Q3 FY2026
Filed Nov 9, 2026Q3 2026 revenue rose to $104.7 million on biofuel volumes and pricing, but the company still posted a GAAP net loss of ($8.4) million and Adjusted EBITDA of ($4.9) million; Q4 Adjusted EBITDA of approximately $7 million is guided.
Revenue more than quadrupled year over year and biofuel volumes reached a multi-year high, but the quarter stayed loss-making at the gross, net and Adjusted EBITDA levels, Chemicals volumes fell 27%, operating cash flow was negative, and cash fell to $21.3 million. The guidance for positive Q4 and full-year Adjusted EBITDA is the main positive element.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, Q3 2026GAAP | $104.7M | – | 361.3% |
| Total revenue, nine months 2026GAAP | $215.4M | – | – |
| Cost of goods sold and distribution, Q3 2026GAAP | $110.1M | – | – |
| Cost of goods sold and distribution, nine months 2026GAAP | $221.6M | – | – |
| Gross loss, Q3 2026GAAP | −$5.44M | – | – |
| Gross loss, nine months 2026GAAP | −$6.27M | – | – |
| Selling, general and administrative expenses, Q3 2026GAAP | $2.60M | – | – |
| Selling, general and administrative expenses, nine months 2026GAAP | $9.82M | – | – |
| Research and development expenses, Q3 2026GAAP | $817K | – | – |
| Research and development expenses, nine months 2026GAAP | $2.35M | – | – |
| Total operating expenses, Q3 2026GAAP | $3.41M | – | – |
| Total operating expenses, nine months 2026GAAP | $12.17M | – | – |
| Loss from operations, Q3 2026GAAP | −$8.85M | – | – |
| Loss from operations, nine months 2026GAAP | −$18.44M | – | – |
| Interest income, Q3 2026GAAP | $166K | – | – |
| Interest income, nine months 2026GAAP | $673K | – | – |
| Other income, net, Q3 2026GAAP | $136K | – | – |
| Other income, net, nine months 2026GAAP | $593K | – | – |
| Loss before income taxes, Q3 2026GAAP | −$8.71M | – | – |
| Loss before income taxes, nine months 2026GAAP | −$17.85M | – | – |
| Income tax (benefit) provision, Q3 2026GAAP | −$328K | – | – |
| Income tax (benefit) provision, nine months 2026GAAP | −$251K | – | – |
| Net loss, Q3 2026GAAP | ($8.4) million | – | increase of $0.8 million |
| Net loss, nine months 2026GAAP | −$17.60M | – | – |
| Diluted loss per share, Q3 2026GAAP | ($0.19) | – | increase of $0.02 per share |
| Diluted loss per share, nine months 2026GAAP | ($0.40) | – | – |
| Basic loss per share, Q3 2026GAAP | ($0.19) | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | ($4.9) million | – | increase of $0.4 million |
| Adjusted EBITDA, nine months 2026non-GAAP | −$6.93M | – | – |
| Net cash used in operating activities, Q3 2026GAAP | ($10.3) million | – | – |
| Net cash used in operating activities, nine months 2026GAAP | −$11.48M | – | – |
| Capital expenditures, Q3 2026GAAP | $3.3M | – | – |
| Capital expenditures, nine months 2026GAAP | −$16.72M | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $21.3M | – | – |
| Chemicals capacity utilization, Q3 2026other | 32% | – | – |
| Biofuels capacity utilization, Q3 2026other | 83% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Chemicals segment revenueCompany states the increase was due to higher sales volumes and product mix. Chemicals segment sales volume declined 27% year over year because of turnaround activity at two customer process units, and the company says incremental contributions from late 2025 capacity additions offset the volume decline. | $16.9 million (Q3 2026); $15,578 thousand prior year | – | 8.6% |
| Custom chemicals revenueCompany states this was primarily due to delayed shipments as a large customer rebalanced inventory and production downtime for a second customer during an extended, scheduled turnaround. | $13.3 million (Q3 2026); $14.5 million prior year | – | down 8.0% |
| Performance chemicals revenueCompany states this was primarily due to higher volumes from a new customer that began production in Q4 2025 and higher glycerin sales. | $3.6 million (Q3 2026); $1.1 million prior year | – | up 223% |
| Chemical segment gross profit (loss)Company states the improvement was driven by higher sales volumes in the energy market and greater fixed-cost absorption from strong biofuel volumes, partially offset by the customer disruptions. | $4.4 million gross profit (Q3 2026); $(4.0) million gross loss prior year | – | – |
| Biofuels segment revenueCompany states the increase was driven by greater regulatory clarity, record-high renewable volume obligation levels, and strong operational execution. Biofuel sales volumes rose 11.3 million gallons versus the prior-year quarter. | $87.8 million (Q3 2026); $7.1 million prior year | – | – |
| Biofuels segment gross lossCompany states significantly higher sales volumes and stronger pricing realization were more than offset by elevated input costs. The gross loss included ($2.3) million of hedging losses and excluded ($1.5) million of RIN inventory valuation, per the filing. | $(9.8) million gross loss (Q3 2026); $(2.4) million gross loss prior year | – | – |
Q4 2026 and full-year 2026 outlook
- NotePositive Adjusted EBITDA anticipated in Q4 2026 and full-year 2026, excluding unrealized gains and losses on derivative instruments and inventory valuation adjustments (per Financial Outlook section)
- NoteFourth quarter 2026 Adjusted EBITDA of approximately $7 million
- NoteFull-year 2026 capital expenditures of $25.8 million, including $10.2 million of customer-funded growth investments
- NoteMore than $26 million of customer-funded growth investments in 2027
- NoteNo major planned maintenance anticipated at Batesville through Q1 2027
- NoteInitial production batches with a reshoring European chemicals customer expected in Q1 2027 and full production rates by mid-2027
