Fuel Tech swings to $267K net loss in Q3 2026
Fuel Tech intends to pursue growth in core markets, power infrastructure and water treatment, alongside selective acquisitions.
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
Fuel Tech, Inc. (FTEK) reported third-quarter 2026 revenue of $8.676 million, up 16% from $7.490 million in the third quarter of 2025. Air Pollution Control revenue rose 38%, while FUEL CHEM revenue rose 3%. Consolidated gross margin was 45%, compared with 49%. The company recorded a $267,000 net loss, versus $303,000 net income, and an Adjusted EBITDA loss of $249,000, versus Adjusted EBITDA of $228,000. Selling, general and administrative expense was $3.657 million and included approximately $175,000 in non-recurring expense related to the CEO transition.
APC backlog was $16.6 million at September 30, compared with $14.3 million at June 30 and $7.0 million at December 31, 2025; it excluded recently awarded APC contracts valued at $3.3 million. At September 30, cash and cash equivalents were $6.830 million, short-term investments were $11.0 million, stockholders’ equity was $37.2 million, and the company reported no debt. For the first nine months, revenue was $21.241 million versus $19.430 million; net loss was $2.852 million versus $1.125 million, and operating cash flow was a $3.410 million use versus $4.583 million provided in the prior-year period.
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 pointThird-quarter revenue rose 16% to $8.676 million year over year.
Negative
- Moderate pointThird-quarter net result was a $267,000 loss, versus $303,000 income.
- Moderate pointNine-month net loss was $2.852 million, versus $1.125 million.
- Moderate pointNine-month operating cash flow was a $3.410 million use, versus $4.583 million provided.
- Minor pointAdjusted EBITDA was a $249,000 loss, versus $228,000 in the prior-year quarter.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
gross margin financial
backlog financial
Computational Fluid Dynamics technical
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were FTEK’s Q3 2026 revenue and net results?
What was Fuel Tech’s APC backlog?
How did FTEK’s segment gross margins compare in Q3 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
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Fuel Tech, Inc.
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(Registrant)
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Date: November 3, 2026
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By:
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/s/ Ellen T. Albrecht
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Ellen T. Albrecht
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Vice President, Chief Financial Officer
and Treasurer
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Exhibit 99.1
FOR IMMEDIATE RELEASE
FUEL TECH REPORTS 2026 THIRD QUARTER FINANCIAL RESULTS; OUTLINES FRAMEWORK FOR SUSTAINABLE GROWTH AND VALUE CREATION
WARRENVILLE, Ill., - November 3, 2026 – Fuel Tech, Inc. (NASDAQ: FTEK), a technology company using advanced engineering processes to provide emissions control systems and water treatment technologies in utility and industrial applications, today reported financial results for the third quarter ended September 30, 2026 and outlined a framework designed to support sustainable growth and value creation.
“Higher third quarter sales and continued backlog growth reflect the demand for our services and our progress in converting promising opportunities into new awards,” said Ramesh Nuggihalli, President and Chief Executive Officer. “This momentum underscores the relevance of our technology portfolio to customers’ evolving environmental and operational priorities and improves our visibility into future performance. Our strong financial position provides the resources and flexibility to drive long-term our growth.”
He continued, “Since joining Fuel Tech in August, I have developed a strong appreciation for the quality of our people, the breadth and value of our technology portfolio, our global reach and the attractive markets we serve. Our focus now is to convert these strengths into sustainable, above-market growth. We intend to pursue organic growth initiatives by deepening Fuel Tech’s presence in our core markets and pursuing burgeoning power infrastructure opportunities that support data center and AI infrastructure construction, as well as water and wastewater treatment. We are also focused on select M&A through a holistic, bottom-up strategy which identifies opportunities that strengthen our product portfolio and expand our channel presence.
“This is an active and ongoing process that will take time to fully implement, but the direction is clear. We are aligning our resources behind the opportunities where Fuel Tech can create the greatest value while establishing the strategic priorities and operating disciplines needed to drive more consistent financial performance and sustainable long-term value for our shareholders.”
Third Quarter 2026 (“Q3 2026”) Results Overview
All comparisons are to the third quarter ended September 30, 2025 unless otherwise stated.
Consolidated revenues for Q3 2026 rose 16% to $8.7 million from $7.5 million, driven by a 38% increase in revenues at the Company’s Air Pollution Control (“APC”) segment attributable to a significantly higher backlog during 2026 and progress on existing contracts. FUEL CHEM segment revenues rose by 3%.
