--- title: "OPAL Fuels | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 73.38 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/286031646.md" datetime: "2026-05-12T03:57:42.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286031646.md) - [en](https://longbridge.com/en/news/286031646.md) - [zh-HK](https://longbridge.com/zh-HK/news/286031646.md) --- # OPAL Fuels | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 73.38 M Revenue: As of FY2026 Q1, the actual value is USD 73.38 M, missing the estimate of USD 92.11 M. EPS: As of FY2026 Q1, the actual value is USD -0.09. EBIT: As of FY2026 Q1, the actual value is USD 1.041 M. #### Segment Revenue - **Total Revenues**: OPAL Fuels Inc. reported total revenues of $73,375 thousand for the three months ended March 31, 2026, which is a decrease of $12,032 thousand or -14% compared to $85,407 thousand in the same period of 2025 . - **RNG Fuel Segment**: Revenue decreased by $5,961 thousand, or -22%, to $21,638 thousand in Q1 2026 from $27,599 thousand in Q1 2025 . This was primarily due to a $4,800 thousand decrease in RIN volume and a $2,900 thousand decrease due to RIN price reduction, partially offset by a $1,400 thousand increase in brown gas sales due to higher prices . Brown gas sales increased to $2,821 thousand in Q1 2026 from $1,457 thousand in Q1 2025 . Environmental attributes revenue decreased to $18,230 thousand in Q1 2026 from $25,830 thousand in Q1 2025 . - **Fuel Station Services Segment**: Revenue decreased by $6,112 thousand, or -12%, to $44,566 thousand in Q1 2026 from $50,678 thousand in Q1 2025 . This was mainly due to a $1,600 thousand decrease in RIN and LCFS minting services, a $500 thousand decrease from lower RIN prices (partially offset by higher LCFS prices), and a $5,200 thousand decrease due to lower dispensing and $3,100 thousand driven by construction project delays . These decreases were partially offset by a $3,500 thousand increase in sales-type leases, including $2,200 thousand from a new sales-type lease outside the United States, and a $1,300 thousand increase in operating leases in the United States, along with a $1,000 thousand increase in GGEs at OPAL-owned stations . OPAL-owned stations revenue increased to $5,951 thousand in Q1 2026 from $4,906 thousand in Q1 2025 . Environmental attributes revenue decreased to $11,498 thousand in Q1 2026 from $17,252 thousand in Q1 2025 . RNG marketing revenue decreased to $9,691 thousand in Q1 2026 from $11,274 thousand in Q1 2025 . Construction revenue decreased to $4,899 thousand in Q1 2026 from $7,991 thousand in Q1 2025 . Lease revenues increased to $5,727 thousand in Q1 2026 from $2,185 thousand in Q1 2025 . - **Renewable Power Segment**: Revenue remained flat at $7,171 thousand in Q1 2026 compared to $7,130 thousand in Q1 2025, as increased revenues from higher generation were offset by lower environmental attributes . Electricity sales increased to $5,792 thousand in Q1 2026 from $5,256 thousand in Q1 2025 . Environmental attributes revenue decreased to $713 thousand in Q1 2026 from $821 thousand in Q1 2025 . #### Operational Metrics - **Operating Loss**: The company reported an operating loss of - $4,843 thousand for the three months ended March 31, 2026, a significant increase from an operating loss of - $1,942 thousand in the prior-year period, representing a -149% change . - **Total Operating Expenses**: Total operating expenses decreased by $9,131 thousand, or -10%, to $78,218 thousand in Q1 2026 from $87,349 thousand in Q1 2025 . - **Cost of Sales - RNG Fuel**: Increased by $676 thousand, or 6%, to $12,829 thousand in Q1 2026, primarily due to a $1,300 thousand increase in gas expense, a $1,000 thousand increase in maintenance, and a $300 thousand increase in utilities, partially offset by a $2,000 thousand decrease in royalties due to lower environmental credit revenues . - **Cost of Sales - Fuel Station Services**: Decreased by $4,332 thousand, or -11%, to $35,390 thousand in Q1 2026, mainly due to a $5,800 thousand decrease in dispensing fees from lower RIN pricing, offset by a $1,500 thousand increase in FPA tolling expense due to higher volumes . - **Cost of Sales - Renewable Power**: Decreased by $1,132 thousand, or -17%, to $5,630 thousand in Q1 2026, primarily due to a $700 thousand decrease in major maintenance and a $400 thousand decrease from the timing of non-labor and other expenses . - **Project Development and Startup Costs**: Decreased by $4,266 thousand, or -70%, to $1,815 thousand in Q1 2026, mainly due to virtual pipeline costs related to Prince William and Polk facilities . - **Selling, General and Administrative Expenses**: Decreased by $783 thousand, or -5%, to $15,184 thousand in Q1 2026, primarily due to decreases in compensation costs and advocacy expenses, partially offset by IT and marketing costs . - **Depreciation, Amortization, and Accretion**: Decreased by $329 thousand, or -6%, to $5,613 thousand in Q1 2026, primarily due to lower depreciation expense in Renewable Power . - **Loss from Equity Method Investments**: Increased by $1,035 thousand, or 143%, to $1,757 thousand in Q1 2026, due to a decrease in the realized price of RINs sold on operating facilities and lower production, mainly at Pine Bend and Emerald . - **Net Loss Attributable to Class A Common Stockholders**: The net loss for Class A common stockholders increased to - $2,642 thousand in Q1 2026 from - $235 thousand in Q1 2025, an increase of - $2,407 thousand or -1024% . #### Cash Flow - **Net Cash Provided by Operating Activities**: Net cash provided by operating activities was $12,916 thousand for the three months ended March 31, 2026, a decrease of $16,763 thousand compared to $29,679 thousand in the prior-year period . This decrease was primarily due to unfavorable changes in working capital, higher net loss, and lower non-cash items . - **Net Cash Used in Investing Activities**: Net cash used in investing activities was - $19,384 thousand for the three months ended March 31, 2026, an increase of $10,107 thousand compared to - $9,277 thousand in the prior-year period . This was mainly due to increased payments for the construction of RNG generation and dispensing facilities and a decrease in distributions from equity method investments, partially offset by lower contributions to equity method investments . - **Net Cash Provided by Financing Activities**: Net cash provided by financing activities was $115,124 thousand for the three months ended March 31, 2026, an increase of $119,856 thousand compared to net cash used of - $4,732 thousand in the prior-year period . This was primarily due to increased proceeds from long-term loans and preferred stock issuance, partially offset by the redemption of preferred shares and increased loan repayments . #### Unique Metrics - **RNG Fuel Production**: RNG Fuel volume produced increased to 1.2 Million MMBtus in Q1 2026 from 1.1 Million MMBtus in Q1 2025 . - **RNG Fuel Sales**: RNG Fuel volume sold decreased to 17.9 Million GGEs in Q1 2026 from 19.5 Million GGEs in Q1 2025 . - **Total Volume Delivered**: Total volume delivered decreased to 39.0 Million GGEs in Q1 2026 from 40.6 Million GGEs in Q1 2025 . - **Landfill RNG Facility Design Capacity (OPAL’s Share)**: Increased to 2.2 Million MMBtus in Q1 2026 from 2.1 Million MMBtus in Q1 2025 . - **Inlet Design Capacity Utilization %**: Increased to 72% in Q1 2026 from 69% in Q1 2025 . - **Renewable Power Nameplate Capacity**: Remained constant at 105.8 MW per hour for both Q1 2026 and Q1 2025 . - **Renewable Power Produced**: Increased to 0.09 Million MWh in Q1 2026 from 0.08 Million MWh in Q1 2025 . - **Renewable Power Design Capacity Utilization %**: Increased to 39% in Q1 2026 from 37% in Q1 2025 . - **Investments in Other Entities (RNG Fuel Segment)**: Investments in other entities for the RNG Fuel segment were $224,282 thousand as of March 31, 2026, compared to $231,223 thousand as of December 31, 2025 . - **Segment Assets**: Total segment assets were $912,049 thousand as of March 31, 2026, with the RNG Fuel segment accounting for $702,171 thousand, Fuel Station Services for $181,650 thousand, and Renewable Power for $28,228 thousand . - **Capital Expenditures**: Cash paid for purchases of property, plant and equipment totaled $24,367 thousand for the three months ended March 31, 2026, compared to $11,566 thousand for the same period in 2025 . #### Future Outlook and Strategy OPAL Fuels Inc. anticipates spending approximately $155,000 thousand in capital expenditures over the next 12 months for RNG projects, fuel stations, and its share of contributions in equity method investment projects, including those not yet fully committed . These expenditures are planned to be funded primarily through cash on hand, cash generated from operations, and available existing debt facilities . 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