FutureFuel Q3 biofuel gross loss widens to $9.83M
FutureFuel expects its warehouse sale to conclude in November 2026; the asset was carried at $1.217 million as of September 30, 2026.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
FutureFuel Corp. (FF) reported third-quarter revenue of $104.675 million, compared with $22.689 million a year earlier, and net loss of $8.386 million versus $9.156 million. Biofuel operations restarted after a prior-year facility shutdown; the segment sold 12.5 million gallons in the quarter, compared with 1.2 million a year earlier. Biofuel gross loss widened to $9.829 million from $2.419 million. Chemical segment gross profit was $4.392 million, compared with a $4.054 million gross loss a year earlier.
For the first nine months, revenue was $215.353 million versus $75.900 million, and net loss was $17.598 million versus $41.440 million; adjusted EBITDA loss was $6.929 million versus $32.786 million. Prior-year comparisons reflect retrospective application of weighted average cost accounting instead of LIFO for certain inventory. Cash used in operating activities was $11.477 million versus $1.299 million, with changes in receivables, inventory and other assets among the stated factors. FutureFuel committed to sell 2026 production tax credits valued at $13.807 million as of September 30, 2026, and expects monetization at fiscal year-end.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNine-month revenue reached $215.353 million, versus $75.900 million in 2025.
- Moderate pointNine-month net loss narrowed to $17.598 million, from $41.440 million.
- Moderate pointChemical segment gross profit was $4.392 million, versus a $4.054 million loss.
Negative
- Moderate pointBiofuel gross loss widened to $9.829 million from $2.419 million in Q3 2025.
- Moderate pointOperating cash use: $11.477 million, versus $1.299 million for nine months.
Key Figures
Key Terms
Adjusted EBITDA financial
Renewable Identification Numbers (RINs) financial
bill-and-hold transaction financial
weighted average cost financial
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did FutureFuel (FF) report in Q3 2026?
What was FutureFuel's (FF) net loss in Q3 2026?
What are FutureFuel's (FF) 2026 tax credit sale terms?
What does FutureFuel's (FF) October 2026 supply agreement cover?
When does FutureFuel (FF) expect its warehouse sale to conclude?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
| | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the quarterly period ended |
OR
| | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the transition period from __________ to ___________ | |
| Commission file number: |
(Exact Name of Registrant as Specified in Its Charter)
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| (State or Other Jurisdiction of |
| (IRS Employer Identification No.) |
| Incorporation or Organization) |
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| (Address of Principal Executive Offices) | (Zip Code) | |
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| (Registrant’s Telephone Number, Including Area Code) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| | | |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
| Large accelerated filer ☐ |
| | ☑ |
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| Non-accelerated filer ☐ |
| Smaller reporting company | |
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| Emerging growth company | |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of November 9, 2026:
PART I FINANCIAL INFORMATION
Item 1. Financial Statements.
FutureFuel Corp.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
| (Unaudited) | As Adjusted (Note 1) | |||||||
| September 30, 2026 | December 31, 2025 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Accounts receivable, net of allowances for expected credit losses of $ and $, respectively | ||||||||
| Inventory, net | ||||||||
| Income tax receivable | ||||||||
| Prepaid expenses | ||||||||
| Assets held for sale | ||||||||
| Other current assets | ||||||||
| Total current assets | ||||||||
| Property, plant and equipment, net | ||||||||
| Other assets | ||||||||
| Total noncurrent assets | ||||||||
| Total Assets | $ | $ | ||||||
| Liabilities and Stockholders’ Equity | ||||||||
| Accounts payable | $ | $ | ||||||
| Accounts payable – related parties | ||||||||
| Deferred revenue – current | ||||||||
| Dividends payable | ||||||||
| Accrued expenses and other current liabilities | ||||||||
| Total current liabilities | ||||||||
| Deferred revenue – noncurrent | ||||||||
| Dividends payable - noncurrent | ||||||||
| Noncurrent deferred income taxes | ||||||||
| Other noncurrent liabilities | ||||||||
| Total noncurrent liabilities | ||||||||
| Total liabilities | ||||||||
| Commitments and contingencies | ||||||||
| Preferred stock, $ par value, shares authorized, issued and outstanding | ||||||||
| Common stock, $ par value, shares authorized, and issued and outstanding as of September 30, 2026 and December 31, 2025, respectively | ||||||||
| Additional paid in capital | ||||||||
| Retained earnings (accumulated deficit) | ( | ) | ( | ) | ||||
| Total stockholders’ equity | ||||||||
| Total Liabilities and Stockholders’ Equity | $ | $ | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
FutureFuel Corp.
Consolidated Statements of Operations and Net Loss
(Dollars in thousands, except per share amounts)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| As Adjusted (Note 1) | As Adjusted (Note 1) | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | $ | $ | $ | $ | ||||||||||||
| Revenue – related parties | ||||||||||||||||
| Cost of goods sold | ||||||||||||||||
| Cost of goods sold – related parties | ||||||||||||||||
| Distribution | ||||||||||||||||
| Distribution – related parties | ||||||||||||||||
| Gross loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Selling, general, and administrative expenses | ||||||||||||||||
| Compensation expense | ||||||||||||||||
| Other expense, net | ||||||||||||||||
| Related party expense | ||||||||||||||||
| Research and development expenses | ||||||||||||||||
| Total operating expenses | ||||||||||||||||
| Loss from operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Interest income | ||||||||||||||||
| Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other (expense) income | ( | ) | ||||||||||||||
| Other income, net | ||||||||||||||||
| Loss before taxes | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Income tax (benefit) provision | ( | ) | ( | ) | ||||||||||||
| Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Loss per common share | ||||||||||||||||
| Basic | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | ||||||||||||||||
| Diluted | ||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
FutureFuel Corp.
Consolidated Statements of Stockholders’ Equity
(Dollars in thousands)
(Unaudited)
| For the Nine Months Ended September 30, 2026 | ||||||||||||||||||||
| Retained | ||||||||||||||||||||
| Additional | Earnings | Total | ||||||||||||||||||
| Common Stock | paid in | (Accumulated | Stockholders’ | |||||||||||||||||
| Shares | Amount | Capital | Deficit) | Equity | ||||||||||||||||
| Balance - December 31, 2025 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Cash dividends declared, $ per share | - | ( | ) | ( | ) | |||||||||||||||
| Stock based compensation | - | ( | ) | |||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||
| Balance - March 31, 2026 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Cash dividends declared, $ per share | - | ( | ) | ( | ) | |||||||||||||||
| Stock based compensation | ( | ) | ( | ) | ||||||||||||||||
| Net income | - | |||||||||||||||||||
| Balance - June 30, 2026 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Cash dividends declared, $ per share | - | ( | ) | ( | ) | |||||||||||||||
| Stock based compensation | - | ( | ) | |||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||
| Balance - September 30, 2026 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| For the Nine Months Ended September 30, 2025 (As Adjusted (Note 1)) | ||||||||||||||||||||
| Retained | ||||||||||||||||||||
| Additional | Earnings | Total | ||||||||||||||||||
| Common Stock | paid in | (Accumulated | Stockholders’ | |||||||||||||||||
| Shares | Amount | Capital | Deficit) | Equity | ||||||||||||||||
| Balance - December 31, 2024 | $ | $ | $ | $ | ||||||||||||||||
| Change in accounting principle (see Note 1) | ||||||||||||||||||||
| Balance - December 31, 2024, as adjusted | ||||||||||||||||||||
| Stock based compensation | - | ( | ) | |||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||
| Balance - March 31, 2025 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Stock based compensation | - | |||||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||
| Balance - June 30, 2025 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Stock based compensation | - | |||||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||
| Balance - September 30, 2025 | $ | $ | $ | ( | ) | $ | ||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
FutureFuel Corp.
Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
| Nine Months Ended September 30, | ||||||||
| As Adjusted (Note 1) | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation | ||||||||
| Amortization of deferred financing costs | ||||||||
| (Benefit) provision for deferred income taxes | ( | ) | ||||||
| Change in fair value of derivative instruments | ( | ) | ( | ) | ||||
| Stock based compensation | ||||||||
| Gain on disposal of property and equipment | ( | ) | ||||||
| Change in allowance for credit losses | ||||||||
| Change in inventory reserve | ||||||||
| Noncash interest expense | ||||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | ( | ) | ||||||
| Inventory | ( | ) | ||||||
| Income tax receivable | ||||||||
| Prepaid expenses | ||||||||
| Prepaid expenses – related parties | ( | ) | ||||||
| Other assets | ( | ) | ( | ) | ||||
| Accounts payable | ( | ) | ||||||
| Accounts payable – related parties | ( | ) | ||||||
| Dividends payable | ||||||||
| Accrued expenses and other current liabilities | ||||||||
| Deferred revenue | ( | ) | ( | ) | ||||
| Other noncurrent liabilities | ||||||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| Cash flows from investing activities | ||||||||
| Collateralization of derivative instruments | ||||||||
| Proceeds from the sale of property and equipment | ||||||||
| Capital expenditures | ( | ) | ( | ) | ||||
| Net cash used in investing activities | ( | ) | ( | ) | ||||
| Cash flows from financing activities | ||||||||
| Payment of dividends | ( | ) | ( | ) | ||||
| Deferred financing costs | ( | ) | ||||||
| Net cash used in financing activities | ( | ) | ( | ) | ||||
| Net change in cash and cash equivalents | ( | ) | ( | ) | ||||
| Cash and cash equivalents at beginning of period | ||||||||
| Cash and cash equivalents at end of period | $ | $ | ||||||
| Cash paid for income taxes | $ | $ | ||||||
| Noncash investing and financing activities | ||||||||
| ROU assets obtained in exchange for new operating lease liabilities | $ | $ | ||||||
| Change in noncash capital expenditures | $ | ( | ) | $ | ( | ) | ||
The accompanying notes are an integral part of these consolidated financial statements.
Notes to Consolidated Financial Statements of FutureFuel Corp.
(Dollars in thousands, except per share and per gallon amounts)
(Unaudited)
| 1) | SIGNIFICANT ACCOUNTING POLICIES |
Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared by FutureFuel Corp. (“FutureFuel” or “the Company”) in accordance and consistent with the accounting policies stated in the Company's 2025 Annual Report on Form 10-K, inclusive of the audited consolidated financial statements, and should be read in conjunction with these consolidated financial statements. Certain reclassifications were made to prior year amounts to conform to the 2026 presentation.