Consolidated gross margin for Q3 2026 declined to 45% of revenues from 49% of revenues. APC gross margin declined to 40% from 47% due to changes in project and product mix. FUEL CHEM gross margin was 49% compared to 50%.
SG&A expenses for Q3 2026 were $3.7 million, or 42% of revenues, compared to $3.2 million, or 43% of revenues, reflecting higher employee related costs and professional fees, including a non-recurring expense of approximately $175,000 related to the CEO transition.
Interest income for Q3 2026 was $247,000 compared to $311,000.
Net loss in Q3 2026 was $(267,000), or $(0.01) per share, compared to net income of $303,000, or $0.01 per share.
Adjusted EBITDA loss was $(249,000) in Q3 2026 compared to an Adjusted EBITDA of $228,000.
Consolidated APC segment backlog at September 30, 2026 was $16.6 million compared to $14.3 million at June 30, 2026 and $7.0 million at December 31, 2025. Backlog at September 30, 2026 did not include the recently awarded APC contracts valued at $3.3 million.
Financial Condition
As of September 30, 2026, cash and cash equivalents were $6.8 million, short-term investments were $11.0 million, and long-term investments totaled $10.0 million. Stockholders’ equity as of September 30, 2026 was $37.2 million, or $1.19 per share, and the Company had no debt.
Conference Call
Management will host a conference call on Wednesday, November 4, 2026 at 10:00 am ET / 9:00 am CT to discuss the results and business activities. Interested parties may participate in the call by dialing:
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(877) 423-9820 (Domestic) or |
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(201) 493-6749 (International) |
The conference call will also be accessible via the Upcoming Events section of the Company’s web site at www.ftek.com. Following management’s opening remarks, there will be a question-and-answer session.
About Fuel Tech
Fuel Tech develops and commercializes state-of-the-art proprietary technologies for air pollution control, process optimization, water treatment, and advanced engineering services. These technologies enable customers to operate in a cost-effective and environmentally sustainable manner. Fuel Tech is a leader in nitrogen oxide (NOx) reduction and particulate control technologies, and its solutions have been installed on over 2,100 utility, industrial and municipal units worldwide. The Company’s chemical technologies improve the efficiency, reliability, fuel flexibility, boiler heat rate, and environmental status of combustion units by controlling slagging, fouling, corrosion and opacity. This includes Fuel Tech’s advanced TIFI® Targeted In-Furnace Injection™ technology which offers an innovative solution to fireside treatment on boilers using coal, oil or biomass. Water treatment technologies include DGI® Dissolved Gas Infusion Systems which utilize a patented saturator and a patent-pending channel injector to deliver supersaturated oxygen solutions and other gas-water combinations to target process applications or environmental issues. This infusion process has a variety of applications in the water and wastewater industries, including remediation, aeration, biological treatment and wastewater odor management. Many of Fuel Tech’s products and services rely heavily on the Company’s exceptional Computational Fluid Dynamics modeling capabilities, which are enhanced by internally developed, high-end visualization software. For more information, visit Fuel Tech’s web site at ftek.com.
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” as defined in Section 21E of the Securities Exchange Act of 1934, as amended, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and reflect Fuel Tech’s current expectations regarding future growth, results of operations, cash flows, performance and business prospects, and opportunities, as well as assumptions made by, and information currently available to, our management. Fuel Tech has tried to identify forward-looking statements by using words such as “anticipate,” “believe,” “plan,” “expect,” “estimate,” “intend,” “will,” and similar expressions, but these words are not the exclusive means of identifying forward-looking statements. These statements are based on information currently available to Fuel Tech and are subject to various risks, uncertainties, and other factors, including, but not limited to, those discussed in Fuel Tech’s Annual Report on Form 10-K in Item 1A under the caption “Risk Factors,” and subsequent filings under the Securities Exchange Act of 1934, as amended, which could cause Fuel Tech’s actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these statements. Fuel Tech undertakes no obligation to update such factors or to publicly announce the results of any of the forward-looking statements contained herein to reflect future events, developments, or changed circumstances or for any other reason. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including those detailed in Fuel Tech’s filings with the Securities and Exchange Commission.
