Zefiro Methane loses $327,283 (U.S.) in Q2

Executive Summary

• Zefiro Methane Corp. reported fiscal Q2 2026 results ending December 31, 2025, showing significant financial improvement with revenue of $10.1 million (up 34% year-over-year) and positive net income of $300,000.
• The company achieved its second-highest quarterly revenue in history and generated over $1.1 million in adjusted EBITDA, driven by cost discipline and operational growth.
• Key strategic actions included settling debt with creditors, completing a $1.5 million infrastructure project, and expanding operations into Louisiana, while maintaining a focus on debt reduction and balance sheet strengthening.

Key Details

• Q2 FY 2026 Financial Performance:
  • Revenue: Approximately $10.1 million, a 34% increase over the same period last year.
  • Operating Expenses: Decreased by approximately $1.5 million to $3.1 million (down from $4.6 million in Q2 FY 2025).
  • Adjusted EBITDA: Over $1.1 million in Q2 FY 2026.
  • Net Income: Positive $300,000, an increase of approximately $6.4 million compared to the prior year period.
  • One-time Expenses: Incurred approximately $130,000 in legal expenses related to disputes with prior management.
• Six-Month Cumulative Results (First Half FY 2026):
  • Total Revenue: $22.2 million, an increase of nearly $4.7 million year-over-year.
  • Gross Profit: $8.1 million, an increase of over $4.2 million.
  • Adjusted EBITDA: $3.8 million, an improvement of almost $6.3 million.
  • Net Income: Positive $300,000.
• Debt and Capital Management:
  • Completed debt settlement agreements with two creditors, eliminating approximately $410,000 CAD of liabilities and forgiving $100,000 CAD of outstanding debt.
  • Exercised 10.79 million common equity warrants issued in connection with a $2.48 million promissory note (May 2025).
  • Proceeds from warrant exercise: 75% applied to pay down a secured loan; 25% ($450,000) equitized as free cash flow.
  • The $450,000 cash flow was used to pay down additional debt due on March 1, 2026.
  • Company plans to pay the $500,000 debt due on March 1, 2026, in full at maturity.
• Operational Updates:
  • Successfully completed a $1.5 million infrastructure project near Pittsburgh, Pennsylvania.
  • Began a $5 million initiative in Louisiana, marking expansion into a new state.
  • Third Quarter FY 2026 projected to be strong, marking the third consecutive quarter of performance improvement following the leadership change in early June.

Notable Quotes

• Catherine Flax, CEO: "The company's performance over the past six months has been exceptional. We have grown revenue and adjusted EBITDA to the highest levels in our history while significantly reducing debt to more manageable levels. These results are not coincidental; they are the direct outcome of strong alignment between the board and management, coupled with disciplined execution of a clear strategic plan."