In the opinion of FutureFuel, all normal recurring adjustments necessary for a fair presentation have been included in the unaudited consolidated financial statements. The unaudited consolidated financial statements have been prepared in compliance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the unaudited consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements and do include amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The unaudited consolidated financial statements include assets, liabilities, revenues, and expenses of FutureFuel and its direct and indirect wholly owned subsidiaries; namely, FutureFuel Chemical Company; FutureFuel Warehouse Company, L.L.C.; and Legacy Regional Transport, L.L.C. with all intercompany transactions and balances eliminated. During the second quarter of 2026, Legacy Regional Transport, L.L.C. was dissolved, and its assets were transferred to FutureFuel Chemical Company. Additionally, FutureFuel Warehouse Company, L.L.C. was classified as held for sale effective July 2026. See Note 5 for additional details.
Some of the Company's manufacturing equipment requires periodic, planned shutdowns of significant parts of our facility in order to perform necessary inspections, cleanings, and maintenance activities, referred to as turnarounds. The cost of turnarounds incurred for routine repairs and maintenance or unplanned outages at our facility are expensed as incurred.
A component of Other expense, net, in the consolidated statement of operations and net loss for the three and nine months ended September 30, 2026, includes $
Effective January 1, 2026, the Company elected to change its method of accounting for certain inventory from last in, first out ("LIFO") to weighted average cost. The Company believes the change to weighted average cost is preferable because it provides a better matching of costs and revenues, conforms the Company's inventory to a single method of accounting and improves comparability with the Company's peers. Comparative financial statements for prior years have been adjusted to apply the new method retrospectively. The tables below illustrate the impacts as of December 31, 2025 and September 30, 2025 and for the three- and nine-month periods ended September 30, 2025, had the Company reported under the weighted average cost basis of accounting:
| September 30, 2025 | ||||||||||||
| As Originally | ||||||||||||
| Condensed Balance Sheet | Reported under LIFO | As Adjusted | Effect of Change | |||||||||
| Inventory, net | $ | $ | $ | |||||||||
| Total current assets | ||||||||||||
| Total Assets | ||||||||||||
| Noncurrent deferred income taxes | ||||||||||||
| Total noncurrent liabilities | ||||||||||||
| Total liabilities | ||||||||||||
| Retained earnings (accumulated deficit) | ( | ) | ( | ) | ||||||||
| Total stockholders' equity | ||||||||||||
| Total Liabilities and Stockholders' Equity | ||||||||||||
| Three months ended September 30, 2025 | ||||||||||||
| As Originally | ||||||||||||
| Condensed Statement of Operations and Net Loss | Reported under LIFO | As Adjusted | Effect of Change | |||||||||
| Revenue | $ | $ | $ | |||||||||
| Cost of goods sold | ( | ) | ||||||||||
| Gross loss | ( | ) | ( | ) | ||||||||
| Loss from operations | ( | ) | ( | ) | ||||||||
| Loss before taxes | ( | ) | ( | ) | ||||||||
| Income tax (benefit) provision | ( | ) | ||||||||||
| Net loss | ( | ) | ( | ) | ||||||||
| Loss per common share | ||||||||||||
| Basic | $ | ( | ) | $ | ( | ) | $ | |||||
| Diluted | $ | ( | ) | $ | ( | ) | $ | |||||
| Nine months ended September 30, 2025 | ||||||||||||
| As Originally | ||||||||||||
| Condensed Statement of Operations and Net Loss | Reported under LIFO | As Adjusted | Effect of Change | |||||||||
| Revenue | $ | $ | $ | |||||||||
| Cost of goods sold | ||||||||||||
| Gross loss | ( | ) | ( | ) | ( | ) | ||||||
| Loss from operations | ( | ) | ( | ) | ( | ) | ||||||
| Loss before taxes | ( | ) | ( | ) | ( | ) | ||||||
| Income tax provision | ||||||||||||
| Net loss | ( | ) | ( | ) | ( | ) | ||||||
| Loss per common share | ||||||||||||
| Basic | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| Diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| Nine months ended September 30, 2025 | |||||||||
| As Originally | |||||||||
| Condensed Statements of Cash Flows | Reported under LIFO | As Adjusted | Effect of Change | ||||||
| Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) |
| Provision (benefit) for deferred income taxes | ( | ) | |||||||
| Inventory | |||||||||
| Net Cash flows from Operating Activities | ( | ) | ( | ) | |||||
| December 31, 2025 | ||||||||||||
| As Originally | ||||||||||||
| Condensed Balance Sheet | Reported under LIFO | As Adjusted | Effect of Change | |||||||||
| Inventory, net | $ | $ | $ | |||||||||
| Total current assets | ||||||||||||
| Total Assets | ||||||||||||
| Noncurrent deferred income taxes | ||||||||||||
| Total noncurrent liabilities | ||||||||||||
| Total liabilities | ||||||||||||
| Retained earnings (accumulated deficit) | ( | ) | ( | ) | ||||||||
| Total stockholders' equity | ||||||||||||
| Total Liabilities and Stockholders' Equity | ||||||||||||
The following tables summarize the effect of the change on the Company's financial condition as of, and results of operations for the three and nine months ended September 30, 2026.
| September 30, 2026 | ||||||||||||
| Condensed Balance Sheet | As Computed under Weighted Average Cost | As Computed under LIFO | Effect of Change | |||||||||
| Inventory, net | $ | $ | $ | ( | ) | |||||||
| Total current assets | ( | ) | ||||||||||
| Total Assets | ( | ) | ||||||||||
| Total current liabilities | ||||||||||||
| Noncurrent deferred income taxes | ( | ) | ||||||||||
| Total noncurrent liabilities | ( | ) | ||||||||||
| Total liabilities | ( | ) | ||||||||||
| Retained earnings (accumulated deficit) | ( | ) | ( | ) | ( | ) | ||||||
| Total stockholders' equity | ( | ) | ||||||||||
| Total Liabilities and Stockholders' Equity | ( | ) | ||||||||||
| Three months ended September 30, 2026 | ||||||||||||
| Condensed Statement of Operations and Net Loss | As Computed under Weighted Average Cost | As Computed under LIFO | Effect of Change | |||||||||
| Revenue | $ | $ | $ | |||||||||
| Cost of goods sold | ||||||||||||
| Gross loss | ( | ) | ( | ) | ( | ) | ||||||
| Loss from operations | ( | ) | ( | ) | ( | ) | ||||||
| Loss before taxes | ( | ) | ( | ) | ( | ) | ||||||
| Income tax (benefit) provision | ( | ) | ( | ) | ||||||||
| Net loss | ( | ) | ( | ) | ( | ) | ||||||
| Loss per common share | ||||||||||||
| Basic | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| Diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| Nine months ended September 30, 2026 | ||||||||||||
| Condensed Statement of Operations and Net Loss | As Computed under Weighted Average Cost | As Computed under LIFO | Effect of Change | |||||||||
| Revenue | $ | $ | $ | |||||||||
| Cost of goods sold | ||||||||||||
| Gross loss | ( | ) | ( | ) | ( | ) | ||||||
| Loss from operations | ( | ) | ( | ) | ( | ) | ||||||
| Loss before taxes | ( | ) | ( | ) | ( | ) | ||||||
| Income tax benefit | ( | ) | ( | ) | ( | ) | ||||||
| Net loss | ( | ) | ( | ) | ( | ) | ||||||
| Loss per common share | ||||||||||||
| Basic | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| Diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| Nine months ended September 30, 2026 | ||||||||||||
| Condensed Statements of Cash Flows | As Computed under Weighted Average Cost | As Computed under LIFO | Effect of Change | |||||||||
| Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| Benefit for deferred income taxes | ( | ) | ( | ) | ( | ) | ||||||
| Inventory | ( | ) | ||||||||||
| Net Cash flows from Operating Activities | ( | ) | ( | ) | ||||||||
Recently Adopted Accounting Standards
In July 2025, the FASB issued Accounting Standards Update (“ASU”) 2025-05 “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets.” ASU 2025-05 permits the use of certain estimates and assumptions in developing forecasts used for determining expected credit losses on accounts receivable. This guidance was effective for us January 1, 2026 and did not materially impact our consolidated financial statements.
Accounting Standards Issued, Not Yet Adopted
In November 2024, the FASB issued ASU 2024-03 “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities. The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. This guidance will be effective for our fiscal year beginning on January 1, 2027 and for interim periods within annual periods beginning after December 15, 2027. The Company is currently evaluating the impact of the changes required by the new standard on the Company's financial statements and disclosures.
In September 2025, the FASB issued ASU 2025-06 “Intangibles – Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” ASU 2025-06 eliminates the consideration of project development stages in determining whether a cost is eligible for capitalization. Instead, cost capitalization will be based on a “probable to complete” threshold. This guidance will be effective for us on January 1, 2028. We are evaluating the impact, if any, that the adoption of ASU 2025-06 may have on the Company's financial statements and disclosures.
In December 2025, the FASB issued ASU 2025-10 “Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities.” ASU 2025-10 finalizes proposed ASU No. 2024-ED700 of the same name and establishes authoritative guidance for business entities on the recognition, measurement, and presentation of government grants. A government grant is defined, in part, as a transfer of a monetary asset from a government to a business entity. A government grant should not be recognized until it is probable that the business will comply with the conditions attached to the grant and that the grant will be received. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2029, and for interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The Company is evaluating this accounting standard and currently does not expect the adoption to have a material impact on its financial statements and disclosures.
