Zefiro Methane Corp. Announces Record Quarterly Earnings with Revenue of USD $12.1 Million

Executive Summary

• Zefiro Methane Corp. reported record Q1 FY2026 revenue of ~$12.1 M (≈21% YoY increase) and EBITDA of ~$2.6 M, turning a net loss into a net profit of $0.67 M.
• Operating expenses were cut by roughly $1.3 M to $3.1 M, driven by significant reductions in G&A (‑47%) and salaries/benefits (‑16%).
• The company secured a second federally funded orphan‑well project in Ohio (37 wells) and a two‑year well‑retirement contract, while continuing carbon‑offset sales and repaying outstanding promissory notes.

Key Details

• Revenue: $12,138,548 for the quarter ended Sep 30 2025 vs. $10,006,487 in Q1 2024.
• Gross Profit: $4,934,630 (up from $3,262,158 YoY).
• Operating Expenses: $3,123,854 (down from $4,379,125 YoY).
• G&A: $0.55 M vs. $1.03 M prior year (‑47%).
• Salaries & Benefits: $1.12 M vs. $1.33 M prior year (‑16%).
• EBITDA: Approximately $2,600,000 – a record for the company.
• Net Income: $665,401 (vs. a loss of $1,665,403 YoY).
• Adjusted Net Income (non‑IFRS): $1,320,577 (vs. a loss of $263,708 YoY).
• Cash Balance: $659,132 as of Sep 30 2025 (up from $52,603 at Jun 30 2025).
• Total Assets / Liabilities / Equity (Sep 30 2025): $22.56 M / $20.94 M / $1.62 M.

Operational Highlights

• Awarded a second federal project in Ohio covering 37 orphan wells; operations to start Nov 2025 through Spring 2026.
• Secured a two‑year well retirement contract with a top‑tier industry operator.
• Completed first public sale of carbon offsets from ACR Project 959, delivering the initial tranche to Mercuria Energy America (92,956 t CO₂e). Additional credits sold to two other strategic buyers.

Debt Management

• Repaid and retired $350,000 promissory note (Aug 2025) and $100,000 promissory note (Nov 2025) from X Machina Capital Strategies Fund I LP.

Outlook

• Expecting another strong Q2 FY2026; preliminary October results suggest one of the highest revenue months in company history.
• Focus on generating free cash flow over next six months to further reduce debt and enhance financial flexibility for growth initiatives.

Notable Quotes

“This performance reflects the effectiveness of Zefiro's new management team, and our strategic focus on revenue‑generating business lines,” – Catherine Flax, CEO.