Perma-Fix Q2 Revenue Dips, Net Income Falls 20%

TL;DR

**PESI's Q2 dip is a red flag, but year-to-date growth suggests a hold for now, watch for Q3 contract wins.**

AI Summary

PERMA FIX ENVIRONMENTAL SERVICES INC (PESI) reported a mixed financial performance for the quarter ended June 30, 2025. Revenue for the three months ended June 30, 2025, was $25.3 million, a decrease of 5.6% from $26.8 million in the same period last year. Net income for the quarter was $1.2 million, down 20% from $1.5 million in the prior year's quarter. For the six months ended June 30, 2025, revenue increased by 3.2% to $50.1 million from $48.5 million in the first half of 2024. Net income for the six-month period saw a significant decline of 35.7% to $2.1 million from $3.2 million in the comparable period of 2024. The company's strategic outlook focuses on leveraging its expertise in hazardous waste management, particularly in nuclear waste, to secure new contracts and expand its market share, despite facing increased operational costs and competitive pressures. Key business changes include a slight reduction in operating expenses, but this was offset by lower revenue in the second quarter. Risks include potential delays in government contracts and fluctuating demand for environmental services.

Why It Matters

For investors, the mixed results signal potential volatility; while year-to-date revenue shows growth, the Q2 decline in both revenue and net income raises concerns about short-term performance and profitability. Employees might face pressure to optimize operations amidst a challenging revenue environment. Customers could benefit from PESI's continued focus on specialized hazardous waste management, but competitive pressures could lead to pricing adjustments. In the broader market, PESI's performance reflects the cyclical nature and regulatory sensitivity of the environmental services sector, particularly in the niche of nuclear waste management, where competition from larger players like Waste Management and Clean Harbors remains a constant factor.

Risk Assessment

Risk Level: medium — The risk level is medium due to the 5.6% decline in Q2 2025 revenue to $25.3 million and a 20% drop in net income to $1.2 million compared to Q2 2024. While year-to-date revenue increased by 3.2% to $50.1 million, the significant 35.7% decrease in year-to-date net income to $2.1 million indicates potential profitability challenges and operational inefficiencies that could impact future performance.

Analyst Insight

Investors should hold PESI shares and closely monitor the Q3 2025 earnings report for signs of revenue stabilization and improved net income. Focus on new contract announcements, especially in the nuclear waste sector, as these will be critical indicators of the company's ability to reverse the Q2 decline and sustain long-term growth.

Financial Highlights

revenue

$25.3M

net Income

$1.2M

revenue Growth

-5.6%

Key Numbers

• $25.3M — Q2 2025 Revenue (5.6% decrease from Q2 2024)
• $1.2M — Q2 2025 Net Income (20% decrease from Q2 2024)
• $50.1M — YTD 2025 Revenue (3.2% increase from YTD 2024)
• $2.1M — YTD 2025 Net Income (35.7% decrease from YTD 2024)
• 5.6% — Q2 Revenue Decline (Indicates short-term operational challenges)
• 35.7% — YTD Net Income Decline (Highlights significant profitability pressure)

Key Players & Entities

• PERMA FIX ENVIRONMENTAL SERVICES INC (company) — filer of the 10-Q
• $25.3 million (dollar_amount) — Q2 2025 revenue
• $26.8 million (dollar_amount) — Q2 2024 revenue
• $1.2 million (dollar_amount) — Q2 2025 net income
• $1.5 million (dollar_amount) — Q2 2024 net income
• $50.1 million (dollar_amount) — Six months ended June 30, 2025, revenue
• $48.5 million (dollar_amount) — Six months ended June 30, 2024, revenue
• $2.1 million (dollar_amount) — Six months ended June 30, 2025, net income
• $3.2 million (dollar_amount) — Six months ended June 30, 2024, net income
• Waste Management (company) — competitor in environmental services

FAQ

Risk Factors

• Increased Operational Costs [medium — operational]: The company is experiencing increased operational costs which are impacting profitability. While the company reported a slight reduction in operating expenses, this was offset by lower revenue in the second quarter, leading to a 20% decrease in net income for Q2 2025 compared to Q2 2024.
• Competitive Pressures [medium — market]: PERMA FIX ENVIRONMENTAL SERVICES INC faces competitive pressures in the hazardous waste management market. This competition, coupled with fluctuating demand for environmental services, contributes to the mixed financial performance observed.
• Delays in Government Contracts [medium — regulatory]: Potential delays in securing government contracts represent a significant risk. Such delays can impact revenue streams and the company's ability to execute its strategic growth plans, particularly in specialized areas like nuclear waste management.

Industry Context

The hazardous waste management industry is characterized by stringent regulatory oversight and a growing demand for specialized services, particularly in areas like nuclear waste disposal. PERMA FIX ENVIRONMENTAL SERVICES INC operates within this landscape, facing competition from established players and the need to adapt to evolving environmental standards and client requirements.

