Q3 2025 NextNRG Earnings Call
After today's session, we will conduct a question and answer session. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded I would now like to turn the conference over to Sharon Cohen Investor Relations. Thank you you may begin.
Operator: Participants are in a listen-only mode. After today's session, we will conduct a question-and-answer session. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I would now like to turn the conference over to Sharon Cohen in Venture Relations. Thank you. You may begin.
Thank you and good morning, everyone.
Sharon Cohen: Thank you and good morning, everyone. Joining us today are Michael Farkas, our Chief Executive Officer and Executive Chairman, and Joel Kleiner, our Chief Financial Officer. Before we begin, I would like to remind you that certain statements on this call are forward-looking in nature and subject to risks and uncertainties. These statements are based on current expectations and assumptions, and involve risks that could cause actual results to differ materially. Please refer to our filings with the SEC, including our most recent Form 10-K and our Form 10-Q for the quarter ending 30 September 2025, for a discussion of these risks. With that, I'll now turn the call over to Michael.
Joining us today are Michael Barkin, our Chief Executive Officer, and Executive Chairman.
Kleiner, our chief Financial Officer.
We began I would like to remind you that certain statements on this call are forward looking in nature and subject to risks and uncertainties. These statements are based on current expectations and assumptions and involve risks that could cause actual results to differ materially.
Please refer to our filings with the SEC, including our most recent Form 10-K, and our Form 10-Q for the quarter ended September 32025 for a discussion of these risks.
With that I'll now turn the call over to Michael.
Yeah.
Thank you Sharon and welcome everyone to our third quarter earnings call.
Michael D. Farkas: Thank you, Sharon, and welcome everyone to our third quarter earnings call. This quarter represents a significant step in NextNRG's journey as we continue advancing towards our vision. Our results clearly demonstrate that our strategy is working. Revenue is growing, margins are expanding, and our mobile fueling and energy infrastructure initiatives are driving strong, measurable results across the business, making this our strongest financial performance to date. The results speak for themselves, and they set the stage for continued growth and operational excellence. I want to thank all of you for your confidence and take this opportunity to provide an overview of NextNRG. We're more than an energy company. We're a full-spectrum energy partner. From generation and storage to optimization and fueling, we give businesses the tools to be efficient, independent, and future-ready.
This quarter represents a significant step next energy's journey as we continue advancing towards our vision.
Our results clearly demonstrate that our strategy is working.
<unk> is growing margins are expanding and our mobile cooling and energy infrastructure initiatives are driving strong measurable results across the business.
Making this our strongest financial performance to date.
The results speak for themselves and they set the stage for continued growth and operational excellence.
I want to thank all of you for your confidence and take this opportunity to provide an overview of <unk> energy.
We're more than an energy company, we're a full spectrum energy partner from generation and storage optimization, and fueling you give businesses tools to be efficient independent and future ready.
Our ecosystem combines our generation advanced batteries wireless EV charging and on demand mobile fueling deliberate energy wherever it's needed.
Michael D. Farkas: Our ecosystem combines power generation, advanced batteries, wireless EV charging, and on-demand mobile fueling to deliver energy wherever it's needed, smarter and faster than ever. We're not just following the energy transition; we're leading it. The momentum we've built continues, and as you'll hear today, the investments in our past initiatives are now delivering tangible results. Last quarter, I discussed our investments in expanding the fleet by 99 trucks and entering 10 new markets. You'll recall it was anchored in the strategic thesis that building operational density around our strongest customers will allow us to, one, optimize routes, two, enhance driving efficiency, three, expand margins, and four, expand market presence off the heels of our largest customers. I'm proud to share that we are delivering on that vision, achieving our highest revenues and strongest margins to date, marking the best performance in the company's history.
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We're not just following the energy transition we are leading at the momentum we have built continues and as you'll hear today the investments in our past initiatives are now delivering tangible results.
