Alto Ingredients, Inc.
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
ALTO$3.74+1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001213900-25-073660
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001213900-25-107625
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 123 previous paragraphs and 116 current paragraphs.
54 unchanged; 33 reworded; 25 added; 35 removed; 1 previous and 4 current paragraphs rearranged.
Tables are not compared: 26 previous and 25 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
In the third quarter, strong market conditions combined with the benefits realized from our recent strategic realignment delivered improvements across all segments of our business compared to the same period in 2024. Gross profit increased nearly $18 million and net income (loss) improved nearly $17 million while Adjusted EBITDA grew by over $9 million. These robust quarterly improvements were driven by multiple key factors. First, we increased higher-margin renewable fuel export sales, illustrating the advantage of our platform’s flexibility to shift our product mix to meet market demand to capture the highest value for our products. Second, we benefitted from strong demand for liquid CO 2, particularly on the West Coast, illustrating the success of our liquid CO 2 plant acquisition in early 2025. Finally, we reduced costs and improved efficiencies, including through the continued effects of rationalizing unprofitable business activities, successfully lowering expenses year-over-year.
Current report
We continue to prioritize shorter-term projects based on their anticipated cost, timing and return on investment. We believe this strategy will contribute incremental profitability. Our goals include lowering our carbon intensity score to capture a greater portion of the Section 45Z tax credits available under the Inflation Reduction Act of 2022 and increasing our CO 2 utilization at our Pekin Campus and at our Columbia plant in Boardman, Oregon, building on our successful liquid CO 2 plant acquisition.
Current report
Once we complete the groundwork to qualify for Section 45Z tax credits, we expect to earn $0.10 per gallon at our Columbia plant for 2025. In addition, with the updated indirect land use change, referred to as iLUC, we expect to lower our carbon intensity scores for 2026, increasing available tax credits to $0.20 per gallon at our Columbia facility and $0.10 per gallon at our Pekin Campus dry mill for the year. If we produce at nameplate capacity at all of our facilities, the total value of Section 45Z tax credits could be up to $18 million for 2025 and 2026, in aggregate, before any related monetization costs. Since Section 45Z tax credits are transferrable tax assets, we have started the process to forward sell these assets to monetize the credits for 2026 through 2029. The recent Section 45Z updates have improved the intrinsic value of our facilities as a whole.
Current report
We have improved our CO 2 utilization as a result of acquiring Kodiak Carbonic in early 2025 and related initial capital expenditure programs at our Columbia facility. Our efforts to further improve plant reliability and ethanol production rates have improved synergies between the ethanol plant and adjacent liquid CO 2 plant, and include measures to increase CO 2 throughput and add storage capacity. A number of these ethanol production improvements were completed in October.
Current report
Given the benefits of owning the liquid CO 2 plant adjacent to our Columbia ethanol facility, we are now considering options for other liquid CO 2 plants. We also believe the opportunity to add liquid CO 2 production capacity is compelling since the demand for liquid CO 2 continues to rise, particularly in Oregon and Idaho, resulting from significant supply shortfalls and increased consumption in the region. These market dynamics have positioned producers in the region to leverage strong liquid CO 2 market pricing.
Current report
We continue to evaluate options for our Magic Valley facility in Idaho, including its sale, potential CO 2 utilization at the plant and Section 45Z tax credits, the latter two of which may support restarting the facility from its current cold idled state.
Current report
At our Pekin Campus, our ability to react to market signals and shift production enables us to capture the highest value for our products and continues to create opportunities. As the export market for renewable fuel began to grow, we earned the necessary certifications to export our products to Europe and began exports in the fourth quarter of 2024. This strategy continues to pay off. In the third quarter, the fuel export market and related pricing was stronger than the domestic market. As such, we produced and sold more gallons into the export market, capturing more of the available demand for this product. In the third quarter, we also leveraged our production flexibility and these market dynamics to forward contract significant export volumes for the fourth quarter and first-half of 2026 to lock in favorable premiums to domestic renewable fuel. We believe the export market for renewable fuel will continue to grow.
Current report
California Assembly Bill 30, which authorizes E15 fuel sales year-round in the state, unlocks significant demand for domestically produced ethanol. California is the largest market that allows E15 blends year-round, adding potentially over 600 million additional gallons per year at full blend rates for gasoline sold in the state. Assembly Bill 30 expands consumer choice for lower-carbon, cheaper fuels in California during a time when refineries are being idled and gasoline capacity in the state is tightening. We are well positioned to help fill the gap through our marketing and distribution services on the West Coast.
Current report
Our high-quality alcohol products continue to deliver a premium to domestic renewable fuel and our contracting season for 2026 is on pace with 2025.
Current report
Carbon capture and storage at our Pekin Campus is delayed due to regulatory and environmental constraints enacted in Illinois, including drilling restrictions specifically impacting our planned site. We continue to be flexible about our options to maximize CO 2 utilization as we collaborate with Vault 44.01 to address changes in the law and determine a path forward. Our long-standing CO 2 customers who sell into the food and beverage markets have shown interest in a potential expansion of our CO 2 capture capabilities at our Pekin Campus.
Current report
We are vetting additional low-cost options at our plants to further reduce our carbon intensity scores, including lowering our energy consumption, changing our energy sources to lower their carbon intensity impact, shifting to low carbon corn, and undertaking smaller projects to improve efficiencies and throughput.
Current report
Our Pekin Campus dock, damaged in April by rapidly rising river levels, remains under repair. During the third quarter, our dock outage resulted in $0.8 million in business interruption, additional logistics and preliminary property repairs. Although we have temporarily remedied the situation, we continue to work with our insurance carrier to assess our level of coverage and determine the timing of reimbursements. To minimize business interruption, we are relying on local third parties to transport our essential ingredients. To create redundancy, we intend to build a second alcohol loadout dock for use while we repair the original dock. Once the original dock is restored, the second dock will effectively remove a frequent bottleneck by improving loadout capacity, accelerating loadout times and lowering costs. We are in the process of finalizing designs, obtaining permits and contracting work crews to begin the repairs and new dock installation starting this coming spring.
Current report
The decrease in our consolidated net sales for the three months ended September 30, 2025 as compared to the same period in 2024 is primarily attributable to lower sales volumes, predominately related to cold idling our Magic Valley facility and rationalizing unprofitable business activities in our marketing and distribution segment, partially offset by an increase in our average sales price per gallon.
