Clean Energy Fuels Corp. Reports Q1 2025 Revenue Increase but Significant Net Loss

Clean Energy Fuels Corp. reported its financial results for the first quarter of 2025, revealing a total revenue of $103.8 million, a slight increase from $103.7 million in the same period of 2024. The company's product revenue rose to $90.3 million, up from $89.4 million, primarily driven by higher pricing and increased vehicle fueling volumes, despite a significant increase in non-cash stock-based sales incentive charges related to the Amazon Warrant. Service revenue, however, decreased to $13.5 million from $14.3 million, attributed to reduced work performed at private stations.

The company's operating expenses surged to $230.1 million in Q1 2025, compared to $113.0 million in the prior year, largely due to a $64.3 million goodwill impairment charge recognized during the quarter. This impairment was prompted by a sustained decline in the company's share price, which necessitated an interim impairment test. As a result, Clean Energy reported a net loss of $135.0 million, significantly higher than the $18.4 million loss recorded in the same quarter of 2024. The loss attributable to Clean Energy Fuels Corp. per share was $(0.60), compared to $(0.08) in the previous year.

Operationally, Clean Energy served over 1,000 fleet customers operating more than 50,000 vehicles as of March 31, 2025. The company operates 579 fueling stations across 43 states and the District of Columbia, with 26 stations in Canada. The company’s cash and cash equivalents, along with short-term investments, totaled $226.6 million, an increase from $217.5 million at the end of 2024. Cash provided by operating activities also improved to $23.4 million, up from $2.6 million in the prior year, reflecting better procurement and sales of natural gas.

Strategically, Clean Energy is focused on expanding its renewable natural gas (RNG) production capabilities and has committed to investing approximately $100 million in anaerobic digester gas RNG production facilities. The company is also navigating challenges such as inflationary pressures, labor shortages, and supply chain disruptions, which have impacted operational costs. Looking ahead, Clean Energy aims to leverage its extensive fueling network to enhance RNG adoption in the transportation sector, while also exploring opportunities in hydrogen fuel and electric vehicle charging infrastructure.

In summary, while Clean Energy Fuels Corp. experienced a modest increase in revenue, the significant rise in operating expenses and the recognition of a goodwill impairment led to a substantial net loss for the quarter. The company remains committed to its growth strategy in the clean energy sector, despite facing various market challenges.