Press Release: OPAL Fuels Reports First Quarter 2026 Results

Dow Jones
May 11
WHITE PLAINS, N.Y.--(BUSINESS WIRE)--May 11, 2026-- 

OPAL Fuels ("OPAL Fuels" or the "Company") (Nasdaq: OPAL) today announced financial and operating results for the three months ended March 31, 2026.

"Despite a challenging operating environment in the seasonally soft first quarter, we remain on track to meet our full year guidance," said Adam Comora, Co-Chief Executive Officer of OPAL Fuels. "Production trends have improved, in line with our expectations, and we are encouraged by the recent firming in environmental credit prices."

"Our business development efforts for new fleet conversions to CNG and RNG in the heavy-duty trucking sector are gaining traction. A variety of factors are contributing to this momentum - high and volatile diesel pricing, regulatory clarity regarding combustion engines, ongoing sustainability goals, and the successful tests of the Cummins X15N engine are moving fleets into decision making mode," continued Comora.

Jonathan Maurer, Co-Chief Executive Officer of OPAL Fuels, said, "Given the difficult weather conditions, our RNG facilities performed well, producing more RNG compared with the first quarter of 2025. This performance is due to the meaningful improvements we are making across our operating platform. We expect to see these improvements continue throughout the year. In the quarter we completed several financing transactions which added clarity to our capital structure and sets us up for continued investment and growth in both our upstream and downstream segments. In addition, IRA Investment Tax credits, 45Z production tax credits, and EPA's issuance of Set Rule 2 demonstrate the supportive regulatory backdrop for our business."

Financial Highlights

This quarter's financial results saw improved production and the positive impact of 45Z production tax credits compared with the prior year quarter. These improvements were offset by a lower RIN price environment and last year's inclusion of additional RNG production sales in the first quarter of 2025 following the implementation of biogas regulatory reforms.

   --  Adjusted EBITDA(1) for the three months ended March 31, 2026, was $16.7 
      million compared to $20.1 million in the comparable period last year. 
 
   --  Revenue for the three months ended March 31, 2026 and 2025, was $73.4 
      million and $85.4 million respectively, a decrease of (14)%, compared to 
      the same period last year. 
 
   --  Net (loss) income for the three months ended March 31, 2026 was $(5.6) 
      million, compared to $1.3 million in the same period last year. 
 
   --  Basic and diluted net loss per share attributable to Class A common 
      shareholders for the three months ended months ended March 31, 2026 were 
      $(0.09) compared to $(0.01) in the comparable period last year. 
 
   --  At March 31, 2026, RNG Pending Monetization totaled $23.5 million. 
 
   --  On March 6, 2026 we completed the refinancing of our outstanding 
      Preferred Units with a new Preferred Stock Facility of $180 million of 
      which $120 million was initially drawn. 
 
   --  In the first quarter we completed our fifth sale of IRA Investment Tax 
      Credits for $23 million for our Atlantic facility. 
 
   --  In April we entered into a $100 million Master Agreement to monetize 
      section 45Z Production Tax Credits. 
 
(1) This is a non-GAAP financial measure. A reconciliation of this non-GAAP 
financial measure to its comparable GAAP financial measure has been provided 
in the financial tables included in this press release. An explanation of this 
measure and how it is calculated is also included below under the heading 
"Non-GAAP Financial Measures." 
 

Operational Highlights

   --  RNG produced was 1.2 million MMBtu for the three months ended March 31, 
      2026, an increase of 9% compared to the prior-year period.(3) 
 
   --  The Fuel Station Services segment sold, dispensed, and serviced an 
      aggregate of 39.0 million GGEs of transportation fuel for the three 
      months ended March 31, 2026, a decrease of 4% compared to the prior-year 
      period. Of this amount, RNG dispensed as a transportation fuel was 17.9 
      million GGEs, a decrease of 8% compared to the prior-year period. 
 
(3) Represents OPAL Fuels' proportional share with respect to RNG projects 
owned with joint venture partners. Includes Sunoma and Biotown. 
 