Current report
Net sales of alcohol from our Pekin Campus production segment increased $2.8 million, or 3%, to $109.3 million for the three months ended September 30, 2025 as compared to $106.5 million for the same period in 2024. Our total volume of production gallons sold increased by 0.5 million gallons, or 1%, to 53.3 million gallons for the three months ended September 30, 2025 as compared to 52.8 million gallons for the same period in 2024. The increase of $0.03, or 2%, in the segment’s average sales price per gallon for the three months ended September 30, 2025 as compared to the same period in 2024 increased our net sales from the segment by $1.0 million. With the segment’s average sales price per gallon of $2.05 for the three months ended September 30, 2025, we generated $1.8 million in additional net sales from the 0.5 million additional gallons of alcohol sold in the three months ended September 30, 2025 as compared to the same period in 2024.
Current report
Net sales of essential ingredients from our Pekin Campus production segment improved by $4.1 million, or 10%, to $45.3 million for the three months ended September 30, 2025 as compared to $41.2 million for the same period in 2024. Our total volume of essential ingredients sold increased 5,600 tons, or 2%, to 242,200 tons for the three months ended September 30, 2025 from 236,600 tons for the same period in 2024. The increase of $12.86, or 7%, in the segment’s average sales price per ton for the three months ended September 30, 2025 as compared to the same period in 2024 increased our net sales from the segment by $3.0 million. With the segment’s average sales price per ton of $187.06 for the three months ended September 30, 2025, we generated $1.1 million in additional net sales from the 5,600 additional tons of essential ingredients sold in the three months ended September 30, 2025 as compared to the same period in 2024.
Current report
Net sales of alcohol from our Western production segment declined by $19.0 million, or 52%, to $17.4 million for the three months ended September 30, 2025 as compared to $36.4 million for the same period in 2024. Our total volume of alcohol sold decreased by 9.9 million gallons, or 55%, to 8.1 million gallons for the three months ended September 30, 2025 as compared to 18.0 million gallons for the same period in 2024. With the segment’s average sales price per gallon of $2.14 for the three months ended September 30, 2025, we realized $21.2 million less in net sales from the 9.9 million fewer gallons of alcohol sold in the three months ended September 30, 2025 as compared to the same period in 2024. The increase of $0.12, or 6%, in the segment’s average sales price per gallon for the three months ended September 30, 2025 as compared to the same period in 2024 increased our net sales from the segment by $2.2 million.
Current report
Net sales of essential ingredients from our Western production segment decreased by $2.4 million, or 23%, to $8.0 million for the three months ended September 30, 2025 as compared to $10.4 million for the same period in 2024. Our total volume of essential ingredients sold decreased 77,900 tons, or 50%, to 76,900 tons for the three months ended September 30, 2025 from 154,800 tons for the same period in 2024. With the segment’s average sales price per ton of $104.25 for the three months ended September 30, 2025, we generated $8.1 million less in net sales from the 77,900 fewer tons of essential ingredients sold in the three months ended September 30, 2025 as compared to the same period in 2024. The increase of $37.02, or 55%, in our average sales price per ton for the three months ended September 30, 2025 as compared to the same period in 2024 increased our net sales of essential ingredients from the segment by $5.7 million.
Current report
Our consolidated gross profit improved to a gross profit of $23.5 million for the three months ended September 30, 2025 from a gross profit of $6.0 million for the same period in 2024, representing a gross margin of 9.7% and 2.4% for the three months ended September 30, 2025 and 2024, respectively. Seasonally strong crush margins remained comparable for both year-over-year quarterly periods at $0.41 per gallon. Gross profit improved primarily due to an $8.0 million year-over-year change in unrealized noncash derivatives, $5.6 million of margin attributable to higher renewable fuel exports, $2.0 million of margin attributable to our Alto Carbonic liquid CO 2 business at our Columbia site, $3.6 million attributable to higher essential ingredients return resulting from strong corn oil pricing and a shift in our production mix to higher value proteins, plus the cost savings associated with the cold idling of our Magic Valley facility, all of which were partially offset by $2.9 million of lower premiums for high quality alcohol. We also continued to benefit from other prior cost reduction efforts, including rationalization of unprofitable businesses.
Current report
Our Pekin Campus production segment’s gross profit, net of intercompany activity, improved by $12.8 million to a gross profit of $19.8 million for the three months ended September 30, 2025 as compared to gross profit of $7.0 million for the same period in 2024. Of this improvement, $12.6 million is attributable to higher alcohol sales margins and $0.2 million is attributable to higher sales volumes.
Current report
Nine Months ended September 30, 2025 as compared to the Nine Months ended September 30, 2024
Current report
Net sales of essential ingredients from our Pekin Campus production segment increased by $2.2 million, or 2%, to $129.5 million for the nine months ended September 30, 2025 as compared to $127.3 million for the same period in 2024. Our total volume of essential ingredients sold increased by 31,100 tons, or 5%, to 690,300 tons for the nine months ended September 30, 2025 from 659,200 tons for the same period in 2024. With the segment’s average sales price per ton of $187.59 for the nine months ended September 30, 2025, we generated $5.8 million in additional net sales from the 31,100 additional tons of essential ingredients sold in the nine months ended September 30, 2025 as compared to the same period in 2024. The decrease of $5.52, or 3%, in the segment’s average sales price per ton for the nine months ended September 30, 2025 as compared to the same period in 2024 reduced our net sales from the segment by $3.6 million.
Current report
Net sales of alcohol from our Western production segment declined by $23.9 million, or 32%, to $50.2 million for the nine months ended September 30, 2025 as compared to $74.1 million for the same period in 2024. Our total volume of alcohol sold decreased by 13.5 million gallons, or 35%, to 24.7 million gallons for the nine months ended September 30, 2025 as compared to 38.2 million gallons for the same period in 2024. With the segment’s average sales price per gallon of $2.03 for the nine months ended September 30, 2025, we generated $27.4 million less in net sales from the 13.5 million fewer gallons of alcohol sold in the nine months ended September 30, 2025 as compared to the same period in 2024. The increase of $0.09, or 5%, in the segment’s average sales price per gallon for the nine months ended September 30, 2025 as compared to the same period in 2024 increased our net sales from the segment by $3.5 million.
Current report
Net sales of essential ingredients from our Western production segment decreased by $0.1 million, or less than 1%, to $24.1 million for the nine months ended September 30, 2025 as compared to $24.2 million for the same period in 2024. Our total volume of essential ingredients sold decreased 107,300 tons, or 32%, to 228,100 tons for the nine months ended September 30, 2025 from 335,400 tons for the same period in 2024. With the segment’s average sales price per ton of $105.5 for the nine months ended September 30, 2025, we generated $11.3 million less in net sales from the 107,300 fewer tons of essential ingredients sold in the nine months ended September 30, 2025 as compared to the same period in 2024. The increase of $33.45, or 46%, in our average sales price per ton for the nine months ended September 30, 2025 as compared to the same period in 2024 increased our net sales of essential ingredients from the segment by $11.2 million.
