Green Plains Q3 Net Income Plunges Amid Soaring Interest Costs

TL;DR

**GPRE's Q3 earnings are a red flag, with net income plummeting and interest expenses soaring, signaling a tough road ahead for this ethanol producer.**

AI Summary

Green Plains Inc. (GPRE) reported a net income of $10.974 million for the three months ended September 30, 2025, a significant decrease from $48.637 million in the same period of 2024. Revenues also declined to $508.487 million from $658.735 million year-over-year. For the nine months ended September 30, 2025, the company posted a net loss of $133.894 million, a substantial increase from the $26.523 million net loss in the prior year. This was primarily driven by a sharp rise in interest expense, which surged to $70.575 million for the nine-month period in 2025 from $25.369 million in 2024. The company's total assets decreased to $1.532 billion from $1.782 billion as of December 31, 2024, while total liabilities decreased to $757.534 million from $907.637 million. Cash and cash equivalents declined to $135.903 million from $173.041 million. A key business change was the completion of the merger agreement on January 9, 2024, acquiring all publicly held common units of Green Plains Partners LP. The company also recognized a $35.654 million loss on extinguishment of debt for the nine months ended September 30, 2025.

Why It Matters

This filing reveals Green Plains is struggling with profitability, evidenced by a significant drop in Q3 net income and a widening net loss year-to-date, largely due to escalating interest expenses. For investors, this signals potential financial strain and reduced returns, especially given the decline in cash and total assets. Employees might face uncertainty if financial performance continues to deteriorate, impacting job security or future growth opportunities. Customers could see impacts on product pricing or availability if the company's operational efficiency is compromised. In the competitive ethanol and agribusiness market, GPRE's financial headwinds could allow rivals to gain market share, particularly those with stronger balance sheets or lower debt burdens.

Risk Assessment

Risk Level: high — The company reported a net loss of $133.894 million for the nine months ended September 30, 2025, a significant increase from the $26.523 million net loss in the prior year. This is exacerbated by a substantial increase in interest expense, which rose to $70.575 million for the nine-month period in 2025 from $25.369 million in 2024, indicating a heavy debt burden and rising financing costs.

Analyst Insight

Investors should exercise caution and consider reducing exposure to GPRE given the substantial net losses and rapidly increasing interest expenses. Monitor future filings closely for any signs of improved profitability or debt reduction strategies, as the current financial trajectory suggests significant headwinds.

Financial Highlights

debt To Equity

0.98

revenue

$508.487M

operating Margin

6.7%

total Assets

$1.532B

total Debt

$306.372M

net Income

$10.974M

eps

$0.17

gross Margin

10.3%

cash Position

$135.903M

revenue Growth

-22.8%

Key Numbers

• $10.974M — Net income (Q3 2025) (Decreased from $48.637M in Q3 2024)
• $508.487M — Revenues (Q3 2025) (Decreased from $658.735M in Q3 2024)
• ($133.894M) — Net loss (YTD Q3 2025) (Increased from ($26.523M) in YTD Q3 2024)
• $70.575M — Interest expense (YTD Q3 2025) (Increased from $25.369M in YTD Q3 2024)
• $1.532B — Total assets (Sept 30, 2025) (Decreased from $1.782B as of Dec 31, 2024)
• $135.903M — Cash and cash equivalents (Sept 30, 2025) (Decreased from $173.041M as of Dec 31, 2024)
• $35.654M — Loss on extinguishment of debt (YTD Q3 2025) (Significant non-operating expense)
• 69,835,042 — Common stock outstanding (Oct 30, 2025) (Total shares outstanding)
• $0.17 — Diluted EPS (Q3 2025) (Decreased from $0.69 in Q3 2024)
• ($1.99) — Diluted EPS (YTD Q3 2025) (Decreased from ($0.43) in YTD Q3 2024)

Key Players & Entities

• Green Plains Inc. (company) — registrant
• Green Plains Partners LP (company) — acquired entity
• Fluid Quip Technologies, LLC (company) — majority-owned subsidiary
• SEC (regulator) — Securities and Exchange Commission
• Nasdaq Stock Market LLC (company) — exchange where GPRE common stock is registered
• BlackRock (company) — funds and accounts managed by BlackRock
• Department of Energy (regulator) — DOE
• U.S. Environmental Protection Agency (regulator) — EPA
• U.S. Department of Agriculture (regulator) — USDA

FAQ

Risk Factors

• Increased Interest Expense [high — financial]: Interest expense surged to $70.575 million for the nine months ended September 30, 2025, from $25.369 million in the prior year. This significant increase contributed to a substantial rise in the net loss for the nine-month period.
• Loss on Extinguishment of Debt [medium — financial]: The company recognized a $35.654 million loss on extinguishment of debt for the nine months ended September 30, 2025. This non-operating expense further impacted the company's net loss for the period.
• Declining Revenues and Net Income [high — financial]: Revenues decreased to $508.487 million in Q3 2025 from $658.735 million in Q3 2024. Net income for the quarter also fell significantly to $10.974 million from $48.637 million year-over-year.
• Deteriorating Year-to-Date Performance [high — financial]: For the nine months ended September 30, 2025, the company posted a net loss of $133.894 million, a substantial increase from the $26.523 million net loss in the prior year.
• Decreased Cash Position [medium — financial]: Cash and cash equivalents declined to $135.903 million as of September 30, 2025, from $173.041 million as of December 31, 2024, indicating a reduced liquidity buffer.
• Inventory Reduction [medium — operational]: Inventories decreased to $126.968 million from $227.444 million. While this can improve cash flow, it may also signal lower production or sales expectations.