Guidance

   --  We maintain 2026 guidance. 

Results of Operations

 
(in thousands of dollars, except RNG 
Fuel data)                                   Three Months Ended March 31, 
                                        -------------------------------------- 
                                               2026                2025 
                                            ----------          ----------- 
Revenue 
   RNG Fuel                              $      21,638       $       27,599 
   Fuel Station Services                        44,566               50,678 
   Renewable Power                               7,171                7,130 
                                            ----------          ----------- 
Total Revenue (1)                               73,375               85,407 
                                            ----------          ----------- 
 
Cost of sales                                   53,849               58,637 
Project development and startup costs            1,815                6,081 
Other operating expenses (2)                    22,554               22,631 
 
   Net (loss) income                            (5,593)               1,284 
                                            ----------          ----------- 
Adjusted EBITDA (3) 
   RNG Fuel (4)                                 14,122               18,137 
   Fuel Station Services                         9,240               10,528 
   Renewable Power                               2,695                1,659 
   Corporate                                    (9,373)             (10,261) 
                                            ----------          ----------- 
Consolidated Adjusted EBITDA             $      16,684       $       20,063 
                                            ==========          =========== 
 
 
RNG Fuel volume produced (Million MMBtus)    1.2   1.1 
RNG Fuel volume sold (Million GGEs)         17.9  19.5 
Total volume delivered (Million GGEs)       39.0  40.6 
 
 
(1)    Excludes revenues from equity method investments. 
 
(2)    Includes selling, general and administrative expenses, depreciation and 
       amortization expenses, impairment and income from equity method 
       investments. Please refer to the Statement of Operations at the end of 
       the press release for additional information. 
 
(3)    This is a non-GAAP financial measure. A reconciliation of this non-GAAP 
       financial measure to a comparable GAAP financial measure has been 
       provided in the financial tables included in this press release. An 
       explanation of this measure and how it is calculated is also included 
       below under the heading "Non-GAAP Financial Measures." 
 
(4)    In 2025 includes incremental virtual pipeline costs (i.e., actual costs 
       less anticipated operating costs of a permanent interconnection) on our 
       Prince William RNG project which are temporary in nature and incurred 
       in 2025. 
 

Results of Operations from equity method investments

 
                                             Three months ended March 31, 
                                        -------------------------------------- 
(in thousands of dollars)                      2026                 2025 
                                            -----------          ---------- 
Revenue                                  $       27,311       $      22,517 
Gross profit                                      3,244               2,815 
Net loss                                         (2,284)             (2,266) 
 
OPAL's share of revenues from equity 
 method investments                              11,765              10,288 
OPAL's share of gross profit from 
 equity method investments                        1,479               2,330 
OPAL's share of net loss from equity 
 method investments (1)                          (1,757)               (722) 
 
OPAL's share of Adjusted EBITDA from 
 equity method investments               $        3,180       $       3,415 
 
 
(1) Net income from equity method investments represents our portion of the 
net income from equity method investments including $1.70 million of 
amortization expense related to basis differences for the three months ended 
March 31, 2026, and $1.70 million for the three months ended March 31, 2025. 
 

Landfill RNG Facility Capacity and Utilization Summary

 
                                             Three Months Ended March 31, 
                                        -------------------------------------- 
                                              2026                2025 
                                            --------  ----      --------  ---- 
Landfill RNG Facility Capacity and 
Utilization 
Design Capacity (Million MMBtus) 
 (1)(3)                                          2.2                 2.1 
Volume of Inlet Gas (Million MMBtus) 
 (2)                                             1.5                 1.4 
Inlet Design Capacity Utilization (%) 
 (2)                                              72%                 69% 
RNG Fuel volume produced (Million 
 MMBtus)(3)                              $      1.14         $      1.06 
Utilization of Inlet Gas (%) (4)                  76%                 77% 
 
 
(1)    Design Capacity for RNG facilities is measured as the volume of 
       feedstock biogas that the facility is capable of accepting at the inlet 
       and processing during the associated period. Design Capacity is 
       presented as OPAL's ownership share (i.e., net of joint venture 
       partners' ownership) of the facility and is calculated based on the 
       number of days in the period. New facilities that come online during a 
       quarter are pro-rated for the number of days in commercial operation. 
 
