Earnings call transcript: NextNRG Q1 2025 revenue rises amid strategic expansions

NextNRG Inc (NASDAQ: NXXT), with a market capitalization of $386.4 million, reported a significant revenue increase in its Q1 2025 earnings call, driven by strategic acquisitions and product innovations. Despite reporting a net loss, the company highlighted its focus on transforming into a comprehensive energy technology provider. The stock closed at $3.16, reflecting an 8.41% decline from the previous close. According to InvestingPro analysis, the stock appears overvalued at current levels, despite showing a strong 21.48% return over the past week.

Key Takeaways

• NextNRG’s revenue rose by 19.6% year-over-year, reaching $27.8 million.
• The company reported a net loss of $16.2 million, or $4.66 per share.
• Strategic expansions included the acquisition of Shell Oil’s fleet and Yoshi’s Mobile Fueling business.
• NextNRG plans to deploy a utility-scale smart microgrid in Northern Florida.
• The stock price declined by 8.41% following the earnings report.

Company Performance

NextNRG demonstrated robust revenue growth, up 19.6% from last year, attributed to an expanded client base and strategic acquisitions. The company is positioning itself at the forefront of the energy transition, focusing on AI-driven energy infrastructure and clean energy solutions. InvestingPro data reveals the company operates with weak gross profit margins of 8.29% and faces liquidity challenges with a current ratio of 0.23. Despite the positive revenue trajectory, the company posted a net loss, reflecting ongoing investments in innovation and expansion.

Financial Highlights

• Revenue: $27.8 million (↑19.6% YoY)
• Gross Profit: $2.3 million, with a gross margin of 8% (↑200 basis points)
• Net Loss: $16.2 million, or $4.66 per share
• Gallons Delivered: 7.2 million (↑24% YoY)

Outlook & Guidance

For 2025, NextNRG aims to execute its first utility-scale smart microgrid deployment and launch wireless EV charging pilots. The company is exploring financing options and strategic partnerships to support these initiatives. Revenue forecasts for FY2025 and FY2026 are set at $31.24 million and $33.58 million, respectively. With a beta of -0.5, the stock often moves counter to market trends, which could provide diversification benefits. Discover more insights and 8 additional ProTips about NextNRG with an InvestingPro subscription, including exclusive access to comprehensive Pro Research Reports covering 1,400+ top stocks.

Executive Commentary

CEO Michael Farkas emphasized the company’s transformation: "We are building an integrated ecosystem where AI-driven energy infrastructure, microgrids, mobile fueling, and wireless EV charging create an integrated solution." He also highlighted the need for modernized infrastructure to support the surge in AI, data centers, and EV adoption.

Risks and Challenges

• Market Competition: Increasing competition in the clean energy sector could pressure margins.
• Technological Integration: Successful integration of new technologies is crucial for sustaining growth.
• Regulatory Environment: Changes in energy regulations could impact strategic initiatives.
• Supply Chain Disruptions: Potential disruptions could affect project timelines and costs.

Q&A

Analysts inquired about revenue growth drivers, which were attributed to an expanded client base and recent acquisitions. Questions also focused on the timeline for recognizing smart microgrid revenue, expected in 2025, and the strategic rationale behind ongoing M&A activities.

Full transcript - NextNRG Inc (NXXT) Q4 2024:

Conference Operator: Good day, and welcome to the NEX Energy Fourth Quarter and Full Year twenty twenty four Financial Call. All participants will be in a listen only mode. I would now like to turn the conference over to Mr. Jeff Ramson, CEO of PTG Advisory. Please go ahead, sir.

Jeff Ramson, PTG Advisory, PTG Advisory: Thank you, operator. Good afternoon, everyone, and thank you for joining us. With me today are Michael Farkas, Chief Executive Officer of Next Energy Joel Kleiner, Chief Financial Officer and Yehuda Levy, Founder and Manager of the legacy EZPhil business line, who served as CEO of EZPhil in 2024. Before we begin, I’d like to remind everyone that today’s call may contain forward looking statements. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially.

For a detailed discussion of these risks, please refer to our most recent filings with the SEC, including our Form 10 K for the year ended 12/31/2024. With that, I’ll turn the call over to CEO, Michael Farkas.

