second quarter of 2026
Filed Aug 6, 2026Revenue Growth of 20%, Positive Gross Profit, and Increased Dairy RNG Production
Revenue, gross profit, operating income and Adjusted EBITDA improved materially, supported by Section 45Z production tax credits and stronger California Ethanol and Dairy RNG operations, but the company remained loss-making, interest expense increased, cash declined to $1.0 million, and management is pursuing financing initiatives for near-term obligations and growth.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $62.7 million | – | 20% |
| Section 45Z tax credit income recognized as revenueGAAP | $8.6 million | – | – |
| Gross profitGAAP | $13.5 million | – | $17.0 million improvement |
| Selling, general and administrative expensesGAAP | $7.7 million | – | increased by $423 thousand |
| Operating incomeGAAP | $5.8 million | – | – |
| Interest expense, excluding accretion of Series A preferred units in the Aemetis Biogas LLC subsidiaryGAAP | $13.7 million | – | – |
| Accretion of Series A preferred unitsGAAP | $1.5 million | – | – |
| Net lossGAAP | $9.4 million | – | improved by $14.0 million |
| Adjusted EBITDAnon-GAAP | $9.7 million | – | increase of $15.5 million |
| Dairy RNG sales volumeother | 146,900 MMBtu | – | 38% |
| Ethanol gallons soldother | 15.5 million gallons | – | 12% |
| Average ethanol selling priceother | $2.19 per gallon | – | 9% |
| Delivered cost of cornother | $6.07 per bushel | – | – |
| RevenueGAAP | $117.3 million | – | – |
| Production tax credit income recognized as revenueGAAP | $12.6 million | – | – |
| Gross profitGAAP | $16.3 million | – | – |
| Selling, general and administrative expensesGAAP | $16.8 million | – | – |
| Operating lossGAAP | $0.6 million | – | – |
| Interest expense, excluding accretion and other expenses of Series A preferred units in Aemetis Biogas LLC subsidiaryGAAP | $28.0 million | – | – |
| Accretion and other expenses in connection with preference payments on preferred unitsGAAP | $3.1 million | – | – |
| Net lossGAAP | $31.1 million | – | an improvement |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Dairy RNGIncreased RNG production, rising price of LCFS credits, and the seven approved LCFS provisional pathways. | $2.1 million of Section 45Z tax credit income recognized as revenue | – | – |
| California EthanolLower delivered cost of corn of $6.07 per bushel compared to $6.42 per bushel, alongside Section 45Z production tax credits. | $6.5 million of Section 45Z tax credit income recognized as revenue | – | – |
| India BiodieselBiodiesel sales fell reflecting a lack of new purchases by OMC customers in India. | $2.5 million | – | – |
third quarter of 2026 and 2026 outlook
- NoteTwo biogas dairy digesters are expected to be commissioned in the third quarter.
- NoteThe MVR upgrade at Keyes is expected to become operational in 2026.
What drove it
- Revenue growth across California Ethanol and Dairy RNG segments.
- Section 45Z production tax credits recognized as revenue.
- Dairy RNG sales volume grew 38% to 146,900 MMBtu.
- Ethanol gallons sold were 12% higher at 15.5 million gallons and average ethanol selling price rose 9% to $2.19 per gallon.
- California Ethanol profitability improved from the lower delivered cost of corn of $6.07 per bushel compared to $6.42 per bushel.
- Dairy RNG profitability improved from increased RNG production, rising price of LCFS credits, and seven approved LCFS provisional pathways.
Concerns
- Net loss was $9.4 million for the second quarter of 2026.
- Interest expense, excluding accretion of Series A preferred units, increased to $13.7 million from $12.3 million.
- Cash at the end of the second quarter of 2026 was $1.0 million compared to $4.9 million at the close of the fourth quarter of 2025.
- Biodiesel sales fell to $2.5 million reflecting a lack of new purchases by OMC customers in India.
- The company is pursuing a multi-track financing plan to address near-term obligations and fund continued growth.
What to watch
- Commissioning of two additional dairy digesters expected in the third quarter.
- Approval progress for six additional biogas pathways nearing approval.
- The MVR upgrade at Keyes, which is expected to become operational in 2026.
