Executive Summary / Key Takeaways

• Integrated Energy Vision: NextNRG is transforming from a mobile fuel delivery service into an AI-driven integrated energy ecosystem, combining on-demand fueling with emerging smart microgrids, wireless EV charging, and energy management software.
• Accelerating Revenue Growth: The company is experiencing significant top-line expansion, with Q2 2025 revenues up 166% year-over-year to $19.7 million, and preliminary July 2025 revenue exceeding $8 million, marking seven consecutive record months.
• Technological Edge: NextNRG's proprietary "Next Utility Operating System®" and the newly launched "RenCast™" platform leverage AI/ML for optimized energy management and solar forecasting, offering quantifiable benefits like enhanced efficiency and cost reduction.
• Strategic Expansion & Partnerships: Recent acquisitions (Yoshi, Shell (SHEL) trucks, LOI for ReFuel Mobile in Canada) and a partnership with Hudson Sustainable Group are expanding its footprint and capital access, targeting $100 million in forward 12-month revenues and a pathway to profitability in 2026.
• Liquidity Challenges & Mitigation: Despite strong growth, NextNRG faces a "going concern" qualification due to historical losses and working capital deficits, though a recent financial restructuring reduced monthly cash burn by approximately $1 million.

The Dual-Engine Transformation: From Fuel to Future Energy

NextNRG, Inc. (NASDAQ: NXXT) stands at a pivotal juncture, strategically positioning itself at the confluence of the AI revolution and the global energy transition. What began as EzFill Holdings, Inc., a focused on-demand mobile gas delivery service, has rapidly evolved into an ambitious integrated energy ecosystem. This transformation is not merely a rebranding; it represents a fundamental shift to leverage artificial intelligence and machine learning across two distinct yet synergistic segments: its established Mobile Fuel Delivery and its burgeoning Energy Infrastructure.

The company’s journey began in 2016, building a foundation in mobile fuel delivery, which saw revenues climb from $1.63 million in 2019 to $15.04 million in 2022. This initial success in convenience fueling laid the groundwork for a more expansive vision. A significant pivot commenced in 2023 with the intent to acquire Next Charging LLC, signaling a strategic move into wireless EV charging, battery storage, and solar energy. This was further solidified by the $5.50 million acquisition of STAT-EI, Inc. in January 2024, bringing patented technology crucial for its energy infrastructure ambitions. The acquisition of Yoshi Mobility’s fuel division and Shell Oil’s trucks in late 2024 and early 2025 significantly bolstered its mobile fueling fleet, expanding from 47 to 146 trucks, solidifying its position in the on-demand fueling industry.

The year 2025 has been particularly transformative. A common control merger with Next Holding in February, followed by a public offering that raised $15.00 million, provided capital for expansion and debt repayment. The company officially became NextNRG, Inc. on February 13, 2025, reflecting its new, integrated strategy. This strategic evolution is designed to create a unified platform for modern energy management, addressing both immediate energy needs and future sustainable solutions.

Technological Moats: AI at the Core of Energy Innovation

NextNRG’s investment thesis is deeply rooted in its technological differentiation, particularly its AI and ML capabilities. At the heart of its strategy is the Next Utility Operating System®, an AI/ML-powered platform designed to optimize energy management for existing utilities and new infrastructure. This system aims to enhance energy efficiency, reduce costs, and improve grid resiliency across various applications.

A significant recent development is the upcoming launch of RenCast™, a patented advanced hybrid and solar energy forecasting platform. This technology is designed to maximize energy asset performance while minimizing operational risk. RenCast™ combines advanced machine learning with physical photovoltaic modeling to deliver highly accurate, site-specific solar PV forecasts with a remarkable 15-minute resolution across time horizons of up to 7 days. This precision offers tangible benefits, enabling operators, traders, and energy managers to optimize energy performance, reduce costs, and improve grid reliability. Dr. Hugo Riggs, lead developer of RenCast™, highlighted its purpose: "President Trump has highlighted real issues that have slowed the growth of solar: high costs, inefficiency, and reliability concerns. That’s why we built RenCast. This patented platform uses AI to optimize energy generation and storage, significantly reducing costs while ensuring stable output." This directly addresses a critical pain point in renewable energy adoption.

