Zefiro Methane Corp. Announces Year-End Earnings Report & Provides Corporate Activities Update

Rhea-AI Summary

Zefiro Methane Corp. (OTCQB: ZEFIF) reported its fiscal year 2025 financial results, showing revenue of $32.4 million, relatively flat compared to $32.7 million in FY2024. The company experienced a significant increase in net loss to $10.6 million, up from $6.8 million in the previous year, primarily due to higher G&A expenses and revenue costs.

Under new management led by interim CEO Catherine Flax and CFO Michael Downs, Zefiro is implementing strategic changes focused on expense reduction, debt management, and operational efficiency. July 2025 is expected to be the company's strongest month with projected revenue of $4.0 million. The company has also reported successful carbon offset sales of 48,536 tons in the current quarter.

Positive

• Record monthly revenue of $4.0 million expected for July 2025
• Successfully sold 48,536 tons of carbon offsets to three strategic buyers
• New management team implementing strategic cost-cutting measures
• Significant increase in environmental services pipeline from private and federal/state operators

Negative

• Net loss increased to $10.6 million from $6.8 million year-over-year
• Gross profit margin declined to 23% from 29% year-over-year
• Cash position decreased to $52,603 from $981,746 year-over-year
• Total equity declined significantly to $784,284 from $8.7 million year-over-year

• The Company generated revenue of $32.4 million USD for FYE 2025
• Zefiro's new management team is positioning the company for future growth through recent improvements in operations, expense management, and strategic efforts on carbon credit realization

Fort Lauderdale, Florida--(Newsfile Corp. - September 29, 2025) - ZEFIRO METHANE CORP. (Cboe CA: ZEFI) (FSE: Y6B) (OTCQB: ZEFIF) (the "Company", "Zefiro", or "ZEFI") today announced the Company's consolidated financial results for the fiscal year ended June 30, 2025 ("FYE 2025"). For the FYE 2025, the Company generated consolidated revenues of $32.4 million USD.

Fiscal Year 2025 Results:^[1]

• For the year ended June 30, 2025, the Company generated consolidated revenues of $32.4 million USD, which was in line with $32.7 million in the prior year.
• The Company generated $7.5 million USD in gross profit for the year ended June 30, 2025, compared to $9.6 million USD for the year ending June 30, 2024.
• Gross profit was impacted by increasing expenses related to expected federal and state funds being deployed. These challenges were particularly impactful to operating activity from November 2024 to March 2025 when operations were impacted by slower demand.
• Operating activity and revenue have been more in line with expectations and previous results since the first half of 2025.

Recent Highlights:

• The Board of Directors made management changes in response to the company's operating and financial performance.
• In June 2025, Zefiro appointed Catherine Flax and Michael Downs to serve as interim CEO and interim CFO, respectively.
• Management's immediate focus is reducing expenses, starting with a reduction in non-essential employees and other third-party contractors.
• Since the installation of both executives, the Company has emphasized:

• Refocusing operations on its core plugging & abandonment business
• Expanding government revenue streams to help offset seasonality
• Delivering carbon credit sales
• Long-term debt reduction

• Management plans to provide details about recent performance and the strategic outlook of the company during a call made available on Wednesday, October 1^st.
• July revenue is expected to be approximately $4.0 million, which is the highest revenue month in Zefiro's history.
• Thus far in the quarter ending September 30, 2025, Zefiro has sold and delivered 48,536 tons of carbon offsets to three different strategic buyers.
• The Company has seen a significant increase in its pipeline of environmental services activity associated with both private and federal/state operators.

Earnings Update:

For the year ended June 30, 2025, the Company realized a net loss of $10.6 million as compared with a net loss of $6.8 million for the prior year. This increase was principally driven by higher G&A and cost of revenues associated with growing the environmental markets and services businesses that were impacted by the administration change and the seasonality of the business. During the year ended June 30, 2025, Zefiro maintained a gross profit margin of 23% as compared with 29% for the comparable prior year period. As of June 30, 2025, Zefiro had $1.14 million of liquidity, including cash on hand and availability under its revolving line of credit, as compared with $1.33 million as of June 30, 2024.

