Gevo Inc.
11/10/2026 | Press release | Distributed by Public on 11/10/2026 15:56
Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)
Management's Discussion and Analysis of Financial Condition and Results of Operations.
Forward-Looking Statements
This Quarterly Report on Form 10-Q (this "Report") contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). When used in this Report, the words "expect," "believe," "anticipate," "estimate," "intend," "plan" and similar expressions are intended to identify forward-looking statements. These statements relate to future events or our future financial or operational performance and involve known and unknown risks, uncertainties and other factors that could cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. These statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. These forward-looking statements include, among other things, statements about: our financial condition, our revenues, results of operation and liquidity, our expectations regarding the financing, development, and construction of our projects, and the associated costs, our ability to produce our products, our expectations regarding the demand for our products and our ability to meet such demand, our ability to meet production, financial and operational guidance, our strategy to pursue low-carbon renewable fuels, our ability to replace our fossil-based energy sources with renewable energy sources at our Alcohol-to-Jet ("ATJ") projects and elsewhere, our expectations regarding fuel consumption, our expectations regarding the location, start-up date and production results for our ATJ projects, our expectations regarding the benefits of ETO (as defined below) technology, our expectations regarding our ability to produce and the anticipated benefits of renewable liquid hydrocarbons, our expectations regarding our ability to produce and resell protein and other products for use in the food chain, our ability and plans to construct greenfield commercial hydrocarbon facilities to produce synthetic (or sustainable) aviation fuel ("SAF") and other products, our ability to raise additional funds to finance our business and the sources of those funds, the availability of, and market prices for, government economic incentives to the renewable energy market, achievement of advances in our technology platform, the availability of suitable and cost-competitive feedstocks, our ability to gain market acceptance for our products, our expectations regarding the demand for and revenue to be generated from the sale of carbon credits, the expected cost-competitiveness and relative performance attributes of our products, our strategy to pursue ATJ development and production, additional competition, and changes in economic conditions. Important factors could cause actual results to differ materially from those indicated or implied by forward-looking statements such as those contained in documents we have filed with the United States ("U.S.") Securities and Exchange Commission (the "SEC"), including this Report in Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations," our Annual Report on Form 10-K for the year ended December 31, 2025 (our "2025 Annual Report"), including Item 1A. "Risk Factors" of our 2025 Annual Report and subsequent reports on Form 10-Q. All forward-looking statements in this Report are qualified entirely by the cautionary statements included in this Report and such other filings. These risks and uncertainties or other important factors could cause actual results to differ materially from results expressed or implied by forward-looking statements contained in this Report. These forward-looking statements speak only as of the date of this Report. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, and readers should not rely on the forward-looking statements as representing the Company's views as of any date subsequent to the date of the filing of this Report.
Unless the context requires otherwise, in this Report the terms "Gevo," "we," "us," "our" and "Company" refer to Gevo, Inc. and its wholly owned, direct and indirect subsidiaries.
The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes and other financial information appearing elsewhere in this Report. Readers are also urged to carefully review and consider the various disclosures made by us which attempt to advise interested parties of the factors which affect our business, including, without limitation, the disclosures in our 2025 Annual Report.
Company Overview
Gevo, Inc. (Nasdaq: GEVO), a Delaware corporation founded in 2005, is a growth-oriented, diversified energy company focused on developing, financing, and operating facilities that produce renewable fuels, chemicals, and other products designed to reduce greenhouse gas ("GHG") emissions and diversify energy supply. Our mission is to provide products and solutions for sectors of the transportation industry that are difficult to electrify or otherwise decarbonize.
In addition to generating value from physical products such as fuels, chemicals, protein, feed and oil, our business model is designed to generate carbon abatement value through our production processes, plant design, and operating systems. This carbon abatement value may be monetized through mechanisms such as direct sales of certified carbon
credits, Renewable Identification Numbers ("RINs"), state-level clean fuel credits, federal tax credits enacted under the Inflation Reduction Act ("IRA"), Canada's Clean Fuel Regulations ("CFR"), state level clean fuel regulations, and, in certain cases, through the value attributed to reduced Scope 1 and Scope 3 GHG emissions by end customers, particularly related to fuel products. Gevo owns certain operating assets that generate cash flow and expects growth by developing markets, pursuing project development, investing in capital assets, and licensing certain technologies.