Current report
Our consolidated gross profit increased to a gross profit of $19.8 million for the nine months ended September 30, 2025 from gross profit of $11.1 million for the same period in 2024, representing a gross margin of 2.9% and 1.5% for the nine months ended September 30, 2025 and 2024, respectively. Similar to the three-month period ending September 30, 2025, gross profit for the nine-month period improved due to higher renewable fuel exports, our Alto Carbonic liquid CO 2 business at our Columbia site, a higher essential ingredients return and cost savings associated with the cold idling of our Magic Valley facility as well as other prior cost reduction efforts, including rationalization of unprofitable businesses.
Current report
Net Income (Loss) Attributable to Common Stockholders
Removed paragraphs (35)
Previous report
Although our net loss worsened to $11.0 million in the second quarter, primarily due to the non-cash effects of hedging activities, our Adjusted EBITDA improved by nearly $6.0 million compared to the same period in 2024, reflecting the successful execution of our initiatives to increase efficiency and productivity. The quarter-over-quarter improvement in our Adjusted EBITDA reflects the benefit of multiple initiatives. We improved our operating model company-wide by rightsizing our corporate overhead to a level that aligns with our current business footprint and we are on track to exceed our goal of saving approximately $8.0 million on an annualized basis from this initiative. We will continue to evaluate our options to improve operational efficiency and throughput, focus on growth in profitable market segments, and identify additional cost-saving opportunities that, while smaller in amount than from our recent corporate reorganization, should in the aggregate meaningfully affect our long-term profitability.
Previous report
In the second quarter, the annual uptick in demand from the summer driving season helped lift ethanol prices and improve crush spreads. While it is difficult to predict market fluctuations, we have seen additional spread improvement in the third quarter, with market crush averaging 30 cents per gallon for July, and we remain optimistic for positive margins through the remainder of the summer.
Previous report
Our Western assets turned profitable, improving gross profit by $5.6 million compared to the prior year’s quarter, driven by our CO 2 facility acquisition at the beginning of 2025 and other improvements at our Columbia ethanol plant, collectively improving gross profit by $3.0 million, as well as our decision to cold-idle our Magic Valley facility due to adverse market conditions in the region, which improved gross profit by $2.6 million. We continue to use our Magic Valley facility primarily as a terminal.
Previous report
Our marketing and distribution business also improved, reflecting the integration of our bulk volume customers from our Eagle Alcohol business, a fostering of third-party ethanol marketing relationships that met profitability criteria, and our transition away from business that offered limited returns.
Previous report
Our Pekin Campus was negatively impacted by quarter-over-quarter changes in derivatives and the continued impact of damage sustained to our loadout dock in April. However, we partially offset these effects by leveraging our operational flexibility by increasing sales of higher-margin International Sustainability and Carbon Certification, or ISCC, products exported to Europe.
Previous report
Given our success with these efforts, we continue to focus on shorter-term projects with more immediate returns to support our path to profitability. We intend to prioritize projects by anticipated cost, timing and return on investment. Projects under consideration include improvements to lower our carbon intensity and capture more of the Section 45Z benefits available under the Inflation Reduction Act of 2022, expansion of our CO 2 utilization at our Pekin Campus and at our Colombia facility, building on our success from our Alto Carbonic acquisition, and projects to improve our prospects to monetize our Western assets. In addition, as we did in the first and second quarters, we will continue projects to improve efficiency and productivity.
Previous report
Working with our bankers, we continue to make progress on our plan to optimize and monetize our Western assets. We are also evaluating strategic alternatives and interest for our Pekin Campus and for the company as a whole.
Previous report
Illinois Senate Bill 1723, which prohibits CO 2 sequestration directly through the Mahomet aquifer, as contemplated in our Class VI permit application with the EPA for our carbon capture and storage, or CCS, project, was signed into law on August 1, 2025. We are developing alternatives with Vault 44.01, our CCS partner, and evaluating other promising, non-sequestration options to optimize the value of our CO 2 production.
Previous report
The damage sustained by our Pekin Campus loadout dock in April due to rapidly rising river levels impacted production, logistics and overall economics for most of the second quarter. Since our last update in May, we have made progress recovering from this setback. We were able to respond quickly to take interim steps with third-party river transload vendors which, while more costly, helped minimize business interruption. In addition, we worked with our insurance carrier to confirm coverage for both property damage and business interruption. Finally, we are reviewing remediation plans with our carrier to ensure the best path forward. While we expect work to extend into next year, we intend to commence the remediation project ahead of the Midwest winter.
Previous report
The One Big Beautiful Bill Act made positive updates to the Section 45Z regulations, including extending tax credits through the end of 2029 as well as additional spending on farm programs, that benefit the renewable fuels industry and improve our earnings profile and the intrinsic value of our production facilities. The act also increased focus on domestic renewable fuel production and introduced new eligibility restrictions, particularly around foreign involvement. For example, only fuel derived from feedstocks grown or produced in North America is eligible for the Section 45Z tax credit. Initially, two of our plants, our Columbia plant and our Pekin dry mill, will participate in applying for Section 45Z tax credits. An additional benefit of the act is its disincentivizing exports from most dry mills, creating an opportunity for our Pekin Campus wet mill and ICP distillery to place more of our products into European markets at a premium to domestic market prices. We intend to pursue additional options to capitalize on the Section 45Z tax credits, including through improvements to our Colombia plant to increase our anticipated credit from 10 cents per gallon for 2025, based on our current carbon intensity scores, to up to 20 cents per gallon in 2026. We expect our Pekin Campus dry mill to qualify for 10 cents per gallon starting in 2026. These credit amounts, based on nameplate production capacities and carbon intensity scores, equal up to approximately $4.0 million in 2025 and $8.0 million in 2026 for which our Colombia plant may be eligible and up to $6.0 million in 2026 for which our Pekin Campus dry mill may be eligible. We plan to make improvements to our plants to increase credit amounts across all eligible facilities. One potential improvement is through low-carbon corn, which, while more expensive, may be economically beneficial to source that particular feedstock to reduce our carbon footprint.
Previous report
Through the two other plants at our Pekin Campus, we will continue to produce higher quality alcohol and also take advantage of ISCC export market premiums for renewable fuel as the new rules incentivize domestic ethanol sales from Section 45Z eligible dry mills.