In May 2026, the FASB issued ASU 2026-02 “Environmental Credits and Environmental Credit Obligations (Topic 818).” This update establishes comprehensive recognition, measurement, presentation, and disclosure guidance for participants in voluntary and compliance-based environmental credit programs, including Renewable Identification Numbers (“RINs”). Under the standard, internally generated environmental credits are measured initially at transaction or registration costs incurred, if any. The standard also expands disclosure requirements regarding an entity's involvement in environmental credit programs, including volumes generated, held, and transferred, as well as accounting policies for related compliance obligations. ASU 2026-02 is effective for the Company for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted. The standard permits adoption on a modified retrospective or prospective basis. While the Company historically does not allocate production costs to internally generated RINs, it is currently evaluating the impact of the new disclosure, measurement, and presentation requirements on its consolidated financial statements and footnote disclosures.
| 2) | GOVERNMENT TAX CREDITS AND ASSET GRANTS |
Due to the lack of specific U.S. GAAP guidance for the following tax credits, the Company elected to follow International Accounting Standards (“IAS”) 20 principles (“Accounting for Government Grants”). Accordingly, the following credits were recognized as a reduction in the cost of goods sold, net of estimated selling expenses. In addition, the Company utilizes the deferral method for grants related to long-lived assets, whereby the grant is recognized as deferred income and amortized to Other expense, net, systematically over the asset's productive life.
SMALL AGRI-BIODIESEL PRODUCER TAX CREDIT
The Small Agri-Biodiesel Producer Tax Credit (“SPTC”) initially expired December 31, 2024.
On July 4, 2025, the Budget Reconciliation Act of 2025 officially reinstated and extended the SPTC through December 31, 2026. This transferable, nonrefundable credit offers eligible producers—those with a capacity of 60 million gallons or less—$0.20 per gallon on the first 15 million gallons of fuel they produce. The benefit of this credit is recognized as a reduction in cost of goods sold following IAS 20.
The Company recognized $
CLEAN FUEL PRODUCTION TAX CREDIT
The Clean Fuel Production Credit (“CFPC”), established by the Inflation Reduction Act of 2022 and extended through 2029 by the Budget Reconciliation Act of 2025, is a key incentive for low-emission transportation fuels. The Company’s biodiesel was approved for the CFPC in December 2024.
This transferable, nonrefundable income tax credit uses a sliding scale based on the fuel's greenhouse gas emissions. The Company qualifies for an increased credit above the base of $0.20 per gallon for non-aviation fuel because it satisfies the prevailing wage and apprenticeship requirements.
The Company recognized CFPC of $
TRANSFERABLE TAX CREDITS (SPTC and CFPC)
The Company finalized an agreement in June 2026 to sell all 2025 SPTC and CFPC for $
ASSET GRANT
In conjunction with a facility expansion project in March 2011, the Company secured federal and state grants. As the resulting asset associated with the grants has a
| 3) | REVENUE RECOGNITION |
The majority of revenue is from short-term contracts with revenue recognized when a single performance obligation to transfer product under the terms of a contract with a customer is satisfied.
Certain of the Company's custom chemical contracts within the chemical segment contain a material right as defined by ASC Topic 606 “Revenue from Contracts with Customers” (“ASC 606”), from the provision of a customer option to purchase future goods or services at a discounted price as a result of upfront payments provided by customers. Each contract also has a performance obligation to transfer products with 30-day payment terms. The Company recognizes revenue when the customer takes control of the inventory, either upon shipment or when the material is made available for pick up. If the customer is deemed to take control of the inventory prior to pick up, the Company recognizes the revenue as a bill-and-hold transaction in accordance with ASC 606. The Company applies the renewal option approach in allocating the transaction price to these material rights and transfer of product. As a basis for allocating the transaction price to the material right and transfer of product, the Company estimates the expected life of the contract, the expected contractual volumes to be sold over that life, and the most likely expected sales price. Each estimate is updated quarterly on a prospective basis.
The Company leases warehouse space to a third-party tenant. Lease revenue recognized under this agreement was $
Contract Assets and Liabilities:
Contract assets consist of unbilled amounts typically resulting from revenue recognized through bill-and-hold arrangements. The contract assets at September 30, 2026 and December 31, 2025 consist of unbilled revenue from one customer and unbilled capital reimbursement from three customers and are recorded as accounts receivable in the consolidated balance sheets. Contract liabilities consist of advance payment arrangements related to material rights recorded as deferred revenue in the consolidated balance sheets. Increases to contract liabilities from cash received or due for a performance obligation of chemical segment plant expansions were $
The following table provides the balance of receivables, contract assets, and contract liabilities from contracts with customers.
| Contract Assets and Liability Balances | September 30, 2026 | September 30, 2025 | December 31, 2025 | December 31, 2024 | ||||||||||||
| Trade receivables, included in accounts receivable* | $ | $ | $ | $ | ||||||||||||
| Contract assets, included in accounts receivable | ||||||||||||||||
| Contract liabilities, included in deferred revenue - short-term | ||||||||||||||||
| Contract liabilities, included in deferred revenue - long-term | ||||||||||||||||
*Exclusive of the blender's tax credit (which expired 12/31/2024) of $
Transaction price allocated to the remaining performance obligations:
At September 30, 2026, approximately $
The Company applies the practical expedient in ASC 606-10-50-14 and excludes the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.
Disaggregation of revenue:
The following tables provide revenue from customers disaggregated by the type of arrangement and by the timing of the recognized revenue.
Contractual and non-contractual:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Contract revenue from customers with > one-year arrangements | $ | $ | $ | $ | ||||||||||||
| Contract revenue from customers with < one-year arrangements | ||||||||||||||||
| Revenue from non-contractual arrangements | ||||||||||||||||
| Total revenue | $ | $ | $ | $ | ||||||||||||
Timing of revenue:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Bill-and-hold revenue | $ | $ | $ | $ | ||||||||||||
| Non-bill-and-hold revenue | ||||||||||||||||
| Total revenue | $ | $ | $ | $ | ||||||||||||
As of September 30, 2026 and December 31, 2025, $
| 4) | INVENTORY |
The carrying values of inventory were as follows as of:
| As Adjusted (Note 1) | ||||||||
| September 30, 2026 | December 31, 2025 | |||||||
| At average cost (approximates current cost) | ||||||||
| Finished goods | $ | $ | ||||||
| Work in process | ||||||||
| Raw materials | ||||||||
| $ | $ | |||||||
Effective January 1, 2026, the Company changed its method of accounting for inventory from the LIFO method to the weighted average cost method. See Note 1 for additional information on the prior-year effect.
| 5) | ASSETS HELD FOR SALE |
Assets held for sale include the book value of assets the Company plans to sell within the next twelve months. Long-lived assets that meet the held for sale criteria are reported at the lower of their carrying value or fair value less estimated costs to sell. In July 2026, management approved the sale of a warehouse facility located in Batesville, Arkansas. The warehouse asset met all the criteria to be classified as held for sale under ASC 360-10 and depreciation on the asset ceased upon reclassification. Management has initiated an active marketing program through a commercial real estate broker and expects the sale to conclude in November 2026. The carrying amount of the major class of asset associated with the disposal is presented separately as assets held for sale within current assets on the Consolidated Balance Sheets and consists of property, plant, and equipment in the amount of $
| 6) | OTHER CURRENT ASSETS |
Other current assets consisted of the following at:
| September 30, 2026 | December 31, 2025 | |||||||
| Supplies and parts | $ | $ | ||||||
| Clean Fuel Production Credit(1) | | |||||||
| Collateralization of derivative instruments, net of fair value(2) | ||||||||
| Small Producers Tax Credit(1) | ||||||||
| Other | ||||||||
| Total | $ | $ | ||||||
(1) See Note 2 for additional information.
(2) On regulated fixed price futures commitments as shown in Note 7.
| 7) | DERIVATIVE INSTRUMENTS |
The Company records all derivative instruments at fair value. Fair value is determined by using the closing prices of the derivative instruments on the New York Mercantile Exchange at the end of an accounting period. Changes in the fair value of derivative instruments are recognized at the end of each accounting period and recorded in the statements of operations as a component of cost of goods sold. These instruments use inputs considered Level 1 holdings.
Fair value accounting pronouncements include a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of FutureFuel. Unobservable inputs are inputs that reflect FutureFuel’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The hierarchy is broken down into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
In order to manage commodity price risk caused by market fluctuations in feedstock and biofuel prices, future purchases of feedstock used in biodiesel production, physical feedstock, finished product inventories attributed to the process, and other petroleum products purchased or sold, the Company may enter into exchange-traded commodity futures and options contracts. The Company accounts for these derivative instruments in accordance with ASC Topic 815-20-25, “Derivatives and Hedging”, (“ASC 815”). Under this standard, the accounting for changes in the fair value of a derivative instrument depends upon whether it has been designated as an accounting hedging relationship and, further, on the type of hedging relationship. To qualify for designation as an accounting hedging relationship, specific criteria must be met and appropriate documentation maintained. The Company had no derivative instruments that qualified under these rules as designated accounting hedges in 2026 or 2025. The Company has elected the normal purchase and normal sales exception for certain feedstock purchase contracts and supply agreements.
Total gains and losses on derivative instruments and changes in fair value of the derivative instruments are recorded in the consolidated statements of operations and net loss as a component of cost of goods sold and amounted to a net loss of $
The volumes and carrying values of FutureFuel’s derivative instruments were as follows at:
| Asset (Liability) | ||||||||||||||||
| September 30, 2026 | December 31, 2025 | |||||||||||||||
| Contract Quantity | Fair Value | Contract Quantity | Fair Value | |||||||||||||
| Regulated fixed price future commitments, included in other current assets (in thousand barrels) | $ | $ | ( | ) | ||||||||||||
The margin account maintained with a broker to collateralize these derivative instruments carried an account balance of $
| 8) | ACCRUED EXPENSES AND OTHER LIABILITIES |
Accrued expenses and other current liabilities consisted of the following at:
| September 30, 2026 | December 31, 2025 | |||||||
| Accrued employee liabilities | $ | $ | ||||||
| Accrued property, franchise, motor fuel and other taxes | ||||||||
| Lease liability, current | ||||||||
| Other | ||||||||
| Total | $ | $ | ||||||
Other noncurrent liabilities consisted of the following at:
| September 30, 2026 | December 31, 2025 | |||||||
| Federal and state railroad grants | $ | $ | ||||||
| Employment tax credit | ||||||||
| Refundable deposits(1) | ||||||||
| Asset retirement obligation | ||||||||
| Lease liability, noncurrent | ||||||||
| Total | $ | $ | ||||||
(1) Upfront payment received for plant expansion as part of a contract with a customer
| 9) | BORROWINGS |
On February 21, 2025, the Company, with FutureFuel Chemical Company as the borrower and certain of the Company’s other subsidiaries as guarantors, amended and restated its credit agreement, as further amended effective as of June 30, 2025 and December 22, 2025 (the “Credit Agreement”), originally entered into on April 16, 2015 with the lenders party thereto, Regions Bank as administrative agent and collateral agent, and PNC Bank, N.A., as syndication agent. The Credit Agreement consists of a -year revolving credit facility in a dollar amount of up to $
The interest rate floats at the following margins over Secured Overnight Financing Rate ("SOFR") or base rate based upon our consolidated leverage ratio.
| Adjusted SOFR Rate Loans and | ||||||||||||
| Consolidated Leverage Ratio | Letter of Credit Fee | Base Rate Loans | Commitment Fee | |||||||||
| < 1.00:1.0 | % | % | % | |||||||||
| ≥ 1.00:1.0 And < 1.50:1.0 | % | % | % | |||||||||
| ≥ 1.50:1.0 And < 2.00:1.0 | % | % | % | |||||||||
| ≥ 2.00:1.0 And < 2.50:1.0 | % | % | % | |||||||||
| ≥ 2.50:1.0 | % | % | % | |||||||||
The terms of the Credit Facility contain certain negative covenants and conditions including a maximum consolidated leverage ratio and a minimum consolidated interest coverage ratio.
