Zefiro's Fiscal Q3 2026 marked the third consecutive quarter of positive adjusted EBITDA, totaling approximately USD $4.25 million year to date.
Compared to Fiscal Q3 of the previous year, Zefiro increased its gross profit by over USD $1.5 million (+153%).
Zefiro also grew its revenue by over USD $4 million (+58%).
These results were achieved while also reducing Zefiro's operating expenses by more than 14% and almost entirely overcoming the negative adjusted income from the previous year's Fiscal Q3.
Through key operational strategies, Zefiro was able to transcend the impacts of winter conditions during the months of January through March by performing methane monitoring in West Virginia in addition to well-plugging work in the southern region.
Bradford, Pennsylvania--(Newsfile Corp. - May 14, 2026) - ZEFIRO METHANE CORP. (Cboe Canada: ZEFI) (Frankfurt: Y6B) (OTCQB: ZEFIF) (the "Company", "Zefiro", or "ZEFI") today announced the Company's consolidated financial results for the fiscal quarter that ended March 31, 2026 ("Fiscal Q3 2026").
Zefiro has released a recording of its Fiscal Q3 2026 Earnings Call in which the Company's management team discusses these results. This recording is publicly available on Zefiro's YouTube channel and can be accessed through the following link: https://youtu.be/SxC49geoWao
Please Note: If no link to the earnings call recording video is visible above, please refer to the version of this press release on Zefiro's website or SEDAR+ where the link will appear.
Highlights From Zefiro's Fiscal Q3 2026 Results1 (All Figures in U.S. Dollars):
Quarterly revenue of approximately $11.0 million, reflecting over 58% growth year-over-year compared to approximately $6.95 million during the same period of the previous fiscal year;
Adjusted EBITDA of approximately $445,000, demonstrating solid profitability amid ongoing top-line growth and cost discipline;
Incurred approximately $652,000 in one-time expenses during the quarter related to the proxy dispute attributable to prior management; and
Total debt was reduced by approximately 33%, from $12.3 million to $8.2 million.
The Company's trajectory today is materially different from where it stood during the comparable period in the previous fiscal year, driven by the combined results from the first nine months of Zefiro's 2026 fiscal year:
Revenue increased by approximately 36% to $33.2 million;
Gross profit more than doubled, increasing to approximately $10.7 million; and
Generated adjusted EBITDA of approximately $4.25 million.
Zefiro Chief Executive Officer Catherine Flax commented, "The performance we have delivered at Zefiro over the past nine months, from strengthening our financial foundation to expanding operational capacity through our recent acquisition, reflects the alignment and execution of the entire Zefiro organization. We believe this is only the beginning, and we expect growth to further accelerate as we integrate the newly acquired equipment, expand our base of corporate clients, and continue to secure additional public funding opportunities."
Recent Business Highlights:
On May 6, 2026, Zefiro completed the USD $4.3 million acquisition of Viking Well Service's equipment fleet, expanding its operational footprint to a total of 13 states with current or recent operations (Press Release). Management expects the additional capacity added with this acquisition will increase incremental annual revenue by approximately USD $10.0 million while broadening the Company's customer base.
In April 2026, Zefiro completed a CAD $4.5 million private placement with two European strategic investors (Press Release), marking the Company's first primary equity financing since its IPO in April 2024. Net proceeds are expected to support accretive acquisitions and the continued organic growth of Zefiro subsidiary Plants & Goodwin ("P&G").
In January 2026, Zefiro eliminated USD $1.79 million of outstanding secured debt through loan satisfaction agreements with three creditors (Press Release). The transaction also generated approximately USD $450,000 in cash through warrant exercises.
During Fiscal Q3 2026, P&G completed its first-ever project in the State of Louisiana. The project was an energy infrastructure engagement valued at over USD $5.0 million, completed three weeks ahead of schedule (Press Release). With a contractor license now secured in Louisiana, P&G is positioned to pursue additional opportunities across the Gulf Coast region.
P&G is currently working on Wood 12F in Ohio, which is the second-largest orphan well remediation project in Company history. Wood 12F is valued at approximately USD $4.5 million and consists of 37 wells (Press Release). As of the end of Fiscal Q3 2026, 13 wells in Wood 12F had been completed. Additionally, P&G was awarded the Richland 5 project in Ohio valued at approximately USD $800,000 (Press Release).
Zefiro completed all pre-plugging methane quantification readings for its West Virginia MERP contract, generating approximately USD $850,000 in revenue from 849 wells. The Company expects an additional approximately USD $450,000 in revenue from post-plugging readings under the same contract (Press Release).
Looking Ahead:
The fourth quarter of Zefiro's fiscal 2026 year is expected to remain highly active and position the Company to deliver the strongest fiscal year in its history, with anticipated annual revenue exceeding USD $40.0 million. Management continues to see strong operational momentum across both legacy and newly expanded markets.