(2)    Inlet Design Capacity Utilization is measured as the Volume of Inlet 
       Gas for a period, divided by the total Design Capacity for such period. 
       The Volume of Inlet Gas varies over time depending on, among other 
       factors, (i) the quantity and quality of waste deposited at the 
       landfill, (ii) waste management practices by the landfill, and (iii) 
       the construction, operations and maintenance of the landfill gas 
       collection system used to recover the landfill gas. The Design Capacity 
       for each facility will typically be correlated to the amount of 
       landfill gas expected to be generated by the landfill during the term 
       of the related gas rights agreement. The Company expects Inlet Design 
       Capacity Utilization to be in the range of 75-85% on an aggregate basis 
       over the next several years. Typically, newer facilities perform at the 
       lower end of this range and demonstrate increasing utilization as they 
       mature and the biogas resource increases at open landfills. Excludes 
       Sunoma and Biotown. 
 
(3)    Excludes Sunoma and Biotown 
 
(4)    Utilization of Inlet Gas is measured as RNG Fuel Volume Produced 
       divided by the Volume of Inlet Gas. Utilization of Inlet Gas varies 
       over time depending on availability and efficiency of the facility and 
       the quality of landfill gas (i.e., concentrations of methane, oxygen, 
       nitrogen, and other gases). The Company generally expects Utilization 
       of Inlet Gas to be in the range of 80% to 90%. Excludes Sunoma and 
       Biotown. 
 

RNG Pending Monetization Summary

 
                                      Three Months Ended 
(In thousands, except 
average realized 
sales prices) 
                                        March 31, 2026 
                       ------------------------------------------------- 
                       RNG Fuel     Fuel Station Services       Total 
                       ---------  -------------------------  ----------- 
Value of RNG awaiting 
 credit generation 
 using quarter end 
 price (1)             $ 10,900     $             3,920      $ 14,820 
                        -------   ---  ----------------       ------- 
 
RIN Metrics 
Beginning balance as 
of December 31, 2025         --                      --            -- 
Add: Generated in 
 current period          14,359                   3,759        18,118 
Less: Sales             (14,214)                 (3,442)      (17,656) 
                        -------   ---  ----------------       ------- 
Ending RIN credit 
 balance (Available 
 for sale) as of 
 March 31, 2026             145                     317           462 
                        -------   ---  ----------------       ------- 
D3 price per RIN at 
 quarter end           $   2.43     $              2.43 
                        -------   ---  ----------------      ----------- 
Value of RINs using 
 quarter end price 
 (1)                   $    352     $               770      $  1,122 
                        -------   ---  ----------------       ------- 
 
LCFS Metrics 
Beginning balance 
 (net share) as of 
 December 31, 2025            8                      71            79 
Add: Generated in 
 current period              13                      94           107 
Less: Sales                 (12)                    (53)          (65) 
                        -------   ---  ----------------       ------- 
Ending LCFS credit 
 balance (Available 
 for sale) as of 
 March 31, 2026               9                     112           121 
                        -------   ---  ----------------       ------- 
LCFS credit price at 
 quarter end           $ 100.00     $             59.50 
                        -------   ---  ----------------      ----------- 
Value of LCFSs using 
 quarter end price 
 (1)                   $    900     $             6,664      $  7,564 
                        -------   ---  ----------------       ------- 
 
Value of RECs using 
 quarter end price                                           $     17 
                       ---------  -------------------------   ------- 
 
Other Metrics 
 
Average realized 
 sales price during 
 quarter - RIN                                               $   2.42 
Average realized 
 sales price during 
 quarter - LCFS                                              $  76.91 
 
Total Value of RNG 
 Pending Monetization 
 and Credits at 
 quarter end           $ 12,152     $            11,354      $ 23,523 
                        =======   ===  ================       ======= 
 
 
(1) Reflects OPAL's ownership share of RIN and LCFS credits (i.e., net of 
joint venture partners' ownership), including equity method investments, and 
presented net of discounts and any direct transaction costs such as dispensing 
fees, third-party royalties and transaction costs as applicable. 
 