Last quarter I discussed our investments in expanding our fleet by 99 trucks and entering new markets Youll recall it was anchored in our strategic thesis that building operational density around our strongest customers will allow us to one optimize routes to enhance driving efficiency three expand.
Margins expanded market presence off the heels of our largest customers.
I'm proud to share that we are delivering on that vision, achieving our highest revenues and strongest margins to date.
Marking the best performance in the company's history in.
In addition to the above we have added 11, new market Fort Myers, Florida.
Michael D. Farkas: In addition to the above, we have added an 11th new market, Fort Myers, Florida. As we've grown and our increasing gallons delivered, we've been able to unlock volume-based supplier discounts, increasing profit margins from 8% to 11% and driving a 232% year-over-year revenue increase. Moving on to our emerging technologies, particularly our smart microgrid and battery storage solutions. We previously reported that we were working on various projects, including the California healthcare facilities, and I'm happy to report that we have just signed two power purchase agreements, also known as PPAs, whereby we effectively replace the traditional utility provider supplying these locations with their full energy needs. Our systems are addressing a vital need, ensuring facilities remain efficient, compliant, and operational around the clock. Most notably, these PPAs provide for 28 years of contractual profitable revenue to the company via energy sales, creating long-term revenue visibility.
As we have grown and are increasing gallons delivered we've been able to lock volume based supplier discounts increasing profit margins from 8% to 11% and driving a 232% year over year revenue increase.
Moving on to our emerging technologies, particularly our smart micro grids and battery storage solutions with.
We previously reported that we were working on various projects, including the California health care facilities and I'm happy to report that we have just signed two power purchase agreements also known as Ppas, whereby we effectively replace the traditional utility provider supplying these locations with their full energy needs.
Our systems are addressing a vital needs ensuring facilities remain efficient compliance and operational around the clock.
Most notably these ppas provide for 28 years of contractual profitable revenue to the company via energy sales.
<unk> long term revenue visibility.
We continue to advance our energy divisions pipeline driving meaningful progress across multiple fronts as.
Michael D. Farkas: We continue to advance our energy division's pipeline, driving meaningful progress across multiple fronts. As NextNRG evolves, our strategy is to be increasingly focused on high-demand sectors where reliability and resilience are non-negotiable, particularly healthcare, assisted living, and large-scale commercial facilities that require continuous mission-critical power. This approach has unified the company around a more focused sales approach within a massive TAM. Our active pipeline currently stands at over a dozen projects, with several more qualified leads progressing through the pipeline. As time progresses and the market learns about NextNRG, we're watching our integrated energy ecosystem come to life. For example, we've been approached by solar installers who have deployed solar power generation solutions but whose clients now require battery storage and/or charging solutions, and the technology to optimize their energy generation, storage, and usage. NextNRG is being asked to complete the energy ecosystem into a single intelligent platform.
As next energy evolves, our strategy is to be increasingly focused on high demand sectors, where reliability and resilience are non negotiable, particularly health care assisted living and large scale commercial facilities that require continuous mission critical power.
This approach has unify the company around a more focused sales approach within a massive tam.
Our active pipeline currently stands at over a dozen projects with several more qualified leads progressing through the pipeline.
As time progresses, and the market learns about next synergy we are watching our integrated energy ecosystem come to life.
As an example, we've been approached by solar and storage with solar power.
Power generation solutions.
But whose clients now require battery storage and or charging solutions and the technology to optimize their energy generation storage and usage.
<unk> energy is being asked to complete the energy ecosystem into a single intelligent platform.
This growing interest validates our approach and reinforces the competitive advantage of our integrated energy model.
Michael D. Farkas: This growing interest validates our approach and reinforces the competitive advantage of our integrated energy model. As interest in our platform grows, we're strengthening relationships across the value chain, expanding partnerships in solar hardware and battery storage to deliver cutting-edge technology at highly competitive pricing. These collaborations enhance our offering and position NextNRG as a trusted, full-service energy partner. Next, our much-anticipated bi-directional wireless EV charging initiative continues to advance. This quarter, we continue to make meaningful progress in the development framework and are moving closer to the launch of our first demonstration of this game-changing technology. While still in the planning and design phase, the groundwork is being laid now, which positions us to move efficiently into the execution as we refine partnerships and tech integration. We hope to provide a material update in the coming weeks.