There were borrowings under the Credit Agreement at September 30, 2026 or December 31, 2025.
| 10) | INCOME TAX PROVISION |
The following table summarizes the income tax provision.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| As Adjusted (Note 1) | As Adjusted (Note 1) | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Income tax (benefit) provision | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
| Effective tax rate | % | ( | )% | % | ( | )% | ||||||||||
The Company’s income tax provision for the three and nine months ended September 30, 2026 was
| 11) | LEASE COMMITMENTS |
During 2026, the Company entered into a new, -year operating lease for a railroad locomotive. The lease fees are fixed with no option to purchase and no upfront fees or residual value guarantees. The Company determines lease existence and classification at inception when an agreement conveys the right to control the identified property for a period of time in exchange for consideration. As the lease agreement does not provide a readily determinable implicit interest rate, the Company uses an incremental borrowing rate based on information available at the commencement date in determining present value of the lease payments. The discount rate per annum was
At September 30, 2026, an operating lease right-of-use asset of $
Following are maturities of the lease liability at September 30, 2026.
| Remainder of 2026 | $ | |||
| 2027 | ||||
| 2028 | ||||
| 2029 and beyond | ||||
| Total undiscounted lease payments | ||||
| Less: imputed interest | ( | ) | ||
| Total lease liability | $ |
During the year ended December 31, 2025, the Company entered into a supply agreement with a third party that obligates the third party to construct a nitrogen plant to be used solely by the Company. The third party is also obligated to make certain capital improvements during the term of the agreement. The Company is obligated to provide and maintain related infrastructure and utilities and pay a monthly fee. The arrangement for the use of the nitrogen plant meets the definition of a lease under ASC Topic 842, Leases, as the Company will receive all output associated with it. Based on terms outlined in the agreement, the Company expects the lease with an estimated amount of $
| 12) | EARNINGS PER SHARE |
In the three and nine months ended September 30, 2026 and 2025, the Company used the treasury method in computing earnings per share. The Company has outstanding Restricted Stock Units ("RSUs”) granted on September 3, 2024, for
Basic and diluted earnings per common share were computed as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| As Adjusted (Note 1) | As Adjusted (Note 1) | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Numerator: | ||||||||||||||||
| Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Denominator: | ||||||||||||||||
| Weighted average shares outstanding – basic | ||||||||||||||||
| Effect of dilutive securities: | ||||||||||||||||
| Stock options and other awards | ||||||||||||||||
| Weighted average shares outstanding – diluted | ||||||||||||||||
| Basic loss per share | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Diluted loss per share | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
The calculation of diluted earnings per share in the three and nine months ended September 30, 2026 excludes the effect of incremental shares from the unvested RSUs and options to purchase the Company's stock, as their inclusion would be anti-dilutive due to the reported net loss. In the three and nine months ended September 30, 2025, all of the prorated RSUs were excluded in the computation of earnings per share as all were anti-dilutive. Certain options to purchase the Company's common stock were not included in the computation of diluted earnings per share for the three and nine months ended September 30, 2026 and 2025, respectively, because they were anti-dilutive in the period. The weighted number of options excluded was
| 13) | RELATED PARTY TRANSACTIONS |
FutureFuel enters into transactions with companies affiliated with or controlled by a director and significant shareholder. Expenses, prepaid amounts, and unpaid amounts related to these transactions are captured in the accompanying consolidated financial statements as related party line items.
Related party cost of goods sold and distribution are the result of net sales and purchases of blended biodiesel with these related parties along with the associated expense from storage and terminalling services provided by these related parties.
| 14) | SEGMENT INFORMATION |
FutureFuel has reportable segments organized along similar product groups – chemicals and biofuels. The chief operating decision maker ("CODM”) is Roeland Polet, our chief executive officer. The CODM reviews the significant components for each of our segments. The CODM evaluates the performance of each reportable segment and decides how to allocate resources based on segment gross profit (loss), which includes the revenue and expenses that are directly attributable to management of each segment. The CODM uses segment gross profit (loss) to assess the income generated by each reportable segment and to decide which reportable segment to reinvest profits or pay dividends. Segment gross profit (loss) is also used to analyze performance against the budget and the Company’s competitors.
Chemicals
FutureFuel’s chemical segment manufactures diversified chemical products that are sold externally to third party customers. This segment is composed of components: “custom manufacturing” (manufacturing chemicals for specific customers) and “performance chemicals” (multi-customer specialty chemicals).
Biofuels
FutureFuel’s biofuel segment primarily manufactures and markets biodiesel. Biodiesel revenues are generated through the sale of biodiesel to customers through the Company’s distribution network at the Batesville plant and through a network of remotely located tanks. Biofuel revenues also include the sale of biodiesel blends with petrodiesel, petrodiesel with no biodiesel added, internally generated RINs, biodiesel production byproducts, and revenue and profits from Legacy Regional Transport. Biodiesel selling prices and profitability can at times fluctuate based on the timing of unsold, internally generated RINs. FutureFuel does not allocate production costs to internally generated RINs. The benefit derived from the eventual sale of the RINs is not reflected in results of operations until such time as the RINs sale has been completed, which may lead to variability in reported operating results.
As of September 30, 2026, FutureFuel held
Summary of business by segment
| Three Months Ended September 30, 2026 | Nine months ended September 30, 2026 | |||||||||||||||||||||||
| Chemical | Biofuel | Total | Chemical | Biofuel | Total | |||||||||||||||||||
| Revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||
| Cost of goods sold | ||||||||||||||||||||||||
| Distribution | ||||||||||||||||||||||||
| Segment gross profit (loss) | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | ||||||||||
| Reconciliation of Segment gross profit (loss) to Net loss before income taxes: | ||||||||||||||||||||||||
| Selling, general, and administrative expenses | $ | $ | ||||||||||||||||||||||
| Research and development expenses | ||||||||||||||||||||||||
| Other income, net | ( | ) | ( | ) | ||||||||||||||||||||
| Net loss before income taxes | $ | ( | ) | $ | ( | ) | ||||||||||||||||||
| Three Months Ended September 30, 2025 (As Adjusted (Note 1)) | Nine months ended September 30, 2025 (As Adjusted (Note 1)) | |||||||||||||||||||||||
| Chemical | Biofuel | Total | Chemical | Biofuel | Total | |||||||||||||||||||
| Revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||
| Cost of goods sold | ||||||||||||||||||||||||
| Distribution | ||||||||||||||||||||||||
| Segment gross loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
| Reconciliation of Segment gross loss to Net loss before income taxes: | ||||||||||||||||||||||||
| Selling, general, and administrative expenses | $ | $ | ||||||||||||||||||||||
| Research and development expenses | ||||||||||||||||||||||||
| Other income, net | ( | ) | ( | ) | ||||||||||||||||||||
| Net loss before income taxes | $ | ( | ) | $ | ( | ) | ||||||||||||||||||
Depreciation is allocated to segment cost of goods sold based on plant usage. The total assets and capital expenditures of FutureFuel have not been allocated to individual segments as large portions of these assets are shared to varying degrees by each segment, causing such an allocation to be of little value.
| 15) | LEGAL MATTERS |
From time to time, FutureFuel and its subsidiaries are parties to, or targets of, lawsuits, claims, investigations, regulatory matters, and proceedings, which are being handled and defended in the ordinary course of business. While FutureFuel is unable to predict the outcomes of these matters, it does not believe, based upon currently available facts, that the ultimate resolution of any such pending matters will have a material adverse effect on its overall financial condition, results of operations, or cash flows.
| 16) | SUBSEQUENT EVENTS |
On October 3, 2026, the Company entered into a new five-year supply agreement with an existing custom chemical customer for the supply of a proprietary product utilized in energy market applications. Because this transaction occurred subsequent to September 30, 2026, its financial impact is considered a non-recognized subsequent event and is not reflected in the unaudited consolidated financial statements for the three and nine months ended September 30, 2026.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations of FutureFuel Corp. (“FutureFuel”, “the Company”, “we”, or “our”) should be read together with our consolidated financial statements, including the notes thereto, set forth herein and in our 2025 Annual Report on Form 10-K. This discussion contains forward-looking statements that reflect our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements. See “Forward-Looking Information” below for additional discussion regarding risks associated with forward-looking statements.
In the first quarter of 2026, the Company elected to change its method of accounting for certain inventories in the U.S. from last in, first out ("LIFO") to weighted average cost. The Company believes the change to weighted average cost is preferable because it provides a better matching of costs and revenues, conforms the Company's inventory to a single method of accounting and improves comparability with the Company's peers. The Company retrospectively applied this change in accounting principle to all prior periods contained herein.
Unless otherwise stated, all dollar amounts are in thousands.
The designation “NA” (Not Applicable) in the tables below appears when a percentage change is calculated between a negative and a positive number (or positive and negative), rendering the result meaningless.