In its mobile fueling segment, NextNRG’s proprietary app-based logistics platform provides direct-to-asset fuel delivery to commercial fleets. This technology eliminates the need for fleets to travel to fueling stations, enabling efficient site-level logistics. The company estimates this direct-to-site fueling can reduce fleet fueling costs by over $3,000 per vehicle annually by minimizing fuel loss, labor inefficiencies, and downtime. This quantifiable cost-saving benefit provides a strong competitive advantage and fosters customer loyalty. For investors, these technological differentiators represent a significant competitive moat, driving operational efficiencies, enabling new revenue streams (like SaaS licensing for its energy management software), and positioning NextNRG as an innovator in a rapidly evolving energy landscape.

Competitive Landscape: Niche Agility vs. Scale Dominance

NextNRG operates in a highly competitive industry, facing both direct and indirect rivals. In mobile fueling, its agility and customer-focused technology differentiate it from larger, more traditional energy companies. While direct quantitative comparisons with all niche competitors are challenging to ascertain, NextNRG’s operational model emphasizes convenience and efficiency, which are critical in attracting and retaining commercial fleet customers.

Compared to broader energy players like HF Sinclair Corporation (DINO), a refining and marketing giant, NextNRG's specialized mobile fueling technology offers a more tailored, user-friendly experience. DINO benefits from extensive infrastructure and economies of scale, leading to a TTM Gross Profit Margin of 11% and a Net Profit Margin of 0.62%. In contrast, NextNRG's TTM Gross Profit Margin stands at 6.26%, reflecting its different operational model and scale. NextNRG's strength lies in its ability to innovate in delivery logistics, potentially leading to better customer loyalty, but it lags in the sheer financial resilience and pricing power that DINO's scale affords. In contrast, NextNRG's TTM Gross Profit Margin stands at 6.26%, reflecting its different operational model and scale.

Against renewable-focused companies like Green Plains Inc. (GPRE) and Clean Energy Fuels Corp. (CLNE), NextNRG's emerging Energy Infrastructure segment positions it for future competition. GPRE, focused on ethanol and biofuels, reported a TTM Gross Profit Margin of 5% and a Net Profit Margin of -3%. CLNE, specializing in natural gas and renewable fuels, shows a TTM Gross Profit Margin of 20% but a Net Profit Margin of -20%. NextNRG's current Energy Infrastructure segment is pre-revenue, but its AI-driven microgrids and wireless EV charging solutions are designed to address the growing demand for sustainable and resilient power. The strategic partnership with Hudson Sustainable Group, a $13 billion renewable energy investor, is critical here, providing access to capital and development opportunities in fleet electrification and data center power, directly addressing the scale and funding advantages of larger, established players. This partnership enhances NextNRG's ability to scale AI-optimized, distributed energy infrastructure, a key strategic response to the accelerating demand for smarter, more resilient power solutions.

NextNRG's competitive advantages lie in its proprietary technology and its ability to offer direct-to-customer services that reduce operational costs for fleets. Its vulnerabilities stem from its smaller scale, which can lead to higher operating costs and dependence on external financing. However, the company's strategic acquisitions and partnerships are aimed at overcoming these disadvantages, expanding its footprint and diversifying its revenue streams to compete more effectively in the evolving $4 trillion global electricity market.