Liquidity

As of March 31, 2026, our liquidity was $232.5 million, consisting of $133.2 million of cash and cash equivalents, $39.3 million of unused capacity under the revolver, $60.0 million of undrawn preferred stock facility.

Capital Expenditures

During the three months ended March 31, 2026, OPAL Fuels invested $24.4 million across RNG projects in construction and OPAL Fuels owned fueling stations in construction as compared to $11.6 million in the prior year.

In addition, for the three months ended March 31, 2026, the Company's portion of capital expenditures in unconsolidated entities was $3.3 million compared to $5.4 million in the prior year. This represents our share of capital expenditures incurred by equity method investments.

Earnings Call

A webcast to review OPAL Fuels' First Quarter 2026 results is being held today, March 11, 2026 at 11:00AM EDT.

Materials to be discussed in the webcast will be available before the call on the Company's website.

Participants may access the call at https://edge.media-server.com/mmc/p/yubhgs6w

Investors can also listen to a webcast of the presentation on the Company's Investor Relations website at https://opalfuels.gcs-web.com/news-events/events-presentations

Glossary of terms

"D3" refers to cellulosic biofuel with a 60% GHG reduction requirement.

"GGE" refers to gasoline gallon equivalent. The conversion ratio is 1 MMBtu of natural gas equal to 7.74 GGE.

"LCFS" refers to Low Carbon Fuel Standard or similar types of federal and state programs.

"MMBtu" refers to million British thermal units.

"RECs" refers to renewable energy credits.

"Renewable Power" refers to electricity generated from renewable sources.

"RIN" refers to Renewable Identification Numbers.

"RNG" refers to renewable natural gas.

"VIEs" refers to variable interest entities.

About OPAL Fuels

OPAL Fuels (Nasdaq: OPAL) is a leader in the capture and conversion of biogas into low carbon intensity RNG and Renewable Power. OPAL Fuels is also a leader in the marketing and distribution of RNG to heavy duty trucking and other hard to decarbonize industrial sectors. For additional information, and to learn more about OPAL Fuels and how it is leading the effort to capture North America's naturally occurring methane and decarbonize the economy, please visit www.opalfuels.com.

Forward-Looking Statements

Certain statements in this communication may be considered forward-looking statements within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and generally relate to future events or the Company's future financial or other performance metrics. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "will," "potentially," "estimate," "continue," "anticipate," "intend," "could," "would," "project," "target," "plan," "expect," or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, as the case may be, are inherently uncertain and subject to material change. Factors that may cause actual results to differ materially from current expectations include various factors beyond management's control, including but not limited to general economic conditions and other risks, uncertainties and factors set forth in the sections entitled "Risk Factors" and "Forward-Looking Statements and Risk Factor Summary" in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q, and other filings the Company makes with the Securities and Exchange Commission. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions, or circumstances on which any statement is based.

Disclaimer

This communication is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy, any securities, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

 
 
                             OPAL FUELS INC. 
                  CONDENSED CONSOLIDATED BALANCE SHEETS 
      (In thousands of U.S. dollars, except share and per share data) 
 