Overview
Our Company is managed and reported in two reportable segments: chemicals and biofuels. Within the chemical segment are two product groupings: custom chemicals and performance chemicals. The custom product group is composed of specialty chemicals manufactured for a single customer whereas the performance product group is composed of chemicals manufactured for multiple customers. The biofuel segment is composed of one product group. Management believes that the diversity of each segment strengthens the Company in its ability to utilize resources and is committed to growing each segment.
The biodiesel segment was supported by the United States Environmental Protection Agency (“EPA”) Renewable Fuel Standard (“RFS”). We generate 1.5 Renewable Identification Numbers (“RINs”) for each gallon of biodiesel sold in the United States with a classification of a D4 or D6 RIN. RINs are used to monitor the level of renewable fuel traded in a given year in accordance with RFS within the EPA moderated transaction system. We do not assign cost of goods sold to the generation of RINs as the physical fuel generates the full cost. As of September 30, 2026, we held 0.7 million D4 RINs with a fair market value of $1,536. Comparatively, as of September 30, 2025, we held 0.4 million D4 RINs with a fair market value of $361.
On March 27, 2026, the EPA finalized the “Set 2” RFS volumes establishing the highest blending mandates in the program’s history targeting a 60% increase over 2025. The EPA estimates the mandate will require roughly 5.3 to 5.4 billion physical gallons of biomass diesel in 2026 and 5.7 to 5.8 billion gallons in 2027. The rule reduced the RIN equivalency factor for renewable diesel from 1.7 to 1.5 (from a revenue advantage on every gallon sold of 13% to 6%) (the same as biodiesel) effective January 1, 2027 which represents a fundamental shift in the competitive and structural landscape of biodiesel. To meet the 2027 volume targets, utilization of domestic capacity is expected to be 100%. The EPA delayed the implementation of the half RIN penalty for imported fuels and feedstocks until January 1, 2028.
On February 4, 2026, the Treasury Department and the Internal Revenue Service issued proposed regulations providing expanded guidance on the clean fuel production credit (“CFPC”) integrating changes from the Budget Reconciliation Act of 2025, which made modifications to the CFPC. The proposed rule is expected to help level the competitive environment for biodiesel by: (i) reducing the tax credit for sustainable aviation fuel from $1.75 per gallon to $1.00 per gallon effective January 1, 2026, and (ii) requiring that all feedstock be sourced from North America, as required for biomass-based diesel. On June 12, 2026, the Department of Energy released the updated 45ZCF-GREET model to help biofuel producers calculate carbon intensity for the CFPC.
On June 30, 2026, the Company contracted with Freepoint Commodities to sell its 2025 CFPC and Small Agri-Biodiesel Producer Tax Credits which were $2,725 net of fees. The Company collected the cash for the 2025 credits in the three months ended September 30, 2026. The Company also committed to sell its 2026 credits which were $13,807 as of September 30, 2026. The Company expects that 2026-2029 tax credits will be monetized at each fiscal year end unless an early draw provision is made which would be subject to financing fees. As of September 30, 2026, no early draws had been made.
Summary of Financial Results
Set forth below is a summary of certain consolidated financial information for the periods indicated.
| Three Months Ended September 30, |
||||||||||||||||
| As Adjusted * | Dollar | % |
||||||||||||||
| 2026 |
2025 |
Change |
Change |
|||||||||||||
| Revenue |
$ | 104,675 | $ | 22,689 | $ | 81,986 | 361 | % | ||||||||
| Loss from operations |
$ | (8,850 | ) | $ | (9,377 | ) | $ | 527 | 6 | % | ||||||
| Net loss |
$ | (8,386 | ) | $ | (9,156 | ) | $ | 770 | 8 | % | ||||||
| Loss per common share: |
||||||||||||||||
| Basic |
$ | (0.19 | ) | $ | (0.21 | ) | $ | 0.02 | 10 | % | ||||||
| Diluted |
$ | (0.19 | ) | $ | (0.21 | ) | $ | 0.02 | 10 | % | ||||||
| Adjusted EBITDA |
$ | (4,926 | ) | $ | (5,315 | ) | $ | 389 | 7 | % | ||||||
| Nine Months Ended September 30, |
||||||||||||||||
| As Adjusted * | Dollar | % |
||||||||||||||
| 2026 |
2025 |
Change |
Change |
|||||||||||||
| Revenue |
$ | 215,353 | $ | 75,900 | $ | 139,453 | 184 | % | ||||||||
| Loss from operations |
$ | (18,442 | ) | $ | (44,394 | ) | $ | 25,952 | 58 | % | ||||||
| Net loss |
$ | (17,598 | ) | $ | (41,440 | ) | $ | 23,842 | 58 | % | ||||||
| Loss per common share: |
||||||||||||||||
| Basic |
$ | (0.40 | ) | $ | (0.95 | ) | $ | 0.55 | 58 | % | ||||||
| Diluted |
$ | (0.40 | ) | $ | (0.95 | ) | $ | 0.55 | 58 | % | ||||||
| Adjusted EBITDA |
$ | (6,929 | ) | $ | (32,786 | ) | $ | 25,857 | 79 | % | ||||||
* Adjusted to reflect the change in accounting methodology from LIFO to weighted average cost for inventory valuation. See Note 1 to our consolidated financial statements for additional information.
We use adjusted EBITDA as a key operating metric to measure both performance and liquidity. Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA is not a substitute for operating income, net income, or cash flow from operating activities (each as determined in accordance with GAAP) as a measure of performance or liquidity. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP. We define adjusted EBITDA as net (loss) income before interest, income taxes, depreciation, and amortization expenses, excluding, when applicable, non-cash stock-based compensation expenses, public offering expenses, acquisition-related transaction costs, purchase accounting adjustments, losses on disposal of property and equipment, non-cash gains or losses on derivative instruments, extraordinary maintenance, inventory reserve, credit loss allowances, and other non-operating income or expenses. Information relating to adjusted EBITDA is provided so that investors have the same data that we employ in assessing the overall operation and liquidity of our business. Our calculation of adjusted EBITDA may be different from similarly titled measures used by other companies; therefore, the results of our calculation are not necessarily comparable to the results of other companies.
Adjusted EBITDA allows our chief operating decision maker to assess the performance and liquidity of our business on a consolidated basis to assess the ability of our operating segments to produce operating cash flow to fund working capital needs, to fund capital expenditures, and to pay dividends. In particular, our management believes that adjusted EBITDA permits a comparative assessment of our operating performance and liquidity, relative to performance and liquidity based on GAAP results. This measure isolates the effects of certain items, including depreciation and amortization (which may vary among our operating segments without any correlation to their underlying operating performance), non-cash stock-based compensation expense (which is a non-cash expense that varies widely among similar companies), and non-cash gains and losses on derivative instruments (which can cause net income to appear volatile from period to period relative to the sale of the underlying physical product).
We utilize commodity derivative instruments primarily to attempt to mitigate the effect of commodity price volatility and to provide greater certainty of cash flows associated with sales of our commodities. We utilize mark-to-market accounting to account for these instruments. Thus, our results in any given period can be impacted, sometimes significantly, by changes in market prices relative to our contract price along with the timing of the valuation change in the derivative instruments relative to the sale of biofuel. We include the mark-to-market or non-cash portion of this item as an adjustment to adjusted EBITDA as we believe it provides a relevant indicator of the underlying performance of our business in a given period.
The following table reconciles net income (loss), the most directly comparable GAAP performance financial measure, with adjusted EBITDA.
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| As Adjusted * | As Adjusted * | |||||||||||||||
| 2026 |
2025 |
2026 |
2025 |
|||||||||||||
| Net loss |
$ | (8,386 | ) | $ | (9,156 | ) | $ | (17,598 | ) | $ | (41,440 | ) | ||||
| Depreciation |
2,640 | 2,404 | 7,971 | 7,143 | ||||||||||||
| Non-cash stock-based compensation |
224 | 226 | 753 | 688 | ||||||||||||
| Interest income, net |
(136 | ) | (824 | ) | (584 | ) | (3,129 | ) | ||||||||
| Non-cash interest expense and amortization of deferred financing costs |
29 | 29 | 85 | 91 | ||||||||||||
| Gain on disposal of property and equipment |
- | - | - | (34 | ) | |||||||||||
| Unrealized loss (gain) on derivative instruments |
442 | (123 | ) | (293 | ) | (404 | ) | |||||||||
| Change in allowance for credit losses |
5 | (14 | ) | 14 | 1 | |||||||||||
| Change in inventory reserve |
427 | 461 | 928 | 985 | ||||||||||||
| Extraordinary maintenance costs |
157 | 715 | 2,055 | 2,836 | ||||||||||||
| Other (expense) income |
- | 807 | (9 | ) | 302 | |||||||||||
| Income tax (benefit) provision |
(328 | ) | 160 | (251 | ) | 175 | ||||||||||
| Adjusted EBITDA |
$ | (4,926 | ) | $ | (5,315 | ) | $ | (6,929 | ) | $ | (32,786 | ) | ||||
The following table reconciles cash flows from operations, the most directly comparable GAAP liquidity financial measure, with adjusted EBITDA.
