FutureFuel Plunges to $37.4M Loss Amid Revenue Collapse

TL;DR

**FF is bleeding cash and revenue, making it a risky bet despite new tax credits; steer clear for now.**

AI Summary

FutureFuel Corp. (FF) reported a significant decline in financial performance for the nine months ended September 30, 2025, with revenue plummeting to $75.9 million from $181.83 million in the prior year, a 58.2% decrease. The company posted a net loss of $37.386 million, a stark contrast to the net income of $12.706 million reported for the same period in 2024. This resulted in a basic loss per common share of $0.85, compared to earnings of $0.29 per share previously. Gross profit turned into a substantial gross loss of $30.161 million, down from a gross profit of $14.047 million. Cash and cash equivalents decreased by $23.981 million to $85.560 million from $109.541 million at December 31, 2024. Key business changes include the expiration of the Biodiesel Blenders' Tax Credit (BTC) and the Small Agri-Biodiesel Producer Tax Credit on December 31, 2024, though the latter was reinstated and extended through December 31, 2026, offering $0.20 per gallon. The company also recognized $2.5 million in Clean Fuel Production Credit (CFPC) for the three and nine months ended September 30, 2025. Total assets decreased to $203.492 million from $247.691 million, and total stockholders' equity fell to $169.123 million from $205.821 million.

Why It Matters

FutureFuel's dramatic revenue decline and net loss signal significant operational challenges, particularly following the expiration of key tax credits like the BTC. While the reinstatement of the Small Producer's Tax Credit and the new Clean Fuel Production Credit offer some future support, the immediate financial impact is severe. Investors should be concerned about the company's ability to adapt to a changing regulatory landscape and maintain profitability, especially given the competitive pressures in the biofuels and specialty chemicals sectors. This performance could impact employee morale and job security, and customers might face uncertainty regarding long-term supply stability if financial health deteriorates further. The broader market will watch how FF navigates these shifts, as it could set a precedent for other companies reliant on government incentives.

Risk Assessment

Risk Level: high — The company reported a net loss of $37.386 million for the nine months ended September 30, 2025, a significant deterioration from a $12.706 million net income in the prior year. Revenue decreased by 58.2% from $181.83 million to $75.9 million, and cash and cash equivalents declined by $23.981 million, indicating substantial operational and financial challenges.

Analyst Insight

Investors should exercise extreme caution and consider reducing exposure to FF given the severe revenue decline and net losses. Await clear evidence of sustained profitability and positive cash flow generation from the new tax credits before considering any new investment.

Financial Highlights

debt To Equity

0.20

revenue

$75,900,000

operating Margin

-53.4%

total Assets

$203,492,000

total Debt

$34,369,000

net Income

-$37,386,000

eps

-$0.85

gross Margin

-39.7%

cash Position

$85,560,000

revenue Growth

-58.2%

Revenue Breakdown

Key Numbers

• $75.9M — Revenue for nine months ended Sep 30, 2025 (Decreased from $181.83M in 2024, a 58.2% drop)
• $(37.386)M — Net loss for nine months ended Sep 30, 2025 (Compared to $12.706M net income in 2024)
• $(0.85) — Basic loss per common share (Compared to $0.29 earnings per share in 2024)
• $(30.161)M — Gross loss for nine months ended Sep 30, 2025 (Compared to $14.047M gross profit in 2024)
• $85.560M — Cash and cash equivalents at Sep 30, 2025 (Decreased from $109.541M at Dec 31, 2024)
• $2.5M — Clean Fuel Production Credit recognized (For three and nine months ended Sep 30, 2025)
• $203.492M — Total Assets at Sep 30, 2025 (Decreased from $247.691M at Dec 31, 2024)
• $169.123M — Total Stockholders' Equity at Sep 30, 2025 (Decreased from $205.821M at Dec 31, 2024)
• 43,803,243 — Shares outstanding (As of November 10, 2025)
• $0.20 — Small Producer's Tax Credit per gallon (Reinstated and extended through December 31, 2026)