- NoteGlycerin refining potential annual profit increase of up to $5 to $10 million beginning in 2027 (company estimate)
Capital returns
- Payment of dividends: $(3,509) thousand in nine months 2026 versus $(7,884) thousand in nine months 2025
- Dividends payable: $578 thousand at September 30, 2026 versus $2,761 thousand at December 31, 2025
- Company states it will continue the quarterly cash dividend and maintain flexibility for opportunistic share repurchases, subject to business conditions and available liquidity; no repurchase amount is printed for the period
What drove it
- Biofuel volumes, pricing and regulatory clarity drove the revenue increase; the company attributes the increase to greater regulatory clarity, record-high renewable volume obligation levels and strong operational execution
- Pricing contributed $45.7 million and volume and product mix contributed $36.3 million of the $82 million revenue increase, per the filing
- Customer turnarounds reduced Q3 Adjusted EBITDA by approximately $4.3 million, according to the company
- Net derivative losses of $8.7 million in Q3 (realized $8.3 million, unrealized $0.4 million); the company expects to recover $2.3 million in derivative losses tied to physical inventory in Q4
- Biofuels utilization reached 83% in Q3 versus 56% in Q2, which the company describes as multi-year highs driven by improved plant reliability
- Company expects to sell $1.5 million of RINs in Q4 generated from Q3 biodiesel production; the related sales benefit was not in Q3 results
- Company states more than 90% of Q4 biodiesel production capacity is booked through early November
- Elevated soybean oil and other raw material costs are expected to affect Biofuels gross profit per gallon in the near term, per the filing
Concerns
- Net loss of ($8.4) million and Adjusted EBITDA of ($4.9) million remain negative for the quarter and ($6,929) thousand Adjusted EBITDA for nine months
- Gross loss of ($5.4) million in Q3 and gross loss of ($9.8) million in the Biofuels segment, which the company attributes partly to elevated input costs and derivative losses
- Chemicals sales volume declined 27% year over year and Chemicals capacity utilization was 32% versus 55% in the prior-year period
- Net cash used in operating activities was ($10.3) million in Q3 and ($11,477) thousand for nine months, compared with ($1.1) million and ($1,299) thousand in the prior year
- Cash fell to $21.3 million from $34.3 million at June 30, 2026, and from $51,316 thousand at December 31, 2025
- Accounts receivable, inventory, accounts payable and other noncurrent liabilities all rose from December 31, 2025 levels
- The headline describes the net loss change as an 'increase of $0.8 million', while the statement of operations shows the net loss narrowing from ($9.2) million to ($8.4) million; the reader should confirm the wording against the statements
What to watch
- Whether Q4 2026 Adjusted EBITDA reaches the approximately $7 million the company guides and whether full-year 2026 Adjusted EBITDA is positive
- Recovery of the $2.3 million derivative losses and sale of $1.5 million of RINs in Q4, which the company says are expected
- Return of the customer that paused orders to normal cadence in Q4 2026, as stated by the company
- Biofuels utilization and gross profit per gallon as soybean oil and raw material costs remain elevated
- Start of initial production with the reshoring European chemicals customer in Q1 2027 and full rates by mid-2027
- Realization of the glycerin refining opportunity, which the company estimates at up to $5 to $10 million of annual profit beginning in 2027
- Capital expenditures of $25.8 million for 2026 and more than $26 million of customer-funded growth investments in 2027
Balance sheet and cash flow
- Cash and cash equivalents: $21,331 thousand at September 30, 2026 versus $51,316 thousand at December 31, 2025 and $34.3 million at June 30, 2026
- Total assets: $204,045 thousand at September 30, 2026 versus $200,322 thousand at December 31, 2025
- Total liabilities: $59,564 thousand at September 30, 2026 versus $37,679 thousand at December 31, 2025
- Total stockholders' equity: $144,481 thousand at September 30, 2026 versus $162,643 thousand at December 31, 2025
- Accounts receivable, net: $22,535 thousand at September 30, 2026 versus $9,405 thousand at December 31, 2025
- Inventory, net: $33,555 thousand at September 30, 2026 versus $29,334 thousand at December 31, 2025
- Accounts payable: $21,833 thousand at September 30, 2026 versus $10,673 thousand at December 31, 2025
- Other noncurrent liabilities: $20,981 thousand at September 30, 2026 versus $8,299 thousand at December 31, 2025
- Revolving credit facility: $35 million with no outstanding borrowings
- Company attributes the Q3 cash decrease to the operating loss, increased working capital requirements and capital expenditures to support growth
- Q3 capital expenditures of $3.3 million included $0.6 million maintenance and $2.7 million discretionary; about 74% of the $2.7 million discretionary spend in nine months was customer-funded, per the filing
Analysis
FutureFuel reported third-quarter 2026 revenue of $104.7 million, up from $22.7 million in the prior-year quarter, and the filing prints a 361.3% increase. The company attributes $45.7 million of the $82 million increase to pricing, principally in Biofuels, and $36.3 million to volume and product mix. Biofuel revenue was $87.8 million against $7.1 million a year earlier, and Biofuel sales volume rose 11.3 million gallons. Chemical revenue rose 8.6% to $16.9 million, but Chemicals sales volume fell 27% year over year because of customer turnarounds. Custom chemicals revenue was down 8.0% and Performance chemicals revenue was up 223%.