- Potential long-term financing of the Keyes ethanol plant and financing to support continued Dairy RNG digester buildout.
- Continued progress toward a potential initial public offering of Universal Biofuels Private Limited.
Balance sheet and cash flow
- Cash at the end of the second quarter of 2026 was $1.0 million compared to $4.9 million at the close of the fourth quarter of 2025.
- Investments in capital projects related to carbon intensity reductions at the Keyes ethanol plant and construction of dairy digesters of $8.6 million for the second quarter of 2026.
- Investments in capital projects of $15.1 million were made during the first half of 2026, comprised of investments in capital projects related to California Ethanol of $8.9 million and to Aemetis Biogas of $5.7 million.
Analysis
Aemetis reported a substantially improved second quarter. Revenue was $62.7 million, up 20% from $52.2 million, while gross profit was $13.5 million compared with a gross loss of $3.4 million. Operating income was $5.8 million versus an operating loss of $10.7 million, and Adjusted EBITDA was $9.7 million compared with negative $5.8 million. Section 45Z tax credit income recognized as revenue was $8.6 million, making the credits an important contributor to the reported result.
Operating trends were positive in the California Ethanol and Dairy RNG businesses. Dairy RNG sales volume increased 38% to 146,900 MMBtu. Ethanol gallons sold increased 12% to 15.5 million gallons, while average ethanol selling price rose 9% to $2.19 per gallon. Management attributed California Ethanol profitability improvement in part to a delivered corn cost of $6.07 per bushel compared with $6.42 per bushel, and cited increased RNG production, rising LCFS credit prices and seven approved LCFS provisional pathways for Dairy RNG profitability.
The improvement did not eliminate losses or financing pressure. Net loss was $9.4 million, although it improved from $23.4 million, while interest expense excluding preferred-unit accretion increased to $13.7 million from $12.3 million. Cash at quarter-end was $1.0 million compared with $4.9 million at the close of the fourth quarter of 2025. The company also reported $8.6 million of investments in carbon-intensity projects at Keyes and dairy-digester construction during the quarter.
For the first half, revenue was $117.3 million compared with $95.1 million, gross profit was $16.3 million compared with a gross loss of $8.4 million, and operating loss narrowed to $0.6 million from $26.2 million. Net loss improved to $31.1 million from $47.9 million. First-half production tax credit income recognized as revenue was $12.6 million, underscoring the contribution of the credits across the reported period.
Management expects two biogas dairy digesters to be commissioned in the third quarter and expects the Keyes MVR upgrade to become operational in 2026. It is also pursuing potential long-term Keyes financing, Dairy RNG buildout financing and a potential IPO of its India subsidiary. Execution on those projects, the additional biogas pathway approvals, cash resources and the ability to address near-term obligations are the central reported items to monitor.
Management, verbatim
Revenues during the second quarter of 2026 were $62.7 million, including $8.6 million of production tax credits. These results reflect strong execution by our California Ethanol and Dairy Renewable Natural Gas, segments, with each segment contributing to a 20% year-over-year revenue increase,
Todd Waltz, Chief Financial Officer of Aemetis
We posted gross profit of $13.5 million and operating income of $5.8 million in the quarter compared with a gross loss and operating loss in the same quarter last year, reflecting both operational improvement and the generation of Section 45Z Production Tax Credits.
Todd Waltz, Chief Financial Officer of Aemetis
Our focus on significantly improving cash flow from our California Ethanol segment is underway with the expansion of corn oil production and ongoing construction of the mechanical vapor recompression project, which uses on-site solar and local grid electricity to replace approximately 80% of the fossil natural gas used at the Keyes ethanol plant.
Eric McAfee, Chairman and CEO of Aemetis
Not in the filing
stated, not guessed- GAAP earnings per share
- Non-GAAP earnings per share
- Gross margin
- Operating cash flow
- Free cash flow
- Debt balance
- Share repurchases
- Dividends
- Total revenue by operating segment
- Prior-year comparison for Biodiesel sales
- Quantitative revenue guidance
- Quantitative gross-margin guidance
- Quantitative operating-expense guidance
- Quantitative tax-rate guidance
- Previous-release outlook for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.