Key Players & Entities

• FutureFuel Corp. (company) — Registrant and parent company
• FutureFuel Chemical Company (company) — Wholly owned subsidiary
• FutureFuel Warehouse Company, L.L.C. (company) — Wholly owned subsidiary
• Legacy Regional Transport, L.L.C. (company) — Wholly owned subsidiary
• Securities and Exchange Commission (regulator) — Regulatory body for filing
• Financial Accounting Standards Board (regulator) — Standard-setting body for GAAP
• Budget Reconciliation Act of 2025 (regulator) — Legislation reinstating tax credits
• Inflation Reduction Act of 2022 (regulator) — Legislation establishing CFPC
• NYSE (regulator) — Exchange where FF Common Stock is registered
• Bloomberg (company) — Financial news and data provider

FAQ

Risk Factors

• Expiration of Tax Credits [high — regulatory]: The expiration of the Biodiesel Blenders' Tax Credit (BTC) on December 31, 2024, significantly impacted revenue and profitability. While the Small Agri-Biodiesel Producer Tax Credit was reinstated, the loss of the BTC represents a substantial reduction in financial incentives for the company's core business.
• Reliance on Government Incentives [high — regulatory]: FutureFuel's financial performance is heavily influenced by government tax credits. The reinstatement and extension of the Small Producer's Tax Credit through December 31, 2026, at $0.20 per gallon, and the recognition of $2.5 million in Clean Fuel Production Credit (CFPC) for 2025, highlight this dependence. Uncertainty or changes in these credits pose a significant risk.
• Decreased Demand and Revenue [high — market]: Revenue for the nine months ended September 30, 2025, plummeted by 58.2% to $75.9 million from $181.83 million in the prior year. This indicates a substantial decrease in demand for the company's products or a significant loss of market share.
• Shift to Net Loss and Gross Loss [high — financial]: The company reported a net loss of $37.386 million and a gross loss of $30.161 million for the nine months ended September 30, 2025, a stark reversal from a net income of $12.706 million and a gross profit of $14.047 million in the prior year. This indicates severe operational and pricing challenges.
• Declining Cash Position [medium — financial]: Cash and cash equivalents decreased by $23.981 million to $85.560 million from $109.541 million at December 31, 2024. This reduction in liquidity, coupled with operating losses, could strain the company's ability to fund operations and investments.
• Inventory Management [medium — operational]: Inventory decreased significantly from $20.643 million at December 31, 2024, to $6.133 million at September 30, 2025. The company also recognized a liquidation of $5.083 million in inventory during the nine months ended September 30, 2025, primarily due to lower biodiesel-related inventories, suggesting reduced production or sales.

Industry Context

The biodiesel and specialty chemicals industry is subject to significant regulatory influence, particularly through tax credits and environmental mandates. Fluctuations in these incentives, such as the expiration and reinstatement of biodiesel tax credits, can dramatically impact profitability. The market also faces challenges from volatile feedstock costs, competition from alternative fuels, and evolving demand for sustainable products.

Regulatory Implications

FutureFuel faces substantial regulatory risk due to its reliance on government tax credits. The expiration of the Biodiesel Blenders' Tax Credit has already led to a severe financial downturn. While the reinstatement of the Small Producer's Tax Credit and the availability of the Clean Fuel Production Credit offer some relief, the company remains vulnerable to changes in tax policy and environmental regulations.

What Investors Should Do

1. Monitor upcoming tax legislation and regulatory changes impacting the biodiesel and chemical industries.
2. Assess the company's ability to generate revenue and profit independent of tax credits.
3. Evaluate the long-term viability of FutureFuel's product mix in a shifting energy and chemical landscape.
4. Analyze the company's cash burn rate and liquidity position.

Key Dates

• 2024-12-31: Expiration of Biodiesel Blenders' Tax Credit (BTC) — Removed a significant revenue enhancement for the company, contributing to the sharp decline in performance.
• 2024-12-31: Expiration of Small Agri-Biodiesel Producer Tax Credit — Initially removed a benefit, but it was later reinstated.
• 2025-07-04: Reinstatement and Extension of Small Producer's Tax Credit — Provided a $0.20 per gallon credit through December 31, 2026, offering some relief but not fully offsetting prior losses.
• 2024-12: Biodiesel approved for Clean Fuel Production Credit (CFPC) — Allows the company to claim credits under the Inflation Reduction Act, providing a new, albeit smaller, revenue stream.
• 2025-09-30: End of Nine-Month Period for Reporting — The period for which the significant revenue drop and net loss were reported.
• 2025-11-10: Shares Outstanding Date — Provides the basis for per-share calculations, showing 43,803,243 shares outstanding.