| Nine Months Ended September 30, |
||||||||
| As Adjusted * | ||||||||
| 2026 |
2025 | |||||||
| Net cash used in operating activities |
$ | (11,477 | ) | $ | (1,299 | ) | ||
| Deferred income taxes, net |
261 | (155 | ) | |||||
| Interest income, net |
(584 | ) | (3,129 | ) | ||||
| Income tax (benefit) provision |
(251 | ) | 175 | |||||
| Change in operating assets and liabilities, net |
3,076 | (31,516 | ) | |||||
| Extraordinary maintenance costs |
2,055 | 2,836 | ||||||
| Other (income) expense |
(9 | ) | 302 | |||||
| Adjusted EBITDA |
$ | (6,929 | ) | $ | (32,786 | ) | ||
Results of Operations
Consolidated
The following table summarizes the operating results of our Consolidated segments for the periods presented:
(in thousands, except percentages)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||||||||||||||||
| As Adjusted * | Change | As Adjusted * | Change | |||||||||||||||||||||||||||||
| 2026 |
2025 |
Amount |
% |
2026 |
2025 |
Amount |
% |
|||||||||||||||||||||||||
| Sales revenue |
$ | 104,675 | $ | 22,689 | $ | 81,986 | 361 | % | $ | 215,353 | $ | 75,900 | $ | 139,453 | 184 | % | ||||||||||||||||
| Volume/product mix effect |
36,327 | 160 | % | $ | 61,577 | 81 | % | |||||||||||||||||||||||||
| Price effect |
45,659 | 201 | % | $ | 77,876 | 103 | % | |||||||||||||||||||||||||
| Gross loss |
(5,437 | ) | (6,473 | ) | 1,036 | 16 | % | $ | (6,272 | ) | $ | (34,054 | ) | $ | 27,782 | 82 | % | |||||||||||||||
| Operating expenses |
(3,413 | ) | (2,904 | ) | (509 | ) | (18 |
)% | (12,170 | ) | (10,340 | ) | (1,830 | ) | (18 | )% | ||||||||||||||||
| Other income, net |
136 | 381 | (245 | ) | (64 |
)% | 593 | 3,129 | (2,536 | ) | (81 | )% | ||||||||||||||||||||
| Income tax (benefit) provision |
(328 | ) | 160 | (488 | ) | NA |
(251 | ) | 175 | (426 | ) | NA | ||||||||||||||||||||
| Net loss |
$ | (8,386 | ) | $ | (9,156 | ) | $ | 770 | 8 |
% | $ | (17,598 | ) | $ | (41,440 | ) | $ | 23,842 | 58 | % | ||||||||||||
*Adjusted to reflect the change in accounting methodology from LIFO to weighted average cost for inventory valuation. See Note 1 to our consolidated financial statements for additional information.
Sales Revenue
Three Months Ended September 30, 2026 vs. 2025
Consolidated revenue increased by $81,986 (361%) to $104,675 for the three months ended September 30, 2026, up from $22,689 for the prior year. This performance was primarily driven by two key tailwinds:
| • |
Volume and Product Mix: Contributed an increase of $36,327, largely propelled by a $34,990 increase from the biofuel segment with regulatory clarity, which did not exist in the prior-year period. |
| •
|
Pricing Dynamics: A favorable price variance contributed $45,654 in the biofuel segment, benefitting from favorable energy market conditions and geopolitical factors alongside regulatory tailwinds. |
Nine Months Ended September 30, 2026 vs. 2025
Consolidated revenue rose by $139,453 (184%) to $215,353 for the nine months ended September 30, 2026, compared to $75,900 for the prior-year period. Volume and product mix shifts generated $61,577 of the growth, supported by:
| • | A $42,813 increase in the biofuel segment due to market demand and regulatory support. |
| • | A $18,764 increase in energy product sales within the chemical segment. |
Gross Loss & Profitability Change
Gross loss in the three and nine months ended September 30, 2026, improved $1,036 and $27,782, respectively, as compared to the same periods of 2025. This variance was primarily driven by energy regulatory clarity in the biofuel segment, growth in the chemical segment, and energy market performance in both segments.
Operating Expenses
Operating expenses increased $509 in the three months ended September 30, 2026, as compared to the three months ended September 30, 2025. The net increase was primarily from additional extraordinary maintenance and repair expenditures of $157 related to Winter Storm Fern and a facility fire in earlier periods and increased compensation expenses of $99. Operating expenses increased $1,830 in the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. The net increase was primarily from extraordinary maintenance and repair expenses of $2,055, partially offset by reduced compensation and research and development expenses.
Other Income, net
Other income, net decreased $245 in the three months ended September 30, 2026, as compared to the same period of 2025, partially from a reduction in interest income. In the current three-month period interest income was $166 as compared to $1,012 in the prior period. Other income, net decreased $2,536 in the nine months ended September 30, 2026, as compared to the same period of 2025 primarily from the reduction in interest income. In the current nine-month period interest income was $673 as compared to $3,317 in the prior period.
Income tax provision
The effective tax rate for the three and nine months ended September 30, 2026, was 3.8% and 1.4%, respectively, compared to (1.8%) and (0.4%) for the same periods in 2025. For both periods, the effective tax rate differed from the U.S. federal statutory rate of 21% primarily due to the impact of the valuation allowance recorded against the Company's deferred tax assets. For the three and nine months ended September 30, 2026, the effective tax rate was also impacted by a discrete income tax benefit of $423 recorded in the third quarter of 2026 resulting from a reduction in the Company's valuation allowance. For the three and nine months ended September 30, 2025, the effective tax rate also reflected the decrease in the Company’s net deferred tax liability and immaterial state taxes and other items. The discrete income tax benefit of $423 recorded in the third quarter of 2026 relates to the Company’s election out of bonus depreciation for assets placed in service in 2025. During the third quarter of 2026, after the issuance of its 2025 consolidated financial statements, the Company decided to elect out of bonus depreciation under IRC § 168(k) for all applicable asset classes placed in service in 2025 on its 2025 federal income tax return. This election was made as part of the Company’s tax planning strategy to preserve future ordinary depreciation deductions and reduce the generation of net operating losses, which are subject to an 80% of taxable income limitation when utilized. The election reduced the Company’s 2025 gross net operating loss carryforward by $8,894 and changed the related deferred tax balances, which resulted in a corresponding $423 reduction in the valuation allowance. This reduction does not reflect a change in the Company’s judgment regarding the realizability of its deferred tax assets. The effect of the election was recognized as a discrete item in the third quarter of 2026, the period in which the decision was made.
Chemical Segment
The following table summarizes the operating results of our Chemical segment for the periods presented:
(in thousands, except percentages)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||||||||||||||||
| As Adjusted * | Change | As Adjusted * | Change | |||||||||||||||||||||||||||||
| 2026 |
2025 |
Amount |
% |
2026 |
2025 |
Amount |
% |
|||||||||||||||||||||||||
| Sales revenue |
$ | 16,920 | $ | 15,578 | $ | 1,342 | 9 | % | $ | 62,401 | $ | 41,562 | $ | 20,839 | 50 | % | ||||||||||||||||
| Volume/product mix effect |
1,337 | 9 | % | $ | 18,764 | 45 | % | |||||||||||||||||||||||||
| Price effect |
5 | 0 | % | $ | 2,075 | 5 | % | |||||||||||||||||||||||||
| Gross profit (loss) |
$ | 4,392 | $ | (4,054 | ) | $ | 8,446 | NA | $ | 6,811 | $ | (8,956 | ) | $ | 15,767 | NA |
||||||||||||||||
*Adjusted to reflect the change in accounting methodology from LIFO to weighted average cost for inventory valuation. See Note 1 to our consolidated financial statements for additional information.
Sales Revenue
Chemical revenue in the three months ended September 30, 2026, increased 9% or $1,342 compared to the three months ended September 30, 2025. Revenue from custom chemicals for the three months ended September 30, 2026 totaled $13,294, a net decrease of $1,163 from the same period in 2025, primarily resulting from lower sales volumes of products sold in the energy market of $1,943. Performance chemicals revenue was $3,626, an increase of $2,505 from the three months ended September 30, 2025 from sales of a new energy market product brought online in the fourth quarter of 2025.
Chemical revenue in the nine months ended September 30, 2026, increased 50% or $20,839 compared to the nine months ended September 30, 2025. Revenue from custom chemicals for the nine months ended September 30, 2026 totaled $45,685, a net increase of $8,569 from the same period in 2025, primarily resulting from higher sales volumes of products sold in the energy market of $6,565. Performance chemicals revenue was $16,716, an increase of $12,270 from the nine months ended September 30, 2025 from sales of the new energy market product brought online in the fourth quarter of 2025.
Gross Profit
Gross profit for the chemical segment was $4,392 and $6,811 for the three and nine months ended September 30, 2026, respectively, an improvement of $8,446 and $15,767, respectively, compared to the same periods of 2025. The improvement was primarily driven by increased sales volumes in the energy market including the new product revenue brought online in the fourth quarter of 2025.
Biofuel Segment
The following table summarizes the operating results of our Biofuel segment for the periods presented:
(in thousands, except percentages)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||||||||||||||||
| As Adjusted * | Change | As Adjusted * | Change | |||||||||||||||||||||||||||||
| 2026 |
2025 |
Amount |
% |
2026 |
2025 |
Amount |
% |
|||||||||||||||||||||||||
| Sales revenue |
$ | 87,755 | $ | 7,111 | $ | 80,644 | 1134 | % | $ | 152,952 | $ | 34,338 | $ | 118,614 | 345 | % | ||||||||||||||||
| Volume/product mix effect |
34,990 | 492 | % | $ | 42,813 | 125 | % | |||||||||||||||||||||||||
| Price effect |
45,654 | 642 | % | $ | 75,801 | 221 | % | |||||||||||||||||||||||||
| Gross loss |
$ | (9,829 | ) | $ | (2,419 | ) | $ | (7,410 | ) | (306 |
)% | $ | (13,083 | ) | $ | (25,098 | ) | $ | 12,015 | 48 | % | |||||||||||
*Adjusted to reflect the change in accounting methodology from LIFO to weighted average cost for inventory valuation. See Note 1 to our consolidated financial statements for additional information.
Sales Revenue
Biofuels segment revenue increased by $80,644, or 1,134%, to $87,755 for the three months ended September 30, 2026, compared to $7,111 for the three months ended September 30, 2025. The increase was primarily driven by the restart of manufacturing operations at our facility following an operational shutdown in the prior year period. During the third quarter of 2025, the facility was idled due to an absence of regulatory clarity regarding the CFPC, limiting prior-period commercial activity to 1.2 million gallons sold out of existing finished goods inventory. Following the resumption of operations, sales volume increased by 11.3 million gallons to 12.5 million gallons in the third quarter of 2026. Favorable market pricing and credit values contributed an additional $45,654 in positive price variance.
For the nine months ended September 30, 2026, segment revenue increased by $118,614, or 345%, to $152,952 compared to $34,338 in the prior-year period, reflecting increased production uptime and enhanced pricing realization across the active refining periods.