Michael Farkas, Chief Executive Officer, NEX Energy: Thank you, and good afternoon, everyone. 2024 was a defining year for Next Energy and marked the beginning of a new era as we transitioned from easy fill to a broader energy infrastructure platform under Next Energy brand. We took bold steps to position the company at the intersection of AI, clean energy and mobile fueling, three sectors driving the future of sustainable infrastructure. Let me walk you through a few key accomplishments from the year. We generated $27,800,000 in revenue, up nearly 20% from 2023, driven by continued growth in our mobile fueling business.

We improved operating efficiency, increasing gross margin despite inflationary pressures on fuel costs. We made significant progress on our smart microgrid platform with approximately $750,000,000 in planned deployments, including projects with municipalities, utilities and tribal nations. We advanced testing our wireless EV charging systems, which now include bi directional, static and dynamic charging capabilities, technology we believe will be market defining. As AI, data centers, EV adoption and green energy initiatives surge, outdated infrastructure is struggling to keep up. The need for smarter site specific and scalable energy solutions has never been greater.

Our platform delivers a comprehensive response to this shift. Utility system upgrades that leverage AI and machine learning to modernize traditional grid management and improve resiliency. Smart microgrid control management systems for new flexible energy deployments agnostic to the fuel source, wireless EV charging to support the next generation of commercial fleet electrification and easy fuel mobile fueling for traditional combustion engine fleets of today and a pathway to support their EV transition for tomorrow. Our vision is clear. We are building an integrated ecosystem where AI driven energy infrastructure micro grids, mobile fueling and wireless EV charging.

Together these solutions create an integrated ecosystem meeting the demands of rapidly electrifying data driven world. Let me now hand it off to our CFO, Joe Kleiner for a deeper dive into our financial results.

Conference Operator: Thank you, Michael. For the fiscal year ended 12/31/2024, total revenue was $27,800,000 compared to $23,200,000 in 2023, an increase of 19.6%. Growth was driven by higher average selling prices and increased fuel volumes in our Mobile Fueling segment. Cost of sales came in at $25,500,000 up from $21,900,000 the year prior, resulting in an estimated gross profit of $2,300,000 Despite the increase of cost of sales, gross margin improved by 200 basis points from 6% to 8%. Gallons delivered grew to $7,200,000 from $5,600,000 a growth of $1,400,000 gallons or 24%.

Operating expenses were $9,600,000 slightly down from $9,900,000 in 2023. This includes $8,500,000 in G and A expenses and $1,100,000 in depreciation and amortization. Operating loss narrowed to $7,300,000 from $8,500,000 in 2023. However, we recorded $8,900,000 in other expenses including a $4,500,000 charge related to a strategic default penalty interest and a $900,000 non cash loss from the extinguishment of related party debt and other finance related expenses tied to the capital structure transition. These factors led to a loss of $16,200,000 or $4.66 per share compared to $10,500,000 or $6.98 per share in 2023.

While the net loss increased, it’s important to note that much of this was driven by one time non operational expenses. In the beginning of this year, NEX Energy’s mobile fueling solution expanded into an additional five states through the acquisition of Shell Oil’s fleet, more than doubling our operational capacity. This January marked the initiation of fuel deliveries to the world’s leading e commerce company under a substantial long term agreement. Additionally, we’re experiencing consistent revenue growth across our key markets and fleet accounts nationwide. As of February 2025 year to date, we approximately delivered more than 2,800,000 gallons compared to 1,100,000 gallons in that same period in 2024.

That translates to growth in revenues of $10,100,000 compared to $4,200,000 dollars On a go forward basis, we are focused on achieving operating leverage as we expand into SaaS, licensing and smart microgrid deployments, which we expect to carry significantly higher margins than fuel distribution. We’re actively evaluating different financing options and strategic partnerships to support our 2025 growth plan. Back to you, Michael.

Michael Farkas, Chief Executive Officer, NEX Energy: Thank you, Joel. We believe 2025 will be a breakout year for NEX Energy. Where laser focused on number one, executing our first utility scale smart microgrid deployment in Northern Florida. 2, launching wireless EV charging pilots with strategic partners and municipalities. Three, expanding our mobile fueling network both organically and through acquisitions and four, generating new recurring revenue through licensing and SaaS gains for our AI driven microgrid technology.