                                            March 31,      December 31, 
                                                2026            2025 
                                            -----------  ----------------- 
Assets(1)                                   (Unaudited) 
Current assets: 
   Cash and cash equivalents                $  133,241    $      24,408 
   Accounts receivable, net of allowances 
    of $806 and $469, respectively(2)           42,636           61,806 
   Restricted cash - current                       926            1,210 
   Contract assets                               6,782            8,276 
   Parts inventory                              12,201           10,964 
   Prepaid expense and other current 
    assets                                      17,615           16,018 
                                             ---------       ---------- 
       Total current assets                    213,401          122,682 
                                             ---------       ---------- 
   Property, plant, and equipment, net         512,546          495,634 
   Investments in other entities               224,282          231,223 
   Net investment in sales-type lease           10,651            8,224 
   Restricted cash - non-current                 2,807            2,700 
   Goodwill                                     54,608           54,608 
   Other long-term assets                       42,307           44,398 
                                             ---------       ---------- 
       Total assets                          1,060,602          959,469 
                                             ---------       ---------- 
Liabilities and Stockholders' Equity 
(Deficit)(1) 
Current liabilities: 
   Accounts payable(3)                           9,631           19,004 
   Contract liabilities                          5,070            6,296 
   Loan, current portion                        19,473           15,062 
   Accrued expenses and other current 
    liabilities                                 62,890           63,857 
                                             ---------       ---------- 
       Total current liabilities                97,064          104,219 
                                             ---------       ---------- 
   Loans, net of debt issuance costs           427,698          337,063 
   Other long-term liabilities                  23,946           20,430 
                                             ---------       ---------- 
       Total liabilities                       548,708          461,712 
                                             ---------       ---------- 
Commitments and contingencies Note 12 
Redeemable preferred non-controlling 
 interests                                     150,000          130,000 
Redeemable non-controlling interests           343,467          377,898 
Stockholders' equity (deficit) 
   Class A common stock, $0.0001 par 
    value, shares issued: 31,993,327 and 
    30,633,161 as of March 31, 2026 and 
    December 31, 2025, respectively; 
    shares outstanding: 30,357,544 and 
    28,997,378 as of March 31, 2026 and 
    December 31, 2025, respectively                  3                3 
   Class B common stock, $0.0001 par 
    value, 121,500,000 issued and 
    outstanding as of March 31, 2026 and 
    December 31, 2025                               12               12 
   Class C common stock, $0.0001 par 
   value; none issued and outstanding as 
   of March 31, 2026 and December 31, 
   2025                                             --               -- 
   Class D common stock, $0.0001 par 
    value, 22,899,037 shares issued and 
    outstanding as of March 31, 2026 and 
    December 31, 2025                                2                2 
   Retained earnings (accumulated deficit)      19,632           (1,307) 
   Accumulated other comprehensive income 
    (loss)                                         184              (26) 
   Class A common stock in treasury, at 
    cost; 1,635,783 as of March 31, 2026 
    and December 31, 2025                      (11,614)         (11,614) 
                                             ---------       ---------- 
       Total stockholders' equity 
        (deficit) attributable to the 
        Company                                  8,219          (12,930) 
                                             ---------       ---------- 
   Non-redeemable non-controlling 
    interests                                   10,208            2,789 
                                             ---------       ---------- 
       Total stockholders' equity 
        (deficit)                               18,427          (10,141) 
                                             ---------       ---------- 
       Total liabilities, redeemable 
        preferred, redeemable 
        non-controlling interests and 
        stockholders' equity (deficit)      $1,060,602    $     959,469 
                                             =========       ========== 
 
 
(1) Includes amounts related to consolidated VIEs, which are presented 
separately in the table below. 
(2) Includes related--party amounts of $15,327 and $13,318 as of March 31, 
2026 and 2025, respectively. 
(3) Includes related--party amounts of $3,046 and $8,951 as of March 31, 2026 
and 2025, respectively. 
 