As interest in our platform grows with strengthening relationships across the value chain.
<unk> partnerships and solar hardware and battery storage and deliver cutting edge technology at highly competitive pricing.
These collaborations enhance our offering and positioning next energy as a trusted full service energy partner.
Next our much anticipated by directional wireless EV charging initiatives continues to advance.
This quarter, we continued to make meaningful progress on the development framework and are moving closer to the launch of our first demonstration of this game changing technology.
While still in the planning and design phase the groundwork as nimbly now positions us to move efficiently the execution as we refine the partnerships and tech integration we.
We hope to provide a material update in the coming weeks.
Looking ahead into 2026 and beyond we find ourselves excited for the future a time when global and domestic energy demands are reaching unprecedented levels.
Michael D. Farkas: Looking ahead into 2026 and beyond, we find ourselves excited for the future, a time when global and domestic energy demands are reaching unprecedented levels. I recently attended a conference where business and political leaders convened, including President Trump and Eric Schmidt, the former Google CEO. They underscored the urgent need to expand our nation's capacity in energy generation, storage, and distribution. They specifically mentioned the growing trend for developers of data centers and other energy-intensive sites to develop on-site fully integrated smart grids to ensure power reliability. The message was clear: our current infrastructure cannot keep pace with the accelerating demand. In fact, following the conference, I was invited to an intimate dinner at Eric Schmidt's home with a group of leading business executives in America, and as I discussed what NextNRG was building, the focus quickly became on the nation's need for power generation, storage, and distribution.
I recently attended a conference where business and political leaders Canadians, including President Trump and Eric Schmidt the formal Google CEO.
The underscore the urgent need to expand our nation's capacity in energy generation storage and distribution.
We specifically mentioned the growing trend for developers of data centers and other energy intensive sites to develop onsite fully integrated smart grids to ensure power reliability. The message was clear our current infrastructure cannot keep pace with accelerating demand.
In fact, following the conference I was invited to intimate dinner, Eric Schmidt film with a group of leading business executives in America and as I discussed what next energy was building.
<unk> quickly the team on nations need for power generation storage and distribution to quote Eric.
We will run out of power before we run out of capital to invest in AI infrastructure.
Michael D. Farkas: To quote Eric, we will run out of power before we run out of capital to invest in AI infrastructure, underscoring the urgency to generate power. NextNRG is uniquely positioned to help address that challenge. Our integrated approach, spanning generation, storage, distribution, and fueling, places us at the forefront of providing the critical energy solutions needed to power the next era of growth. Our strategy remains focused on expanding, scaling, and optimizing. We are deepening our presence in key markets with mobile fuel delivery, advancing opportunities in renewable distributed infrastructure, and strengthening partnerships that accelerate technology deployment while improving operating efficiency and margin performance. While our near-term focus is on disciplined execution, our long-term vision remains steadfast to create a fully connected energy ecosystem that bridges today's fueling needs with tomorrow's clean, intelligent infrastructure.
Underscoring the urgency to generate power.
<unk> energy is uniquely positioned to help address that challenge our integrated approach spanning generation storage distribution and fueling.
Places us at the forefront in providing the critical energy solutions needed to power the next era of growth.
Our strategy remains focused on expanding scaling and optimizing we are deepening our presence in key markets with mobile fuel delivery advancing opportunities in renewable distributed infrastructure and strengthening partnerships that accelerate technology deployment, while improving operating efficiency and margin performance.
While our near term focus is on disciplined execution, our long term vision remains steadfast to create a fully connected energy ecosystem that bridges to these fuel needs with tomorrow's screen intelligent infrastructure.
As CEO my goal is consistently to transparent articulate our current performance. While also painting, a clear picture of our commitment to disciplined growth and to deliver on our commitments.
