ThinkEquity analyst Ashok Kumar has begun coverage of NextNRG (NXXT, Financial), awarding the company a Buy rating and setting a price target of $6. This decision highlights the firm's strategic transformation from a fuel delivery service to a business concentrated on distributed energy infrastructure. According to the analyst, NextNRG has undergone significant changes, including a corporate reorganization, strategic acquisitions, and securing exclusive technology licenses. These efforts have expanded the company’s operations into areas such as mobile fueling, artificial intelligence-driven smart microgrids, and wireless electric vehicle charging.
NXXT Key Business Developments
Release Date: May 22, 2025
- Revenue: $16.3 million in Q1 2025, a 146% increase from $6.6 million in Q1 2024.
- Delivery Volumes: 4.7 million gallons, up 183% from 1.7 million gallons in Q1 2024.
- Cost of Sales: $15.8 million, up from $6.1 million in the previous year.
- Gross Profit: Approximately $517,000.
- Operating Expenses: $6.3 million, including $5.5 million in G&A and $733,000 in depreciation and amortization.
- Loss from Operations: $5.8 million, up from $1.9 million in Q1 2024.
- Net Loss: $8.9 million or $1.6 per share, compared to $2.7 million or $1.48 per share in Q1 2024.
- Cash: $2.1 million, a 31% increase from $1.6 million at year-end.
- Accounts Receivables: $3.9 million, more than doubling from $1.6 million in Q1 2024.
- Equity Financing: Over $50 million raised during the quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue increased by 146% year over year to $16.3 million in Q1 2025, driven by mobile fueling operations and strategic acquisitions.
- Delivery volumes rose by 183%, highlighting successful integration of Shell and Yoshi fleet assets and onboarding of major national accounts.
- Expansion into multiple new states, enhancing national footprint and market reach.
- Strong technology pipeline with developments in smart microgrids and wireless EV charging, positioning the company for future growth.
- Successful equity financing raised over $50 million, providing critical capital for national expansion and strategic initiatives.
Negative Points
- Cost of sales increased significantly to $15.8 million, narrowing gross margins due to strategic spending on fleet scaling and expansion.
- Operating expenses rose to $6.3 million, leading to a loss from operations of $5.8 million, reflecting aggressive investment in infrastructure and talent.
- Net loss available to common shareholders increased to $8.9 million, up from $2.7 million in Q1 2024.
- Interest on debt financing contributed to $3.2 million in net and other net expenses.
- Despite revenue growth, the company faces challenges in achieving profitability due to high operational and expansion costs.