Our primary market focus, given the large demand and growing customer interest, is carbon abated ethanol and hydrocarbon fuels. We also have commercial opportunities for other renewable hydrocarbon products, such as renewable natural gas ("RNG"); hydrocarbons for gasoline and racing fuel blendstocks and diesel fuel; ingredients for the chemical industry, such as ethylene and butenes for plastics and materials; and other chemicals.
We believe that SAF produced from an ATJ process is the most economically viable approach to meet growing jet fuel demand and to generate value from carbon abatement. In order to build out an ATJ platform, we need to have low cost, low carbon alcohol available as a feedstock. We also believe carbon capture and sequestration is a critical component of producing a low carbon footprint alcohol feedstock. We believe Gevo North Dakota ("GevoND") provides a commercial operating platform that supports our broader ATJ strategy by supplying low-carbon ethanol feedstock and generating carbon abatement value through its operations.
Gevo is developing a business system that not only benefits Gevo but is also expected to be attractive to other companies seeking to produce SAF and other low carbon fuel and chemical products, such as isobutanol for diesel blending, isooctane for gasoline and racing blendstocks, and olefins for chemical applications. Gevo has the plant designs and technologies, as well as the carbon accounting, carbon tax credit marketing, carbon sales, and fuel sales capabilities that can benefit other companies looking to develop and license Gevo's proprietary platforms for low carbon fuels and chemicals.
Gevo has an intellectual property portfolio consisting of hundreds of patents, many of which center around our ATJ and isobutanol platforms, as well as proprietary know-how. In addition, we have partnered with other leading global technology companies to develop the ATJ and isobutanol platforms. It is our intent to deploy ATJ-30 at our GevoND site where it would upgrade the low-carbon ethanol already produced onsite to SAF. It is also our intent to initially deploy Gevo's isobutanol platform in India while seeking opportunities to expand into other global markets,
Gevo North Dakota
The Company's Gevo North Dakota facility was acquired in January 2025, for total consideration of $210 million, subject to customary adjustments, including a working capital adjustment. The transaction was funded through a combination of Gevo cash, and a $105 million senior secured term loan facility. Simultaneous with the closing of the transaction, affiliates of Orion Infrastructure Capital ("OIC"), a U.S.-based private investment firm made a $5 million investment in the form of a redeemable non-controlling interest ("NCI") in GevoND. This NCI is subject to a Put/Call option feature, which grants Gevo the right to call (purchase) the units held by OIC, and OIC the right to put (sell) the units to Gevo under certain conditions. These options are exercisable for a period of three years following the repayment of all outstanding debt under the credit agreement the Company and certain of its subsidiaries entered into with an affiliate of OIC. As a result of the redeemable nature of this non-controlling interest, it has been classified as temporary equity on the Company's Condensed Consolidated Balance Sheets.
The acquired assets include an ethanol production plant, a carbon capture and storage well, and leases that give us rights to use additional pore space for carbon capture. The operational personnel of Red Trail Energy joined Gevo upon the closing of the acquisition. The acquired ethanol production facility converts corn into ethanol and distillers grains, a high-protein animal feed, and corn oil. The included carbon capture and sequestration ("CCS") assets support Gevo's broader carbon abatement goals, particularly in relation to its ATJ platform. We believe the acquisition strengthens Gevo's growth trajectory by adding ethanol production, distillers grains, corn oil, and carbon dioxide removal ("CDR") credit sales to our revenue stream, while also enhancing our capabilities in CCS and supporting our broader strategic efforts in SAF production which use low-carbon alcohol as a feedstock.
Gevo Fuels
Our ATJ platform is focused on our ATJ-30 platform.
