Third Quarter and Year to Date (YTD) Financial Highlights:
Revenue for the nine months ended September 30, 2025 ("YTD 2025") is $2.69 million (M), representing 124% of the full year revenue in 2024 and a 15% increase over the $2.34M of revenue reported in the nine months ended September 30, 2024 ("YTD 2024"). Revenue increased 6% to $0.83M for the three months ended September 30, 2025 ("Q3 2025") compared to $0.79M reported for the three months ended September 30, 2024 ("Q3 2024").
As of December 1, 2025, the Company has a Sales Pipeline1 of 16.6M and Sales Order Backlog2 of $3.4M. This represents a ~$0.25M decrease or 7% decrease in Sales Order Backlog since August 29, 2025 disclosure. Sales Pipeline saw a nominal increase since August 29, 2025 disclosure reflecting the deliberate efforts by the Company to refill the pipeline once projects convert to the order book. The combined pipeline showed a nominal decrease of 1% or $0.2M from the previous disclosure on August 29, 2025. The $3.4M Sales Order Backlog, which is estimated to be converted to revenue within an average of 12 months from disclosure, represents a 58% improvement compared to the year ended December 31, 2024 revenue of $2.17M. The Company continues to observe the maturity of its Sales Pipeline leading to improved revenue consistency and reduced volatility, providing a strong platform to scale and grow.
During Q3 2025, the Company reported a loss of $0.74M and an Adjusted EBITDA3 loss of $0.5M. This compares to a loss of $0.83M and an Adjusted EBITDA loss of $0.64M in the comparative quarter representing a 12% reduction and 22% improvement, respectively.
During YTD 2025, the Company reported a loss of $2.47M and an Adjusted EBITDA loss of $1.53M. This contrasts to a loss of $2.31M and an Adjusted EBITDA loss of $1.65M in the comparative period representing a 7% increase and 7% improvement, respectively.
Gross margins for Q3 2025 and YTD 2025 were 39% and 38%, respectively, compared to 32% and 37% reported in Q3 2024 and YTD 2024, respectively. Management remains optimistic that this margin range aligns with our expectations for the coming quarters but the margin percentage varies dependent on sales mix and stage of completion of each project.
Michael Albertson, Chief Executive Officer and President of SHARC Energy, said, "2025 marks a turning point for SHARC Energy. With $2.69 million in revenue year to date achieved, we are on a clear trajectory to exceed $3 million by year end which will surpass every prior revenue milestone in the ...