Profitability remained negative. Total gross loss was ($5.4) million against ($6.5) million a year earlier. The Biofuels segment posted a gross loss of ($9.8) million, against ($2.4) million in the prior year, which the company attributes to elevated input costs and $8.7 million of net derivative losses in the group, offset in part by higher volumes and pricing. The Chemicals segment returned to a gross profit of $4.4 million from a gross loss of ($4.0) million. Net loss was ($8.4) million, or ($0.19) per diluted share, and Adjusted EBITDA was ($4.9) million. The company states that customer turnarounds reduced Q3 Adjusted EBITDA by approximately $4.3 million. Nine-month figures show revenue of $215,353 thousand against $75,900 thousand, and a nine-month net loss of $(17,598) thousand against $(41,440) thousand.
Cash flow and liquidity weakened in the quarter. Net cash used in operating activities was ($10.3) million for Q3, against ($1.1) million a year earlier, and cash fell to $21.3 million from $34.3 million at June 30, 2026. The company links the decline to the operating loss, higher working capital and capital expenditures. Accounts receivable, inventory, accounts payable and other noncurrent liabilities are all higher than at December 31, 2025. The company has a $35 million revolving credit facility with no borrowings outstanding. It continues to pay its quarterly dividend, with $(3,509) thousand paid in the first nine months of 2026 against $(7,884) thousand a year earlier. Full-year 2026 capital expenditures are guided at $25.8 million, including $10.2 million of customer-funded growth investment.
The guide is the main forward-looking element. The company expects fourth-quarter Adjusted EBITDA of approximately $7 million and positive Adjusted EBITDA for full-year 2026, excluding unrealized derivative gains and losses and inventory valuation adjustments. It expects Q4 derivative recovery of $2.3 million and RIN sales of $1.5 million, and says more than 90% of Q4 biodiesel capacity is booked. Management says Chemicals demand has strengthened into Q4 and that no major planned maintenance is expected at Batesville through Q1 2027. The filing gives no reconciliation for the full-year Adjusted EBITDA guide, and states that the company cannot quantify certain excluded items without unreasonable effort.
The figures that deserve attention are the gap between Q3 operating results and the Q4 guide, the Chemicals volume decline, negative operating cash flow, and the falling cash balance. The filing's wording on the net loss change in the headline ('increase of $0.8 million') does not match the statement of operations, which shows the loss narrowing, and the reader should check that point against the primary statements.
Management, verbatim
Third quarter results reflected strong biodiesel demand and improved production economics, offset by extended maintenance on two dedicated chemicals production units that weighed on volumes, operating leverage and profitability in the period,
Roeland Polet, Chairman and Chief Executive Officer, FutureFuel
Demand conditions have further strengthened into the fourth quarter versus third quarter levels. We currently expect fourth quarter Adjusted EBITDA of approximately $7 million, positioning us to deliver positive Adjusted EBITDA for the full-year 2026.
Roeland Polet, Chairman and Chief Executive Officer, FutureFuel
Not in the filing
stated, not guessed- Prior-year and prior-quarter gross margin percentages are not printed; no gross margin figure was calculated
- Prior-year Q3 2025 capital expenditures are not printed in the quarterly column
- Prior-year and prior-quarter Q3 2025 gross margin and Q2 2026 quarterly comparatives for most income statement lines are not printed
- Percentage change for Biofuels segment revenue is not printed
- Percentage change for Biofuels segment gross loss is not printed
- Segment operating income or EBITDA by segment is not printed
- Prior-year and prior-quarter Adjusted EBITDA for the second quarter 2026 are not printed in the Q3 2025 format beyond the figures listed
- Full-year 2026 Adjusted EBITDA reconciliation is not included, as stated by the company
- Prior-period outlook was not provided, so no guidance comparison is possible
- Share repurchase amounts for the period are not printed
- Consensus estimates, analyst expectations and share-price reaction are not in the documents
- Revenue guidance, gross margin guidance, operating expense guidance and tax rate guidance are not printed
- Adjusted EBITDA for full-year 2025 and the prior-year nine-month Adjusted EBITDA cannot be linked to a stated percentage change
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.