Clean Energy Fuels' Net Loss Widens to $179M on Goodwill Impairment

TL;DR

**CLNE's massive goodwill impairment and ballooning losses make it a risky bet despite revenue growth; steer clear until profitability improves.**

AI Summary

Clean Energy Fuels Corp. (CLNE) reported a significant increase in net loss for the nine months ended September 30, 2025, reaching $179.0 million, a substantial rise from a net loss of $52.9 million in the same period of 2024. This deterioration was primarily driven by a $64.3 million impairment of goodwill and a sharp increase in depreciation and amortization expenses to $86.9 million from $33.8 million. Total revenue saw a modest increase to $312.5 million for the nine months ended September 30, 2025, up from $306.5 million in 2024, with product revenue growing to $268.3 million from $262.3 million. Operating loss widened considerably to $149.2 million from $23.4 million year-over-year. Cash, cash equivalents, and restricted cash nearly doubled to $182.9 million as of September 30, 2025, from $91.6 million at December 31, 2024, largely due to increased net cash provided by operating activities, which rose to $72.4 million from $42.7 million. The company also saw a significant increase in stock-based sales incentive charges, reaching $51.5 million for the nine months ended September 30, 2025, compared to $42.7 million in the prior year.

Why It Matters

CLNE's widening net loss and significant goodwill impairment signal potential challenges in its long-term asset valuations and profitability, which could concern investors looking for stable growth in the alternative fuels sector. The increased cash position, however, offers some operational flexibility. For employees, continued losses might raise questions about job security, while customers could see potential impacts on service expansion or pricing strategies. In a competitive landscape, these financial results could make CLNE less attractive compared to rivals demonstrating stronger financial health, potentially affecting its market share and ability to secure new partnerships or projects in the renewable natural gas space.

Risk Assessment

Risk Level: high — The risk level is high due to a significant net loss of $179.0 million for the nine months ended September 30, 2025, compared to $52.9 million in the prior year, and a $64.3 million impairment of goodwill. This indicates substantial operational challenges and potential overvaluation of past acquisitions, directly impacting shareholder equity which decreased from $719.5 million to $591.0 million.

Analyst Insight

Investors should exercise extreme caution and consider reducing exposure to CLNE given the substantial net loss and goodwill impairment. Await clear signs of sustained profitability and a reversal in the negative trend of shareholder equity before considering new investments.

Financial Highlights

debt To Equity

0.90

revenue

$312,514,000

operating Margin

-47.7%

total Assets

$1,125,102,000

total Debt

$284,293,000

net Income

-$179,000,000

eps

N/A

gross Margin

N/A

cash Position

$182,955,000

revenue Growth

+2.0%

Revenue Breakdown

Key Numbers

• $179.0M — Net Loss (Increased from $52.9M in 2024, indicating significant deterioration in profitability.)
• $64.3M — Goodwill Impairment (A new charge in 2025, contributing heavily to the increased net loss.)
• $312.5M — Total Revenue (Modest increase from $306.5M in 2024, showing slight top-line growth.)
• $182.9M — Cash, Cash Equivalents and Restricted Cash (Nearly doubled from $91.6M at December 31, 2024, improving liquidity.)
• $149.2M — Operating Loss (Widened significantly from $23.4M in 2024, reflecting higher expenses.)
• $86.9M — Depreciation and Amortization (Increased substantially from $33.8M in 2024, impacting operating expenses.)
• $51.5M — Stock-Based Sales Incentive Charges (Increased from $42.7M in 2024, reflecting higher non-cash compensation.)
• $591.0M — Total Stockholders' Equity (Decreased from $719.5M at December 31, 2024, indicating erosion of shareholder value.)