Industry Context

The ethanol industry is subject to volatile commodity prices for corn (feedstock) and ethanol (product), as well as fluctuating demand driven by fuel consumption and government mandates. Green Plains Inc. operates within this environment, facing competition from other ethanol producers and alternative fuel sources. Recent trends may include a focus on higher-value co-products and sustainability initiatives.

Regulatory Implications

The company is subject to environmental regulations related to its production facilities and emissions. Changes in government policies regarding renewable fuels, such as the Renewable Fuel Standard (RFS) in the U.S., can significantly impact demand and profitability for ethanol producers.

What Investors Should Do

1. Monitor the trend in interest expense and the company's debt levels closely, given the significant increase and its impact on net income.
2. Analyze the drivers behind the substantial increase in 'Carbon equipment liabilities' and assess their long-term strategic and financial implications.
3. Evaluate the company's strategy for managing inventory levels, as the significant decrease could signal either operational efficiency or reduced future sales.
4. Scrutinize the reasons for the widening retained deficit and the overall deterioration of year-to-date profitability compared to the prior year.

Key Dates

• 2024-01-09: Completion of Merger Agreement — Acquired all publicly held common units of Green Plains Partners LP, consolidating ownership and potentially impacting future financial structures and reporting.

Glossary

Loss on extinguishment of debt

A loss incurred when a company repays debt before its maturity date, often involving paying a premium or fees. (This was a significant non-operating expense for GPRE in the nine-month period of 2025, contributing to the net loss.)

Operating lease right-of-use assets

Assets recognized under accounting standards for leases, representing the right to use an asset for the lease term. (These assets decreased from $72.161 million to $59.093 million, reflecting changes in lease obligations.)

Carbon equipment liabilities

Liabilities associated with equipment used for carbon capture or related environmental technologies. (These liabilities increased significantly from $17.918 million to $117.519 million, indicating new investments or obligations in this area.)

Retained deficit

A negative balance in retained earnings, indicating that a company has accumulated more losses than profits over its lifetime. (GPRE's retained deficit widened from ($318.298 million) to ($451.516 million), reflecting the current period's net loss.)

Noncontrolling interests

The portion of equity in a subsidiary that is not attributable to the parent company. (These decreased from $9.322 million to $6.026 million, potentially due to changes in ownership percentages or subsidiary performance.)

Year-Over-Year Comparison

Compared to the prior year, Green Plains Inc. has experienced a significant downturn in financial performance. Revenues for the nine months ended September 30, 2025, decreased by 11.3% year-over-year, and the company swung from a net loss of $26.523 million to a much larger net loss of $133.894 million. This deterioration is largely attributable to a more than doubling of interest expense and a substantial loss on extinguishment of debt, alongside reduced operating income. Total assets and liabilities have also decreased, with a notable reduction in cash and cash equivalents.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share GPRE The Nasdaq Stock Market

Filing Documents

• gpre-20250930.htm (10-Q) — 2119KB
• exhibit21b-firstamendmentt.htm (EX-2.1(B)) — 18KB
• exhibit311-q32025.htm (EX-31.1) — 9KB
• exhibit312-q32025.htm (EX-31.2) — 9KB
• exhibit321-q32025.htm (EX-32.1) — 4KB
• exhibit322-q32025.htm (EX-32.2) — 4KB
• 0001309402-25-000163.txt ( ) — 12446KB
• gpre-20250930.xsd (EX-101.SCH) — 66KB
• gpre-20250930_cal.xml (EX-101.CAL) — 94KB
• gpre-20250930_def.xml (EX-101.DEF) — 403KB
• gpre-20250930_lab.xml (EX-101.LAB) — 839KB
• gpre-20250930_pre.xml (EX-101.PRE) — 656KB
• gpre-20250930_htm.xml (XML) — 2503KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 5 Consolidated Balance Sheets 5 Consolidated Statements of Operations 6 Consolidated Statements of Comprehensive Income (Loss) 7 Consolidated Statements of Cash Flows 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 41 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 59 Item 4.

Controls and Procedures

Controls and Procedures 60

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 61 Item 1A.