The Company remains focused on integrating and deploying the equipment acquired through the Viking transaction, while continuing to expand its public-sector customer base across multiple jurisdictions. The acquisition will enhance operational capacity and support additional long-term contract opportunities.
Zefiro expects additional federal and state orphan well remediation funding programs to be released throughout the balance of 2026. The Company remains well positioned to pursue these opportunities as governments continue prioritizing environmental remediation initiatives.
The Company's pipeline of active and prospective work for the present fiscal quarter and going into the summer months remains among the most robust in its history. Management continues to see strong bidding activity, increasing customer demand, and expanding opportunities across its core operating regions.
Third Fiscal Quarter Financial Highlights (in USD):
| For the three months ended | March 31, 2026 | March 31, 2025 |
| Revenue | $11,006,543 | $6,947,691 |
| Gross profit | $2,563,419 | $1,011,445 |
| Total operating expenses | ($3,761,274) | ($4,377,816) |
| Net Income (loss) and Comprehensive (loss) for the period | ($997,619) | ($3,488,208) |
| Basic and diluted loss per share for the period | ($0.01) | ($0.05) |
| Weighted average shares outstanding | 85,963,947 | 73,924,956 |
| Net Income (loss) for the period | ($1,003,394) | ($3,462,056) |
| Add: | ||
| Amortization | 802,492 | 944,898 |
| Share-based compensation | 188,120 | 501,629 |
| Maintenance Capex | (49,281) | (33,569) |
| Adjusted Net Income2 | ($62,063) | ($2,049,098) |
| Balances as of | March 31, 2026 | June 30, 2025 |
| Cash | $274,032 | $52,603 |
| Current assets | $6,643,489 | $4,649,923 |
| Total assets | $21,089,217 | $20,616,747 |
| Total liabilities | $17,046,046 | $19,832,463 |
| Total equity | $4,043,171 | $784,284 |
About Zefiro Methane Corp.
Zefiro is a U.S. environmental services company focused on strategically addressing methane emissions. Its fully integrated core operations include plugging oil/gas wells and measuring methane leaks. In 2025, Zefiro became the first-ever project developer to sell carbon credits originated under the ACR's orphan well methodology. Zefiro is also leveraging its team's expertise to develop a portfolio of proprietary environmental technologies, which can be commercialized at a global scale. For more information about Zefiro, please visit our website at https://www.zefiromethane.com/ and Follow Zefiro on LinkedIn.
On behalf of the Board of Directors of the Company,
ZEFIRO METHANE CORP.
Catherine Flax
Chief Executive Officer
For further information, please contact:
Zefiro Investor Relations
1 (800) 274-ZEFI (274-9334)
investor@zefiromethane.com
Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of applicable securities laws, including U.S. and Canadian securities regulations and laws. These forward-looking statements are based on current expectations, estimates, projections, beliefs, and assumptions of management, including those of Zefiro Methane Corp., as of the date of this news release. Forward-looking statements typically include words such as "anticipates," "outlook", "seeks", "expects," "intends," "plans," "believes," "estimates," "may," "will," "should," "could," "would," "continue," "forecast," "potential," "targets," "goals," "vision," "strategy," and similar expressions or variations thereof. These statements may relate to, among other things, the Company's operational outlook, expansion plans, future direction, strategic initiatives, business plans, regulatory environment, growth prospects, pipeline, financial performance, timing and scope of projects, future market conditions, funding and capital requirements, partnerships, or other business developments. 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.
In addition, any statements made in this news release are not guarantees of future performance and are subject to a number of known and unknown risks, uncertainties, and other factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to: fluctuations in commodity prices, changes in regulatory or political environments, operational risks, financing risks, market demand for emissions reduction or environmental services, delays in project execution, reliance on third-party partners or vendors, competition, and the overall economic environment. For a more detailed discussion of these factors and other risks, see the section entitled "Financial Risks" in Zefiro's management's discussion and analysis for the year ended June 30, 2025 and "Risk Factors" in Zefiro's annual information form for the year ended June 30, 2025, each of which is available under Zefiro's profile on SEDAR+ at www.sedarplus.ca/.
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; (v) Statements regarding future performance of Zefiro and its subsidiaries; as well as other risk factors set forth in the Company's most recent Prospectus 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.
Zefiro Methane Corp. does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements.
Also, this news release may include market and industry data obtained from various publicly available sources and other sources believed by the Company to be true. Although the Company believes it to be reliable, the Company has not independently verified any of the data from third-party sources referred to in this presentation or analyzed or verified the underlying reports relied upon or referred to by such sources, or ascertained the underlying assumptions relied upon by such sources. The Company does not make any representation as to the accuracy of such information.
This news release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Zefiro Methane Corp., nor shall it form the basis of or be relied upon in connection with any investment decision.
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/.
1 Please refer to Zefiro's SEDAR+ profile at www.sedarplus.ca/ for full filings containing these financial results.
All Figures in U.S. Dollars/USD Unless Otherwise Specified
2 See Non-IFRS Financial Measures
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/297555
Source: Zefiro Methane Corp.