 
 
                               OPAL FUELS INC. 
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
        (In thousands of U.S. dollars, except share and per share data) 
 
                                             Three Months Ended March 31, 
                                        -------------------------------------- 
                                                2026                2025 
                                            ------------          --------- 
Revenues: 
   RNG fuel                              $        21,638       $     27,599 
   Fuel station services                          44,566             50,678 
   Renewable power                                 7,171              7,130 
                                            ------------          --------- 
        Total revenues                            73,375             85,407 
                                            ------------          --------- 
Operating expenses: 
   Cost of sales - RNG fuel                       12,829             12,153 
   Cost of sales - Fuel station 
    services                                      35,390             39,722 
   Cost of sales - Renewable power                 5,630              6,762 
   Project development and start up 
    costs                                          1,815              6,081 
   Selling, general and administrative            15,184             15,967 
   Depreciation, amortization, and 
    accretion                                      5,613              5,942 
   Impairment loss                                    --                 -- 
   Income from equity method 
    investments                                    1,757                722 
                                            ------------          --------- 
        Total operating expenses                  78,218             87,349 
                                            ------------          --------- 
        Operating income                          (4,843)            (1,942) 
                                            ------------          --------- 
Other (expense) income 
   Interest and financing expense, net            (5,884)            (6,065) 
   Other income                                     (575)             1,254 
                                            ------------          --------- 
        Total other expenses                      (6,459)            (4,811) 
                                            ------------          --------- 
        Net (loss) income before 
         income tax benefit                      (11,302)            (6,753) 
                                            ------------          --------- 
        Income tax benefit                         5,709              8,037 
                                            ------------          --------- 
        Net income                                (5,593)             1,284 
                                            ------------          --------- 
        Net income attributable to 
         redeemable non-controlling 
         interest                                (12,567)            (1,174) 
        Net income attributable to 
         non-redeemable 
         non-controlling interest                     82                 76 
        Dividends on redeemable 
         preferred non-controlling 
         interests                                 9,534       $      2,617 
                                            ------------          --------- 
        Net income attributable to 
         Class A common stockholders     $        (2,642)      $       (235) 
                                            ============          ========= 
 
 
(1) Includes revenues from related parties of $17,042 and $20,101 for the 
three months ended March 31, 2026 and 2025, respectively. 
(2) Includes revenues from related parties of $13,107 and $16,603 for the 
three months ended March 31, 2026 and 2025, respectively. 
(3) Includes revenues from related parties of $872 and $1,166 for the three 
months ended March 31, 2026 and 2025, respectively. 
 
 
 
                            OPAL FUELS INC. 
            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
                     (In thousands of U.S. dollars) 
 
                                                   Three Months Ended 
                                                        March 31, 
                                                 ----------------------- 
                                                    2026       2025 
                                                  --------    ------- 
Cash flows from operating activities: 
Net (loss) income                                $  (5,593)  $  1,284 
   Adjustments to reconcile net (loss) income 
   to net cash provided by operating 
   activities: 
   Depreciation, amortization, and accretion         5,613      5,942 
   Stock-based compensation                          2,055      1,751 
   Allowance for accounts receivable                   337         -- 
   Loss from investments in other entities           1,757        722 
   Distributions from return on investments in 
    other entities                                     414        956 
   Deferred income taxes                            (5,709)        -- 
   Other                                              (448)     1,240 
Changes in operating assets and liabilities: 
   Accounts receivable(1)                           18,918      8,689 
   Parts inventory                                  (1,237)    (2,566) 
   Prepaid expenses and other current and 
    long-term assets                                 8,799     10,810 
   Accounts payable(2)                              (9,088)     4,621 
   Accrued expenses and other current and 
    non-current liabilities                         (2,902)    (3,770) 
                                                  --------    ------- 
Net cash provided by operating activities           12,916     29,679 
                                                  --------    ------- 
Cash flows from investing activities: 
   Purchase of property, plant, and equipment      (24,367)   (11,566) 
   Distributions from return of investments in 
    other entities                                   5,961      7,939 
   Cash paid, related to investments in other 
    entities                                          (978)    (5,650) 
                                                  --------    ------- 
Net cash used in investing activities              (19,384)    (9,277) 
                                                  --------    ------- 
Cash flows from financing activities: 
   Proceeds from loans                             128,382         -- 
   Repayment of loans                              (33,058)      (423) 
   Proceeds from redeemable preferred 
   non-controlling interest and warrants 
   issuance, net of issuance costs                 116,670         -- 
   Redemption of redeemable preferred 
    non--controlling interest                     (100,000)        -- 
   Financing costs paid to other third parties        (435)    (1,250) 
   Repayment of principal portion of finance 
    lease liabilities                                 (328)        -- 
   Payment of preferred dividends                   (3,444)    (2,617) 
   Distribution to non-redeemable 
    non-controlling interest                           (65)       (60) 
   Cash paid for taxes related to net share 
    settlement of equity awards                         --       (382) 
   Capital contribution from non-redeemable 
   non-controlling interests                         7,402         -- 
                                                  --------    ------- 
Net cash provided by (used in) financing 
 activities                                        115,124     (4,732) 
                                                  --------    ------- 
Net increase in cash, restricted cash, and cash 
 equivalents                                       108,656     15,670 
                                                  --------    ------- 
Cash, restricted cash, and cash equivalents, 
 beginning of period                                28,318     29,228 
                                                  --------    ------- 
Cash, restricted cash, and cash equivalents, 
 end of period                                   $ 136,974   $ 44,898 
                                                  ========    ======= 
 

