NextNRG stock initiated with Buy rating at ThinkEquity on energy pivot

Published 23/06/2025, 11:56
NextNRG stock initiated with Buy rating at ThinkEquity on energy pivot

Investing.com - ThinkEquity initiated coverage on NextNRG Inc. (NASDAQ:NXXT) with a Buy rating and a $6.00 price target on Monday. The stock currently trades at $2.99, with InvestingPro analysis indicating the company’s overall financial health score as weak, based on comprehensive evaluation of growth, profitability, and cash flow metrics.

The research firm highlighted NextNRG’s strategic repositioning from on-demand fuel delivery to a distributed energy infrastructure platform through corporate reorganization, acquisitions, and technology licenses. The company now operates across mobile fueling, AI-driven smart microgrids, and wireless EV charging, targeting revenue from asset deployment, SaaS integration, and energy services.

Mobile fueling remains NextNRG’s primary revenue driver, generating $16.3 million with 4.7 million gallons delivered in Q1 2025. The company expanded its logistics footprint to seven states with 144 vehicles after integrating Shell TapUp and Yoshi Mobility fleets, while gross profit rose to $518,000 through improved routing and delivery density. InvestingPro data shows impressive revenue growth of 52.3% over the last twelve months, though operating with thin gross margins of 6.3%.

NextNRG plans to begin construction on its first commercial smart microgrid deployment in Northern Florida in 2025, with a project pipeline exceeding $750 million across tribal, municipal, and commercial sites. The company also holds seven exclusive patents in wireless power transfer and EV charging, with a 3.2-mile pilot road deployment planned in South Florida.

Despite revenue growth, NextNRG remains unprofitable with Q1 adjusted EBITDA at negative $3.4 million and a net loss of $8.9 million. The company ended Q1 with $2.1 million in cash and a working capital deficit of $24.0 million, including $10.9 million in related-party debt linked to CEO Michael Farkas, who holds 68% of outstanding equity. InvestingPro analysis reveals concerning liquidity metrics with a current ratio of 0.22, suggesting potential challenges in meeting short-term obligations. Discover more insights and 7 additional ProTips with an InvestingPro subscription, including detailed analysis of the company’s financial health and growth prospects.

In other recent news, NextNRG Inc. reported a substantial 146% increase in revenue for the first quarter of 2025, reaching $16.3 million. Despite this growth, the company experienced a net loss of $8.9 million, or $1.60 per share. The company attributed its revenue growth to strategic expansions, including the integration of fleet assets from Shell and Yoshi, and the onboarding of a major national e-commerce customer. Additionally, NextNRG will be added to the Russell 2000 and Russell 3000 indexes, which are benchmarks for approximately $10.6 trillion in assets. This inclusion is considered a significant milestone for the company. The company also expanded its mobile fuel delivery operations through acquisitions, further enhancing its market presence. Looking forward, NextNRG aims to expand its smart microgrid deployments and develop wireless charging technologies. The company continues to focus on partnerships in sustainable energy financing, targeting over 1 gigawatt of utility microgrid projects.

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