Zefiro Methane Corp. Announces Record Quarterly Earnings with Revenue of USD $12.1 Million

• Record quarterly revenue of approximately $12.1 million
• Reduced net operating expenses by approximately $1.25 million compared to the prior year as a result of management's focus on cost-cutting
• Record quarterly EBITDA of approximately $2.6 million

Fort Lauderdale, Florida--(Newsfile Corp. - November 14, 2025) - ZEFIRO METHANE CORP. (Cboe Canada: ZEFI) (FSE: Y6B) (OTCQB: ZEFIF) (the "Company", "Zefiro", or "ZEFI") today announced the Company's consolidated financial results for the fiscal quarter that ended September 30, 2025 ("first quarter 2026").

Fiscal Quarter 2026 Results:¹

• Zefiro achieved record quarterly revenue of approximately $12.1 million, a ~21% increase over the Company's previous record quarterly revenue, in the first quarter of fiscal 2025.
• Operating expenses declined approximately $1.3 million to $3.1 million compared to $4.4 million in the first quarter of fiscal year 2025, resulting in positive net income and free cash flow for the current quarter.²
  • G&A expenses decreased from $1.03 million last year to $0.55 million this year (~47% decrease).
  • Salaries and benefits decreased from $1.33 million last year to $1.12 million this year (~16% decrease).
• Strong top-line performance combined with disciplined cost control resulted in record quarterly EBITDA of approximately $2.6 million for the first quarter 2026.

Chief Executive Officer Catherine Flax commented, "This performance reflects the effectiveness of Zefiro's new management team, and our strategic focus on revenue generating business lines. We have conducted a thorough review of all expenses and implemented measures to eliminate unnecessary spending. Alongside these decisive cost-cutting initiatives, the team has executed strongly in the field, driving revenue growth through improved operational performance. By streamlining operations and maintaining a sharp focus on efficiency, the Company has strengthened its financial foundation and is well positioned for sustained profitability and growth as it enters fiscal 2026."

Recent Highlights:

• Zefiro has been awarded a second material federally funded project in Ohio, consisting of 37 orphan wells. This project marks a significant initiative for the Company in a strategically important market. Operations on the new project are expected to begin in November and continue through Spring 2026, providing additional revenue to offset normal seasonal fluctuations
• Zefiro recently secured a two-year well retirement contract with a top-tier industry operator, expanding the Company's partnership
• In August 2025, the Company completed the first publicly announced sale of carbon offsets from its ACR Project 959 ("ACR959"), delivering the initial tranche of certified credits to Mercuria Energy America, LLC. This issuance verified a reduction of 92,956 metric tons of CO₂. The Company has since delivered carbon credits to two additional strategic buyers, underscoring the growing demand for its verified emissions reductions
• In September 2025, the Company repaid and retired its $350,000 promissory note from X Machina Capital Strategies Fund I LP
• In November 2025, the Company repaid and retired its $100,000 promissory note from X Machina Capital Strategies Fund I LP. This repayment further demonstrates Zefiro's commitment to financial discipline and reducing its debt obligations

Looking Ahead:

• The second quarter of fiscal year 2026 is expected to be another strong quarter, as preliminary October results point to one of the highest revenue months in the Company's history. This momentum reflects continued demand for the Company's service offerings and strong execution across all business lines. Under the leadership of Luke Plants, CEO of subsidiary Plants & Goodwin, the Company has sharpened its focus on core service lines, driving sustained revenue growth and improved financial performance
• With the Company's renewed focus on revenue generation and cost disciplined, Zefiro is prioritizing future free cash flow over the next six months toward reducing outstanding debt, strengthening its balance sheet, and enhancing financial flexibility for future growth initiatives.

First Fiscal Quarter Financial Highlights (in USD):

About Zefiro Methane Corp.

Zefiro is an Environmental Services Company, specializing in methane abatement. Zefiro strives to be a key commercial force towards Active Sustainability. Leveraging decades of operational expertise, Zefiro is building a new toolkit to clean up air, land, and water sources directly impacted by methane leaks. The Company has built a fully integrated ground operation driven by an innovative monetization solution for the emerging methane abatement marketplace. As an originator of high-quality U.S.-based methane offsets, Zefiro aims to generate long-term economic, environmental, and social returns.

Forward-Looking Statements

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information is often, but not always, identified by the use of words such as "seeks", "believes", "plans", "expects", "intends", "estimates", "anticipates" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. In particular, this news release contains forward-looking information including statements regarding: the Company's intention to reduce emissions from end-of-life oil and gas wells and eliminate methane gas; the Company's partnerships with industry operators, state agencies, and federal governments; the Company's expectations for continued increases in revenues and EBITDA growth as a result of these partnerships; the Company's intentions to build out its presence in the United States; the anticipated federal funding for orphaned well site plugging, remediation and restoring activities; the Company's expectations to become a growing environmental services company; the Company's ability to provide institutional and retail investors alike with the opportunity to join the Active Sustainability movement; the Company's ability to generate long-term economic, environmental, and social returns; and other statements regarding the Company's business and the industry In which the Company operates. The forward-looking information reflects management's current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking information. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed timeframes or at all. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to: (i) adverse general market and economic conditions; (ii) changes to and price and volume volatility in the carbon market; (iii) changes to the regulatory landscape and global policies applicable to the Company's business; (iv) failure to obtain all necessary regulatory approvals; and (v) other risk factors set forth in the Company's Prospectus dated April 8, 2024 under the heading "Risk Factors". The Company operates in a rapidly evolving environment where technologies are in the early stage of adoption. New risk factors emerge from time to time, and it is impossible for the Company's management to predict all risk factors, nor can the Company assess the impact of all factors on Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking information. Forward-looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof, including, but not limited to, the assumption that general business and economic conditions will not change in a materially adverse manner. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information. The forward-looking information included in this news release is made as of the date of this news release and the Company expressly disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law.

Non-IFRS Financial Measures

Zefiro has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS) including: (a) Adjusted EBITDA. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow.

Statement Regarding Third-Party Investor Relations Firms

Disclosures relating to investor relations firms retained by Zefiro Methane Corp. can be found under the Company's profile on SEDAR+ at www.sedarplus.ca/.

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¹ Please refer to Zefiro's SEDAR+ profile at www.sedarplus.ca/ for full filings containing these financial results.
² Free cash flow is a non-IFRS financial measure; additional details and reconciliations to comparable IFRS measures are provided in the Company's most recent MD&A available on SEDAR+.
³ See Non-IFRS Financial Measures

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/274646