Two National Guard members shot near White House
DALLAS - Vivakor, Inc. (NASDAQ:VIVK), a provider of energy transportation and storage services, reported Thursday a 7% increase in third-quarter revenue to $17.0 million compared to the same period last year. The company's shares, currently trading at $0.13, have fallen over 91% in the past year, reflecting significant investor concerns despite revenue growth.
The company's gross profit for the three months ended September 30, 2025, rose 173% to $4.7 million, with gross margin expanding to 27.8% from 10.8% in the prior-year period. This marks a substantial improvement from the 14% gross profit margin reported for the last twelve months, according to InvestingPro data.
Despite revenue growth, Vivakor posted a net loss of $36.0 million for the quarter, significantly wider than the $1.7 million loss reported in the third quarter of 2024. The company attributed the increased loss primarily to non-cash expenses, including a $9.8 million loss on conversion of debt and $14.4 million in non-cash interest expense. InvestingPro data shows Vivakor operates with a significant debt burden, with a debt-to-equity ratio of 0.84.
Adjusted EBITDA improved to approximately $4 million from a loss of $1.5 million in the same period last year. This quarterly improvement contrasts with the company's trailing twelve-month EBITDA of just $0.52 million, resulting in an extremely high EV/EBITDA ratio of 190.44.
On July 30, Vivakor completed the sale of certain non-core business units of Meridian Equipment Leasing, LLC and Equipment Transport, LLC. The transaction generated approximately $11 million in net consideration and eliminated about $59 million of debt. This debt reduction was crucial as InvestingPro analysis indicates the company has been quickly burning through cash, with negative free cash flow of $6.71 million.
"This third quarter represents a pivotal turning point for Vivakor," said James Ballengee, Chairman and CEO. "In July, we completed the divestiture of non-performing assets, a strategic move that strengthened our balance sheet and sharpened our focus on core, high-growth opportunities."
Revenue breakdown for the quarter included $4.7 million from transportation and logistics, $2.5 million from related party transportation and logistics, $0.9 million from related party terminaling and storage, and $8.9 million from supply and trading.
The company reported total assets of $160.1 million and stockholders' equity of $64.0 million as of September 30, 2025, according to the press release statement. With a current market capitalization of just $18.78 million, Vivakor is trading at a Price/Book ratio of 0.18, suggesting the stock may be undervalued according to InvestingPro Fair Value assessment. Investors should note that Vivakor's next earnings report is scheduled for November 26, 2025.
In other recent news, Vivakor, Inc. has completed its first major Liquid Petroleum Gas (LPG) trade valued at approximately $23 million, utilizing its Vivakor Supply & Trading platform and a $40 million Intermediation Credit Facility. Additionally, the company has announced a $24 million crude oil trading operation in the Permian Basin, marking a significant step in their crude oil marketing efforts. In another development, Vivakor has secured $2.7 million through a registered direct offering of shares, which includes agreements with an institutional investor for 13,000,000 shares of common stock and 2,000,000 pre-funded warrants. D. Boral Capital LLC served as the exclusive placement agent for this transaction.
The company also announced it will delay the payment date of a special dividend to December 31, 2025, due to the ongoing government shutdown, which has impacted necessary communications and filings with the Securities and Exchange Commission. The dividend may face further delays if the shutdown persists. These recent developments highlight Vivakor's active engagement in expanding its trading operations and managing financial strategies amidst external challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.