Previous report
The One Big Beautiful Bill Act also seeks to positively impact farm programs by boosting sector profitability, reducing financial volatility, enhancing asset values and strengthening the overall industry safety net with the intent to improve operational stability and long-term farm enterprise value. Also contained in the act is an increase in USDA commodity reference prices and base acres. Corn will increase from $3.70 per bushel to $4.10 per bushel and soybeans will increase from $8.40 per bushel to $10.00 per bushel. Lastly, an additional 30 million base acres may now enroll in farm programs. As a result, farmers will need new and expanded markets to absorb the additional production. We believe these developments bode well for the future of higher ethanol blends and new uses of American-grown feedstocks, making the U.S. an even more attractive origin for international sourcing of ethanol and other renewable fuel products.
Previous report
The EPA extended E15 blending waivers nationally for the duration of the summer, offering continued support for near-term domestic ethanol blending. In California, regulatory momentum continues to build for E15 blending but full-scale implementation is still pending further administrative review and regulatory updates.
Previous report
In the second quarter, we finalized our Scope 1 and 2 greenhouse gas verifications and submitted our 2025 EcoVadis scorecard.
Previous report
Net Sales, Cost of Goods Sold and Gross Profit (Loss)
Previous report
The decrease in our consolidated net sales for the three months ended June 30, 2025 as compared to the same period in 2024 is primarily attributable to lower average sales prices per gallon for both specialty alcohol and renewable fuel as well as lower average sales prices of essential ingredients due to a lower commodity price environment. In addition, we had lower sales of renewable fuel, specialty alcohol and essential ingredients due to the cold-idling of our Magic Valley plant at the end of 2024 and logistical constraints at our Pekin Campus due to a damaged loading dock starting in April 2025.
Previous report
Net sales of essential ingredients from our Pekin Campus production segment improved by $0.2 million, or less than 1%, to $39.6 million for the three months ended June 30, 2025 as compared to $39.4 million for the same period in 2024. Our total volume of essential ingredients sold remained stable at 210,000 tons for the three months ended June 30, 2025 and 2024. The increase of $0.92, or less than 1%, in the segment’s average sales price per ton for the three months ended June 30, 2025 as compared to the same period in 2024 increased our net sales from the segment by $0.2 million.
Previous report
Net sales of alcohol from our Western production segment declined by $0.9 million, or 5%, to $16.6 million for the three months ended June 30, 2025 as compared to $17.5 million for the same period in 2024. Our total volume of alcohol sold decreased by 0.7 million gallons, or 8%, to 8.3 million gallons for the three months ended June 30, 2025 as compared to 9.0 million gallons for the same period in 2024. With the segment’s average sales price per gallon of $2.00 for the three months ended June 30, 2025, we realized $1.4 million less in net sales from the 0.7 million fewer gallons of alcohol sold in the three months ended June 30, 2025 as compared to the same period in 2024. The increase of $0.06, or 3%, in the segment’s average sales price per gallon for the three months ended June 30, 2025 as compared to the same period in 2024 increased our net sales from the segment by $0.5 million.
Previous report
Net sales of essential ingredients from our Western production segment increased by $2.3 million, or 39%, to $8.2 million for the three months ended June 30, 2025 as compared to $5.9 million for the same period in 2024. Our total volume of essential ingredients sold decreased 1,400 tons, or 2%, to 78,400 tons for the three months ended June 30, 2025 from 79,800 tons for the same period in 2024. The increase of $30.67, or 41%, in our average sales price per ton for the three months ended June 30, 2025 as compared to the same period in 2024 increased our net sales of essential ingredients from the segment by $2.5 million. With the segment’s average sales price per ton of $105.23 for the three months ended June 30, 2025, we generated $0.2 million less in net sales from the 1,400 fewer tons of essential ingredients sold in the three months ended June 30, 2025 as compared to the same period in 2024.
Previous report
Cost of Goods Sold and Gross Profit (Loss)
Previous report
Our consolidated gross profit (loss) declined to a gross loss of $1.9 million for the three months ended June 30, 2025 from gross profit of $7.6 million for the same period in 2024, representing a gross margin of negative 0.9% and positive 3.2% for the three months ended June 30, 2025 and 2024, respectively.
Previous report
Our consolidated gross profit declined due to lower sales and lower gross margins driven by a few key factors. Our period-over-period change in unrealized non-cash derivatives was negative $13.2 million and our realized derivative gain was $7.6 million, resulting in a net unfavorable change of $5.6 million compared to the same period in 2024.
Previous report
Although crush margins continued to improve during the second quarter, market crush was on average 10 cents per gallon lower than for the same period in 2024, totaling $5.5 million of lower crush margin for the second quarter of 2025.
Previous report
In addition, high quality alcohol premiums were 15 cents per gallon less in the second quarter than for the same period in 2024 due to increased competition during the annual contracting process. This premium differential translated to $3.0 million in margin, which we were able to offset by shifting higher volumes into more profitable ISCC export markets, demonstrating the benefits of our strategy to diversify production to take advantage of market opportunities. Our essential ingredients return at our Pekin Campus declined to 44.2% but without affecting profitability as we offset the impact with our effective hedging strategy.
Previous report
The total adverse impact to gross profit of our loading dock outage was $2.7 million for the second quarter. We are working with our insurance carrier to recover losses in excess of our deductibles.
Previous report
Our Pekin Campus production segment’s gross profit, net of intercompany activity, declined by $16.0 million to a gross loss of $5.1 million for the three months ended June 30, 2025 as compared to gross profit of $10.9 million for the same period in 2024. Of this decline, $16.3 million is attributable to lower alcohol sales margins, partially offset by $0.3 million attributable to lower sales volumes at negative margins.
Previous report
Six Months ended June 30, 2025 as compared to the Six Months ended June 30, 2024
Previous report
Net sales of alcohol from our Pekin Campus production segment declined by $7.6 million, or 4%, to $201.4 million for the six months ended June 30, 2025 as compared to $209.0 million for the same period in 2024. Our total volume of production gallons sold decreased by 3.2 million gallons, or 3%, to 104.7 million gallons for the six months ended June 30, 2025 as compared to 107.9 million gallons for the same period in 2024. The decrease of $0.02, or 1%, in the segment’s average sales price per gallon for the six months ended June 30, 2025 as compared to the same period in 2024 reduced our net sales from the segment by $1.8 million. With the segment’s average sales price per gallon of $1.92 for the six months ended June 30, 2025, we generated $5.8 million less in net sales from the 3.2 million fewer gallons of alcohol sold in the six months ended June 30, 2025 as compared to the same period in 2024.
