0001437749-26-015281
SEC filingQ1 revenue declined 40% to $10.4M and gross profit fell 92% to $367K due to expiring contracts and margin compression, while operating cash flow rose sharply to $12.4M from a data center advance payment supporting elevated capex.
Gross profit plunged 91.9% to $367 thousand from $4.5 million, shrinking the gross margin to 3.5%. Higher cost of revenues contributed, consistent with new operating leases and shifts in revenue mix from expiring higher-margin contracts. Operating expenses in cost of revenues rose in line with these dynamics, pressuring profitability as the company transitions to new revenue streams.
The net loss expanded to $4.1 million or $0.22 diluted EPS from $1.6 million or $0.09, driven by the sharp gross profit decline amid sustained operating costs. This underscores near-term challenges in the LNG industry, where the company faces substantial business risks and uncertainties with no assurance of future cash flows to sustain operations or growth.