Zefiro Methane loses $383,922 (U.S.) in fiscal Q2

Executive Summary

• Zefiro Methane Corp. reported fiscal Q2 2026 results ending December 31, 2025, showing strong top-line growth and a return to profitability.
• Revenue for the quarter was approximately $10.1 million, a 34% increase year-over-year, contributing to $22.2 million in revenue for the first six months of fiscal 2026.
• The company achieved positive net income of $300,000 and adjusted EBITDA of $1.1 million for the quarter, driven by cost discipline and debt restructuring efforts.

Key Details

• Q2 Fiscal 2026 Financials (Ended Dec 31, 2025):
  • Revenue: ~$10.1 million (up ~34% YoY).
  • Operating Expenses: $3.1 million (down ~$1.5 million from $4.6 million in Q2 FY2025).
  • Adjusted EBITDA: >$1.1 million.
  • Net Income: $300,000 (positive, up ~$6.4 million from prior year).
  • One-time Legal Expenses: ~$130,000 related to disputes with prior management.
• Six-Month Fiscal 2026 Performance (Jan 1, 2025 – Dec 31, 2025):
  • Total Revenue: $22.2 million (increase of ~$4.7 million YoY).
  • Gross Profit: $8.1 million (increase of >$4.2 million YoY).
  • Adjusted EBITDA: $3.8 million (improvement of ~$6.3 million YoY).
  • Net Income: $300,000 (increase of ~$6.4 million YoY).
• Debt Settlement and Restructuring:
  • Completed debt settlement agreements with two creditors, eliminating ~$410,000 CAD in 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 secured loan; 25% ($450,000) equitized as cash.
  • $450,000 cash used to pay down additional debt due March 1, 2026.
• Operational Updates:
  • Completed a $1.5 million infrastructure project near Pittsburgh, PA.
  • Began a $5 million initiative in Louisiana, marking expansion into a new state.
• Outlook:
  • Third quarter of FY2026 projected to be strong, marking the third consecutive quarter of improvement following leadership change in early June 2025.
  • Primary focus remains paying down debt and strengthening the balance sheet.
  • Company plans to pay in full a $500,000 debt note due March 1, 2026.

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."