Non-GAAP Financial Measures (Unaudited)

This release includes various financial measures that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission. We believe these measures provide important supplemental information to investors to use in evaluating ongoing operating results. We use these measures, together with accounting principles generally accepted in the United States ("GAAP" or "U.S. GAAP"), for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations, that when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide, give a more complete understanding of factors and trends affecting our business. We strongly encourage you to review all of our financial statements and publicly filed reports in their entirety and to not solely rely on any single non-GAAP financial measure.

Non-GAAP financial measures are limited as an analytical tool and should not be considered in isolation from, or as a substitute for, the Company's GAAP results. The Company expects to continue reporting non-GAAP financial measures, adjusting for the items described below (and/or other items that may arise in the future as the Company's management deems appropriate), and the Company expects to continue to incur expenses, charges or gains like the non-GAAP adjustments described below. Accordingly, unless expressly stated otherwise, the exclusion of these and other similar items in the presentation of non-GAAP financial measures should not be construed as an inference that these costs are unusual, infrequent, or non-recurring. These Non-GAAP financial measures are not recognized terms under GAAP and do not purport to be alternatives to GAAP net income or any other GAAP measure as indicators of operating performance. Moreover, because not all companies use identical measures and calculations, the Company's presentation of Non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. We strongly encourage you to review all of our financial statements and publicly filed reports in their entirety and to not solely rely on any single non-GAAP financial measure.

Adjusted EBITDA

To supplement the Company's unaudited condensed consolidated financial statements presented in accordance with GAAP, the Company uses a non-GAAP financial measure that it calls Adjusted EBITDA ("Adjusted EBITDA"). This non-GAAP financial measure adjusts net income for interest and financing expense, net, net income attributable to non-redeemable non-controlling interests, depreciation, amortization and accretion, adjustments to reflect Adjusted EBITDA from equity method investments, fair value changes and non-recurring charges, Stock-based compensation, major maintenance, RNG development costs, 45z generation and ITC proceeds, net.

Management believes this non-GAAP financial measure provides meaningful supplemental information about the Company's performance, for the following reasons: (1) it allows for greater transparency with respect to key metrics used by management to assess the Company's operating performance and make financial and operational decisions; (2) the measure excludes the effect of items that management believes are not directly attributable to the Company's core operating performance and may obscure trends in the business; (3) the measure better aligns revenues with expenses; and (4) the measure is used by institutional investors and the analyst community to help analyze the Company's business. In future quarters, the Company may adjust for other expenditures, charges or gains to present non-GAAP financial measures that the Company's management believes are indicative of the Company's core operating performance.