Financial Momentum and the Path to Profitability

NextNRG's recent financial performance underscores its aggressive growth strategy, particularly within its Mobile Fuel Delivery segment. For the three months ended June 30, 2025, revenues surged to $19.69 million, a remarkable 166% increase compared to $7.39 million in the prior year. Similarly, for the six months ended June 30, 2025, revenues reached $35.96 million, up 157% from $13.99 million in the same period of 2024. This growth was primarily driven by an expanded customer base, strategic fleet partnerships, and enhanced technology marketing, leading to a significant rise in gallons delivered and an uptick in the average price per gallon. Gross profit also saw improvement, increasing to $1.6 million in Q2 2025 from $547,000 in Q2 2024, and to $2.08 million for the six months ended June 30, 2025, from $1.01 million in the prior year. This reflects disciplined pricing and operational efficiencies, even as the cost of sales rose in line with higher volumes. However, the company reported a net loss of $36.13 million for Q2 2025 and $45.07 million for the six months ended June 30, 2025. A significant portion of this loss, $25.50 million, was a non-cash stock-based compensation expense tied to an incentive program for employees and consultants, designed to attract and retain talent for its long-term strategy. Excluding this charge, management indicates underlying performance shows continued improvement.

The momentum continued post-Q2, with preliminary July 2025 revenue exceeding $8 million for the first time in company history, marking the seventh consecutive record month and a 236% year-over-year growth. Year-to-date revenue through July reached approximately $44.1 million, surpassing full-year 2024 revenue of $27.77 million. This consistent triple-digit growth signals strong market demand and successful execution of its multi-state expansion strategy.

Liquidity, Capital, and Forward Outlook

Despite impressive revenue growth, NextNRG faces significant liquidity challenges. As of June 30, 2025, the company reported a net loss available to common stockholders of $45.24 million, net cash used in operations of $6.34 million, an accumulated deficit of $112.77 million, a stockholders' deficit of $13.66 million, and a working capital deficit of $29.83 million. These factors led to a "substantial doubt about the Company’s ability to continue as a going concern within the twelve-month period subsequent to the date that these unaudited consolidated financial statements are issued." The company has historically relied heavily on equity and debt financings, including from related parties, and has engaged in frequent refinancing activities, which often result in higher cumulative borrowing costs.

However, management is actively pursuing strategies to mitigate these risks. In July 2025, NextNRG completed a strategic financial restructuring, converting existing debt to equity (issuing 1,081,395 shares of restricted common stock at $2.15 per share to eliminate a $2.33 million liability) and refinancing high-cost short-term debt with an 8-month $2 million note. This restructuring significantly reduced the company’s monthly cash burn by approximately $1 million. CEO Michael D. Farkas emphasized, "This comprehensive financial restructuring represents a transformative moment for NextNRG, dramatically improving our cash flow position and providing the financial stability needed to execute our growth strategy."

Looking ahead, NextNRG has provided concrete guidance and strategic targets. With the pending acquisition of ReFuel Mobile, a Canadian mobile fueling leader, the company is "positioned to achieve $100 million in forward 12-month revenues." This international expansion, coupled with improving operational efficiency and recurring revenue contracts, provides a "direct pathway to profitability in 2026." The company's mandate for 2025 is to scale its AI/ML-powered energy solutions through SaaS contracts, infrastructure deployment, and recurring mobile fueling revenue, targeting sustainable long-term growth across multiple verticals. The pipeline in microgrids and EV infrastructure is "larger than ever," and management believes they are "just beginning to unlock the full value of our platform."

Conclusion

NextNRG is charting an ambitious course, transforming from a regional mobile fuel provider into an integrated energy technology company powered by AI and strategic expansion. Its dual-engine strategy, combining robust growth in mobile fueling with the development of cutting-edge energy infrastructure, positions it to capitalize on the massive opportunities presented by the global energy transition. While the company's rapid expansion and technological innovation are driving impressive revenue growth, the significant historical losses and ongoing need for capital present material risks.

The recent financial restructuring and clear guidance toward $100 million in forward revenues and profitability in 2026 are critical indicators of management's commitment to financial stability. Investors should closely monitor the execution of its microgrid and wireless EV charging deployments, the successful integration of acquisitions, and the continued ability to secure favorable financing. NextNRG's story is one of high-growth potential, underpinned by technological differentiation and strategic foresight, but balanced by the inherent challenges of scaling a capital-intensive business in a dynamic industry. The success of its AI-driven platforms and strategic partnerships will ultimately determine its ability to convert its innovative vision into sustained shareholder value.