Risk Factors

Risk Factors 61 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 63 Item 3. Defaults Upon Senior Securities 64 Item 4. Mine Safety Disclosures 64 Item 5. Other Information 64 Item 6. Exhibits 64

Signatures

Signatures 2 Table of Contents Commonly Used Defined Terms Green Plains Inc. and Subsidiaries: Green Plains Inc.; Green Plains; the company Green Plains Inc. and its subsidiaries FQT Fluid Quip Technologies, LLC Green Plains Commodity Management Green Plains Commodity Management LLC Green Plains Finance Company Green Plains Finance Company LLC Green Plains Grain Green Plains Grain Company LLC Green Plains Mount Vernon; Mount Vernon Green Plains Mount Vernon LLC Green Plains Obion; Obion Green Plains Obion LLC Green Plains Partners; the partnership Green Plains Partners LP Green Plains Shenandoah; Shenandoah Green Plains Shenandoah LLC Green Plains Trade Green Plains Trade Group LLC Green Plains Wood River; Wood River Green Plains Wood River LLC Accounting Defined Terms: ASC Accounting Standards Codification EBITDA Earnings before interest expense, income taxes, depreciation and amortization EPS Earnings per share Exchange Act Securities Exchange Act of 1934, as amended GAAP U.S. Generally Accepted Accounting Principles SEC Securities and Exchange Commission SOFR Secured Overnight Financing Rate Industry and Other Defined Terms: ATJ Alcohol-to-Jet BlackRock Funds and accounts managed by BlackRock the Board; our Board Board of Directors of Green Plains Inc. CI Carbon Intensity CST Clean Sugar Technology developed by Fluid Quip Technologies, LLC DOE Department of Energy E10 Gasoline blended with up to 10% ethanol by volume E15 Gasoline blended with up to 15% ethanol by volume EIA U.S. Energy Information Administration EPA U.S. Environmental Protection Agency EV Electric Vehicle FFV Flexible-fuel vehicle GHG Greenhouse gas GP Turnkey Tharaldson GP Turnkey Tharaldson LLC GREET Greenhouse gases, Regulated Emissions, and Energy use in Technologies IRA Inflation Reduction Act LCFS Low Carbon Fuel Standard Merger Merger of GPLP Merger Sub LLC, a Delaware limited liability company and a wholly owned subsidiary of GPLP Holdings

Financial Statements

Item 1. Financial Statements. GREEN PLAINS INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) September 30, 2025 December 31, 2024 (unaudited) ASSETS Current assets Cash and cash equivalents $ 135,903 $ 173,041 Restricted cash 75,722 36,354 Accounts receivable, net of allowances of $ 84 and $ 80 , respectively 84,942 94,901 Inventories 126,968 227,444 Prepaid expenses and other 16,079 27,138 Derivative financial instruments 6,977 10,154 Total current assets 446,591 569,032 Property and equipment, net of accumulated depreciation and amortization of $ 655,761 and $ 749,593 , respectively 958,262 1,042,460 Operating lease right-of-use assets 59,093 72,161 Deferred income taxes, net 26,521 — Other assets 42,016 98,521 Total assets $ 1,532,483 $ 1,782,174 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 90,434 $ 154,817 Accrued and other liabilities 59,076 53,712 Derivative financial instruments 27,709 9,500 Operating lease current liabilities 20,930 24,711 Product financing arrangement 20,895 — Short-term notes payable and other borrowings 45,000 140,829 Current maturities of long-term debt 2,042 2,118 Total current liabilities 266,086 385,687 Long-term debt 306,372 432,460 Operating lease long-term liabilities 39,655 49,190 Carbon equipment liabilities 117,519 17,918 Other liabilities 27,902 22,382 Total liabilities 757,534 907,637 Commitments and contingencies (Note 13) Stockholders' equity Common stock, $ 0.001 par value; 150,000,000 shares authorized; 74,734,161 and 67,512,282 shares issued, and 71,929,102 and 64,707,223 shares outstanding, respectively 75 68 Additional paid-in capital 1,264,553 1,213,646 Retained deficit ( 451,516 ) ( 318,298 ) Accumulated other comprehensive income (loss) ( 13,015 ) 973 Treasury stock, 2,805,059 shares ( 31,174 ) ( 31,174 ) Total Green Plains stockholders' equity 768,923 865,215 Noncontrolling interests 6,026 9,322 Total stockholders

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. BASIS OF PRESENTATION, DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES References to the Company References to "Green Plains" or the "company" in the consolidated financial statements and in these notes to the consolidated financial statements refer to Green Plains Inc., an Iowa corporation, and its subsidiaries. Consolidated Financial Statements The consolidated financial statements include the company's accounts and all significant intercompany balances and transactions are eliminated. Unconsolidated entities are included in the financial statements on an equity method basis. On January 9, 2024, the transactions contemplated by the Merger Agreement were completed and the company acquired all of the publicly held common units of the partnership not already owned by the company and its affiliates. Refer to Note 3 - Merger and Dispositions included herein for more information. The company also owns a majority interest in FQT, with their results being consolidated in our consolidated financial statements. The accompanying consolidated financial statements are prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Because they do not include all of the information and footnotes required by GAAP for complete financial statements, the consolidated financial statements should be read in conjunction with the company's annual report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 7, 2025. The unaudited financial information reflects adjustments, which are, in the opinion of management, necessary for a fair presentation of results of operations, financial position and cash flows for the periods presented. The adjustments are normal and recurring in nature, unless otherwise noted. Interim period results are not necessarily indicative of the results to be expected for the en

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