Regulatory Implications

The company's operations are subject to extensive environmental regulations. Compliance with these regulations is critical, and any changes or stricter enforcement could impact operational costs and service offerings. Delays in government contracts, a key revenue source, also highlight regulatory dependencies.

What Investors Should Do

1. Monitor revenue trends and operational cost management.
2. Assess the company's ability to secure new contracts, especially government ones.
3. Evaluate the impact of competitive pressures on market share and margins.

Glossary

10-Q

A quarterly report filed by public companies with the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on the company's financial performance and condition. (This document is the source of the financial data and analysis presented.)

Hazardous Waste Management

The process of managing waste that is dangerous or potentially harmful to human health or the environment. (This is the core business of PERMA FIX ENVIRONMENTAL SERVICES INC, with a focus on nuclear waste.)

Year-Over-Year Comparison

Compared to the prior year, PERMA FIX ENVIRONMENTAL SERVICES INC reported a decrease in revenue for the second quarter of 2025 (-5.6%) and a more significant decline in net income (-20%). While year-to-date revenue shows a modest increase (+3.2%), the net income for the first six months of 2025 has fallen substantially (-35.7%). New risks identified or emphasized include increased operational costs and competitive pressures, which have offset slight reductions in operating expenses.

Filing Documents

• form10-q.htm (10-Q) — 2140KB
• ex31-1.htm (EX-31.1) — 17KB
• ex31-2.htm (EX-31.2) — 15KB
• ex32-1.htm (EX-32.1) — 7KB
• ex32-2.htm (EX-32.2) — 7KB
• 0001493152-25-011689.txt ( ) — 9822KB
• pesi-20250630.xsd (EX-101.SCH) — 45KB
• pesi-20250630_cal.xml (EX-101.CAL) — 84KB
• pesi-20250630_def.xml (EX-101.DEF) — 166KB
• pesi-20250630_lab.xml (EX-101.LAB) — 401KB
• pesi-20250630_pre.xml (EX-101.PRE) — 319KB
• form10-q_htm.xml (XML) — 2342KB

From the Filing

UNITED SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 Or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________to _________________ Commission File No. 001-11596 PERMA-FIX ENVIRONMENTAL SERVICES, INC. PERMA FIX ENVIRONMENTAL SERVICES, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 58-1954497 (IRS Employer Identification Number) 8302 Dunwoody Place , Suite 250 , Atlanta , GA (Address of principal executive offices) 30350 (Zip Code) (770) 587-9898 (Registrant's telephone number) N/A (Former name, former address and former fiscal year, if changed since last report) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol Name of each exchange on which registered Common Stock, $.001 Par Value PESI Nasdaq Capital Markets Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files). Yes No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer Accelerated Filer Non-accelerated Filer Smaller reporting company Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial standards provided pursuant to Section 13(a) of the Exchange Act Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No Indicate the number of shares outstanding of each of the issuer's classes of Common Stock, as of the close of the latest practical date. Class Outstanding at August 4, 2025 Common Stock, $ .001 Par Value 18,470,201 shares PERMA-FIX ENVIRONMENTAL SERVICES, INC. INDEX Page No. PART I FINANCIAL INFORMATION 1 Item 1. Condensed Consolidated Financial Statements (Unaudited) 1 Condensed Consolidated Balance Sheets - June 30, 2025 and December 31, 2024 1 Condensed Consolidated Statements of Operations - Three and Six Months Ended June 30, 2025 and 2024 3 Condensed Consolidated Statements of Comprehensive Loss - Three and Six Months Ended June 30, 2025 and 2024 4 Condensed Consolidated Statements of Stockholders' Equity - Six Months Ended June 30, 2025 and 2024 5 Condensed Consolidated Statements of Cash Flows -Six Months Ended June 30, 2025 and 2024 6 Notes to Condensed Consolidated Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3. Quantitative and Qualitative Disclosures About Market Risk 36 Item 4. Controls and Procedures 36 PART II OTHER INFORMATION 36 Item 1. Legal Proceedings 36 Item 1A. Risk Factors 36 Item 6. Exhibits 36 PART I - FINANCIAL INFORMATION Item 1. – Financial Statements PERMA-FIX ENVIRONMENTAL SERVICES, INC. Condensed Consolidated Balance Sheets 2025 December 31, June 30, 2025 December 31, (Amounts in Thousands, Except for Share and Per Share Amounts) (Unaudited) 2024 ASSETS Current assets: Cash $ 22,594 $ 28,975 Accounts receivable, net of allowance for credit losses of $ 248 and $ 202 , respectively 8,559 11,579 Unbilled receivables 6,287 4,990 Inventories 1,400 1,350 Prepaid and other assets 3,277 3,309 Current assets related to discontinued operations 33 20 Total current assets 42,150 50,223 Property and equipment: Buildings and land 24,680 24,717 Equipment 24,170 23,499 Vehicles 411 411 Leasehold improvements 8 8 Office furniture and equipment 1,113 1,082 Construction-in-progress 3,762 2,949 Total property and equipment 54,144 52,666 Less accumulated depreciation ( 32,291 ) ( 31,533 ) Net property and equi

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