Key Players & Entities

• Clean Energy Fuels Corp. (company) — registrant in the 10-Q filing
• Amazon (company) — customer with a warrant agreement
• Tourmaline Oil Corp. (company) — joint development partner for CNG stations
• $179,026,000 (dollar_amount) — net loss attributable to Clean Energy Fuels Corp. for the nine months ended September 30, 2025
• $64,328,000 (dollar_amount) — impairment of goodwill for the nine months ended September 30, 2025
• $312,514,000 (dollar_amount) — total revenue for the nine months ended September 30, 2025
• $182,955,000 (dollar_amount) — cash, cash equivalents and restricted cash as of September 30, 2025
• $72,417,000 (dollar_amount) — net cash provided by operating activities for the nine months ended September 30, 2025
• $51,510,000 (dollar_amount) — stock-based sales incentive charges for the nine months ended September 30, 2025
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• Goodwill Impairment [high — financial]: The company recorded a significant $64.3 million impairment of goodwill in the nine months ended September 30, 2025. This charge substantially contributed to the widened net loss of $179.0 million for the period, indicating a potential overvaluation of past acquisitions or a decline in the expected future benefits from those acquisitions.
• Increased Operating Expenses [high — financial]: Depreciation and amortization expenses surged to $86.9 million for the nine months ended September 30, 2025, from $33.8 million in the prior year. This nearly threefold increase, along with higher stock-based sales incentive charges ($51.5 million vs. $42.7 million), significantly widened the operating loss to $149.2 million.
• Erosion of Stockholders' Equity [medium — financial]: Total stockholders' equity decreased from $719.5 million at December 31, 2024, to $591.0 million as of September 30, 2025. This $128.5 million reduction, driven by accumulated deficits and other comprehensive losses, signals a decline in the company's net asset value and potentially shareholder value.
• Dependence on Key Customers [medium — market]: While not explicitly detailed in the provided excerpt, companies in the alternative fuels sector often rely on a limited number of large customers for a significant portion of their revenue. A loss of, or reduction in business from, such customers could materially impact financial performance.
• Governmental Regulations and Incentives [medium — regulatory]: The company's business is influenced by government regulations and incentives related to clean energy and transportation fuels. Changes in these policies, such as the reduction or elimination of tax credits or subsidies, could adversely affect demand for its products and services.
• Infrastructure Development and Maintenance [medium — operational]: Expanding and maintaining a network of fueling stations requires significant capital investment and ongoing operational expenditure. Delays in construction, unexpected maintenance issues, or higher-than-anticipated operating costs could negatively impact profitability.

Industry Context

Clean Energy Fuels Corp. operates in the growing but competitive alternative fuels market, primarily focusing on natural gas (CNG and RNG) for transportation. The industry is driven by environmental regulations, corporate sustainability goals, and the pursuit of lower-cost fuel alternatives. Key competitors include other alternative fuel providers, traditional fossil fuel companies, and electric vehicle manufacturers.

Regulatory Implications

The company's operations are subject to environmental regulations and government incentives that can significantly impact demand and profitability. Changes in federal or state policies regarding renewable fuel standards, tax credits, or emissions mandates could create both opportunities and risks for CLNE.

What Investors Should Do

1. Monitor the impact of the goodwill impairment on future earnings and strategic decisions.
2. Analyze the drivers behind the substantial increase in depreciation and amortization expenses.
3. Evaluate the sustainability of the improved cash position despite widening losses.
4. Assess the trend in stock-based sales incentive charges.

Glossary

Goodwill

An intangible asset that arises when one company acquires another for a price greater than the fair market value of its net assets. It represents the value of the acquired company's brand name, customer base, and other intangible assets. (A significant $64.3 million goodwill impairment charge was recorded in the current period, heavily impacting the net loss.)

Depreciation and Amortization

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life. Amortization is the systematic allocation of the cost of an intangible asset over its useful life. (These expenses increased substantially from $33.8 million to $86.9 million, contributing to the widened operating loss.)

Stock-based Sales Incentive Charges

Costs associated with providing stock options or other equity-based compensation to employees, often tied to sales performance or other incentives. (These charges increased to $51.5 million, reflecting higher non-cash compensation expenses.)

Accumulated Deficit

The cumulative net losses of a company that have not been offset by net income since its inception. It represents a negative balance in retained earnings. (The accumulated deficit increased to $1,191,568,000, reflecting ongoing net losses and contributing to the decrease in total stockholders' equity.)

Noncontrolling Interest

The portion of equity in a subsidiary that is not attributable to the parent company. It represents the ownership interest of outside shareholders in the subsidiary. (This represents a small portion of the company's equity, decreasing slightly to $5,842,000.)

Year-Over-Year Comparison

Compared to the nine months ended September 30, 2024, Clean Energy Fuels Corp. experienced a significant deterioration in profitability, with net loss widening from $52.9 million to $179.0 million. This was primarily driven by a substantial $64.3 million goodwill impairment charge and a sharp increase in depreciation and amortization expenses to $86.9 million from $33.8 million. While total revenue saw a modest increase to $312.5 million from $306.5 million, the operating loss ballooned from $23.4 million to $149.2 million, reflecting these higher expenses. Despite these challenges, the company's cash position improved significantly, nearly doubling to $182.9 million, supported by stronger operating cash flows.