ATJ-30. We have duplicated and modified the original ATJ-60 design into an ATJ-30 design, which is being designed to produce approximately 30 million gallons per year ("MMGPY") of total hydrocarbon volumes, the majority of which would be SAF. We expect that we will deploy the ATJ-30 platform at our GevoND site, which would allow us to upgrade the low-carbon ethanol already being produced onsite into SAF. We expect to continue engineering and development through 2026 before completing the front-end engineering design ("FEED") phase of the project. At the end of FEED, we expect to have a capital estimate and schedule for the project. Because we began with the designs and know-how from the ATJ-60 project, we are able to shorten the time and costs to complete the development phase of the project. An ATJ-30 plant located at and integrated into our existing ethanol plant and carbon sequestration at GevoND is our current primary focus for SAF commercialization.
ATJ-60. ATJ-60 was designed to produce approximately 65 MMGPY of total hydrocarbon volumes, including 60 MMGPY of SAF. The Company has discontinued further development of ATJ-60 and has redirected resources toward its ATJ-30 platform and other commercialization opportunities.
ATJ-180. The Company previously conducted preliminary engineering and design work for an ATJ-180 configuration which was evaluated as a potential platform to produce approximately 180 MMGPY of SAF and related hydrocarbon products. During the nine months ended September 30, 2026, the Company determined that it would no longer pursue this configuration and recognized an impairment charge to the associated capitalized costs.
We currently expect to finance the construction of ATJ plants at the subsidiary level using a combination of Company equity (through in-kind and/or cash contributions), and capital from project level equity and debt financing. Cash distributions from future ATJ plant earnings would be proportionate to Gevo's ownership in such plants under this expected financing structure. The use of project debt and third-party equity allows us to conserve capital for use on other growth projects.
In order to achieve full construction financing for an ATJ plant, we intend to secure debt and possibly third-party equity. On October 16, 2024, we received a conditional commitment from the U.S. Department of Energy ("DOE") Energy Dominance Financing Program ("EDF") (formerly known as the Loan Programs Office) for a loan guarantee facility with a capacity of approximately $1.6 billion (including capitalized interest during construction) for our ATJ-60 project (formerly known as Net-Zero 1) in Lake Preston, South Dakota. The receipt of a conditional commitment was significant as it helped to validate the ATJ plant design integrity, which underpinned the DOE's diligence process. In April 2026, we decided to withdraw our application for a DOE loan guarantee as (i) the business objectives required by the EDF to support enhanced oil recovery ("EOR") are not yet commercially viable at scale in the project area, and (ii) opportunities for alternative financing and broadened product offerings are better aligned with company strategy and can accelerate the timeline for project execution. The withdrawal reserves the opportunity for Gevo to resubmit an application for a project at a later date, if desired.
We are evaluating and performing early site development work at several sites in the U.S. for other greenfield sites. These sites include several locations that are particularly advantageous in terms of potential economics, opportunities to decarbonize, and time to market. In addition, we intend to pursue potential ATJ projects with existing ethanol plant sites. Existing ethanol plants can be decarbonized with renewable energy or de-fossilized energy and/or carbon sequestration. Gevo has developed a preferred list of potential partners and sites with decarbonization in mind and is engaged in preliminary feasibility and development discussions with several of these potential partners. We plan to give priority to existing industrial plant sites that have attractive potential economics and high predictability of timeline for decarbonization.
Renewable Natural Gas Business
Our RNG business was originally developed to provide the option of supplying energy for our ATJ plant designs. At this time, we do not expect that an RNG facility will be required to support the ATJ-30 plant planned to be located at Gevo North Dakota. We intend to continue operating the RNG business as a standalone operation and currently have no plans to invest significant additional capital in the business. The RNG business in Northwest Iowa started up and began producing and injecting initial volumes of biogas in 2022, during the project's testing and ramp-up period. In 2023, the project achieved stable production levels and surpassed our annual production target of 310,000 million British thermal units ("MMBtu"). In addition, in 2024 we completed an expansion of the RNG business to increase its annual expected output from 355,000 MMBtu to about 400,000 MMBtu.