Glossary

Biodiesel Blenders' Tax Credit (BTC)

A tax credit previously offered to blenders of biomass-based diesel fuel. (Its expiration significantly impacted FutureFuel's revenue and profitability.)

Small Agri-Biodiesel Producer Tax Credit

A tax credit for smaller producers of agri-biodiesel, which was reinstated and extended. (Provides a partial offset to lost revenue, though at a lower rate than previously available for some credits.)

Clean Fuel Production Credit (CFPC)

A tax credit established by the Inflation Reduction Act for low-emission transportation fuels. (Represents a new source of revenue for FutureFuel's biodiesel products, contingent on emissions standards.)

Bill-and-hold revenue

Revenue recognized when a customer agrees to pay for goods that are held by the seller until a future delivery date. (A portion of FutureFuel's revenue is recognized under this arrangement, and its decrease indicates a slowdown in immediate product transfer.)

IAS 20

International Accounting Standard 20, which provides guidance on accounting for government grants. (FutureFuel uses this standard to recognize government tax credits as a reduction in the cost of goods sold.)

ASC 606

Accounting Standards Codification Topic 606, 'Revenue from Contracts with Customers'. (Governs how FutureFuel recognizes revenue, particularly for custom chemical contracts with material rights and options.)

Year-Over-Year Comparison

FutureFuel Corp. has experienced a dramatic downturn in financial performance compared to the prior year. Revenue for the nine months ended September 30, 2025, has fallen by 58.2% to $75.9 million from $181.83 million in 2024. This has led to a significant shift from net income of $12.706 million to a net loss of $37.386 million, and from a gross profit of $14.047 million to a gross loss of $30.161 million. Key risks have emerged or intensified, primarily related to the expiration of crucial tax credits, which directly contributed to the severe decline in profitability and revenue.

Key Financial Figures

• $2.50 — $ 309,880 Cash dividends declared, $2.50 per common share - - ( 77,691 )
• $0.10 — ss of 60 million gallons and provided a $0.10 per gallon income tax credit on the fir
• $0.20 — capacity of 60 million gallons or less—$0.20 per gallon on the first 15 million gall

Filing Documents

• ff20250930_10q.htm (10-Q) — 1109KB
• ex_883662.htm (EX-10.1) — 19KB
• ex_856004.htm (EX-31.1) — 13KB
• ex_856005.htm (EX-31.2) — 13KB
• ex_856006.htm (EX-32.1) — 8KB
• logo.jpg (GRAPHIC) — 8KB
• signature1.jpg (GRAPHIC) — 96KB
• signature2.jpg (GRAPHIC) — 45KB
• signature3.jpg (GRAPHIC) — 36KB
• signature4.jpg (GRAPHIC) — 34KB
• 0001437749-25-034102.txt ( ) — 5317KB
• ff-20250930.xsd (EX-101.SCH) — 41KB
• ff-20250930_cal.xml (EX-101.CAL) — 39KB
• ff-20250930_def.xml (EX-101.DEF) — 259KB
• ff-20250930_lab.xml (EX-101.LAB) — 233KB
• ff-20250930_pre.xml (EX-101.PRE) — 289KB
• ff20250930_10q_htm.xml (XML) — 771KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. FutureFuel Corp. Consolidated Balance Sheets (Dollars in thousands) (Unaudited) September 30, 2025 December 31, 2024 Assets Cash and cash equivalents $ 85,560 $ 109,541 Accounts receivable, inclusive of the blenders' tax credit of $ 0 and $ 6,683 , respectively, and net of allowances for expected credit losses of $ 29 and $ 29 , respectively 7,874 21,896 Inventory, net 6,133 20,643 Income tax receivable 43 53 Prepaid expenses 952 3,978 Prepaid expenses – related parties 12 - Other current assets 12,236 8,675 Total current assets 112,810 164,786 Property, plant and equipment, net 85,776 78,538 Other assets 4,906 4,367 Total noncurrent assets 90,682 82,905 Total Assets $ 203,492 $ 247,691 Liabilities and Stockholders' Equity Accounts payable, inclusive of the blenders' tax credit rebates due customers of $ 28 and $ 890 , respectively $ 7,596 $ 10,483 Accounts payable – related parties 80 139 Deferred revenue – current 995 904 Dividends payable 2,815 10,699 Accrued expenses and other current liabilities 13,835 11,082 Total current liabilities 25,321 33,307 Deferred revenue – noncurrent 6,020 6,324 Noncurrent deferred income taxes 767 773 Other noncurrent liabilities 2,261 1,466 Total noncurrent liabilities 9,048 8,563 Total liabilities 34,369 41,870 Commitments and contingencies Preferred stock, $ 0.0001 par value, 5,000,000 shares authorized, none issued and outstanding - - Common stock, $ 0.0001 par value, 75,000,000 shares authorized, 43,803,243 shares issued and outstanding as of September 30, 2025 and December 31, 2024 4 4 Additional paid in capital 206,124 205,434 Retained earnings (accumulated deficit) ( 37,005 ) 383 Total stockholders' equity 169,123 205,821 Total Liabilities and Stockholders' Equity $ 203,492 $ 247,691 The accompanying notes are an integral part of these consolidated financial statements. 1 FutureFuel Corp

