10-Q · May 15, 2026
Sky Quarry's Q1 2026 results show a precipitous decline in revenues, with net sales dropping to $383 from $6.33 million in Q1 2025 due to refinery outages. Operating expenses have decreased significantly but losses…
Earnings analysis · 10-Q
SKYQ earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
Sky Quarry’s second-quarter results deteriorated sharply as the refinery outage reduced revenue to $0 from $4,541,472 in the prior-year quarter and produced a $685,601 gross loss. Liquidity improved through $12,539,949…
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Sky Quarry’s second-quarter results deteriorated sharply as the refinery outage reduced revenue to $0 from $4,541,472 in the prior-year quarter and produced a $685,601 gross loss. Liquidity improved through $12,539,949 of net ATM proceeds, lifting cash to $7,226,564, but the company used $5,413,699 in operating cash and continues to disclose substantial doubt about its ability to continue as a going concern. Management targets refinery production resuming in September 2026, but execution, defaulted debt of approximately $2,200,000, ineffective disclosure controls and continued financing dependence remain significant risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.77
- Segment
- Refined crude oil: $0 revenue for the three months ended June 30, 2026 versus $4,541,472 in the prior-year quarter; product revenue was $0 for diesel, liquid asphalt, VGO, naphtha and other.
- Segment
- PR Springs/2020 Resources: development-stage facility with $0 revenue; management plans to complete the facility in summer 2027.
What stood out
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Liquidity boosted by ATM equity financing
Cash increased to $7,226,564 at June 30, 2026 from $35,370 at December 31, 2025, primarily reflecting $12,539,949 of net ATM proceeds during the six months.
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Libertas refinancing reduced near-term debt
The company converted, exchanged and cancelled $3,985,000 of Libertas merchant cash advance obligations into a note, and current notes payable declined to $7,970,508 from $8,987,208 at December 31, 2025.
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Per-share loss improved on share issuance
Loss per share improved to $(0.77) from $(0.82) in the prior-year quarter and to $(1.44) from $(2.17) year to date, although weighted-average shares increased to 5,257,807 from 2,698,677 in the quarter.
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Working-capital position improved
Current liabilities decreased to $14,035,404 from $15,120,773 at December 31, 2025, while total current assets increased to $10,430,418 from $1,327,680.
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Refinery restart targeted for Q3
Refinery repairs were completed and initial feedstock was procured; management expects the Eagle Springs facility to be operational by the end of the third quarter of 2026 and production to resume in September 2026.
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Feedstock inventory accumulated
Inventory increased to $1,506,532 from $678,365 at December 31, 2025, including raw materials of $1,065,827 versus $323,034, supporting planned refinery restart activities.
What to watch
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Refinery outage eliminated operating revenue
The refinery outage drove revenue to $0 in the quarter versus $4,541,472 in the prior-year quarter and only $383 for the six months versus $10,874,439; gross loss widened to $685,601 from $116,968.
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Material going-concern uncertainty
The filing states substantial doubt about going-concern continuity: accumulated deficit was $42,542,109 and operating cash flow was negative $5,413,699 for the six months. Management says additional financing is required to meet obligations as they mature.
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Defaulted debt and foreclosure litigation
KF Business notes with aggregate principal of approximately $2,200,000 matured on November 24, 2025 and remain unpaid; the lender seeks interest at 30% per annum, damages and foreclosure of collateral.
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Ineffective disclosure controls
Management concluded disclosure controls were not effective as of June 30, 2026, providing no reasonable assurance that required filing information was accumulated and communicated for timely decisions.
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Heavy equity issuance and dilution
Common shares outstanding increased from 3,233,329 at December 31, 2025 to 8,782,035 at June 30, 2026, including 4,781,795 ATM shares issued for net proceeds of $12,539,949, creating substantial dilution risk.
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Higher crude costs threaten restart margins
Feedstock pricing based partly on WTI increased from approximately $57 per barrel on January 1, 2026 to $70 per barrel on June 30, 2026, a reported increase of approximately 23%, creating margin risk upon restart.
Management's outlook
No explicit numeric revenue or EPS guidance was provided. Management expects the Eagle Springs Refinery to be operational by the end of the third quarter of 2026 and expects production to resume in September 2026; PR Springs is planned for completion in calendar 2027. Management also expects to rely on debt and/or equity financing until operating cash flow improves.
Earlier filings 4
10-K · March 31, 2026
Sky Quarry operates the Eagle Springs refinery and a development-stage PR Spring division focused on asphalt shingle recycling using its proprietary ECOSolv process (bench tests showed up to 95% oil separation and…
10-Q · November 14, 2025
Sky Quarry reported Q3 2025 revenue of $1,336,963 (down from $4,846,795 in Q3 2024) and a loss per share of $(0.17). Gross margin swung to a loss of $(1,050,763) and operating loss widened to $(2,552,801) for the…
10-Q · May 15, 2025
Sky Quarry reported a revenue of $6,332,967 and diluted EPS of -$0.16 for Q1 2025, reflecting a decrease in revenue compared to $10,952,330 in Q1 2024. This marked a shift towards a net loss of $3,333,694, widening from…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.