Key Financial Figures

• $0.0001 — nge on which registered Common stock, $0.0001 par value per share CLNE The Nasdaq

Filing Documents

• clne-20250930x10q.htm (10-Q) — 2917KB
• clne-20250930xex31d1.htm (EX-31.1) — 15KB
• clne-20250930xex31d2.htm (EX-31.2) — 14KB
• clne-20250930xex32d1.htm (EX-32.1) — 15KB
• 0001104659-25-106319.txt ( ) — 12807KB
• clne-20250930.xsd (EX-101.SCH) — 78KB
• clne-20250930_cal.xml (EX-101.CAL) — 88KB
• clne-20250930_def.xml (EX-101.DEF) — 371KB
• clne-20250930_lab.xml (EX-101.LAB) — 664KB
• clne-20250930_pre.xml (EX-101.PRE) — 545KB
• clne-20250930x10q_htm.xml (XML) — 2610KB

—FINANCIAL INFORMATION

PART I.—FINANCIAL INFORMATION 3

—Financial Statements (Unaudited)

Item 1.—Financial Statements (Unaudited) 3

—Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2.—Management's Discussion and Analysis of Financial Condition and Results of Operations 36

—Quantitative and Qualitative Disclosures about Market Risk

Item 3.—Quantitative and Qualitative Disclosures about Market Risk 50

—Controls and Procedures

Item 4.—Controls and Procedures 51

—OTHER INFORMATION

PART II.—OTHER INFORMATION 53

—Legal Proceedings

Item 1.—Legal Proceedings 53

—Risk Factors

Item 1A.—Risk Factors 53

—Unregistered Sales of Equity Securities and Use of Proceeds

Item 2.—Unregistered Sales of Equity Securities and Use of Proceeds 67

—Defaults Upon Senior Securities

Item 3.—Defaults Upon Senior Securities 68

—Mine Safety Disclosures

Item 4.—Mine Safety Disclosures 68

—Other Information

Item 5.—Other Information 68

—Exhibits

Item 6.—Exhibits 68 Unless the context indicates otherwise, all references to "Clean Energy," the "Company," "we," "us," or "our" in this report refer to Clean Energy Fuels Corp. together with its consolidated subsidiaries. This report contains forward-looking statements. See the cautionary note regarding these statements in Part I, Item 2.-Management's Discussion and Analysis of Financial Condition and Results of Operations of this report. We own registered or unregistered trademark rights to Clean Energy. Although we do not use the "" or "" symbol in each instance in which one of our trademarks appears in this report, this should not be construed as any indication that we will not assert our rights thereto to the fullest extent under applicable law. Any other service marks, trademarks and trade names appearing in this report are the property of their respective owners. 2 Table of Contents

—FINANCIAL INFORMATION

PART I.—FINANCIAL INFORMATION

—Financial Statements (Unaudited)

Item 1.—Financial Statements (Unaudited) Clean Energy Fuels Corp. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands, except share and per share data; Unaudited) December 31, September 30, 2024 2025 Assets Current assets: Cash, cash equivalents and restricted cash $ 91,562 $ 182,955 Short-term investments 127,970 51,319 Accounts receivable, net of allowance of $ 1,965 and $ 2,067 as of December 31, 2024 and September 30, 2025, respectively 107,683 96,156 Other receivables 14,630 7,880 Inventory 43,434 44,421 Notes receivable - related party 2,372 524 Prepaid expenses and other current assets 26,117 25,825 Total current assets 413,768 409,080 Operating lease right-of-use assets 90,598 87,233 Land, property and equipment, net 365,319 326,495 Notes receivable and other long-term assets, net 38,245 34,291 Investments in other entities 265,268 262,503 Goodwill 64,328 — Intangible assets, net 6,365 5,500 Total assets $ 1,243,891 $ 1,125,102 Liabilities and Stockholders' Equity Current liabilities: Current portion of debt $ 40 $ 51 Current portion of finance lease obligations 920 1,134 Current portion of operating lease obligations 8,027 8,711 Accounts payable 33,301 32,622 Accrued liabilities 105,563 99,407 Deferred revenue 6,871 10,423 Total current liabilities 154,722 152,348 Long-term portion of debt 265,327 284,242 Long-term portion of finance lease obligations 1,766 2,015 Long-term portion of operating lease obligations 89,049 85,402 Other long-term liabilities 13,496 10,046 Total liabilities 524,360 534,053 Commitments and contingencies (Note 17) Stockholders' equity: Preferred stock, $ 0.0001 par value. 1,000,000 shares authorized; no shares issued and outstanding — — Common stock, $ 0.0001 par value. 454,000,000 shares authorized; 223,456,994 shares and 219,293,281 shares issued

View Full Filing

View this 10-Q filing on SEC EDGAR