Zefiro Methane Corp. Announces Fiscal Q2 2026 Results with over USD $22 Million in Revenue for the First Six Months of Its 2026 Fiscal Year
Rhea-AI Summary
Zefiro Methane Corp (OTCQB: ZEFIF) reported Q2 FY2026 revenue of $10.1 million, up ~34% year-over-year, and $22.2 million revenue for the first six months. Gross profit for six months was $8.1 million and adjusted EBITDA improved to $3.8 million. The company reduced debt via settlements and warrant exercises and is prioritizing debt repayment and pipeline execution into Q3.
Positive
- Revenue +34% year-over-year in Q2
- Six-month revenue $22.2 million
- Adjusted EBITDA improved to $3.8 million for six months
- Gross profit $8.1 million for six months
- Completed $1.5M infrastructure project and launched $5M Louisiana initiative
- Debt reduction via settlements and warrant exercises generating $0.45M cash applied to debt
Negative
- Q2 net loss approximately $0.33 million
- Total liabilities $19.6 million versus equity $1.8 million
- One-time legal expense approximately $130,000 related to prior-management dispute
- $0.5 million debt due March 1, 2026 still outstanding at time of release
Quarterly revenue of approximately
Second straight quarter of over
Fort Lauderdale, Florida--(Newsfile Corp. - February 17, 2026) - ZEFIRO METHANE CORP. (Cboe Canada: ZEFI) (FSE: Y6B) (OTCQB: ZEFIF) (the "Company", "Zefiro", or "ZEFI") today announced the Company's consolidated financial results for the fiscal quarter that ended December 31, 2025 ("Second Quarter Fiscal 2026").
Zefiro has released a recording of its Second Fiscal Quarter 2026 Earnings Call in which the Company's management team discusses these results. This recording is live and publicly available on Zefiro's YouTube channel and can be accessed through the following link: https://youtu.be/KfXGasptTZk
If no link to the earnings call recording video is visible above, please refer to the version of this press release on Zefiro's website or SEDAR+ where this link will appear.
Second Quarter Fiscal 2026 Results:1
Revenue of approximately
$10.1 million , a ~34% increase over the same period last year.Second-highest quarterly revenue in the company's history following last quarter.
Operating expenses decreased approximately
$1.5 million to$3.1 million in Q2 FY2026, down from$4.6 million in the same quarter last year.Over
$1.1 million in adjusted EBITDA in Q2 FY2026, demonstrating solid profitability amid ongoing top-line growth and cost discipline.Incurred approximately
$130,000 in one-time legal expenses during the quarter related to the ongoing dispute attributable to prior management.
The results over the last six months have significantly changed the trajectory of the company compared to the comparable prior year period:
Revenue totaled
$22.2 million , an increase of nearly$4.7 million .Gross profit was
$8.1 million , an increase of over$4.2 million .Adjusted EBITDA was
$3.8 million , representing an improvement of almost$6.3 million .Net income was positive at
$0.3 million , an increase of approximately$6.4 million .
Chief Executive Officer Catherine Flax commented, "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. While this progress is clearly reflected in our financial results, we have also taken meaningful steps to strengthen the foundation of the business and position the Company for sustained, long-term growth."
Recent Highlights:
The Company completed debt settlement agreements with two creditors, eliminating approximately CAD
$0.41 million of liabilities on the books and forgiving CAD$0.10 million of outstanding debt.Zefiro successfully completed a
$1.5 million infrastructure project near Pittsburgh, Pennsylvania, and has begun a$5 million initiative in Louisiana, marking its expansion into a new state with significant growth potential.The Company worked with three creditors on a
$2.48 million promissory note, exercising a total of 10,790,000 common equity warrants issued in connection with the note in May 2025. Seventy-five percent of the exercise proceeds was applied to pay down the outstanding secured loan, while the remaining25% was equitized, providing the Company with$0.45 million in cash. This free cash flow was then used to pay down additional debt due on March 1, 2026, further strengthening Zefiro's balance sheet and financial position.
Looking Ahead:
The third quarter of the 2026 fiscal year is projected to be another strong quarter, marking the third consecutive quarter of performance improvement following the leadership change in early June. The Company has several projects in the pipeline and continues to evaluate its options for both organic and inorganic growth to expand and diversify the business. With a disciplined approach to capital allocation and strategic investments, Zefiro is well-positioned to capitalize on emerging opportunities and strengthen its market presence.
The primary focus going into the third quarter remains paying down debt and strengthening the balance sheet. The Company has made significant progress in this area and is well-positioned to manage the
$0.5 million debt due on March 1, 2026, originally incurred under the prior management team. Ongoing discussions are underway, and the Company plans to pay the note in full at maturity, demonstrating disciplined financial management and a commitment to maintaining a strong balance sheet.
