Zefiro Methane Corp. Announces Quarterly Earnings Results, Reporting Record Revenue of USD $33 Million Through the First Nine Months of Its 2026 Fiscal Year
Zefiro’s Q3 earnings confirm $11M quarterly revenue, debt slashed by a third, but the loss-making remediation firm still needs to prove its $40M run-rate can turn into profits.
The most recent release (May 14, 2026) reports Fiscal Q3 2026 financial results. Revenue rose 58% year‑over‑year to approximately $11.0 million, gross profit increased to $2.56 million, and the company posted its third consecutive quarter of positive adjusted EBITDA ($0.45 million). The nine‑month revenue reached $33.2 million (up 36% YoY) with $10.7 million gross profit and $4.25 million adjusted EBITDA. Net loss narrowed to ($0.998 million) from ($3.49 million) a year earlier. Total debt was cut 33% to $8.2 million, helped by a CAD $4.5 million private placement and loan satisfactions. The release also highlights the $4.3 million acquisition of Viking Well Service’s equipment fleet (closed May 6), which management expects to add ~$10 million in annual revenue. Operational updates include the completion of a >$5 million Louisiana project, progress on the Ohio Wood 12F project (13 of 37 wells done), receipt of the Ohio Richland 5 project ($0.8 million), and completion of pre‑plugging methane monitoring for 849 wells under the West Virginia MERP contract ($0.85 million earned, with $0.45 million additional post‑plugging revenue expected).
The Q3 results largely confirm the pre‑release from April 10, 2026, which guided to ~$11 million revenue and a >50% YoY increase. The actuals – revenue of $11.0 million, gross profit improvement, and another quarter of positive adjusted EBITDA – are exactly in line with that guidance. The reduction in total debt from $12.3 million to $8.2 million is a material positive for the balance sheet, but the move was telegraphed by earlier debt‑settlement announcements. The closing of the Viking equipment acquisition was separately announced on May 6 and already priced in; reiterating the $10 million revenue expectation doesn’t add new information. No numbers beat the prior forecasts, and there are no surprising upside catalysts. The net loss, though narrowing, still reflects a company that isn’t yet profitable on a GAAP basis. Consequently, the news is expected, incremental, and a follow‑up to previous announcements – fitting the “Routine‑Positive” category. The positive aspects are solid execution and cleaner financials, but they lack the game‑changing element that would make this material.
Zefiro Methane Corp. is an environmental services company focused on the end‑of‑life management of orphaned, abandoned, and marginal oil and gas wells. Through its wholly owned subsidiary Plants & Goodwin, Inc. (P&G), it provides plug‑and‑abandonment (P&A), well remediation, and methane‑emission monitoring services. The company also originates and sells carbon offsets under the American Carbon Registry’s orphan‑well methodology. Zefiro operates in 13 states and has captured approximately 37% of Ohio’s Phase 1 Formula Grant funding under the Infrastructure Investment and Jobs Act (IIJA). Its flagship project is the multi‑year Ohio orphan‑well program, which includes the $4.5 million Wood 12F contract (37 wells), the $0.8 million Richland 5 contract, and the $19.6 million Construction Manager at Risk (CMAR) marginal‑well contract that begins in June 2026. The company also holds a methane‑monitoring contract with the West Virginia Department of Environmental Protection that has generated $1.3 million in total value.