Previous report
Net sales of essential ingredients from our Pekin Campus production segment declined by $1.9 million, or 2%, to $84.2 million for the six months ended June 30, 2025 as compared to $86.1 million for the same period in 2024. Our total volume of essential ingredients sold increased by 25,300 tons, or 6%, to 447,900 tons for the six months ended June 30, 2025 from 422,600 tons for the same period in 2024. The decrease of $15.74, or 8%, in the segment’s average sales price per ton for the six months ended June 30, 2025 as compared to the same period in 2024 reduced our net sales from the segment by $6.6 million. With the segment’s average sales price per ton of $187.95 for the six months ended June 30, 2025, we generated $4.7 million in additional net sales from the 25,300 additional tons of essential ingredients sold in the six months ended June 30, 2025 as compared to the same period in 2024.
Previous report
Net sales of alcohol from our Western production segment declined by $4.9 million, or 13%, to $32.8 million for the six months ended June 30, 2025 as compared to $37.7 million for the same period in 2024. Our total volume of alcohol sold decreased by 3.6 million gallons, or 18%, to 16.6 million gallons for the six months ended June 30, 2025 as compared to 20.2 million gallons for the same period in 2024. With the segment’s average sales price per gallon of $1.98 for the six months ended June 30, 2025, we generated $7.1 million less in net sales from the 3.6 million fewer gallons of alcohol sold in the six months ended June 30, 2025 as compared to the same period in 2024. The increase of $0.12, or 7%, in the segment’s average sales price per gallon for the six months ended June 30, 2025 as compared to the same period in 2024 increased our net sales from the segment by $2.2 million.
Previous report
Net sales of essential ingredients from our Western production segment increased by $2.3 million, or 17%, to $16.1 million for the six months ended June 30, 2025 as compared to $13.8 million for the same period in 2024. Our total volume of essential ingredients sold decreased 29,300 tons, or 16%, to 151,300 tons for the six months ended June 30, 2025 from 180,600 tons for the same period in 2024. The increase of $29.85, or 39%, in our average sales price per ton for the six months ended June 30, 2025 as compared to the same period in 2024 increased our net sales of essential ingredients from the segment by $5.4 million. With the segment’s average sales price per ton of $106.13 for the six months ended June 30, 2025, we generated $3.1 million less in net sales from the 29,300 fewer tons of essential ingredients sold in the six months ended June 30, 2025 as compared to the same period in 2024.
Previous report
Cost of Goods Sold and Gross Profit (Loss)
Previous report
Our consolidated gross profit declined to a gross loss of $3.7 million for the six months ended June 30, 2025 from gross profit of $5.2 million for the same period in 2024, representing a gross margin of negative 0.8% and positive 1.1% for the six months ended June 30, 2025 and 2024, respectively.
Previous report
Net Loss Attributable to Common Stockholders
Previous report
Cash used in our Operating Activities
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Previous wording
Year to date, we have recorded $16 million in repairs and maintenance expense, in line with our 2025 estimate of $32 million.
Current wording
As we manage liquidity and continue focusing on our priorities, capital expenditures have been lower than historical averages. In addition, through the third quarter, we recorded $24 million in repairs and maintenance expense, in line with our estimate of $32 million for the full year.
Previous wording
Reconciliation of Adjusted EBITDA to Consolidated Net Loss
Current wording
Reconciliation of Adjusted EBITDA to Consolidated Net Income (Loss)
Previous wording
The following table presents our net sales, cost of goods sold and gross profit (loss) in dollars and gross profit (loss) as a percentage of net sales (in thousands, except percentages):
Current wording
The following table presents our net sales, cost of goods sold and gross profit in dollars and gross profit as a percentage of net sales (in thousands, except percentages):
Previous wording
Net sales of alcohol from our marketing and distribution segment, excluding intersegment sales, declined by $17.5 million, or 14%, to $107.2 million for the six months ended June 30, 2025 as compared to $124.7 million for the same period in 2024.
Current wording
Net sales of alcohol from our marketing and distribution segment, excluding intersegment sales, increased $4.1 million, or 8%, to $58.7 million for the three months ended September 30, 2025 as compared to $54.6 million for the same period in 2024.
Previous wording
Our volume of third-party alcohol sold reported gross by the segment decreased by 4.7 million gallons, or 14%, to 29.7 million gallons for the three months ended June 30, 2025 as compared to 34.4 million gallons for the same period in 2024. With the segment’s average sales price per gallon of $1.96 for the three months ended June 30, 2025, we realized $2.8 million less in net sales from the 4.7 million fewer gallons of third-party alcohol sold gross in the three months ended June 30, 2025 as compared to the same period in 2024.
Current wording
Our volume of third-party alcohol sold reported gross by the segment increased 1.9 million gallons, or 8%, to 27.1 million gallons for the three months ended September 30, 2025 as compared to 25.2 million gallons for the same period in 2024. With the segment’s average sales price per gallon of $2.17 for the three months ended September 30, 2025, we generated $4.1 million in additional net sales from the 1.9 million additional gallons of third-party alcohol sold gross in the three months ended September 30, 2025 as compared to the same period in 2024.
Previous wording
Net sales of alcohol from corporate and other declined by $1.1 million, or 40%, to $1.7 million for the three months ended June 30, 2025 as compared to $2.8 million for the same period in 2024. These sales are from Eagle Alcohol’s business.
Current wording
Net sales of alcohol from corporate and other declined by $0.4 million, or 15%, to $2.3 million for the three months ended September 30, 2025 as compared to $2.7 million for the same period in 2024. These sales are from Eagle Alcohol’s business, which represented 0.7 million gallons and 0.8 million gallons, respectively.
Previous wording
Our marketing and distribution segment’s gross profit, net of intercompany activity, increased by $1.0 million to a gross profit of $1.5 million for the three months ended June 30, 2025 as compared to a gross profit of $0.5 million for the same period in 2024. Of this improvement, $1.3 million is attributable to higher margins from sales of third-party renewable fuel, partially offset by $0.3 million attributable to lower sales volumes.
Current wording
Our marketing and distribution segment’s gross profit, net of intercompany activity, increased by $0.9 million to a gross profit of $2.2 million for the three months ended September 30, 2025 as compared to a gross profit of $1.3 million for the same period in 2024. Of this improvement, $0.8 million is attributable to higher margins from sales of third-party renewable fuel and $0.1 million is attributable to higher sales volumes.
Previous wording
Our Western production segment’s gross profit, net of intercompany activity, increased by $5.3 million to a gross profit of $1.6 million for the three months ended June 30, 2025 as compared to a gross loss of $3.7 million for the same period in 2024. Of this improvement, $5.4 million is attributable to higher renewable fuel margins, partially offset by $0.1 million attributable to lower sales volumes.