Strategic Management Activities:

With a new management team and an additional board member established in June 2025, the Company is taking a proactive approach to improving financial discipline and operational efficiency. Executive leadership has prioritized the Company's focus on revenue growth in the services business, reducing overhead, streamlining expenses, and driving cash flow growth at both the parent Company and subsidiary levels, ensuring resources are aligned with the highest-impact areas of the business.

The Company has reduced its near-term debt obligations and expenditures on non-essential costs. This executed focus will strengthen the Company's balance sheet, improve liquidity, and position the business for long-term stability and growth.

In June 2025, Zefiro announced the appointment of Catherine Flax as interim Chief Executive Officer. Catherine Flax commented, "Management is focused on the basics, driving revenue growth, reducing expenses, and reducing debt. This will result in improving the Company's financial health and position Zefiro to take advantage of the significant tailwinds across end-of-life care for oil and gas wells. This approach is already yielding results, which will position the Company as a market leader driven by innovation, foresight, and impact."

During May 2025, Ms. Flax invested the largest position in Zefiro's new $2,480,000 promissory note, helping to address short-term debt and strengthening the Company's financial foundation.

Fourth Fiscal Quarter Financial Highlights (in USD):

Year ended			June 30, 2025			June 30, 2024
Revenue			$32,406,193			$32,748,777
Gross profit			$7,467,930			$9,616,321
Total operating expenses			($16,018,242)			($14,661,178)
Net loss and comprehensive loss for the period			($10,626,358)			($6,839,157)
Basic and diluted loss per share for the period			($0.15)			($0.11)
Weighted average shares outstanding			72,408,920			62,902,915
Net loss for the period			($10,759,304)			($6,882,432)
Add:
Amortization			3,776,373			3,632,860
Share-based compensation			734,053			585,142
Maintenance Capex			(396,619)			(472,657)
Adjusted Net Income[2]			($6,645,497)			($3,137,087)

 

Balances as of		June 30, 2025				June 30, 2024
Cash	$	52,603			$	981,746
Current assets	$	4,649,923			$	10,223,370
Total assets	$	20,616,747			$	28,971,195
Total liabilities	$	19,832,463			$	20,288,328
Total equity	$	784,284			$	8,682,867

 

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.

(a) Adjusted Net Income

Adjusted Net Income is a non-IFRS measure that excludes from net income (loss): amortization and share-based compensation and includes maintenance capital expenditures attributable to maintaining current activity. Management uses Adjusted Net Income to evaluate the Company's operating performance. The Company presents Adjusted Net Income as it believes that certain investors use this information to evaluate the Company's performance in relation to its peers who present on a similar basis (though Adjusted Net Income does not have a standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers). However, Adjusted Net Income does not represent and should not be considered an alternative to net income (loss) or cash flow provided by operating activities as determined under IFRS.

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/.

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^[1] Please refer to Zefiro's SEDAR+ profile at www.sedarplus.ca/ for full filings containing these financial results.
^[2] See Non-IFRS Financial Measures

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/268397

FAQ

What were Zefiro Methane's (ZEFIF) key financial results for fiscal year 2025?

Zefiro reported revenue of $32.4 million, a net loss of $10.6 million, and a gross profit margin of 23% for fiscal year 2025.

Who is the new management team at Zefiro Methane (ZEFIF)?

In June 2025, Zefiro appointed Catherine Flax as interim CEO and Michael Downs as interim CFO to improve financial discipline and operational efficiency.

How many carbon offsets did Zefiro (ZEFIF) sell in Q3 2025?

Zefiro sold 48,536 tons of carbon offsets to three different strategic buyers during the quarter ending September 30, 2025.

What is Zefiro's (ZEFIF) current financial position?

As of June 30, 2025, Zefiro had $1.14 million in total liquidity, including cash and credit line availability, with total assets of $20.6 million and total liabilities of $19.8 million.

What strategic changes is Zefiro (ZEFIF) implementing under new management?

The new management is focusing on revenue growth in services, reducing overhead, streamlining expenses, driving cash flow growth, and reducing near-term debt obligations.