NextNRG Inc. Q1 FY2026 earnings call

• Fuel business growth: On - site mobile fueling business was the driver of 195% revenue growth from 2024 to 2025, with seven consecutive months of record revenue and margins improving as scaled. - Acquisitions: Completed merger of Next Energy and Easy Fill, integrated two acquisitions (Shell Tap - Up Assets and Yoshi Mobility), entering four new major markets (Phoenix, Austin, San Antonio, and Houston). - Energy infrastructure progress: Closed first power purchase agreements in California, with a $750 million pipeline of smart microgrid projects in various stages of development.

Fueling business: In 2024, revenue was $27.8 million, and in 2025, it reached $81.8 million, a growth of about 195%. The on - site mobile fueling business was the growth driver. Full year gross margin in fueling was 8.4%, and by Q4, it climbed to 10.4%. Q4 revenue was approximately $23 million, with October at $7.4 million, November at $7.5 million, December at $8 million, and December revenue represented 253% year - over - year growth in revenue and 308% growth in fuel volumes. Energy infrastructure segment: Closed first power purchase agreements in California, with a pipeline of planned smart microgrid projects standing at approximately $750 million spanning various facilities.

• Fuel business: Continues to have momentum with plans to further optimize operations, customer acquisition, route density, etc., with potential for continued growth in revenue and margin improvement. - Energy infrastructure: Plans to convert pipeline into executed contracts, with long - term, high - value contracts expected to contribute to revenue growth.

• Reliance on high - cost debt: Committed to reducing reliance on high - cost, short - term debt as operating cash flow continues to scale. - Project development risks: Deploying energy infrastructure projects involves engineering studies, permitting, utility interconnection approvals, project financing, and organizational decision - making that can span years, with uncertainties in the process.

Q: You recorded $42.6 million in stock - based compensation in 2025. Who received that compensation? What was it tied to? And how should investors think about dilution going forward?

A: 2025 was not a normal year with merger, fleet acquisitions, executive team and advisory board building, and energy infrastructure business launch. Equity issue was tied to that buildup. A lot of work was compensated in equity, not expected at this level going forward, and dilution is a consideration in decisions.

Q: Cash at year - end was $384,000 and the working capital deficit since at approximately $25 million. How does Next Energy get through 2026 and what does the financing plan look like?

A: Cash position doesn't tell the whole liquidity story. Have active debt facilities and access to capital markets. As infrastructure contracts close, they bring project - level financing. Goal for 2026 is to reduce dependence on high - cost short - term debt by growing operating cash flow, increasing working capital, and closing contracts with their own financing.

Q: When energy infrastructure contracts start generating revenue, what does the margin profile look like compared to the fueling business?

A: Fueling business has margins in the high single digits to low double digits, improving with optimization. Energy infrastructure business has contracted rates over multi - decade agreements, ongoing cost structure largely fixed, and expected to have significantly higher margins than fueling business when stabilized.

Q: Given the current cash position and working capital deficit, what does the path to cash flow break even look like and what are the operational things to happen?

A: Three things: fueling business to continue scaling gross profit; close and monetize energy infrastructure contracts; right - size operating expenses relative to current revenue.

Q: As the fueling business matures and energy contracts begin to close, how is management thinking about capital allocation? Where does investment get prioritized and what guardrails exist?

A: Fueling business funds itself with positive operating cash flow, capital requirements tied to fleet expansion paced by demand. For energy side, capital to build each project comes through project financing, corporate investment is in development and sales process, engineering, permitting, customer relationships, with the model as a guardrail.