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MIAMI - Safe and Green Development Corporation (NASDAQ:SGD) reported second quarter 2025 revenue of $1.4 million, representing a 3,200% increase compared to $42,000 in the same period last year, according to a company press release. According to InvestingPro data, the company’s revenue growth over the last twelve months reached an impressive 1,570%, though financial health indicators suggest challenges ahead with a weak overall financial health score.
The significant revenue growth was attributed to the acquisition and integration of Resource Group US Holdings LLC, which was completed in the second quarter. The company generated the $1.4 million in just one month since closing the acquisition.
Despite the revenue increase, SGD reported a net loss of $5.7 million for the quarter. After adjustments for impairment charges, bad debt expenses, and stock-based compensation, the adjusted EBITDA loss was $634,000.
The company has exited its legacy software and technology operations to focus on its core businesses of real estate and compost/transportation services. SGD is also reevaluating its real estate portfolio and has initiated appraisals of existing properties with plans to monetize select assets.
"Q2 2025 marks a transformational step forward for Safe and Green Development," said David Villarreal, CEO of Safe and Green Development Corporation. While the stock has shown recent momentum with a 17.8% gain over the past week, InvestingPro analysis indicates the company remains undervalued compared to its Fair Value estimate.
Management expects approximately $4 million in revenue for the third quarter of 2025, which would represent the first full quarter of operations with Resource Group.
The company noted it is evaluating a potential cryptocurrency treasury reserve opportunity that would require divesting Resource Group, but stated no acceptable letter of intent has been received for such a transaction. Resource Group remains part of SGD’s core business operations.
Safe and Green Development Corporation focuses on real estate development and environmental solutions, with operations including an 80-acre organics processing facility in Florida through its Resource Group subsidiary. The company’s gross profit margin stands at 31.5%, though InvestingPro data shows negative returns on assets at -45.5%, reflecting ongoing operational challenges.
In other recent news, Safe and Green Development Corporation has made significant strides with its acquisition of Resource Group US Holdings LLC. This acquisition aligns with SGD’s strategy to expand its portfolio of environmentally friendly soil solutions. Following the acquisition, SGD appointed three new board members: Bjarne Borg, James D. Burnham, and Anthony M. Cialone. In a strategic move, SGD’s subsidiary, Resource Group US Holdings LLC, is set to enter the high-value soil products market. The subsidiary plans to use Microtec milling technology to produce premium potting media and soil substrates. These products will be marketed under the "Renewable Earth" brand, utilizing advanced technology to convert woody and vegetative waste. This expansion marks a significant shift towards revenue-generating activities for SGD.
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