Perma-Fix Narrows Losses, Boosts Revenue in Q3 2025

TL;DR

**PESI is showing signs of a turnaround, with narrowing losses and revenue growth, making it a speculative buy for risk-tolerant investors.**

AI Summary

PERMA FIX ENVIRONMENTAL SERVICES INC (PESI) reported a net loss of $1.835 million for the three months ended September 30, 2025, a significant improvement from the $8.979 million net loss in the same period of 2024. For the nine months ended September 30, 2025, the net loss was $8.124 million, down from $16.490 million in 2024. Revenue increased to $17.454 million in Q3 2025 from $16.812 million in Q3 2024, and to $45.959 million for the nine months of 2025 from $44.415 million in 2024. Gross profit saw a substantial rise, reaching $2.557 million in Q3 2025 compared to $1.334 million in Q3 2024, and turning positive to $4.761 million for the nine months of 2025 from a loss of $0.592 million in 2024. The company's cash balance decreased from $28.975 million at December 31, 2024, to $16.412 million at September 30, 2025. Key business changes include increased revenue from fixed-price contracts in the Treatment segment, which grew from $9.064 million in Q3 2024 to $13.114 million in Q3 2025. Risks include continued operating losses, with a loss from operations of $1.872 million in Q3 2025 and $8.502 million for the nine months of 2025. Strategic outlook involves managing cash flow and focusing on revenue growth, particularly in the Treatment segment.

Why It Matters

This filing indicates a positive trend for PERMA FIX ENVIRONMENTAL SERVICES, as the company significantly reduced its net losses and increased revenue, particularly in its core Treatment segment. For investors, the improved gross profit and reduced operating losses suggest better operational efficiency and a potential path to profitability, which could make PESI a more attractive investment compared to competitors still struggling with margins. Employees might see this as a sign of a more stable and growing company, potentially leading to increased job security and opportunities. Customers could benefit from a financially healthier company that can invest more in service quality and innovation. The broader market for environmental services, especially in waste treatment, could see PESI strengthening its competitive position, potentially impacting pricing and service offerings across the industry.

Risk Assessment

Risk Level: medium — Despite improved gross profit, PERMA FIX ENVIRONMENTAL SERVICES INC continues to report significant net losses, with a net loss of $8.124 million for the nine months ended September 30, 2025. The company's cash balance decreased by $12.563 million from December 31, 2024, to September 30, 2025, indicating ongoing cash burn from operating activities, which used $8.629 million over the nine-month period.

Analyst Insight

Investors should closely monitor PESI's next few quarters for sustained improvements in net income and positive cash flow from operations. While the narrowing losses are encouraging, the continued cash burn and accumulated deficit of $105.054 million at September 30, 2025, suggest caution. Consider a small, speculative position if the trend of reduced losses and revenue growth continues, but be prepared for volatility.

Financial Highlights

debt To Equity

0.65

revenue

$17.454M

operating Margin

-10.7%

total Assets

$91.155M

total Debt

$1.888M

net Income

$(1.835)M

eps

$(0.10)

gross Margin

14.7%

cash Position

$16.412M

revenue Growth

+3.8%

Revenue Breakdown

Key Numbers

• $17.454M — Net Revenues (Increased from $16.812M in Q3 2024 to $17.454M in Q3 2025, showing revenue growth.)
• $2.557M — Gross Profit (Increased significantly from $1.334M in Q3 2024 to $2.557M in Q3 2025, indicating improved margins.)
• $(1.835)M — Net Loss (Q3 2025) (Reduced from $(8.979)M in Q3 2024, showing a substantial narrowing of losses.)
• $(8.124)M — Net Loss (YTD 2025) (Reduced from $(16.490)M in YTD 2024, indicating a positive trend over nine months.)
• $16.412M — Cash (Decreased from $28.975M at Dec 31, 2024, highlighting ongoing cash usage.)
• $(8.629)M — Cash Used in Operating Activities (For the nine months ended Sep 30, 2025, indicating continued operational cash burn.)
• $13.114M — Treatment Segment Fixed Price Revenue (Q3 2025) (Increased from $9.064M in Q3 2024, showing strong growth in a key segment.)
• $105.054M — Accumulated Deficit (Increased from $96.930M at Dec 31, 2024, reflecting continued losses.)
• 18,485,043 — Common Stock Shares Outstanding (As of September 30, 2025, indicating potential dilution from stock issuances.)

