OPAL earnings analysis
What we found in OPAL's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
OPAL delivered modest year-over-year revenue growth to $83.399 million, led by a 13% increase in Fuel Station Services, but remained unprofitable with a $3.011 million operating loss and diluted EPS of $(0.05). Sequential trends improved, including revenue, gross margin and EPS versus Q1 2026, while operating cash flow rose to $23.677 million for the first six months. However, negative free cash flow of approximately $29.003 million, $440.106 million of debt, a $4.142 million impairment and planned capital expenditures of $148.4 million over the next 12 months create significant execution and financing risk.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and gross margin improved sequentially
- Second-quarter revenue was $83.399 million, up $2.943 million or 4% year over year and approximately 14% sequentially from $73 million in Q1 2026. Gross margin was 29.34%, versus 29.1% in Q2 2025 and 26.6% in Q1 2026.
- Fuel Station Services expanded
- Fuel Station Services drove growth, with revenue increasing 13% year over year to $53.064 million. Environmental attributes and RNG marketing revenue rose $8.220 million, while lease revenue increased $0.895 million.
- Operating expense discipline continued
- Selling, general and administrative expense declined $3.186 million, or 18%, year over year to $14.274 million, driven by lower compensation, information technology, D&O insurance and advocacy costs.
- Operating cash flow increased
- Operating cash flow increased to $23.677 million for the six months ended June 30, 2026, from $21.805 million in the prior-year period. The improvement was primarily attributed to favorable working-capital changes.
- Liquidity supported near-term commitments
- Liquidity was $162.3 million at June 30, 2026, including $91.4 million of cash, $19.3 million of unused revolver capacity and $51.6 million of undrawn preferred-stock commitments.
- RNG growth investment remains significant
- RNG project investment remained substantial: six-month capital expenditures were $52.680 million, including $45.461 million for RNG Fuel, and management anticipates approximately $148.4 million of capital expenditures over the next 12 months.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Quarterly loss and negative EPS
- The company reported a $4.147 million net loss attributable to the company overall and a $1.501 million net loss attributable to Class A common stockholders, or diluted EPS of $(0.05), versus $0.03 in the prior-year quarter. Operating loss widened to $3.011 million from $0.827 million.
- Higher leverage and covenant sensitivity
- Debt increased materially: loans excluding debt issuance costs were $440.106 million at June 30, 2026 versus $341.618 million at December 31, 2025. The company drew $128.382 million during the first six months and contributed approximately $7.965 million to maintain compliance with financial covenants.
- Capital intensity exceeds operating cash flow
- Six-month free cash flow was approximately negative $29.003 million, calculated from $23.677 million of operating cash flow less $52.680 million of capital expenditures. Management anticipates another $148.4 million of capital expenditures over the next 12 months.
- Asset impairment and conversion risk
- A $4.142 million impairment charge was recorded, including $3.595 million in Renewable Power and $0.547 million in Fuel Station Services, after the company decided to repurpose a renewable power facility for RNG operations.
- Customer concentration remains material
- The company said there were no material changes to the risk factors in its December 31, 2025 Form 10-K. Nonetheless, two customers represented 42% of accounts receivable at June 30, 2026, compared with four customers representing 63% at December 31, 2025, indicating continued customer concentration.
- Preferred financing adds cash obligations
- The Series A preferred units carry a mandatory cumulative 12% annual coupon and total redeemable preferred non-controlling interests increased to $158.400 million from $130.000 million at December 31, 2025. Failure to redeem after specified events can increase the coupon by up to 4.00% annually above the applicable rate.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.05
- Gross margin
- 29.34%
- Operating margin
- -3.61%
- Segment
- RNG Fuel revenue $23.821 million, down $1.309 million or 5% year over year; segment loss $5.422 million versus $0.873 million loss.
- Segment
- Fuel Station Services revenue $53.064 million, up $6.038 million or 13% year over year; segment income $11.359 million versus $7.296 million.
- Segment
- Renewable Power revenue $6.514 million, down $1.786 million or 22% year over year; segment loss $4.934 million versus $0.698 million loss.
What they said about what is next.
No quantitative revenue or EPS guidance was provided in the 10-Q. Management said liquidity was $162.3 million and expects available cash, operating cash flow and capital access to meet existing commitments for at least 12 months; it anticipates approximately $148.4 million of capital expenditures over the next 12 months.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 9, 2026
- OPAL's Q1 2026 results show a significant decline in revenue and earnings per share compared to both the prior quarter and the same period last year, driven primarily by lower sales in the RNG Fuel and Fuel Station…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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