Second Fiscal Quarter Financial Highlights (in USD):
| For the three months ended | December 31, 2025 | December 31, 2024 | |||||
| Revenue | $ | 10,046,083 | $ | 7,481,927 | |||
| Gross profit | $ | 3,165,301 | $ | 582,214 | |||
| Total operating expenses | $ | (3,090,124 | ) | $ | (4,557,616 | ) | |
| Net Income (loss) and Comprehensive (loss) for the period | $ | (383,922 | ) | $ | (4,248,845 | ) | |
| Basic and diluted loss per share for the period | $ | (0.00 | ) | $ | (0.06 | ) | |
| Weighted average shares outstanding | 76,349,225 | 72,011,363 | |||||
| Net Income (loss) for the period | $ | (327,283 | ) | $ | (4,456,228 | ) | |
| Add: | |||||||
| Amortization | 804,440 | 983,784 | |||||
| Share-based compensation | 126,333 | 326,684 | |||||
| Maintenance Capex | (147,190 | ) | (40,642 | ) | |||
| Adjusted Net Income2 | $ | 456,300 | $ | (3,186,402 | ) | ||
| Balances as of | December 31, 2025 | June 30, 2025 | |||||
| Cash | $ | 345,082 | $ | 52,603 | |||
| Current assets | $ | 6,327,754 | $ | 4,649,923 | |||
| Total assets | $ | 21,410,820 | $ | 20,616,747 | |||
| Total liabilities | $ | 19,612,522 | $ | 19,832,463 | |||
| Total equity | $ | 1,798,298 | $ | 784,284 | |||
About Zefiro Methane Corp.
Zefiro is an Environmental Services Company, specializing in methane abatement. Zefiro strives to be a key commercial force towards Active Sustainability. Leveraging decades of operational expertise, Zefiro is building a new toolkit to clean up air, land, and water sources directly impacted by methane leaks. The Company has built a fully integrated ground operation driven by an innovative monetization solution for the emerging methane abatement marketplace. As an originator of high-quality U.S.-based methane offsets, Zefiro aims to generate long-term economic, environmental, and social returns.
For further information, please contact:
Zefiro Investor Relations
1 (800) 274-ZEFI (274-9334)
investor@zefiromethane.com
Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information is often, but not always, identified by the use of words such as "seeks", "believes", "plans", "expects", "intends", "estimates", "anticipates" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. In particular, this news release contains forward-looking information including statements regarding: the Company's intention to reduce emissions from end-of-life oil and gas wells and eliminate methane gas; the Company's partnerships with industry operators, state agencies, and federal governments; the Company's expectations for continued increases in revenues and EBITDA growth as a result of these partnerships; the Company's intentions to build out its presence in the United States; the anticipated federal funding for orphaned well site plugging, remediation and restoring activities; the Company's expectations to become a growing environmental services company; the Company's ability to provide institutional and retail investors alike with the opportunity to join the Active Sustainability movement; the Company's ability to generate long-term economic, environmental, and social returns; and other statements regarding the Company's business and the industry In which the Company operates. The forward-looking information reflects management's current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking information. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed timeframes or at all. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to: (i) adverse general market and economic conditions; (ii) changes to and price and volume volatility in the carbon market; (iii) changes to the regulatory landscape and global policies applicable to the Company's business; (iv) failure to obtain all necessary regulatory approvals; and (v) other risk factors set forth in the Company's Prospectus dated April 8, 2024 under the heading "Risk Factors". The Company operates in a rapidly evolving environment where technologies are in the early stage of adoption. New risk factors emerge from time to time, and it is impossible for the Company's management to predict all risk factors, nor can the Company assess the impact of all factors on Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking information. Forward-looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof, including, but not limited to, the assumption that general business and economic conditions will not change in a materially adverse manner. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information. The forward-looking information included in this news release is made as of the date of this news release and the Company expressly disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law.
Non-IFRS Financial Measures
Zefiro has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS) including: (a) Adjusted EBITDA. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow.
Statement Regarding Third-Party Investor Relations Firms
Disclosures relating to investor relations firms retained by Zefiro Methane Corp. can be found under the Company's profile on SEDAR+ at www.sedarplus.ca/.
###
1 Please refer to Zefiro's SEDAR+ profile at www.sedarplus.ca/ for full filings containing these financial results.
All Figures in U.S. Dollars/USD Unless Otherwise Specified
2 See Non-IFRS Financial Measures
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/284076
FAQ
What were ZEFIF Q2 FY2026 revenue and six-month revenue figures?
Did Zefiro (ZEFIF) report profitable results in the first half of FY2026?
How did ZEFIF change its debt position in Q2 FY2026?
What operational projects did Zefiro announce for Q2 FY2026 and pipeline?
Does ZEFIF have upcoming debt maturities investors should note?
What risks did Zefiro disclose that could affect shareholders after Q2 FY2026?
