Safe & Green Holdings Reports 41% Revenue Decline and Significant Operating Losses in Latest 10-Q

Safe & Green Holdings Corp. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2025. The company generated total revenue of $2.34 million for the nine months ended September 30, 2025, a decline of approximately 41% from $3.93 million during the same period in 2024. This decrease was primarily attributed to reduced construction services due to fewer jobs in progress. The company also experienced a gross loss of $1.63 million, compared to a gross profit of $314,561 in the previous year, reflecting a gross margin percentage drop to -70% from 8%.

In terms of operational expenses, Safe & Green Holdings reported payroll and related expenses of $2.06 million, down from $3.51 million in the prior year, largely due to a decrease in the vesting of restricted stock units. However, total other operating expenses surged to $4.34 million from $1.83 million, indicating increased spending in general and administrative areas. The overall operating loss for the nine months was $8.03 million, compared to a loss of $5.02 million in the same period last year.

The company has also undergone strategic changes, including the acquisition of New Asia Holdings, Inc. (NAHD), which has expanded its operations into the oil and gas sector. This acquisition, along with others, has resulted in a significant increase in total assets, which rose to $54.11 million from $6.07 million at the end of 2024. The company now holds $3.71 million in oil and gas properties and $4.12 million in property, plant, and equipment. However, liabilities have also increased, with total liabilities reaching $29.17 million, up from $18.53 million.

Despite these challenges, Safe & Green Holdings is exploring various avenues to improve its financial position, including potential capital raises and strategic alliances. The company reported cash and cash equivalents of $3.02 million as of September 30, 2025, a significant increase from $375,873 at the end of 2024. However, the company continues to face substantial doubt about its ability to continue as a going concern, given its negative working capital of $19.64 million and ongoing operating losses. The management has indicated that it aims to achieve cash flow positivity in the second half of 2025, contingent on securing additional funding and improving operational efficiencies.