Key Players & Entities

• PERMA FIX ENVIRONMENTAL SERVICES INC (company) — Registrant
• PESI (company) — Ticker symbol
• Nasdaq Capital Market (regulator) — Exchange where common stock is registered
• $17.454 million (dollar_amount) — Net revenues for Q3 2025
• $16.812 million (dollar_amount) — Net revenues for Q3 2024
• $2.557 million (dollar_amount) — Gross profit for Q3 2025
• $1.334 million (dollar_amount) — Gross profit for Q3 2024
• $1.835 million (dollar_amount) — Net loss for Q3 2025
• $8.979 million (dollar_amount) — Net loss for Q3 2024
• $16.412 million (dollar_amount) — Cash balance at September 30, 2025

FAQ

Risk Factors

• Continued Operating Losses and Cash Burn [high — financial]: The company reported a net loss of $1.835 million in Q3 2025 and $8.124 million year-to-date. Operating losses for the nine months ended September 30, 2025, were $8.502 million. This continued operational cash burn led to a decrease in cash from $28.975 million at the end of 2024 to $16.412 million as of September 30, 2025.
• Accumulated Deficit [medium — financial]: The accumulated deficit increased to $105.054 million as of September 30, 2025, up from $96.930 million at December 31, 2024. This reflects the company's history of net losses and raises concerns about long-term financial sustainability.
• Dependence on Key Segments [medium — operational]: While the Treatment segment showed strong growth in fixed-price contracts, the company's overall revenue growth was modest ($17.454M in Q3 2025 vs $16.812M in Q3 2024). A slowdown or issue within the Treatment segment could disproportionately impact financial performance.
• Decreasing Cash Reserves [high — financial]: The company's cash balance has significantly decreased from $28.975 million at the end of 2024 to $16.412 million by September 30, 2025. This reduction in liquidity, coupled with ongoing operating losses, could limit the company's ability to fund operations and invest in growth.

Industry Context

Perma-Fix Environmental Services operates in the environmental services sector, which is characterized by stringent regulatory oversight and a need for specialized waste treatment and disposal solutions. The industry faces ongoing demand driven by industrial activity and environmental compliance requirements. Competition exists from larger, diversified players as well as smaller niche providers.

Regulatory Implications

The company's operations are subject to extensive environmental regulations at federal, state, and local levels. Compliance with these regulations is critical and can involve significant costs. Changes in environmental policy or enforcement could impact the company's business and financial performance.

What Investors Should Do

1. Monitor cash burn rate and runway.
2. Evaluate the sustainability of Treatment segment growth.
3. Assess the impact of the accumulated deficit.

Key Dates

• 2025-09-30: Quarterly Period End — Reporting period for the 10-Q, showing reduced net loss and increased gross profit compared to the prior year.
• 2025-11-03: Common Stock Shares Outstanding — 18,517,662 shares outstanding, indicating a slight increase from the end of the quarter, potentially due to stock issuances.

Glossary

Accumulated deficit

The cumulative net losses of a company that have not been offset by net income. It represents a negative balance in retained earnings. (Indicates the company has historically incurred more losses than profits, impacting its overall equity.)

Fixed-price contracts

Contracts where the price is set in advance, and the seller bears the risk of cost overruns. (Revenue from these contracts in the Treatment segment increased significantly, driving top-line growth.)