The RNG business generates revenue through the sale of RNG and environmental attributes associated with RNG produced at the facility. These environmental attributes include credits under California's Low Carbon Fuel Standard
("LCFS") program and the U.S. Environmental Protection Agency ("EPA") Renewable Fuels Standard ("RFS") program ("RFS Program"), which allow us to earn renewable identification numbers ("RINs"). Gevo was granted registration approval by the EPA in 2022, allowing us to participate in the RFS Program to receive RINs.
In March 2025, the California Air Resources Board ("CARB") approved our application for a provisional Tier 2 pathway, representing the significantly lower carbon intensity of our RNG than was reflected under our previous temporary pathway.
Our provisional pathway, which was effective for reporting beginning with the fourth quarter of 2024, had a weighted average carbon intensity ("CI") score of approximately -339 gCO2e/MJ, which represented approximately 160,000 LCFS credits in the California LCFS Reporting Tool ("LRT") system assuming our RNG operation produced 400,000 MMBTU in 2025. This was an increase of LCFS credits from approximately 90,000 credits under our previous temporary pathway of -150 g CO2e/MJ. The increase of carbon credit generation of approximately 70,000 credits represented a significant increase in revenue for the RNG business. The LCFS pathways are required to be updated and verified annually, using the most recent 24 months of operational data. The provisional pathway was updated and approved in 2025, effective beginning in the first quarter of 2026, and has a weighted average CI score (including a margin of safety) of approximately -314 gCO2e/MJ.
Specialty Fuels and Isobutanol Technology
Our specialty fuels business directed to the production of isooctane and SAF from isobutanol continues to grow and provide revenues to the Company. Gevo currently operates a 20,000 gallon per year isooctane and SAF production unit at a facility owned by Trecora, LLC in Silsbee, Texas. The isooctane is currently sold into the global motorsports market as a low-carbon biobased specialty racing fuel blendstock. The SAF is currently sold into the aviation market. Total revenues from sales of isooctane and IBA SAF have reached $2.5 million for the nine months ended September 30, 2026. The Company expects these products to continue contributing to revenue for the year ending December 31, 2026.
Long-term plans are focused on growing the business by expanding Gevo's production capabilities to meet customer demand in motorsports while moving into other markets, such as aviation gasoline, alkylates and naptha upgrading. Gevo currently owns a production unit designed to produce approximately 780,000 gallons of isooctane and SAF per year and is exploring options to deploy the unit for commercial production.
In September 2026, Gevo entered into a Development and Commercialization Agreement with Praj Industries to pursue commercialization opportunities for its bio-isobutanol (bio-IBA) fermentation technology in India. The collaboration will initially focus on potential diesel blending applications. Bio-IBA may also have applications in the production of SAF and other renewable chemicals. The agreement provides an opportunity to evaluate potential markets for Gevo's bio-IBA technology; however, the extent and timing of any resulting commercial activity remain subject to further development and commercialization efforts, market conditions and other factors.
Verity
Verity Holdings, LLC ("Verity"), a wholly owned subsidiary of Gevo, is developing a data and software platform designed to support traceability, compliance reporting, and the potential monetization of carbon intensity ("CI") reductions across the renewable fuels supply chain. The Verity platform currently enables the collection, aggregation and end-to-end tracking of data from agricultural production and processing partners to support reporting under federal and state regulatory programs, including Section 45Z and LCFS programs in California, Oregon, Washington, British Columbia and other Canadian provinces. In 2025, Verity began onboarding customers across multiple segments of the supply chain, including grain elevators, biofuel producers, and supply chain partners, with the goal of enabling full lifecycle CI tracking and audit support. While still in the early stages of commercialization, Verity is actively building capabilities to support measurement, reporting, and verification ("MRV") of Scope 1 and Scope 3 carbon insets and other environmental attributes. The platform currently supports Gevo's North Dakota facility and is designed to scale across Gevo's future ATJ plants. It is expected to evolve into a core infrastructure asset for carbon intensity tracking and enable potential carbon monetization across the broader low-carbon fuels and agriculture ecosystem.
