Sky Quarry Inc. Reports $4.06 Million Net Loss and Zero Revenue in Q2 2026

Sky Quarry Inc. reported significant financial challenges in its latest 10-Q filing for the second quarter of 2026, revealing a net loss of $4.06 million, or $0.77 per share, compared to a loss of $2.21 million, or $0.82 per share, in the same period last year. The company's revenue plummeted to zero for the three months ended June 30, 2026, down from $4.54 million in the prior year, primarily due to operational disruptions at its Eagle Springs refinery, which has not resumed operations following a significant maintenance shutdown. Year-to-date, the company recorded a net loss of $6.38 million, compared to $5.54 million for the first half of 2025.

The financial performance reflects a stark contrast to the previous fiscal period, with total assets increasing to $28.33 million as of June 30, 2026, up from $19.21 million at the end of 2025. This increase was largely driven by a rise in cash and inventory, attributed to the company's At-the-Market (ATM) equity offering, which generated net proceeds of approximately $12.54 million. Current liabilities decreased to $14.04 million, down from $15.12 million, indicating some progress in managing short-term obligations.

Strategically, Sky Quarry has been focused on enhancing its operational capabilities and expanding its market presence. The company has completed repairs to its refinery and is in the process of procuring initial feedstock, with plans to resume operations by September 2026. Additionally, the company is pursuing a potential transaction involving digital infrastructure assets, although no definitive agreements have been reached. The company also aims to commercialize its ECOSolv technology, which is designed for recycling waste asphalt shingles and oil-saturated sands.

Operationally, the company has faced challenges in maintaining customer engagement and production levels. The Eagle Springs refinery's shutdown has resulted in a complete halt of refined product sales, which include diesel and liquid asphalt, both of which were significant revenue sources in the previous year. The company is also working to improve its operational efficiency and reduce costs, with a focus on managing its debt and exploring refinancing options to alleviate financial pressures.

Looking ahead, Sky Quarry's management has expressed concerns regarding its ability to continue as a going concern, emphasizing the need for additional capital to meet operational and capital requirements. The company plans to enhance revenue generation through resumed refinery operations and is actively seeking to raise funds through equity or debt offerings. However, the management acknowledges the uncertainty surrounding these efforts and the potential impact on the company's future financial stability.