Sky Quarry (SKYQ) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 were $383, a sharp decline from $6.3 million in Q1 2025, due to an extended outage at the Eagle Springs refinery; production is expected to resume by the end of Q2 2026.

• Net loss for Q1 2026 was $2.32 million, improved from a $3.33 million loss in Q1 2025, primarily due to lower operating expenses and interest costs.

• The company continues to face significant going concern risks, with accumulated losses of $38.5 million and negative operating cash flows.

• Management is pursuing refinancing, capital raises, and operational improvements to address liquidity needs.

Financial highlights

• Gross margin loss was $389,218 in Q1 2026, compared to $726,092 in Q1 2025, reflecting the refinery shutdown.

• Operating expenses decreased 37% year-over-year to $1.22 million, mainly from lower executive compensation and professional fees.

• Interest expense fell to $334,000 from $902,000 year-over-year, but high financing costs remain a burden.

• Cash on hand at March 31, 2026 was $66,828, with negative operating cash flow of $589,000 for the quarter.

• Total current liabilities increased to $16.4 million, up $1.3 million from year-end 2025.

Outlook and guidance

• Production at Eagle Springs refinery is expected to resume in June 2026, with a focus on restoring revenue and margin.

• Management aims to secure additional crude supply, refinance debt, and raise capital to support operations and growth.

• The PR Spring facility remains in development, targeting completion in 2027, with no current revenue contribution.