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CONTACT: |
Devin Sullivan Managing Director The Equity Group Inc. Devin.Sullivan@theequitygroup.com
Conor Rodriguez Associate Conor.Rodriguez@theequitygroup.com |
FUEL TECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share and per share data)
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September 30, |
December 31, |
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2026 |
2025 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ | 6,830 | $ | 11,939 | ||||
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Short-term investments |
11,000 | 12,942 | ||||||
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Accounts receivable, less current expected credit loss of $107 and $108, respectively |
5,891 | 5,355 | ||||||
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Inventories, net |
382 | 373 | ||||||
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Prepaid expenses and other current assets |
899 | 1,335 | ||||||
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Total current assets |
25,002 | 31,944 | ||||||
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Property and equipment, net of accumulated depreciation of $17,748 and $19,433, respectively |
4,688 | 4,739 | ||||||
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Goodwill |
2,116 | 2,116 | ||||||
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Other intangible assets, net of accumulated amortization of $622 and $561, respectively |
587 | 646 | ||||||
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Right-of-use operating lease assets, net |
480 | 536 | ||||||
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Long-term investments |
9,950 | 6,991 | ||||||
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Other assets |
208 | 207 | ||||||
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Total assets |
$ | 43,031 | $ | 47,179 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
3,009 | $ | 3,242 | |||||
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Accrued liabilities: |
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Operating lease liabilities - current |
101 | 89 | ||||||
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Employee compensation |
744 | 1,308 | ||||||
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Other accrued liabilities |
1,124 | 1,634 | ||||||
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Total current liabilities |
4,978 | 6,273 | ||||||
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Operating lease liabilities - non-current |
421 | 491 | ||||||
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Deferred income taxes, net |
187 | 187 | ||||||
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Other liabilities |
294 | 296 | ||||||
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Total liabilities |
5,880 | 7,247 | ||||||
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Stockholders’ equity: |
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Common stock, $.01 par value, 40,000,000 shares authorized, 32,457,627 and 32,281,179 shares issued, and 31,216,789 and 31,074,438 shares outstanding, respectively |
324 | 322 | ||||||
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Additional paid-in capital |
165,775 | 165,616 | ||||||
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Accumulated deficit |
(124,648 | ) | (121,796 | ) | ||||
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Accumulated other comprehensive loss |
(1,763 | ) | (1,718 | ) | ||||
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Nil coupon perpetual loan notes |
76 | 76 | ||||||
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Treasury stock, at cost |
(2,613 | ) | (2,568 | ) | ||||
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Total stockholders’ equity |
37,151 | 39,932 | ||||||
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Total liabilities and stockholders’ equity |
$ | 43,031 | $ | 47,179 | ||||
See notes to condensed consolidated financial statements.
FUEL TECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except share and per-share data)
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Three Months Ended |
Nine Months Ended |
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September 30, |
September 30, |
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2026 |
2025 |
2026 |
2025 |
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Revenues |
$ | 8,676 | $ | 7,490 | $ | 21,241 | $ | 19,430 | ||||||||
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Costs and expenses: |
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Cost of sales |
4,771 | 3,829 | 12,017 | 10,281 | ||||||||||||
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Selling, general and administrative |
3,657 | 3,207 | 10,967 | 9,895 | ||||||||||||
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Research and development |
771 | 450 | 1,941 | 1,510 | ||||||||||||
| 9,199 | 7,486 | 24,925 | 21,686 | |||||||||||||
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Operating (loss) income |
(523 | ) | 4 | (3,684 | ) | (2,256 | ) | |||||||||
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Interest income |
247 | 311 | 753 | 1,127 | ||||||||||||
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Other income (expense), net |
9 | (5 | ) | 88 | 15 | |||||||||||
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(Loss) income before income taxes |
(267 | ) | 310 | (2,843 | ) | (1,114 | ) | |||||||||
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Income tax expense |
— | (7 | ) | (9 | ) | (11 | ) | |||||||||
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Net (loss) income |
$ | (267 | ) | $ | 303 | $ | (2,852 | ) | $ | (1,125 | ) | |||||
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Net (loss) income per common share: |
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Basic net (loss) income per common share |
$ | (0.01 | ) | $ | 0.01 | $ | (0.09 | ) | $ | (0.04 | ) | |||||
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Diluted net (loss) income per common share |
$ | (0.01 | ) | $ | 0.01 | $ | (0.09 | ) | $ | (0.04 | ) | |||||
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Weighted-average number of common shares outstanding: |
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Basic |
31,217,000 | 31,074,000 | 31,164,000 | 30,890,000 | ||||||||||||
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Diluted |
31,217,000 | 31,293,000 | 31,164,000 | 30,890,000 | ||||||||||||
See notes to condensed consolidated financial statements.