Discontinued operations

A component of a business that the company has disposed of or plans to dispose of, reported separately on the income statement. (The company reported losses from discontinued operations, which are being phased out.)

Weighted average number of common shares

The average number of outstanding shares during a period, adjusted for stock splits and dividends, used in EPS calculations. (Used to calculate net loss per share, showing an increase from the prior year, potentially due to stock issuances.)

Year-Over-Year Comparison

Compared to the prior year, Perma-Fix Environmental Services has demonstrated significant improvement in its financial performance. Net losses have narrowed substantially, with Q3 2025 net loss at $1.835 million versus $8.979 million in Q3 2024, and year-to-date losses reduced from $16.490 million to $8.124 million. Gross profit has turned positive year-to-date and increased significantly in Q3. Revenue saw modest growth, with the Treatment segment's fixed-price contracts being a key driver. However, cash reserves have decreased considerably, and the accumulated deficit has grown, indicating ongoing financial challenges despite operational improvements.

Filing Documents

• form10-q.htm (10-Q) — 2130KB
• ex10-1.htm (EX-10.1) — 211KB
• ex31-1.htm (EX-31.1) — 17KB
• ex31-2.htm (EX-31.2) — 19KB
• ex32-1.htm (EX-32.1) — 6KB
• ex32-2.htm (EX-32.2) — 7KB
• 0001493152-25-021473.txt ( ) — 9869KB
• pesi-20250930.xsd (EX-101.SCH) — 47KB
• pesi-20250930_cal.xml (EX-101.CAL) — 83KB
• pesi-20250930_def.xml (EX-101.DEF) — 164KB
• pesi-20250930_lab.xml (EX-101.LAB) — 403KB
• pesi-20250930_pre.xml (EX-101.PRE) — 315KB
• form10-q_htm.xml (XML) — 2279KB

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 September 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 58-1954497 (State or other jurisdiction of incorporation or organization) (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 Market 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 November 3, 2025 Common Stock, $ .001 Par Value 18,517,662 shares PERMA-FIX ENVIRONMENTAL SERVICES, INC. INDEX Page No. PART I FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Balance Sheets - September 30, 2025, and December 31, 2024 1 Condensed Consolidated Statements of Operations - Three and Nine Months Ended September 30, 2025, and 2024 3 Condensed Consolidated Statements of Comprehensive Loss - Three and Nine Months Ended September 30, 2025, and 2024 4 Condensed Consolidated Statement of Stockholders' Equity - Nine Months Ended September 30, 2025, and 2024 5 Condensed Consolidated Statements of Cash Flows -Nine Months Ended September 30, 2025, and 2024 7 Notes to Condensed Consolidated Financial Statements 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3. Quantitative and Qualitative Disclosures About Market Risk 38 Item 4. Controls and Procedures 38 PART II OTHER INFORMATION Item 1. Legal Proceedings 38 Item 1A. Risk Factors 38 Item 6. Exhibits 39 PART I - FINANCIAL INFORMATION ITEM 1. – Financial Statements PERMA-FIX ENVIRONMENTAL SERVICES, INC. Condensed Consolidated Balance Sheets September 30, December 31, 2025 2024 (Amounts in Thousands, Except for Share and Per Share Amounts) (Unaudited) ASSETS Current assets: Cash $ 16,412 $ 28,975 Accounts receivable, net of allowance for credit losses of $ 229 and $ 202 , respectively 11,887 11,579 Unbilled receivables 8,396 4,990 Inventories 1,113 1,350 Prepaid and other assets 4,421 3,309 Current assets related to discontinued operations 37 20 Total current assets 42,266 50,223 Property and equipment: Buildings and land 24,680 24,717 Equipment 24,251 23,499 Vehicles 411 411 Leasehold improvements 8 8 Office furniture and equipment 1,113 1,082 Construction-in-progress 4,880 2,949 Total property and equipment 55,343 52,666 Less accumulated depreciation ( 32,697 ) ( 31,533 ) Net pro

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