Avalon Holdings Reports Decline in Revenue and Increased Losses for Q2 and First Half of 2025

Avalon Holdings Corporation reported a decline in financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. For the three months ended June 30, 2025, the company generated net operating revenues of $20.3 million, down from $23.1 million in the same period of 2024. The waste management services segment saw revenues decrease to approximately $9.7 million from $12.2 million, primarily due to a reduction in event work projects. The golf and related operations segment also experienced a slight decline, with revenues of $10.5 million compared to $10.8 million, attributed to adverse weather conditions affecting business activity.

In terms of profitability, Avalon reported a net income of $0.3 million, or $0.07 per share, for the second quarter of 2025, a decrease from $1.0 million, or $0.24 per share, in the prior year. For the first six months of 2025, the company recorded a net loss of $1.2 million, or $0.31 per share, compared to a net loss of $25,000, or $0.01 per share, in the same period of 2024. The increase in losses was attributed to lower revenues across both segments and a rise in operational costs, particularly in the golf and related operations segment.

Avalon’s operational metrics reflected a mixed performance. The waste management services segment's operating costs decreased to $7.5 million in the second quarter of 2025 from $9.5 million in the same quarter of 2024, aligning with the drop in revenues. Conversely, costs in the golf and related operations segment increased to $8.6 million from $8.4 million, driven by higher utility and operating expenses. The company’s total assets rose to $88.1 million as of June 30, 2025, compared to $86.2 million at the end of 2024, primarily due to increases in cash and accounts receivable.

Strategically, Avalon continues to focus on its growth strategy in both waste management and golf operations. The company aims to enhance its market share through improved sales and marketing efforts, particularly in the waste management segment, where it seeks to retain existing customers and attract new business. Additionally, Avalon is exploring potential acquisitions in the golf sector, particularly targeting struggling private country clubs in the northeast Ohio area. The company remains committed to investing in its facilities, with capital expenditures expected to range between $2.5 million and $3.5 million in 2025, primarily for renovations at The Grand Resort.

Looking ahead, Avalon anticipates that cash generated from operations will be sufficient to meet its obligations, including monthly payments on its term loan facility. However, the company acknowledges potential risks, including economic downturns, regulatory changes, and competitive pressures that could impact its financial performance. Avalon is actively monitoring these factors and is prepared to take necessary actions to ensure operational stability and growth.