Sky Quarry Inc. Reports Q2 2025 Financial Results with Reduced Net Loss and Increased Revenue

Sky Quarry Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $2.2 million, a decrease from a net loss of $3.6 million in the same period of the previous year. For the first half of 2025, the company recorded a net loss of $5.5 million, compared to a loss of $6.0 million in the first half of 2024. Revenue for the second quarter increased to $4.5 million, up from $3.4 million year-over-year, while total revenue for the first six months of 2025 was $10.9 million, down from $14.3 million in the prior year. The gross margin for the second quarter was negative $117,000, an improvement from a negative $486,000 in the same quarter of 2024.

The company’s total assets decreased to $22.8 million as of June 30, 2025, down from $26.9 million at the end of 2024. Current assets also fell significantly, from $5.0 million to $3.2 million, primarily due to a reduction in cash and accounts receivable. Sky Quarry's total liabilities decreased slightly to $14.9 million from $15.4 million, with current liabilities remaining relatively stable. The company’s accumulated deficit increased to $29.5 million, reflecting ongoing operational challenges.

Operationally, Sky Quarry has made strategic moves to enhance its market position, including the issuance of common stock for non-cash consideration and the conversion of debt into equity. The company’s employee headcount has increased, reflecting its efforts to expand operations and improve efficiency. However, the company continues to face challenges in cash flow management, as evidenced by negative cash flows from operations of $729,401 for the first half of 2025, although this was an improvement from $2.6 million in the same period of 2024.

Looking ahead, Sky Quarry's management has indicated a focus on securing additional financing to support its operations and growth initiatives. The company plans to monitor its growth and operating expenses closely while exploring refinancing options for its current debt. Management believes that these strategies will help mitigate uncertainties regarding the company's ability to continue as a going concern. However, the company acknowledges that there are no guarantees of success in these efforts, and it remains reliant on external capital to fund future expenditures and obligations.