Current wording
Our Western production segment’s gross profit, net of intercompany activity, increased by $3.4 million to a gross profit of $1.3 million for the three months ended September 30, 2025 as compared to a gross loss of $2.1 million for the same period in 2024. Of this improvement, $4.9 million is attributable to higher renewable fuel margins, in part due to lower expenses due to the cold idling of our Magic Valley plant, and increased CO 2 sales, partially offset by $1.5 million attributable to lower sales volumes.
Previous wording
Gross profit from corporate and other increased by $0.2 million to a breakeven gross profit for the three months ended June 30, 2025 as compared to a gross loss of $0.2 million for the same period in 2024, all of which were from Eagle Alcohol’s business.
Current wording
Gross profit from corporate and other increased by $0.4 million to a gross profit of $0.2 million for the three months ended September 30, 2025 as compared to a gross loss of $0.2 million for the same period in 2024, all of which were from Eagle Alcohol’s business.
Previous wording
The decrease in our consolidated net sales for the six months ended June 30, 2025 as compared to the same period in 2024 is primarily attributable to lower sales of renewable fuel and essential ingredients, partially offset by higher average sales prices per gallon from both our western production and marketing and distribution segments.
Current wording
The decrease in our consolidated net sales for the nine months ended September 30, 2025, as compared to the same period in 2024, is primarily attributable to lower sales of renewable fuel and essential ingredients, predominately related to cold idling our Magic Valley facility and rationalizing unprofitable business activities in our marketing and distribution segment, partially offset by higher average sales prices per gallon from both our Western production and marketing and distribution segments.
Previous wording
Net sales of alcohol from our Pekin Campus production segment declined by $6.5 million, or 6%, to $94.2 million for the three months ended June 30, 2025 as compared to $100.7 million for the same period in 2024. Our total volume of production gallons sold decreased by 2.7 million gallons, or 5%, to 48.1 million gallons for the three months ended June 30, 2025 as compared to 50.8 million gallons for the same period in 2024. The decrease of $0.03, or 2%, in the segment’s average sales price per gallon for the three months ended June 30, 2025 as compared to the same period in 2024 reduced our net sales from the segment by $1.4 million. With the segment’s average sales price per gallon of $1.95 for the three months ended June 30, 2025, we generated $5.1 million less in net sales from the 2.7 million fewer gallons of alcohol sold in the three months ended June 30, 2025 as compared to the same period in 2024.
Current wording
Net sales of alcohol from our Pekin Campus production segment declined by $4.8 million, or 2%, to $310.7 million for the nine months ended September 30, 2025 as compared to $315.5 million for the same period in 2024. Our total volume of production gallons sold decreased by 2.7 million gallons, or 2%, to 158.0 million gallons for the nine months ended September 30, 2025 as compared to 160.7 million gallons for the same period in 2024. With the segment’s average sales price per gallon of $1.97 for the nine months ended September 30, 2025, we generated $5.3 million less in net sales from the 2.7 million fewer gallons of alcohol sold in the nine months ended September 30, 2025 as compared to the same period in 2024.The increase of $0.01, or less than 1%, in the segment’s average sales price per gallon for the nine months ended September 30, 2025 as compared to the same period in 2024 increased our net sales from the segment by $0.5 million.
Previous wording
Net sales of alcohol from our marketing and distribution segment, excluding intersegment sales, declined by $12.0 million, or 17%, to $58.2 million for the three months ended June 30, 2025 as compared to $70.2 million for the same period in 2024.
Current wording
Net sales of alcohol from our marketing and distribution segment, excluding intersegment sales, declined by $13.4 million, or 7%, to $165.9 million for the nine months ended September 30, 2025 as compared to $179.3 million for the same period in 2024.
Previous wording
Our volume of third-party renewable fuel sold reported gross by the segment decreased by 10.0 million gallons, or 16%, to 54.1 million gallons for the six months ended June 30, 2025 as compared to 64.1 million gallons for the same period in 2024. With the segment’s average sales price per gallon of $1.98 for the six months ended June 30, 2025, we realized $19.8 million less in net sales from the 10.0 million fewer gallons of third-party renewable fuel sold gross in the six months ended June 30, 2025 as compared to the same period in 2024. The $0.04 per gallon, or 2%, increase in the segment’s average sales price per gallon for the six months ended June 30, 2025 as compared to the same period in 2024 resulted in a $2.3 million increase in our net sales from third-party renewable fuel sold by the segment.
Current wording
Our volume of third-party renewable fuel sold reported gross by the segment decreased by 8.1 million gallons, or 9%, to 81.2 million gallons for the nine months ended September 30, 2025 as compared to 89.3 million gallons for the same period in 2024. With the segment’s average sales price per gallon of $2.04 for the nine months ended September 30, 2025, we realized $16.5 million less in net sales from the 8.1 million fewer gallons of third-party renewable fuel sold gross in the nine months ended September 30, 2025 as compared to the same period in 2024. The $0.03 per gallon, or 1%, increase in the segment’s average sales price per gallon for the nine months ended September 30, 2025 as compared to the same period in 2024 resulted in a $3.1 million increase in our net sales from third-party renewable fuel sold by the segment.
Previous wording
Net sales of alcohol from corporate and other declined by $2.5 million, or 43%, to $3.3 million for the six months ended June 30, 2025 as compared to $5.8 million for the same period in 2024. These sales are from Eagle Alcohol’s business.
Current wording
Net sales of alcohol from corporate and other declined by $3.0 million, or 35%, to $5.6 million for the nine months ended September 30, 2025 as compared to $8.6 million for the same period in 2024. These sales are from Eagle Alcohol’s business, which represented 1.7 million gallons and 2.7 million gallons, respectively.
Previous wording
Our Pekin Campus production segment’s gross profit, net of intercompany activity, declined by $23.5 million to a gross loss of $7.8 million for the six months ended June 30, 2025 as compared to gross profit of $15.7 million for the same period in 2024. Of this decline, $23.8 million is attributable to lower alcohol sales margins, partially offset by $0.3 million attributable to lower sales volumes.
Current wording
Our Pekin Campus production segment’s gross profit, net of intercompany activity, declined by $11.4 million to a gross profit of $11.2 million for the nine months ended September 30, 2025 as compared to gross profit of $22.6 million for the same period in 2024. Of this decline, $11.2 million is attributable to lower alcohol sales margins and $0.2 million is attributable to lower sales volumes.