The following table presents the reconciliation of our net income to Adjusted EBITDA:

 
 
         Reconciliation of GAAP Net (Loss) Income to Adjusted EBITDA 
                  For the Three Months Ended March 31, 2026 
                          (In thousands of dollars) 
 
                               Three Months Ended March 31, 2026 
                               Fuel 
                              Station      Renewable 
                  RNG Fuel   Services        Power      Corporate    Total 
Net (loss) 
 income (1)       $  (954)  $8,114        $    312      $(13,063)  $(5,591) 
 
Adjustments to 
reconcile net 
(loss) income to 
Adjusted EBITDA 
Interest and 
 financing 
 expense, net       6,335     (432)            (19)           --     5,884 
Net income 
 attributable to 
 non-redeemable 
 non-controlling 
 interests            (82)      --              --            --       (82) 
Depreciation, 
 amortization 
 and accretion      3,093    1,558             962            --     5,613 
Adjustments to 
 reflect 
 Adjusted EBITDA 
 from equity 
 method 
 investments 
 (2)                4,937       --              --            --     4,937 
Fair value 
 changes and 
 certain 
 financing and 
 ITC-related 
 charges              305       --              --         1,636     1,941 
Stock-based 
 compensation          --       --              --         2,054     2,054 
RNG development 
 costs (3)          1,122       --              --            --     1,122 
Major 
 maintenance          153       --           1,440            --     1,593 
45Z                 4,922       --              --            --     4,922 
Tax benefit, net   (5,709)      --              --            --    (5,709) 
Adjusted EBITDA   $14,122   $9,240        $  2,695      $ (9,373)  $16,684 
 
 
(1) Net (loss) income by segment is included in our quarterly report on Form 
10-Q. 
(2) Includes interest, depreciation, amortization and accretion and RNG 
development costs incurred on equity method investments. 
(3) Includes development costs on our Central Valley and Prince William 
facilities. 
 
 
 
        Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA 
                 For the Three Months Ended March 31, 2025 
                         (In thousands of dollars) 
 
                              Three months ended March 31, 2025 
                               Fuel 
                              Station     Renewable 
                  RNG Fuel   Services       Power     Corporate    Total 
Net income 
 (loss) (1)       $ 6,457   $ 8,711       $  (1,463)  $(12,421)  $ 1,284 
 
Adjustments to 
reconcile net 
income (loss) to 
Adjusted EBITDA 
Interest and 
 financing 
 expense, net       6,017        63             (15)        --     6,065 
Net income 
 attributable to 
 non-redeemable 
 non-controlling 
 interests            (76)       --              --         --       (76) 
Depreciation, 
 amortization 
 and accretion      2,959     2,034             949         --     5,942 
Adjustments to 
 reflect 
 Adjusted EBITDA 
 from equity 
 method 
 investments 
 (2)                4,137        --              --         --     4,137 
Fair value 
 changes and 
 non-recurring 
 charges (3)        1,511      (280)             --        409     1,640 
Stock-based 
 compensation          --        --              --      1,751     1,751 
RNG development 
 costs (4)          5,169        --              --         --     5,169 
Major 
 maintenance           --        --           2,188         --     2,188 
Tax benefit, net   (8,037)       --              --         --    (8,037) 
Adjusted EBITDA   $18,137   $10,528       $   1,659   $(10,261)  $20,063 
 
 
(1) Net income (loss) by segment is included in our quarterly report on Form 
10-Q. 
(2) Includes interest, depreciation, amortization and accretion and RNG 
development costs incurred on equity method investments. 
(3) Includes changes in the fair value, ITC costs and one-time, non-recurring 
charges 
(4) Includes virtual pipeline costs on our Prince William and Polk facilities. 
These are temporary additional transportation costs incurred until a permanent 
pipeline solution is completed. Also includes RNG development costs which are 
lease costs related to Central Valley litigation. 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260511601081/en/

 
    CONTACT:    Investors 

Todd Firestone

Vice President, Investor Relations and Corporate Development

(914) 705-4001

investors@opalfuels.com

Media

Harrison Feuer

Senior Director, Communications and Public Policy

(914) 721-3723

hfeuer@opalfuels.com

 
 

(END) Dow Jones Newswires

May 11, 2026 07:00 ET (11:00 GMT)

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