We are transforming from a last mile fuel company into a comprehensive energy technology company. Thank you to our shareholders, our employees and our partners for believing in this mission. Operator, let’s now open the line for questions.

Conference Operator: Thank you. We will now begin the question and answer session. And at this time, I’ll pass it back to management to answer any questions.

Jeff Ramson, PTG Advisory, PTG Advisory: Thank you. So while we’re waiting to see if anything else comes in, I’ve got a couple of questions that were emailed in, Michael. Okay. So you talked about a 20% year over year revenue increase. Can you talk a bit more about what drove that increase?

Michael Farkas, Chief Executive Officer, NEX Energy: Expanded client base. In 2024, we were growing our business just by going out there and cultivating new relationships. And as you can see what happened in early twenty twenty five, we were able to acquire Shell Oil’s fleet of trucks. We entered a bunch of other states. We also acquired another business, Yoshi’s Mobile Fueling business.

So whatever growth rate we saw in 2024 is nothing compared to what we’re now seeing in 2025. As we posted even just a couple of days ago, the amazing growth that we had in February of twenty twenty five versus even January, which was a longer month. And we killed it compared to February of twenty twenty four. And we’re going to see consistent growth. We’re expanding and even some of the newer customers that we were able to bring on, they’re bringing us even more business.

They’re happy with how we’re taking care of them and we’re seeing a really nice upward trend in our fueling business.

Jeff Ramson, PTG Advisory, PTG Advisory: Okay. Another one I’ve got here is, when do you expect to recognize revenue from the smart microgrid projects?

Michael Farkas, Chief Executive Officer, NEX Energy: We’re actually expecting to see some of that here over this year. It’s very interesting the way we deploy these projects. We do own and operate these facilities. We have partners typically in deploying them. We have landowners that we lease the property from.

We have those that we sell the energy to under long term contracts. So we’re the table while we the table while we’re in the construction phase of the project. So there’s one component of it where we procure equipment, hardware, provide project management, our technology, and we’re able to monetize that in the project space. And then once the project is deployed and operational, we then have a revenue stream that’s derived from those assets for the Northern Florida projects, so roughly about thirty five years of clearly defined revenues. We know exactly what we’re getting paid for thirty five years.

Jeff Ramson, PTG Advisory, PTG Advisory: Okay, great. Thank you. Another question I’ve got is, what’s the current stage of your wireless EV charging tech and when do you expect commercial adoption?

Michael Farkas, Chief Executive Officer, NEX Energy: Great question. Again, it’s really the industry taking up the technology. So we’re working along with that. Most people don’t realize, but the Tesla cyber taxi that was previewed a couple of months ago, there is no way to charge a car with a plug. There’s only a way to wirelessly charge that vehicle.

So you’re going to start seeing more and more vehicles on the road. We are planning on deploying our first wireless charging road and starting that project this year. We’re looking at a project down here in Southern Florida that will be the largest of its kind deploying technology, bidirectional wireless charging that has not been deployed anywhere. It’s something that we have the patented technology on. So we should start seeing it in a pilot phase here during this year.

And as the industry takes the technology and commercializes it, we’ll be expanding them side by side doing so.

Jeff Ramson, PTG Advisory, PTG Advisory: Got it. Okay. The last question I have here is, will M and A be part of your strategy moving forward?

Michael Farkas, Chief Executive Officer, NEX Energy: Yes. Everyone who knows me historically in my half, yes, a large part of growth in my plan is through M and A. As you could see in the tail part of last year, we bought the Yoshi assets, the Mobile Fueling assets. In addition, we bought the Shell truck asset, the Shell fleet of trucks. So yes, we are very inquisitive by nature and we plan on growing both organically as well as through M and A activity.

Jeff Ramson, PTG Advisory, PTG Advisory: Those are all the questions I’ve got, Michael. So that’s it.

Michael Farkas, Chief Executive Officer, NEX Energy: Excellent. Thank you very much. It was a pleasure, everybody. Looking forward to doing this quarterly and keeping our stakeholders up to date and really aware of exactly what we’re working on. Thank you, everybody.

Conference Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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