Michael D. Farkas: As CEO, my goal is consistently to transparently articulate our current performance, while also painting a clear picture of our commitment to disciplined growth, and to deliver on our commitments. I am proud that all the things we laid out in last quarter's call, we have delivered. I hope to do the same next quarter: consistent and reliable leadership. With that, I'll turn it over to our CFO, Joel Kleiner, for the financial review.
I am proud that all the things that we laid out in last quarter's call. We have delivered I hope to do the same next quarter consistent and reliable leadership.
With that I'll turn it over to our CFO George <unk> for the financial review.
Thank you Michael.
Turning to the financials Q3 was another quarter of outstanding growth with revenue of $22 9 million up.
Joel Kleiner: Thank you, Michael. Turning to the financials, Q3 was another quarter of outstanding growth, with a revenue of $22.9 million, up 232% year-over-year from $6.9 million in Q3 of 2024 and up $19.7 million in Q2 2025. To put that in perspective, our total revenue for the full year of 2024 was $27.8 million, so we're approaching nearly a full year's worth of revenue in just one quarter. Gross profit margins also continued to expand, increasing from 8% in Q2 to 11% in Q3. Not only did we grow revenue, but we also successfully lowered our cost of goods sold, demonstrating that while growing top-line revenue, we're also simultaneously improving our operational efficiencies. On the expense side, our loss from operation came in at $9 million, which includes a $5.6 million non-cash stock-based compensation charge.
232% year over year from $6 9 million.
In Q3 of 2024 and up $19 7 million in Q2 2025.
Put that in perspective, our total revenue for the full year of 2024.
$27 $8 million. So we're approaching nearly a full years worth of revenue in just one quarter.
Gross profit margins also continued to expand increasing from 8% in Q2 to 11% in Q3.
Not only did we grow revenue, but we also successfully lowered our cost of goods sold demonstrating that while growing top line revenue. We're also simultaneously improving our operational efficiencies.
On the expense side, our loss from operations came in at $9 million, which includes a $5 $6 million noncash stock based compensation charge as you'll recall, we introduced this program last quarter as a strategy to attract and retain top salary and as expected this quarter's charges significantly.
Joel Kleiner: As you recall, we introduced this program last quarter as a strategy to attract and retain top talent, and as expected, this quarter's charge is significantly lower in Q2. Excluding this item, our operating loss was $3.4 million, down from $5.2 million in Q2, reflecting our continued focus on disciplined cost management, and operational efficiency as we move closer to profitability and positive cash flows. Cash used in operation for the first nine months of 2025 was $14.1 million. Because this figure reflects quarter-end working capital timing, including inventory and prepaid expenses hitting just before quarter close, as well as Q2 invoices being paid in Q3, the reported number overstays our underlying burn rate. On a normalized basis, our year-to-date operating burn is closer to $11 million. We ended the quarter with roughly $650,000 in cash, which similarly reflects those working capital timing dynamics.
Lower than Q2.
And then in Q2, excluding this item our operating loss was $3 4 million down from $5 2 million in Q2, reflecting our continued focus on disciplined cost management and operational efficiency as we move closer to profitability and positive positive cash flows.
Cash used in operations for the first nine months of 2025 was $14 1 million.
Because of this figure reflects quarter and working capital timing, including inventory and prepaid expenses.
Just before quarter calls as well as Q2 invoices being paid in Q3, the reported number overstates, our underlying burn rate on a normalized basis, our year to date operating burn is closer to $11 million.
We ended the quarter with roughly a 650000 in cash, which similarly reflects those working capital timing dynamics since quarter end, we have taken deliberate steps to strengthen liquidity, we completed the refinancing of our truck fleet and continue to streamline our debt profile converting portions of our debt to equity and reducing over.
