Safe & Green Development reports record Q3 revenue growth

MIAMI - Safe and Green Development Corporation (NASDAQ:SGD) reported third-quarter revenue of $3.5 million, representing a year-over-year increase of over 4,200% compared to $81,000 in the same period last year, according to a company press release. This dramatic growth continues the company’s trend, with revenue growth of 1,570% for the last twelve months.

The company posted a gross profit of $0.9 million with a gross margin of approximately 26%, up from 23% in the second quarter, though still below its trailing twelve-month gross margin of 31.52%. Despite the revenue growth, SGD recorded a net loss of $4.35 million, compared to a $2.34 million loss in Q3 2024. The increased loss was attributed primarily to acquisition-related operating costs and interest expenses. InvestingPro analysis indicates SGD is quickly burning through cash, with a concerning current ratio of just 0.12.

For the nine months ended September 30, 2025, SGD reported total revenue of $4.9 million, up from $0.2 million in the prior-year period, while the nine-month net loss widened to $12.3 million versus $7.4 million in 2024. The company carries a substantial debt burden of $26.71 million with a debt-to-equity ratio of 6.34, which may present challenges given its negative cash flow position.

The company stated that new equipment delivered to its Florida site after the quarter’s end is now operational and is expected to increase throughput and efficiency. SGD also highlighted the purchase of a new Microtec milling system scheduled to arrive in the fourth quarter, which the company says will enable production of high-margin growing media. These operational improvements come at a critical time, as SGD’s Altman Z-Score of -5.98 suggests significant financial distress.

"Our third quarter results show our continued focus on establishing a scalable foundation for the next stage of growth," said David Villarreal, Chief Executive Officer of Safe & Green Development Corporation, in the press release.

SGD expects certain integration expenses to continue through the fourth quarter, with a streamlined operating structure anticipated by early 2026. The company operates primarily in real estate development and environmental solutions, with a subsidiary that processes organic waste and provides logistics services. According to InvestingPro, SGD’s next earnings report is expected on November 14, 2025, which will be crucial for evaluating whether operational improvements are translating to financial recovery.

In other recent news, Safe and Green Development Corporation reported a remarkable 3,200% increase in revenue for the second quarter of 2025, totaling $1.4 million. This substantial growth is attributed to the acquisition and integration of Resource Group US Holdings LLC, completed during the quarter. Additionally, the company announced it has fully retired all of its outstanding convertible debt obligations, aiming to strengthen its balance sheet. Shareholders have also approved a reverse stock split, with the board authorized to decide on a specific ratio between 1-for-5 and 1-for-20. In operational developments, Safe and Green Development has deployed new industrial processing equipment at its sites in Southwest Florida. The equipment, including a Komptech Crambo Mobile shredder and a Diamond Z DZH6000 Series grinder, is already in operation. These recent developments highlight the company’s strategic initiatives and operational momentum.

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