FUEL TECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(in thousands)
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Three Months Ended |
Nine Months Ended |
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September 30, |
September 30, |
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2026 |
2025 |
2026 |
2025 |
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Net (loss) income |
$ | (267 | ) | $ | 303 | $ | (2,852 | ) | $ | (1,125 | ) | |||||
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Other comprehensive income (loss): |
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Foreign currency translation adjustments |
(12 | ) | (14 | ) | (45 | ) | 132 | |||||||||
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Comprehensive (loss) income |
$ | (279 | ) | $ | 289 | $ | (2,897 | ) | $ | (993 | ) | |||||
See notes to condensed consolidated financial statements.
FUEL TECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
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Nine Months Ended |
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September 30, |
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2026 |
2025 |
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Operating Activities |
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Net loss |
$ | (2,852 | ) | $ | (1,125 | ) |
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Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
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Depreciation |
537 | 490 | ||||
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Amortization |
62 | 27 | ||||
| Loss on disposal of equipment | 15 | — | ||||
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Interest income on held-to-maturity securities, net of premium amortization and discount accretion |
81 | (91 | ) | |||
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Provision for credit losses, net of recoveries |
(1 | ) | — | |||
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Stock-based compensation, net of forfeitures |
161 | 269 | ||||
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Changes in operating assets and liabilities: |
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Accounts receivable |
(556 | ) | 3,066 | |||
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Employee retention credit receivable |
— | 1,677 | ||||
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Inventory |
(9 | ) | (4 | ) | ||
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Prepaid expenses, other current assets and other non-current assets |
429 | 318 | ||||
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Accounts payable |
(226 | ) | (560 | ) | ||
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Accrued liabilities and other non-current liabilities |
(1,051 | ) | 516 | |||
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Net cash (used in) provided by operating activities |
(3,410 | ) | 4,583 | |||
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Investing Activities |
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Purchases of equipment and patents |
(505 | ) | (231 | ) | ||
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Purchases of debt securities |
(12,102 | ) | (10,004 | ) | ||
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Maturities of debt securities |
11,000 | 11,000 | ||||
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Net cash (used in) provided by investing activities |
(1,607 | ) | 765 | |||
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Financing Activities |
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Taxes paid on behalf of equity award participants |
(45 | ) | (222 | ) | ||
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Net cash used in financing activities |
(45 | ) | (222 | ) | ||
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Effect of exchange rate fluctuations on cash |
(47 | ) | 41 | |||
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Net (decrease) increase in cash and cash equivalents |
(5,109 | ) | 5,167 | |||
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Cash and cash equivalents at beginning of period |
11,939 | 8,510 | ||||
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Cash and cash equivalents at end of period |
$ | 6,830 | $ | 13,677 | ||
See notes to condensed consolidated financial statements.
FUEL TECH, INC.
Segment Data- Reporting Segments
(Unaudited)
(in thousands)
Information about reporting segment net sales and gross margin from operations is provided below:
| Air Pollution | FUEL CHEM | |||||||||||||||
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Three months ended September 30, 2026 |
Control Segment |
Segment |
Other |
Total |
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Revenues from external customers |
$ | 3,746 | $ | 4,930 | $ | — | $ | 8,676 | ||||||||
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Cost of sales |
(2,246 | ) | (2,525 | ) | — | (4,771 | ) | |||||||||
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Gross margin |
1,500 | 2,405 | — | 3,905 | ||||||||||||
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Selling, general and administrative |
— | — | (3,657 | ) | (3,657 | ) | ||||||||||
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Research and development |
— | — | (771 | ) | (771 | ) | ||||||||||
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Income (loss) from operations |
$ | 1,500 | $ | 2,405 | $ | (4,428 | ) | $ | (523 | ) | ||||||
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Air Pollution |
FUEL CHEM |
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Three months ended September 30, 2025 |
Control Segment |
Segment |
Other |
Total |
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Revenues from external customers |
$ | 2,707 | $ | 4,783 | $ | — | $ | 7,490 | ||||||||
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Cost of sales |
(1,428 | ) | (2,401 | ) | — | (3,829 | ) | |||||||||
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Gross margin |
1,279 | 2,382 | — | 3,661 | ||||||||||||