Previous wording
Our marketing and distribution segment’s gross profit, net of intercompany activity, improved by $2.4 million to a gross profit of $3.8 million for the six months ended June 30, 2025 as compared to a gross profit of $1.4 million for the same period in 2024. Of this improvement $3.1 million is attributable primarily to higher margins from sales of third-party renewable fuel, partially offset by $0.7 million from lower sales volumes for the six months ended June 30, 2025 as compared to the same period in 2024.
Current wording
Our marketing and distribution segment’s gross profit, net of intercompany activity, improved by $3.4 million to a gross profit of $6.1 million for the nine months ended September 30, 2025 as compared to a gross profit of $2.7 million for the same period in 2024. Of this improvement $4.0 million is attributable primarily to higher margins from sales of third-party renewable fuel, partially offset by $0.6 million from lower sales volumes for the nine months ended September 30, 2025 as compared to the same period in 2024.
Previous wording
Our Western production segment’s gross profit, net of intercompany activity, improved by $12.4 million to a gross profit of $0.4 million for the six months ended June 30, 2025 as compared to a gross loss of $12.0 million for the same period in 2024. Of this improvement, $12.5 million is attributable to higher renewable fuel margins and increased CO 2 sales, partially offset by $0.1 million attributable to lower sales volumes.
Current wording
Our Western production segment’s gross profit, net of intercompany activity, improved by $16.5 million to a gross profit of $2.4 million for the nine months ended September 30, 2025 as compared to a gross loss of $14.1 million for the same period in 2024. Of this improvement, $17.8 million is attributable to higher renewable fuel margins, in part due to lower expenses due to the cold idling of our Magic Valley plant, and increased CO 2 sales, partially offset by $1.3 million attributable to lower sales volumes.
Previous wording
Gross profit from corporate and other declined by $0.2 million to a gross loss of $0.1 million for the six months ended June 30, 2025 as compared to gross profit of $0.1 million for the same period in 2024, all of which were from Eagle Alcohol’s business.
Current wording
Gross profit from corporate and other increased by $0.3 million to a gross profit of $0.2 million for the nine months ended September 30, 2025 as compared to gross loss of $0.1 million for the same period in 2024, all of which were from Eagle Alcohol’s business.
Previous wording
Our SG&A expenses declined for the three and six months ended June 30, 2025 as compared to the same periods in 2024. The period over period decreases in SG&A expenses are primarily due to a $1.1 million reduction in acquisition-related expenses for our acquisition of Eagle Alcohol, a $0.9 million decrease in compensation expenses from our efforts to rationalize our business and right size our staffing to better align with our current operational footprint and a $0.9 million reduction in non-cash stock compensation. We are now exceeding our target annualized overhead savings of $8.0 million. We also took additional steps to further lower our future costs, including, for example, negotiating lower property taxes, improving terms with suppliers, reducing reliance on outside services and other changes which we expect, in aggregate, will make a meaningful difference to our future profitability.
Current wording
Our SG&A expenses declined for the three and nine months ended September 30, 2025 as compared to the same periods in 2024. The decrease in SG&A expenses for the three-month period is primarily due to a realignment of our staffing levels and a $0.7 million reduction in acquisition-related expenses. The decreases in SG&A expenses for the nine-month period are primarily due to a $2.5 million reduction in acquisition-related expenses, a $0.2 million decrease in compensation expenses from our efforts to rationalize our business and right size our staffing to better align with our current operational footprint and a $1.3 million reduction in non-cash stock compensation. We are now exceeding our target annualized total overhead savings of $8.0 million. We also took additional steps to further lower our future costs, including, for example, negotiating lower property taxes, improving terms with suppliers, reducing reliance on outside services and other changes which we expect, in aggregate, will make a meaningful difference to our future profitability. We expect a continuation of these cost savings and similar SG&A levels going forward.
Previous wording
The following table presents our net loss attributable to common stockholders in dollars and as a percentage of net sales (in thousands, except percentages):
Current wording
The following table presents our net income (loss) attributable to common stockholders in dollars and as a percentage of net sales (in thousands, except percentages):
Previous wording
The increase in our net loss attributable to common stockholders for the three and six months ended June 30, 2025 as compared to the same periods in 2024 is primarily due to higher unrealized non-cash derivative losses, lower crush margins, lower high quality alcohol premiums and the impact of our loading dock outage, as discussed above.
Current wording
The improvement in our net income (loss) attributable to common stockholders for the three and nine months ended September 30, 2025 as compared to the same periods in 2024 is primarily due to higher crush margins and lower operating costs at our Western production segment due to the cold idling of our Magic Valley plant, as well as the other factors contributing to higher gross profit as discussed above.
Previous wording
During the six months ended June 30, 2025, we funded our operations primarily from cash on hand and proceeds from Kinergy’s operating line of credit. In addition to funding our operations, our capital resources were used to purchase Kodiak Carbonic, make our final payments relating to our acquisition of Eagle Alcohol and for capital expenditures. As of June 30, 2025, we had $30.5 million in cash, cash equivalents and restricted cash, $4.8 million available for borrowing under Kinergy’s operating line of credit and $65.0 million that may be available for capital improvement projects under our Orion term loan, subject to certain conditions. As of June 30, 2025, our derivative net asset position was $1.7 million. We believe we have sufficient liquidity to meet our anticipated working capital, debt service and other liquidity needs for at least the next twelve months from the date of this report.
Current wording
During the nine months ended September 30, 2025, we funded our operations primarily from cash on hand, cash flow from operating activities and proceeds from Kinergy’s operating line of credit. We generated $22.8 million of cash from our operations for the three months ended September 30, 2025. In addition to funding our operations, our capital resources were used to purchase Kodiak Carbonic, make our final payments relating to our acquisition of Eagle Alcohol and for capital expenditures during the nine-month period. As of September 30, 2025, we had $33.1 million in cash, cash equivalents and restricted cash, $20.3 million available for borrowing under Kinergy’s operating line of credit and $65.0 million that may be available for capital improvement projects under our Orion term loan, subject to certain conditions. As of September 30, 2025, our derivative net asset position was $3.5 million. We believe we have sufficient liquidity to meet our anticipated working capital, debt service and other liquidity needs for at least the next twelve months from the date of this report.
Previous wording
At June 30, 2025, we had approximately $49.5 million of net assets at our subsidiaries that were not available to be transferred to Alto Ingredients, Inc. in the form of dividends, distributions, loans or advances due to restrictions contained in our subsidiaries’ credit facilities.
Current wording
At September 30, 2025, we had approximately $47.2 million of net assets at our subsidiaries that were not available to be transferred to Alto Ingredients, Inc. in the form of dividends, distributions, loans or advances due to restrictions contained in our subsidiaries’ credit facilities.