Customer Concentration
A significant portion of our biodiesel sales was concentrated among three and two major customers during the three and nine months ended September 30, 2026, respectively, and three and two major customers during the three and nine months ended September 30, 2025, respectively. We do not believe the loss of any single customer would have a material adverse effect on the segment or on our consolidated financial position because: (i) strong regional demand for compliant low-carbon biofuels exceeds our facility's nameplate capacity, allowing us to readily redirect volume to alternative refiners on equivalent terms ; (ii) sales are transacted under short-term purchase orders rather than long-term volume commitments; and (iii) commercial pricing is indexed t spot market commodity benchmarks.
Gross Loss
Biofuel gross widened by $7,410 to $9,829 for the three months ended September 30, 2026, compared to a loss of $2,419 in the prior-year period. Conversely, for the nine months ended September 30, 2026, gross loss narrowed by $12,015 to $13,083 compared to $25,098 in the prior-year period.
The three-month increase in gross losses of $7,410 was driven by:
| • | Facility Restart and Operating Fixed Costs: Plant operations were active during the current period after being idled during the third quarter of 2025 due to regulatory uncertainty surrounding the CFTC, resulting in an additional $7,900 in plant operating and fixed manufacturing expenses (comprising $4,900 in direct manufacturing costs and $3,000 in indirect facility expenses) compared to shutdown holding costs in the prior period. |
| • | Unfavorable Derivative Activity: Net derivative losses totaled $8,695 (including realized loss settlements of $8,253 and unrealized mark-to-market losses of $442), compared to net derivative gains of $171 (realized gains of $48 and unrealized gains of $123) in the prior-year period, representing an unfavorable period-over-period net variance of $8,866. These risk management contracts hedge commercial production; the realized losses reflect temporary timing differences that are expected to economically offset and benefit subsequent periods when the physical inventory is delivered. |
| • | Timing of Biodiesel RINs: Current-quarter results did not include the benefit of $1,536 of internally generated Renewable Identification Numbers (RINs) that remained unsold at September 30, 2026, representing an unfavorable timing variance of $1,175 compared to $361 in the prior-year period. The commercial value of these unsold RINs did not benefit current-period margin and will be realized in revenue in subsequent periods upon final sale. |
Partially Offsetting Operational Gains:
These cost and timing headwinds were partially offset by operational gains resulting from the facility restart, including an $80,644 increase in segment revenue driven by 11.3 million additional gallons sold. This volume expansion generated additional profit, including $6,880 of additional CFPC and Small Producers Tax Credits (SPTC), which allowed the segment to absorb fixed overhead across a larger production base, improving gross margin by 23 percentage points from -34% to -11%, and resulting in gross loss of $9,829.
The nine-month reduction in gross loss of $12,015 was driven by:
| • | Operating Margins and Volume: Greater regulatory clarity regarding CFPC guidelines and favorable market spreads strengthened margins including additional CFPC and SPTC of $11,130 and sales volume increased 14.0 million gallons to 23.0 million. |
| • | Partially Offset by Net Derivative Losses: Operational gains were partially offset by an unfavorable net variance of $19,104 in risk-management contracts. For the nine months ended September 30, 2026 we recorded net derivative losses of $18,483 (realized losses of $18,776 and unrealized gains of $293), compared to net derivative gains of $621 (realized gains of $217 and unrealized gains of $404) in the prior-year period. |
Derivative Instruments and Risk Management
For our derivative activity, we recognize all derivative instruments as either assets or liabilities at fair value in our consolidated balance sheets. The realized and unrealized derivative gains and losses are recorded as cost of goods sold. Our derivative instruments do not qualify for hedge accounting under the specific guidelines of ASC Topic 815, Derivatives and Hedging (“ASC 815”). None of the derivative instruments are designated and accounted for as hedges.
The volumes and carrying values of our derivative instruments included in other current assets were as follows:
| Asset (Liability) |
||||||||||||||||
| September 30, 2026 |
December 31, 2025 |
|||||||||||||||
| Contract Quantity |
Fair Value |
Contract Quantity |
Fair Value |
|||||||||||||
| Regulated fixed price future commitments (in thousand barrels) |
89 | $ | 280 | 165 | $ | (13 | ) | |||||||||
| All derivative instruments are entered into with the standard contract terms and conditions in accordance with major trading authorities of the New York Mercantile Exchange. |
Critical Accounting Estimates
Revenue Recognition
The Company recognizes revenue under ASC Topic 606, Revenue from Contracts with Customers. Certain long-term contracts had upfront non-cancellable payments considered material rights. The Company applied the renewal option approach in allocating the transaction price to the material rights. For each of these contracts, the Company estimated the expected contractual volumes to be sold at the most likely expected sales price as a basis for allocating the transaction price to the material right. Estimated amortization is updated quarterly on a prospective basis. These custom chemical contracts have payment terms of 30 days. See Note 3 to our consolidated financial statements for additional information.
For most product sales, revenue is recognized when product is shipped from our facilities and risk of loss and title have passed to the customer, which is in accordance with our customer contracts and the stated shipping terms. Nearly all custom manufactured products are manufactured under written master service agreements. Performance chemicals and biodiesel are generally sold pursuant to the terms of written purchase orders. In general, customers do not have any rights of return, except for quality disputes. All of our products are tested for quality before shipment, and historically returns have been inconsequential and we typically do not offer rebates.
Biodiesel selling prices can at times fluctuate based on the timing of unsold, internally generated RINs. From time to time, sales of biodiesel are on a “RINs-free” basis. Such method of selling results in applicable RINs being held. The value of the RINs is not reflected in revenue until such time as the RIN sale has been completed.
Revenue from bill-and-hold transactions in which a performance obligation exists is recognized when the total performance obligation has been met and control of the product has transferred. Bill-and-hold transactions for the three and nine months ended September 30, 2026 and 2025 were related to custom chemicals customers whereby revenue was recognized in accordance with contractual agreements based upon product being produced and ready for use by the customer. These sales were subject to written monthly purchase orders. The product was custom manufactured and stored at the customer’s request and could not be sold to another buyer. Credit and payment terms for bill-and-hold customers are similar to other custom chemicals customers. Revenues under bill-and-hold arrangements were $7,478 and $30,883 for the three and nine months ended September 30, 2026. As of September 30, 2026 and December 31, 2025, $4,522 and $5,106 of bill-and-hold revenue had not shipped, respectively.
Liquidity and Capital Resources
Our net cash from operating activities, investing activities, and financing activities for the nine months ended September 30, 2026 and 2025 is set forth in the following table.
| Nine Months Ended September 30, |
||||||||
| 2026 |
2025 |
|||||||
| Net cash used in operating activities |
$ | (11,477 | ) | $ | (1,299 | ) | ||
| Net cash used in investing activities |
(14,999 | ) | (14,426 | ) | ||||
| Net cash used in financing activities |
(3,509 | ) | (8,256 | ) | ||||
We believe that existing cash balances and cash flow to be generated from operating activities and borrowing capacity under the amended and restated credit agreement will be sufficient to fund operations, product development, cash dividends, and capital requirements for the foreseeable future.
Operating Activities
Cash used in operating activities was $11,477 in the nine months ended September 30, 2026, as compared to $1,299 in the same period of 2025. This increase in cash used was primarily attributable to the change in accounts receivable, including accounts receivable - related parties resulting in a cash outflow of $27,165, the change in inventory of $22,567, and the change in other assets of $8,762. The Company recognized $13,807 of 2026 production tax credits that had not yet been monetized during the nine months ended September 30, 2026. The Company expects to monetize those credits at fiscal year-end. Also contributing to the current period’s increase in cash used was the change in accrued expenses and other current liabilities of $1,756 and the change in deferred revenue of $786. Partially offsetting these cash outflows was the change in net income of $23,842, the change in accounts payable, including accounts payable - related parties, resulting in a cash inflow of $14,227, and the change in other noncurrent liabilities of $12,036, $12,500 of which was from a customer payment related to plant expansion. This payment supports the associated customer project and should be distinguished from recurring operating cash generation.
.
Investing Activities
Cash used in investing activities was $14,999 in the nine months ended September 30, 2026, as compared to $14,426 in the nine months ended September 30, 2025. This $573 increase in cash used was primarily due to an increase in capital expenditure of $1,900 partially offset by the change in the collateralization of derivative instruments of $1,361.
Financing Activities
Cash used in financing activities was $3,509 and $8,256 in the nine months ended September 30, 2026 and 2025, respectively, primarily for payments of dividends on our common stock.
Credit Facility
We have a credit agreement, as amended and restated on February 21, 2025, and further amended effective as of June 20, 2025, and December 22, 2025, with a syndicated group of commercial banks for $35,000. The loan is a revolving facility, the proceeds of which may be used for our working capital, capital expenditures, and general corporate purposes. The facility terminates on February 21, 2030. See Note 9 to our consolidated financial statements for additional information regarding our credit agreement.
We intend to fund future capital requirements for our businesses from cash flow as well as from existing cash, cash investments, and, if the need should arise, borrowings under our credit facility. We do not believe there will be a need to issue any securities to fund such capital requirements.
Dividends
During the three months ended June 30, 2026, a declaration for cash dividends of $0.01 per share was made for the third quarter of 2026. The cash dividends in the three months ended September 30, 2026 and 2025, amounted to $438 and $2,628, respectively. During the three months ended September 30, 2026, a cash dividend of $0.01 per share was declared for the fourth quarter of 2026. During the three months ended December 31, 2025, a cash dividend of $0.06 per share was declared and paid in the three months ended March 31, 2026. Regular cash dividends of $0.06 per share were paid on our common stock in each quarter of 2025. The declaration of these regular quarterly cash dividends was made in the three months ended December 31, 2024.
Capital Management
As a result of our initial equity offering, our subsequent positive operating results, the exercise of warrants, and the issuance of shares in our at-the-market offering, we accumulated excess working capital. Some of this excess working capital has been paid out as special and regular cash dividends. Third parties have not placed significant restrictions on our working capital management decisions.
A significant portion of these funds were held in cash or cash equivalents at multiple financial institutions such as depositary accounts, money market accounts, and other similar accounts at selected financial institutions.