Joel Kleiner: Since quarter-end, we have taken deliberate steps to strengthen liquidity. We completed the refinancing of our truck fleet and continue to streamline our debt profile, converting portions of our debt to equity and reducing the overall complexity in the capital structure. These actions provide greater financial flexibility as we manage the business. Operationally, Q3 delivered solid progress. Revenue increased, our energy pipeline continued to expand, and we began advancing several opportunities towards deployment. As we scale revenue, expand margin, and enhance operational efficiency, the underlying trend in our cash usage is moving in the right direction. While we still have work to do ahead of us, the trajectory of our business, combined with the strength of our platform, and the early validation we are seeing across both fueling and energy infrastructure, positions us well for continued momentum in the quarters to come. Thank you. Back to you, Michael.
The overall complexity in the capital structure. These actions provide greater financial flexibility as we manage the business operationally Q3 delivered solid progress revenue increase our energy pipeline continues to expand and we began advancing several opportunities towards deployment as we scale revenue expand.
Margin and enhance operational efficiency the underlying trend in our cash usage is moving in the right direction. While we still have work to do ahead of us the trajectory of our business combined with the strength of our platform and the early validation we are seeing across both fueling an energy infrastructure position us well for continued momentum in the quarters to come.
<unk>.
Thank you thank you Michael.
Thank you Joel.
It's been a fantastic quarter for next synergy on our last call. We outlined a series of goals that we sought to achieve them.
Michael D. Farkas: Thank you, Joel. It's been a fantastic quarter for NextNRG. On our last call, we outlined a series of goals that we sought to achieve, and I'm proud to say that we've executed on every single one of them. Our operational performance, project pipeline, and financial results all reflect the disciplined growth and momentum we've been building towards. Looking ahead, we're excited to be in a unique position, both in time and in capability, to help drive the future of energy across the nation and ultimately on a global scale. Our on-site infrastructure continues to expand, our pipeline is growing, and profit potential continues to strengthen with each passing quarter. On a personal note, as many of you may know, I've spent much of my career pioneering advancements in EV charging.
And I'm proud to say that we've executed on every single one of them our operational performance deposit pipeline and financial results will reflect a disciplined growth and momentum we've been building for us.
Looking ahead, we're excited to be in a unique position both in time and in capability.
Help drive the future of energy across the nation and ultimately on a global scale.
Onsite infrastructure continues our spend our pipeline is growing and profit potential continues to strengthen with each passing quarter.
And on a personal note as many of you may know Ive spent much of my career planning advancements in EV charging them.
I am pleased to share that are no longer any noncompete restrictions, which opens the door for next energy to participate fully in all corners of EV charging both wired and wireless and to pursue high value high margin energy assets that align with our long term vision.
Michael D. Farkas: I'm pleased to share that I'm no longer under any non-compete restrictions, which opens the door for NextNRG to participate fully in all forms of EV charging, both wired and wireless, and to pursue high-value, high-margin energy assets that align with our long-term vision. We're just getting started, and the opportunity ahead has never been greater. Thank you all for your continued confidence and support. Operator, we can now move on to the questions.
We're just getting started and the opportunity ahead has never been greater.
Thank you all for your continued confidence and support.
Operator, we can now move on to the questions.
Thank you so much I understand there are some E mail question, Sharon So I'd like to hand, the call back over to you for the Q&A portion.
Joel Kleiner: Thank you so much. I understand there are some emailed questions, Sharon, so I'd like to hand the call back over to you for the Q&A portion.
Thank you.
As Gavin.
Sharon Cohen: Thank you. Yes, I've gathered some submitted questions, and now we'll direct them to you, Michael. The first question relates to our energy division. Can you give us more detail on the kinds of projects currently in your energy infrastructure pipeline? What types of facilities are engaging with you, and what solutions are they looking for?
Question on one add to that Michael.
The first question as it relates to our energy Division can.
Can you give us more detail on our conga project currently.
The infrastructure pipeline.
What types of fulfilled by engaging with you on what solutions are they looking for.
Absolutely our pipeline to include projects for municipalities as well as a large range of commercial facilities.