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Selling, general and administrative |
— | — | (3,207 | ) | (3,207 | ) | ||||||||||
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Research and development |
— | — | (450 | ) | (450 | ) | ||||||||||
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Income (loss) from operations |
$ | 1,279 | $ | 2,382 | $ | (3,657 | ) | $ | 4 | |||||||
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Air Pollution |
FUEL CHEM |
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Nine months ended September 30, 2026 |
Control Segment |
Segment |
Other |
Total |
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Revenues from external customers |
$ | 8,135 | $ | 13,106 | $ | — | $ | 21,241 | ||||||||
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Cost of sales |
(5,010 | ) | (7,007 | ) | — | (12,017 | ) | |||||||||
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Gross margin |
3,125 | 6,099 | — | 9,224 | ||||||||||||
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Selling, general and administrative |
— | — | (10,967 | ) | (10,967 | ) | ||||||||||
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Research and development |
— | — | (1,941 | ) | (1,941 | ) | ||||||||||
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Income (loss) from operations |
$ | 3,125 | $ | 6,099 | $ | (12,908 | ) | $ | (3,684 | ) | ||||||
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Air Pollution |
FUEL CHEM |
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Nine months ended September 30, 2025 |
Control Segment |
Segment |
Other |
Total |
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Revenues from external customers |
$ | 6,515 | $ | 12,915 | $ | — | $ | 19,430 | ||||||||
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Cost of sales |
(3,713 | ) | (6,568 | ) | — | (10,281 | ) | |||||||||
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Gross margin |
2,802 | 6,347 | — | 9,149 | ||||||||||||
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Selling, general and administrative |
— | — | (9,895 | ) | (9,895 | ) | ||||||||||
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Research and development |
— | — | (1,510 | ) | (1,510 | ) | ||||||||||
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Income (loss) from operations |
$ | 2,802 | $ | 6,347 | $ | (11,405 | ) | $ | (2,256 | ) | ||||||
FUEL TECH, INC.
Geographic Segment Financial Data
(Unaudited)
(in thousands)
Information concerning our operations by geographic area is provided below. Revenues are attributed to countries based on the location of the end-user. Assets are those directly associated with operations of the geographic area.
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Three Months Ended |
Nine Months Ended |
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September 30, |
September 30, |
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2026 |
2025 |
2026 |
2025 |
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Revenues: |
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United States |
$ | 7,490 | $ | 5,626 | $ | 18,638 | $ | 15,427 | ||||||||
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Foreign |
1,186 | 1,864 | 2,603 | 4,003 | ||||||||||||
| $ | 8,676 | $ | 7,490 | $ | 21,241 | $ | 19,430 | |||||||||
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September 30, |
December 31, |
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2026 |
2025 |
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Assets: |
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United States |
$ | 40,654 | $ | 44,345 | ||||
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Foreign |
2,377 | 2,834 | ||||||
| $ | 43,031 | $ | 47,179 | |||||
FUEL TECH, INC.
RECONCILIATION OF GAAP NET LOSS TO EBITDA AND ADJUSTED EBITDA
(Unaudited)
(in thousands)
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Three Months Ended |
Nine Months Ended |
|||||||||||||||
|
September 30, |
September 30, |
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2026 |
2025 |
2026 |
2025 |
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Net Loss |
$ | (267 | ) | $ | 303 | $ | (2,852 | ) | $ | (1,125 | ) | |||||
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Interest income |
(247 | ) | (311 | ) | (753 | ) | (1,127 | ) | ||||||||
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Income tax expense |
- | 7 | 9 | 11 | ||||||||||||
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Depreciation expense |
184 | 163 | 537 | 490 | ||||||||||||
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Amortization expense |
18 | 9 | 62 | 27 | ||||||||||||
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EBITDA |
(312 | ) | 171 | (2,997 | ) | (1,724 | ) | |||||||||
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Stock compensation expense |
63 | 57 | 161 | 269 | ||||||||||||
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Adjusted EBITDA |
$ | (249 | ) | $ | 228 | $ | (2,836 | ) | $ | (1,455 | ) | |||||
Adjusted EBITDA
To supplement the Company's consolidated financial statements presented in accordance with generally accepted accounting principles in the United States (GAAP), the Company has provided an Adjusted EBITDA disclosure as a measure of financial performance. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax expense (benefit), depreciation expense, amortization expense, and stock compensation expense. The Company's reference to these non-GAAP measures should be considered in addition to results prepared in accordance with GAAP standards, but are not a substitute for, or superior to, GAAP results.
Adjusted EBITDA is provided to enhance investors' overall understanding of the Company's current financial performance and ability to generate cash flow, which we believe is a meaningful measure for our investor and analyst communities. In many cases non-GAAP financial measures are utilized by these individuals to evaluate Company performance and ultimately determine a reasonable valuation for our common stock. A reconciliation of Adjusted EBITDA to the nearest GAAP measure of net income (loss) has been included in the above financial table.