Off- Balance Sheet Arrangements
We engage in two types of transactions to mitigate the impacts of changes in prices for both commodity sales and purchases. First, for our biofuel sales, we enter into the purchase and sale of futures contracts and options on futures contracts of energy commodities. This activity was captured in our consolidated balance sheets at September 30, 2026, and December 31, 2025 as derivative instruments recorded in accordance with ASC 815. Second, for our biofuel feedstocks, we execute purchase contracts and supply agreements with certain vendors that meet the normal purchase and normal sales exception of ASC 815. These transactions are recognized in earnings and were not recorded in our consolidated balance sheets at September 30, 2026, or December 31, 2025 to the extent that we are able to apply the normal purchase and normal sales exception of ASC 815. The purchase of biofuels feedstock generally involves two risk components: basis and price. Basis covers any refining or processing required as well as transportation. Price covers the purchases of the actual agricultural commodity. Both basis and price fluctuate over time. A supply agreement with a vendor constitutes a hedge when we have committed to a certain volume of feedstock in a future period and have fixed the basis for that volume.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
All dollar amounts expressed as numbers in these Market Risk Disclosures are in thousands
(except per share amounts).
In recent years, general economic inflation has not had a material adverse impact on our profit, as we have passed some price increases along to our customers. However, we are subject to certain market risks as described below.
Market risk represents the potential loss arising from adverse changes in market rates and prices. Commodity price risk is inherent in the chemicals and biofuels business both with respect to inputs (electricity, coal, raw materials, biofuel feedstock, etc.) and outputs (manufactured chemicals and biofuels).
We seek to mitigate our market risks associated with the manufacturing and sale of chemicals by entering into long-term sales contracts that include contractual market price adjustment protections to allow changes in market prices of key raw materials to be passed on to the customer. Such price protections are not always obtained, however, and some raw material price risk remains significant.
In order to manage price risk caused by market fluctuations in biofuel prices, we may enter into exchange-traded commodity futures and options contracts. We account for these derivative instruments in accordance with ASC 815. Under this standard, the accounting for changes in the fair value of a derivative instrument depends upon whether it has been designated as an accounting hedging relationship and, further, on the type of hedging relationship. To qualify for designation as an accounting hedging relationship, specific criteria must be met and appropriate documentation maintained. We had no derivative instruments that qualified under these rules as designated accounting hedges in the first nine months of 2026 or 2025. Changes in the fair value of our derivative instruments are recognized at the end of each accounting period and recorded in the consolidated statement of operations as a component of the cost of goods sold within the biodiesel segment.
Our immediate recognition of derivative instrument gains and losses can cause net income to be volatile from period to period due to the timing of the change in value of the derivative instruments relative to the volume of biofuel being sold. At September 30, 2026 and December 31, 2025, the fair value of our derivative instruments was a net asset of $280 and a net liability of $13, respectively.
Our gross profit will be impacted by the prices we pay for raw materials and conversion costs (costs incurred in the production of chemicals and biofuels) for which we do not possess contractual market price adjustment protection. These items are principally composed of yellow grease, used cooking oil, and cottonseed oil. The availability and price of these items are subject to fluctuations due to unpredictable factors such as weather conditions, overall economic conditions, governmental policies, commodity markets, and global supply and demand.
We prepared a sensitivity analysis of our exposure to market risk with respect to key raw materials and conversion costs for which we do not possess contractual market price adjustment protections, based on average prices for the first nine months of 2026. We included only those raw materials and conversion costs for which a hypothetical adverse change in price would result in a 1% or greater decrease in gross profit. Due to the currently compressed nine-month gross profit, we also eliminated raw materials and conversion costs with less than a $250 impact on gross profit to prevent abnormal results. Assuming that the prices of the associated finished goods could not be increased and assuming no change in quantities sold, a hypothetical adverse 10% change in the average price of the commodity listed below would result in the following change in gross profit.
| Volume Requirements |
Hypothetical Adverse |
Decrease in |
Percentage Decrease |
||||||||||||||
| Item |
(in thousands) (a) |
Units |
Change in Price |
Gross Profit |
in Gross Profit |
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| Biodiesel feedstocks |
18,752 | GAL |
10 | % | $ | 10,854 | 173.1 | % | |||||||||
| Electricity |
76 | MWH |
10 | % | 469 | 7.5 | % | ||||||||||
| Methanol |
4,415 | GAL |
10 | % | 615 | 9.8 | % | ||||||||||
| Sodium Methylate |
6,493 | LB |
10 | % | 486 | 7.7 | % | ||||||||||
| Natural Gas |
674 | MCF |
10 | % | 284 | 4.5 | % | ||||||||||
(a) Volume requirements and average price information are based upon volumes used and prices obtained for the nine months ended September 30, 2026. Volume requirements may differ materially from these quantities in future periods as our business evolves.
We had no borrowings at September 30, 2026, or December 31, 2025, and as such, we were not exposed to interest rate risk for those periods. Due to the relative insignificance of transactions denominated in foreign currency, we consider our foreign currency risk to be immaterial.
Item 4. Controls and Procedures.
Management’s Evaluation of our Disclosure Controls and Procedures
Under the supervision and with the participation of our chief executive officer and our principal financial officer and other senior management personnel, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15(d)-15(e)) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this report. Based on that evaluation, our chief executive officer and our principal financial officer have concluded that these disclosure controls and procedures, at September 30, 2026, were effective to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act are recorded, processed, summarized, and reported accurately and within the time periods specified in the SEC's rules and forms.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the quarter ended September 30, 2026, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II OTHER INFORMATION
Item 1. Legal Proceedings.
We are not a party to, nor is any of our property subject to, any material pending legal proceedings, other than ordinary routine litigation incidental to our business. However, from time to time, we may be a party to, or a target of, lawsuits, claims, investigations, and proceedings, including product liability, personal injury, asbestos, patent and intellectual property, commercial, contract, environmental, antitrust, health and safety, and employment matters, which we expect to be handled and defended in the ordinary course of business. While we are unable to predict the outcome of any matters currently pending, we do not believe that the ultimate resolution of any such pending matters will have a material adverse effect on our overall financial condition, results of operations, or cash flows. However, adverse developments could negatively impact earnings or cash flows in future periods.
Item 1A. Risk Factors.
There have been no material changes to risk factors; however, due to the uncertainty of the current economic environment, we encourage reference to the risk factors previously disclosed in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
None.
Item 5. Other Information.
Insider Trading Arrangements
There have been adoptions or terminations of Rule 10b5-1 plan or non-Rule 10b5-1 trading arrangements by any Section 16 officer or director of the Company during the quarter ended September 30, 2026.
Item 6. Exhibits.
| Exhibit |
Description |
| 3.1 | Fourth Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit No. 3.3.f to Amendment No. 2 to Form 10 filed February 29, 2008) |
| 3.2 | FutureFuel Corp.'s Bylaws (incorporated by reference to Exhibit No. 3.2.a to Form 10 filed April 24, 2007) |
| 4.1 | Registrations Rights Agreement dated July 12, 2006 among FutureFuel Corp., St. Albans Global Management, Limited Partnership, LLLP, Lee E. Mikles as Trustee of the Lee E. Mikles Gift Trust dated October 6, 1999, Lee E. Mikles as Trustee of the Lee E. Mikles Revocable Trust dated March 26, 1996 Douglas D. Hommert as Trustee of the Douglas D. Hommert Revocable Trust, Edwin A. Levy, Joe C. Leach, Mark R. Miller, RAS LLC, Edwin L. Wahl, Jeffery H. Call and Ken Fenton (incorporated by reference to Exhibit No. 4.5 to Form 10 filed April, 24, 2007) |
| 4.2 | Description of common stock (incorporated by reference to Exhibit No. 4.2 to Form 10-K filed March 16, 2021). |
| 31.1 |
Certification by the Chief Executive Officer of FutureFuel Corp. as required by Section 302 of the Sarbanes-Oxley Act of 2002 |
| 31.2 |
Certification by the Chief Financial Officer of FutureFuel Corp. as required by Section 302 of the Sarbanes-Oxley Act of 2002 |
| 32.1 |
Certification by the Chief Executive Officer and Chief Financial Officer of FutureFuel Corp. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| 101 |
Interactive Data Files** |
| 101.INS |
Inline XBRL Instance |
| 101.SCH |
Inline XBRL Taxonomy Extension Schema |
| 101.CAL |
Inline XBRL Taxonomy Extension Calculation |
| 101.DEF |
Inline XBRL Taxonomy Extension Definition |
| 101.LAB |
Inline XBRL Taxonomy Extension Labels |
| 101.PRE |
Inline XBRL Taxonomy Extension Presentation |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
| ** |
Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files in Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
Special Note Regarding Forward-Looking Information
This report, and the documents incorporated by reference into this report contain forward-looking statements. Forward-looking statements deal with our current plans, intentions, beliefs, and expectations, and statements of future economic performance. Statements containing such terms as “believe,” “do not believe,” “plan,” “expect,” “intend,” “estimate,” “anticipate,” and other phrases of similar meaning are considered to contain uncertainty and are forward-looking statements. In addition, from time to time we or our representatives have made or will make forward-looking statements orally or in writing. Furthermore, such forward-looking statements may be included in various filings that we make with the SEC, or in press releases, or in oral statements made by or with the approval of one of our authorized executive officers.
These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, those set forth under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in FutureFuel’s Annual Report on Form 10-K for the year ended December 31, 2025 and in our future filings made with the SEC. You should not place undue reliance on any forward-looking statements contained in this report which reflect our management’s opinions only as of their respective dates. Except as required by law, we undertake no obligation to revise or publicly release the results of any revisions to forward-looking statements. The risks and uncertainties described in this report and in subsequent filings with the SEC are not the only ones we face. New factors emerge from time to time, and it is not possible for us to predict which will arise. There may be additional risks not presently known to us or that we currently believe are immaterial to our business. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. If any such risks occur, our business, operating results, liquidity, and financial condition could be materially affected in an adverse manner. You should consult any additional disclosures we have made or will make in our reports to the SEC on Forms 10-K, 10-Q, and 8-K, and any amendments thereto. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained in this report.
S I G N A T U R E S
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| FUTUREFUEL CORP. |
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| By: |
/s/ Roeland Polet |
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| Roeland Polet, Chief Executive Officer |
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| Date: November 9, 2026 |
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| By: |
/s/ Rose M. Sparks |
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| Rose M. Sparks, Chief Financial Officer |
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| and Principal Financial Officer |
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| Date: November 9, 2026 |
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