Notes to Consolidated Financial Statements of FutureFuel Corp

Notes to Consolidated Financial Statements of FutureFuel Corp. (Dollars in thousands, except per share and per gallon amounts) (Unaudited) 1 ) SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by FutureFuel Corp. ("FutureFuel" or "the Company") in accordance and consistent with the accounting policies stated in the Company's 2024 Annual Report on Form 10 -K, inclusive of the audited consolidated financial statements, and should be read in conjunction with these consolidated financial statements. Certain reclassifications were made to prior year amounts to conform to the 2025 presentation. In the opinion of FutureFuel, all normal recurring adjustments necessary for a fair presentation have been included in the unaudited consolidated financial statements. The unaudited consolidated financial statements have been prepared in compliance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") accounting principles generally accepted in the United States ("GAAP") for interim financial information and with instructions to Form 10 -Q adopted by the Securities and Exchange Commission ("SEC"). Accordingly, the unaudited consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements and do include amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The unaudited consolidated financial statements include assets, liabilities, revenues, and expenses of FutureFuel and its direct and indirect wholly owned subsidiaries; namely, FutureFuel Chemical Company; FutureFuel Warehouse Company, L.L.C.; and Legacy Regional Transport, L.L.C. Intercompany transactions and balances have been eliminated in consolidation. Some of the Company's manufacturing equipment requires periodic, planned shutdowns of significan

Notes to Consolidated Financial Statements of FutureFuel Corp

Notes to Consolidated Financial Statements of FutureFuel Corp. (Dollars in thousands, except per share and per gallon amounts) (Unaudited) 2 ) GOVERNMENT TAX CREDITS Due to the lack of specific U.S. GAAP guidance for the following tax credits, the Company elected to follow IAS 20 principles ("Accounting for Government Grants"). Accordingly, the following credits were recognized as a reduction in the cost of goods sold, net of estimated selling expenses. BIODIESEL BLENDERS' TAX CREDIT The biodiesel Blenders' Tax Credit ("BTC") provided a one dollar per gallon tax credit to the blender of biomass-based diesel with at least 0.1% petroleum-based diesel fuel. The Company recorded this credit as a reduction in the cost of goods sold as applicable sales were made. The BTC expired December 31, 2024. SMALL AGRI-BIODIESEL PRODUCER TAX CREDIT The Small Agri-Biodiesel Producer Tax Credit also expired December 31, 2024. This tax credit was available to producers with production capacity not in excess of 60 million gallons and provided a $0.10 per gallon income tax credit on the first 15 million gallons of agri-biodiesel sold. The Company was eligible for this credit and recognized the credit in the same accounting period as the benefit from the BTC. The benefit of this credit was recognized as a component of income tax provision through December 31, 2024. On July 4, 2025, the Budget Reconciliation Act of 2025 officially reinstated and extended the Small Producer's Tax Credit through December 31, 2026. This transferable, nonrefundable credit offers eligible producers—those with a capacity of 60 million gallons or less—$0.20 per gallon on the first 15 million gallons of fuel they produce. The benefit of this credit was recognized as a reduction in cost of goods sold following IAS 20. CLEAN FUEL PRODUCTION TAX CREDIT The Clean Fuel Production Credit ("CFPC" or 45Z credit), established by the Inflation Reduction Act of 2022 and extended through 2029 by the Budget

