NextNRG, Inc. reported a 29% year-over-year increase in first-quarter revenue, reaching $21.1 million, but the energy technology company's financial health remains precarious as its net loss deepened and cash reserves dwindled to critically low levels.
In a filing released Friday, the Miami Beach-based firm disclosed a net loss of $10.8 million for the quarter ended March 31, compared to a loss of $8.9 million in the same period last year. Cash and cash equivalents fell to just $208,048 at quarter-end, down from $384,140 on December 31. Management warned that the company requires immediate capital to sustain operations, stating that without new funding, it may be forced to scale back, pause, or cease activities.
Shares of NextNRG closed at $0.2804 on the Nasdaq, down 5.94% from the previous session. The stock was volatile during the day, trading as high as $0.6502, with over 44 million shares changing hands, according to market data. The company's market capitalization stands at roughly $30 million.
Revenue growth was driven by expansion in mobile fueling operations, higher fuel volumes, and an improved average price per gallon. Gross profit rose to $1.7 million from $518,000 a year ago, while gross margin improved to 8.1% from 3.2%. However, general and administrative expenses nearly doubled, primarily due to $7.9 million in stock-based compensation, contributing to the wider net loss.
Interest expense decreased significantly to $681,000 from $3.3 million, which the company attributed to refinancing and lower financing charges. Adjusted EBITDA, which excludes items such as interest, taxes, depreciation, and amortization, improved to a loss of $1.2 million from a loss of $3.4 million in the prior-year quarter.
Balance sheet pressure remains acute. Total liabilities stood at $34.3 million against total assets of $12.3 million, resulting in a stockholders' deficit of $22.0 million. The company stated in its filing that these conditions raise "substantial doubt" about its ability to continue as a going concern for the next 12 months.
NextNRG is positioning itself as a multi-platform energy technology company, combining mobile fuel delivery, AI software, microgrids, and wireless EV charging. However, it faces stiff competition from established players in each segment. In microgrids, competitors include Bloom Energy and Generac, while in EV charging, it competes with networks like EVgo. The company is targeting three primary revenue streams: an AI-based utility operating system and smart microgrids, wireless EV charging, and mobile fueling logistics.
Founder and CEO Michael D. Farkas described the quarter as an example of "disciplined execution" and reiterated the leadership team's focus on "growing revenue, improving unit economics" and advancing its microgrid pipeline. A conference call for investors is scheduled for Monday, May 18, at 9:00 a.m. Eastern time to discuss quarterly results and provide a corporate update.
The warning about capital needs comes as NextNRG pitches a larger platform to investors, aiming to integrate various energy technologies. The company's ability to secure funding will be critical in determining whether it can continue to operate and execute its growth strategy.