Michael D. Farkas: Absolutely. Our pipeline today includes projects for municipalities, as well as a large range of commercial facilities. These opportunities span everything from literally layering new components over existing infrastructure to full green buildouts, windfill buildouts, really depending upon the need of the facility. These customers are typically asking for three core components. One is on-site power generation, basically to reduce dependence on the grid and improve overall reliability. Number two is advanced battery storage. This is to ensure continuity of power, especially during peak demand or outages. We're looking at our smart microgrid control system. It's really optimized on how energy is produced, stored, and consumed in real time. Many of these facilities are operating with aging equipment and insufficient backup systems, so they're looking at us to design modern methodologies and integrated solutions that meet both operational requirements and regulatory standards.
These opportunities span everything from literally layering new components over existing infrastructure.
Full green build outs Winfield build outs really depending upon the need of the facility.
These customers are typically asking for three core components. One is onsite power generation basically to reduce dependence on the grid and improve overall.
On the liability.
Number two is the advanced battery storage to ensure continuity of power, especially during peak demand or outages and then we're looking at are smart Microgrid control system.
It's really it's optimizing our energies produced stored and consumed in real time.
Many of these facilities are operating with aging equipment and insufficient backup systems. So they are looking at us to design modern.
Methodologies and integrated solutions.
Both operational requirements and regulatory standards.
We're also seeing a growing wave of commercial operators, who have solar installed, but now need storage and intelligent controls and they want a unified platform that ties everything together in one simple place and be able to follow everything.
Michael D. Farkas: We're also seeing a growing wave of commercial operators who have solar installed but now need storage and intelligent controls, and they want a unified platform that ties everything together in one simple place to be able to follow everything. They also want a single partner to complete that ecosystem. You can't have different components, different people all over the place. It's not a sound system. That's exactly what our energy platform does. It allows integration of all the stuff. These are not explanatory or one-off engagements. They're well-defined, high-value infrastructure deployments that directly address the reliability gaps that are out there today. Next question.
They also want a single partner.
Please that ecosystem you can have different components different people all over the business its not a sound system.
And that's exactly what our energy platform does it allows integration of all of our staff.
So these are not exploratory or one off engagements.
They're well defined high value infrastructure deployments that directly address the reliability gaps that are out there today.
Next question.
Our next question relates to the lineup of appointing.
Sharon Cohen: Our next question relates to the margins reporting. Michael, the company delivered the strongest margins in company history this quarter. How sustainable is this improvement? What are the main drivers of further margin expansion?
Michael The company delivered solid margins and companies, let's say this quarter, how sustainable is that.
Are the main drivers of our margin expansion.
Joe you want to grab that.
Sure.
Michael D. Farkas: Joel, you want to grab that?
Thank you Sharon can you repeat the question.
Joel Kleiner: Sure. As we've. Thank you, Sharon. Can you repeat the question?
Okay.
Yes, absolutely it how sustainable is that improvement in the margin and what are the main driver of further margin expansion.
Sharon Cohen: Yes, absolutely. How sustainable is this improvement in the margins, and what are the main drivers of further margin expansion?
So our margin expansion this quarter is absolutely sustainable tied directly to structural changes in the business as we build density around our anchored customers were optimizing routes improving driver efficiency.
Joel Kleiner: Our margin expansion this quarter is absolutely sustainable because it's tied directly to structural changes in the business. As we build density around our anchored customers, we're optimizing routes, improving driver efficiency, reducing one of the greatest components of cost of goods sold, which is the actual driver expense. The other side is increasing our gallons delivered, which we have a great contract with where we're finally unlocking volume-based discounting. Both of those lower our per-unit cost. These improvements are not a one-time thing, as we're continuously working towards better utilization, improved scheduling, and continued vendor-side advantages. We expect these to continue to grow as we continue expanding our business.
Reducing one of the greatest components of cost of goods sold which is the actual drive rate.
The other side is increasing our gallons delivered.
Which we have a great contract with.
Where we're finally unlocking volume based discounting.
Are those lower our per unit costs.