Notes to Consolidated Financial Statements of FutureFuel Corp

Notes to Consolidated Financial Statements of FutureFuel Corp. (Dollars in thousands, except per share and per gallon amounts) (Unaudited) 3 ) REVENUE RECOGNITION The majority of revenue is from short-term contracts with revenue recognized when a single performance obligation to transfer product under the terms of a contract with a customer is satisfied. Certain of the Company's custom chemical contracts within the chemical segment contain a material right as defined by ASC Topic 606 "Revenue from Contracts with Customers", ("ASC 606" ), from the provision of a customer option to purchase future goods or services at a discounted price as a result of upfront payments provided by customers. Each contract also has a performance obligation to transfer products with 30 -day payment terms. The Company recognizes revenue when the customer takes control of the inventory, either upon shipment or when the material is made available for pick up. If the customer is deemed to take control of the inventory prior to pick up, the Company recognizes the revenue as a bill-and-hold transaction in accordance with ASC 606. The Company applies the renewal option approach in allocating the transaction price to these material rights and transfer of product. As a basis for allocating the transaction price to the material right and transfer of product, the Company estimates the expected life of the contract, the expected contractual volumes to be sold over that life, and the most likely expected sales price. Each estimate is updated quarterly on a prospective basis. The Company has a short-term, twelve -month lease agreement for its warehouse space. Lease revenue recognized under this agreement totaled $ 170 and $ 170 for the three months ended September 30, 2025, and 2024, respectively, and $ 510 and $ 499 for the nine months ended September 30, 2025 and 2024, respectively. Contract Assets and Liabilities: Contract assets consist of unbilled amounts typically resulting from reve

Notes to Consolidated Financial Statements of FutureFuel Corp

Notes to Consolidated Financial Statements of FutureFuel Corp. (Dollars in thousands, except per share and per gallon amounts) (Unaudited) The following tables provide revenue from customers disaggregated by the type of arrangement and by the timing of the recognized revenue. Disaggregation of revenue - contractual and non-contractual: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Contract revenue from customers with > one-year arrangements $ 4,759 $ 8,966 $ 9,857 $ 26,941 Contract revenue from customers with < one-year arrangements 17,875 42,119 65,877 154,723 Revenue from non-contractual arrangements 55 55 166 166 Total revenue $ 22,689 $ 51,140 $ 75,900 $ 181,830 Timing of revenue : Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Bill-and-hold revenue $ 10,650 $ 10,211 $ 25,085 $ 32,875 Non-bill-and-hold revenue 12,039 40,929 50,815 148,955 Total revenue $ 22,689 $ 51,140 $ 75,900 $ 181,830 As of September 30, 2025 and December 31, 2024 , $ 5,902 and $ 7,301 , respectively, of bill-and-hold revenue had not shipped. 4 ) INVENTORY The carrying values of inventory were as follows as of: September 30, 2025 December 31, 2024 At average cost (approximates current cost) Finished goods $ 1,880 $ 10,809 Work in process 601 872 Raw materials 6,133 15,335 8,614 27,016 LIFO reserve ( 2,481 ) ( 6,373 ) Total inventory $ 6,133 $ 20,643 The Company recognized a liquidation of $ 5,083 during the nine months ended September 30, 2025 primarily as a result of lower biodiesel related inventories. The Company recognized a liquidation of $ 435 during the year ended December 31, 2024. 8

Notes to Consolidated Financial Statements of FutureFuel Corp

Notes to Consolidated Financial Statements of FutureFuel Corp. (Dollars in thousands, except per share and per gallon amounts) (Unaudited) 5 ) DERIVATIVE INSTRUMENTS The Company records all derivative instruments at fair value. Fair value is determined by using the closing prices of the derivative instruments on the New York Mercantile Exchange at the end of an accounting period. Changes in the fair value of derivative instruments are recognized at the end of each accounting period and recorded in the statements of operations as a component of cost of goods sold. These instruments use inputs considered Level 1 holdings. Fair value accounting pronouncements include a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of FutureFuel. Unobservable inputs are inputs that reflect FutureFuel's assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The hierarchy is broken down into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. In order to manage commodity price risk caused by market

Notes to Consolidated Financial Statements of

Notes to Consolidated Financial Statements of

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