Previous wording
Working capital improved to $107.2 million at June 30, 2025 from $95.3 million at December 31, 2024 as a result of a decrease of $15.3 million in current liabilities, partially offset by a decrease of $3.4 million in current assets.
Current wording
Working capital improved to $108.5 million at September 30, 2025 from $95.3 million at December 31, 2024 as a result of a decrease of $15.4 million in current liabilities, partially offset by a decrease of $2.2 million in current assets.
Previous wording
Current assets decreased primarily due to a decrease in cash and cash equivalents and restricted cash, partially offset by an increase in inventories from December 31, 2024.
Current wording
Current assets decreased primarily due to decreases in cash and cash equivalents, restricted cash and accounts receivable, partially offset by an increase in inventories from December 31, 2024.
Previous wording
Our cash, cash equivalents and restricted cash declined by $5.7 million due to $19.1 million in cash used in our operating activities and $10.5 million in cash used in our investing activities, partially offset by $23.9 million in cash provided by our financing activities.
Current wording
Our cash, cash equivalents and restricted cash declined by $3.1 million due to $12.2 million in cash used in our investing activities, partially offset by $3.7 million in cash provided by our operating activities and $5.4 million in cash provided by our financing activities.
Previous wording
We used $19.1 million of cash in our operations for the six months ended June 30, 2025 as compared to $12.3 million for the same period in 2024. Significant factors that contributed to the change in cash provided by our operating activities include:
Current wording
We generated $3.7 million of cash from our operations for the nine months ended September 30, 2025 as compared to $6.3 million for the same period in 2024. Significant factors that contributed to the change in cash provided by our operating activities include:
Previous wording
We used a total of $10.5 million in cash during the period for our acquisition of Kodiak Carbonic, the final payment for our acquisition of Eagle Alcohol and various capital expenditures. During the second quarter, we used $0.5 million for capital expenditures, an amount much lower than historical averages to manage liquidity and focus on our priorities.
Current wording
We used a total of $12.2 million in cash during the period for our acquisition of Kodiak Carbonic, the final payment for our acquisition of Eagle Alcohol and various capital expenditures. During the third quarter, we used $1.6 million for capital expenditures, an amount much lower than historical averages to manage our liquidity and focus on other priorities.
Previous wording
Cash provided by our financing activities was $23.9 million for the six months ended June 30, 2025, which reflects net proceeds of $24.5 million from Kinergy’s operating line of credit, partially offset by $0.6 million in preferred stock dividends paid.
Current wording
Cash provided by our financing activities was $5.4 million for the nine months ended September 30, 2025, which reflects net proceeds of $6.3 million from Kinergy’s operating line of credit, partially offset by $0.9 million in preferred stock dividends paid. During the third quarter, we used $18.5 million in cash to repay debt on Kinergy’s operating line of credit to lower our interest expense and pay preferred dividends.
Previous wording
Alto Ingredients, Inc. has guaranteed all of Kinergy’s obligations under the credit facility. As of June 30, 2025, Kinergy had an outstanding balance of $64.2 million and $4.8 million of unused borrowing availability under the credit facility.
Current wording
Alto Ingredients, Inc. has guaranteed all of Kinergy’s obligations under the credit facility. As of September 30, 2025, Kinergy had an outstanding balance of $46.0 million and $20.3 million of unused borrowing availability under the credit facility.
Previous wording
On November 7, 2022, we entered into a credit agreement with certain funds managed by Orion Infrastructure Capital, or Lenders, under which the Lenders extended a senior secured credit facility in the amount of up to $125.0 million, or Term Loan. The Term Loan matures on November 7, 2028, or earlier upon acceleration. The Term Loan is secured by a first priority lien on certain of our assets and a second priority lien on certain assets of Kinergy and Alto Nutrients. Interest accrues on the unpaid principal amount of the Term Loan at a fixed rate of 10% per annum.
Current wording
On November 7, 2022, we entered into a credit agreement with certain funds managed by Orion Infrastructure Capital, or Lenders, under which the Lenders extended a senior secured credit facility in the amount of up to $125.0 million, or Term Loan. The Term Loan matures on November 7, 2028. The Term Loan is secured by a first priority lien on certain of our assets and a second priority lien on certain assets of Kinergy and Alto Nutrients. Interest accrues on the unpaid principal amount of the Term Loan at a fixed rate of 10% per annum.
Previous wording
We must prepay amounts outstanding under the Term Loan on a semi-annual basis on each June 30 th and December 31 st in an amount equal to a percentage of our excess cash flow based on a specified leverage ratio, as follows: (i) if our leverage ratio is greater than or equal to 3.0x, then the mandatory prepayment amount will equal 100% of our excess cash flow, (ii) if our leverage ratio is less than 3.0x and greater than or equal to 1.5x, then the mandatory prepayment amount will equal 50% of our excess cash flow, and (iii) if our leverage ratio is less than 1.5x, then the mandatory prepayment amount will equal 25% of our excess cash flow. No prepayment was made or required to be made for the three and six months ended June 30, 2025 and 2024.
Current wording
We must prepay amounts outstanding under the Term Loan on a semi-annual basis on each June 30 th and December 31 st in an amount equal to a percentage of our excess cash flow based on a specified leverage ratio, as follows: (i) if our leverage ratio is greater than or equal to 3.0x, then the mandatory prepayment amount will equal 100% of our excess cash flow, (ii) if our leverage ratio is less than 3.0x and greater than or equal to 1.5x, then the mandatory prepayment amount will equal 50% of our excess cash flow, and (iii) if our leverage ratio is less than 1.5x, then the mandatory prepayment amount will equal 25% of our excess cash flow. No prepayment was made or required to be made for the three and nine months ended September 30, 2025 and 2024.
Previous wording
As of June 30, 2025, we had future commitments for certain capital projects totaling $11.5 million. These commitments are scheduled to be satisfied through 2025.
Current wording
As of September 30, 2025, we had future commitments for certain capital projects totaling $6.3 million. These commitments are scheduled to be satisfied through 2025.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Net Sales, Cost of Goods Sold and Gross Profit
Current report — wording carried from elsewhere
Cost of Goods Sold and Gross Profit
Current report — wording carried from elsewhere
Cost of Goods Sold and Gross Profit
Current report — wording carried from elsewhere
Cash provided by our Operating Activities
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The $0.08 per gallon, or 4%, decrease in the segment’s average sales price per gallon for the three months ended June 30, 2025 as compared to the same period in 2024 resulted in a $9.2 million decline in our net sales from third-party renewable fuel sold by the segment.