Fourth Quarter and Year-end Financial Highlights:
Revenue for the year ended December 31, 2025 ("YE 2025") is $3.04 million (M), a 40% increase over the $2.17M of revenue reported in the year ended December 31, 2024 ("YE 2024"). Revenue increased 298% to $0.35M for the three months ended December 31, 2025 ("Q4 2025") compared to ($0.18) M reported for the three months ended December 31, 2024 ("Q4 2024").
As of April 30, 2026, the Company has a Sales Pipeline1 of 18.7M and Sales Order Backlog2 of $6.9M. This represents a $3.8M net increase or 102% increase in Sales Order Backlog since December 1, 2025 disclosure. Sales Pipeline saw a 13% increase since December 1, 2025 disclosure reflecting the deliberate efforts by the Company to refill the pipeline once projects convert to the order book and the growing Wastewater Energy Transfer ("WET") market. The combined pipeline increased 2% or $5.6M from the previous disclosure on December 1, 2025. The $6.9M Sales Order Backlog, which is estimated to be converted to revenue within an average of 12 months from disclosure, represents a 127% improvement compared to the year ended December 31, 2025 revenue of $3.04M. 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 growth.
During Q4 2025, the Company reported a loss of $1.01M and an Adjusted EBITDA3 loss of $0.87M. This compares to a loss of $1.41M and an Adjusted EBITDA loss of $0.9M in the comparative quarter representing a 28% reduction and 4% improvement, respectively.
During YE 2025, the Company reported a loss of $3.49M and an Adjusted EBITDA loss of $2.57M. This contrasts to a loss of $3.72M and an Adjusted EBITDA loss of $2.69M in the comparative period representing a 6% reduction and 4% improvement, respectively.
Gross margins for Q4 2025 and YE 2025 were 2% and 34%, respectively, compared to (25)% and 42% reported in Q4 2024 and YE 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 marked a pivotal year for SHARC Energy as we delivered record annual revenue exceeding $3 million, validating the trajectory we outlined earlier in the year and reinforcing the strength of our business model. More importantly, we saw the continued maturation of our Sales Pipeline translate into a doubling of our Sales Order Backlog to $6.9 million—providing increased visibility and confidence in our near-term revenue outlook."
"Throughout the year, we emphasized the growing scale and diversity of opportunities in front of us, particularly larger district energy and infrastructure projects. We are now beginning ...
