenue (~$892,751*) and no estimate counts, indicating limited coverage for ZONE [GetEstimates].
  • With no formal guidance, near‑term sell‑side models will likely key off disclosed shipment timing ($491k scheduled for Q1 and $261k new PO slated Q1) and U.S. revenue momentum vs. elevated opex and going‑concern risk .

S&P Global disclaimer: Values marked with an asterisk (*) were retrieved from S&P Global.

Additional Press Releases in Q4 FY2025 Window

  • We did not locate additional official CleanCore press releases specific to Q4 results beyond the 8‑K Exhibit 99.1. A third‑party paid advertisement mentioned a crypto‑treasury “pivot” and referenced CleanCore, but it is not an official company release and should not be relied upon for financial analysis .

Key Takeaways for Investors

  • Proof of demand but early scale: Exceeding $1.1m U.S. revenue in Q4 and visible POs support momentum; monitor conversion and repeat orders into Q1–Q2 .
  • Near‑term revenue visibility: $491k scheduled shipments plus $261k new PO in Q1 provide a baseline for sequential growth tracking .
  • Risk ceiling from audit language: The going‑concern disclosure in the FY2025 10‑K is a significant overhang, likely constraining valuation until liquidity, gross profit dollars, and operating leverage improve .
  • Cost discipline needed: Elevated FY2025 G&A and stock comp press losses; focus on gross margin retention (Q4 gross margin ~47.9%*) and operating leverage as volumes scale [GetFinancials].
  • Integration noise: Sanzonate intercompany reclassification (~$230k) complicates quarterly comps but supports the thesis of international expansion as processes normalize .
  • Limited Street coverage: Absence of consensus reduces catalyst from “beats,” shifting attention to order flow, government channel traction (GSA), and execution milestones [GetEstimates].
  • Actionable setup: Track Q1 shipment recognition, incremental PO wins, and any financing updates; a clean delivery on disclosed orders against tight cost control could reset confidence into FY2026 .

Appendix: Prior Quarter Disclosures

  • Q3 FY2025 revenue ~$558k; major NY airport deployment; Sanzonate closed; GSA MAS award expanding government access .
  • Q2 FY2025 revenue ~$257k; shift to direct‑sales model increased near‑term sales costs; highlighted EPA regulatory tailwinds .

S&P Global disclaimer: Values marked with an asterisk (*) were retrieved from S&P Global.