Total revenue for the quarter reached $59.2 million, a 13% sequential increase from $52.2 million in Q2 2025 but a 27% decline from $81.4 million in Q3 2024. The sequential rise was driven by a $14.5 million uptick in India biodiesel sales, while the year‑over‑year drop reflects a 20% decline in the California ethanol plant’s revenue, which fell to $37.7 million from $45.0 million in the prior year.
Aemetis posted a gross loss of $58,000, a sharp reversal from the $3.9 million profit reported in Q3 2024. The loss stems from higher cost of goods sold, partly due to increased feedstock and energy costs, and the company’s ongoing capital‑intensive expansion. Operating loss widened to $8.5 million, up from a $3.9 million loss in the same period last year, as the company continued to invest in new equipment and projects. Net loss for the quarter was $23.7 million, compared with $17.9 million in Q3 2024, reflecting the cumulative impact of operating expenses and one‑time charges.
Segment analysis shows India biodiesel revenue grew to $14.5 million, supported by new orders from government‑owned oil marketing companies. Dairy renewable natural gas (RNG) generated $4 million from 114,000 MMBtu of biogas produced by twelve digesters, a modest contribution that highlights the company’s early‑stage RNG portfolio. The California ethanol plant’s revenue of $37.7 million was lower than the $45.0 million recorded in Q3 2024, indicating a decline in domestic ethanol demand and a shift toward higher‑margin products.
Capital‑investment activity continued with $57 million in new equipment purchase and installation contracts for a mechanical vapor recompression (MVR) system and dairy RNG projects. Management expects the MVR system to add $32 million to annual cash flow once operational, and plans to sell $20 million of Section 45Z and Section 48 tax credits after the September 2025 completion of the multi‑dairy biogas digester. Cash and cash equivalents rose to $5.6 million from $0.9 million at the end of September 2024, largely driven by proceeds from tax‑credit sales and ongoing capital deployment.
Management emphasized the company’s focus on high‑margin, low‑carbon fuel production. "We have signed $57 million of new equipment purchase and installation contracts for the MVR and dairy RNG projects this year on favorable terms and without current shareholder dilution. After the September 2025 completion of the multi‑dairy biogas digester, we are now planning to sell $20 million of Section 45Z and Section 48 tax credits," CEO Eric McAfee said. He also highlighted the upcoming IPO of the India subsidiary, Universal Biofuels, as a potential catalyst for future growth.
Analysts had projected Q3 2025 revenue of $87–$91 million, so the $59.2 million reported represents a 35–50% miss. EPS was $-0.37 versus an estimate of $-0.21, a miss of $0.16. The revenue miss is largely attributable to the decline in California ethanol sales and the company’s heavy investment in capital projects, which increased operating expenses and offset the sequential revenue growth.
The results underscore Aemetis’s liquidity challenges and the need to convert its expanding capacity into profitability. While the company’s strategic focus on MVR technology and tax‑credit monetization offers a path to higher cash flow, the widening net loss and significant revenue shortfall signal that the company must accelerate the commercialization of its high‑margin products and manage cost growth to achieve sustainable profitability in the coming quarters.
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