These improvements are not a one time thing as we are continuously working towards better utilization and improved scheduling and continued vendor site advantages.
We expect these to continue to grow as we continue expanding our business.
Well that's all thank you all.
Our next question asks to discuss the conference that you had kind of Michael.
Sharon Cohen: Well said, Joel. Thank you. Our next question asks to discuss the conference that you attended, Michael, where leaders emphasized the urgent need for more power generation and infrastructure. How does this environment impact NextNRG?
We're leaders emphasizes the urgent need for more power generation and infrastructure.
How does this environment impact next energy.
The message from the event and then the follow on dinner was very very clear.
Michael D. Farkas: The message from the event and then the follow-on dinner was very, very clear. Energy demand, especially tied to AI, data centers, electrification, is growing faster than the grid can support. When Eric Schmidt said that we will run out of power before we run out of capital, it underscores the scale of the opportunity. NextNRG is positioned exactly where the market is heading: on-site power generation, storage, and smart distribution, all integrated into a single platform. As developers, operators, and corporations increasingly look for reliable, scalable off-grid or grid-enhancing solutions, the demand for smart microgrids and distributed infrastructure only intensifies. We're aligned with that, and we're already seeing the benefits in the pipeline for customers who need these kinds of services.
Energy demand, especially tied to AI data centers.
Electrification is growing faster than the grid can support.
When Eric Schmidt said that we will run out of town before we run out of capital and underscores the scale of the opportunity.
Next energy is positioned exactly where the market is heading on site power generation storage and smart distribution.
All integrated into a single platform.
As developers operators and corporations increasingly look for reliable scalable off grid or grid enhancing solutions the demand for smart micro grids and distributed infrastructure only intensifies.
We are aligned with that.
And we're already seeing the benefits in the pipeline.
For customers, who need these kind of services.
Thank you.
And our final question.
Sharon Cohen: Thank you. Our final question is about operating losses. You've made progress reducing your operating loss this quarter, but you're still running at a multi-million-dollar loss. Can you lay out a fair timeline or framework for when investors can expect sustainable positive cash flow?
About operating losses.
We've made progress reducing your operating loss this quarter.
Still running add them up and going down a lot.
Can you lay out a fair timeline a framework for when investors can expect.
Sustainable positive cash flow.
Absolutely.
The improvement this quarter was driven by both scale and tighter cost discipline revenue grew materially.
Michael D. Farkas: Absolutely. The improvement this quarter was driven by both scale and tighter cost discipline. Revenue grew materially, massively. Margins expanded, and our underlying operating loss improved from Q2 to Q3. The path to positive cash flow is tied to three things: continued revenue growth, which we're seeing; further margin expansion, as operational density increases; and maintaining disciplined SG&A spend as we scale. The remaining hurdle is simply timing. As more new markets mature, and as supplier discounts continue to strengthen, the economics improve quarter by quarter. We're not guiding to a specific date today, but the trend is clear. Our losses are narrowing, our margins are expanding, and each quarter brings us closer to sustained positive cash flow. The fundamentals are moving in the right direction, and the model scales efficiently as we continue growing. Thank you.
Massively margins expanded and our underlying operating loss improved from Q2 to Q3.
The path to positive cash flow is tied to three things continued revenue growth, which we're seeing.
Further margin expansion.
His operational essentially increases and maintaining disciplined SG&A spend as we scale.
The remaining hurdle is simply timing as more new markets mature and our supplier discounts continue to strengthen the economics improve quarter by quarter, we're not guiding to a specific date today, but the trend is clear.
Our losses are now, earning our margins are expanding and each quarter brings us closer sustained positive cash flow.
Fundamentals are moving in the right direction and the model scales efficiently as we continue growing.
Thank you.
Thank you so much ladies and gentlemen, this does conclude today's teleconference. We appreciate your participation you may disconnect your lines at this time.
Joel Kleiner: Thank you so much, ladies and gentlemen. This does conclude today's teleconference. We appreciate your participation, and you may disconnect your lines at this time.