Ethanol-to-Olefins Technology
In April 2023, we entered into a joint development agreement with LG Chem, Ltd. ("LG Chem"), a leading global chemical company, to develop bio-propylene for renewable chemicals using our Ethanol-to-Olefins ("ETO") technology.
Gevo's proprietary ETO technology can target carbon neutral or carbon negative drop-in replacements for traditional petroleum-based building blocks called olefins, including bio-propylene, which can be used for renewable chemicals or fuels including SAF. These plant-based, renewable olefins would be derived from atmospheric CO2 captured through photosynthesis and are expected to deliver the same performance in final products on the market today. We also believe ETO will reduce the capital and operating costs of future ATJ SAF production facilities.
Under the terms of the agreement with LG Chem, we will provide the core enabling technology we have developed for renewable olefins to be produced from low-carbon ethanol and will collaborate with LG Chem to accelerate the pilot research, technical scale-up, and commercialization of bio-propylene.
Additionally, Axens North America, Inc. ("Axens") and Gevo are working together to ensure they remain leaders in the ethanol-to-jet space by partnering with IFP Energies Nouvelles ("IFPEN") on the final development and commercial deployment of Gevo's patented ETO process for fuel applications. This collaboration is expected to significantly reduce capital and operating costs while lowering the carbon intensity of the process.
Principal Components of Our Cost Structure
Cost of Production. Our cost of production consists primarily of costs directly associated with the production of ethanol and related products, RNG and other renewable hydrocarbon products, including isobutanol, SAF, and isooctane. Such costs include direct materials, direct labor, other operating costs and certain plant overhead costs, which are partially offset by the generation of CFPCs. Direct materials include feedstock, denaturant and process chemicals. Direct labor includes compensation (including stock-based compensation) of personnel directly involved in production operations. Other operating costs include utilities and natural gas and wind power usage.
Research and Development. Our research and development expense consists of costs incurred to identify, develop and test our technologies for the production of renewable hydrocarbon products and the development of downstream applications thereof. Research and development expense includes personnel costs (including stock-based compensation), consultants and related contract research, facility costs, supplies, license fees paid to third parties for use of their intellectual property and patent rights and other overhead expenses incurred to support our research and development programs.
General and Administrative. General and administrative expense consists of personnel costs (including stock-based compensation), consulting and service provider expenses (including patent counsel-related costs), legal fees, marketing costs, insurance costs, occupancy-related costs, travel and relocation expenses and hiring expenses. Our corporate personnel, consisting of subject matter experts, including chemists, engineers, and sustainability experts, dedicate the majority of their time and efforts for the development of our growth projects.
Project Development Costs. Project development costs consist of consulting, preliminary engineering costs, personnel expenses (including stock-based compensation) and research and development expenses to support the business activities of our ATJ and Verity projects.
Depreciation and Amortization. Depreciation and amortization relates to property, plant and equipment associated with the production of ethanol, ethanol related products, RNG and other renewable hydrocarbon products, including isobutanol, SAF, and isooctane. Amortization includes the Company's acquired intangible assets, including developed technology, customer relationships and other finite-lived intangible assets.
Key Operating Metrics
GevoND operating metrics. The following tables summarize the key operating metrics used to measure performance for the GevoND segment and cover the three and nine months ended September 30, 2026 and 2025. The nine months ended September 30, 2025 includes the period after January 31, 2025, when Gevo closed on the acquisition of all of the assets and assumed certain liabilities of Red Trail Energy, to September 30, 2025.
| Three Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Production: | ||||||||||||||||||||||||||
| Ethanol (gallons) | 18,645,021 | 16,515,197 | 2,129,824 | 13 | % | |||||||||||||||||||||
| Ethanol co-products (tons) | 58,380 | 46,029 | 12,351 | 27 | % | |||||||||||||||||||||
| Carbon sequestered (metric tons) | 46,616 | 42,708 | 3,908 | 9 | % | |||||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Production: | ||||||||||||||||||||||||||
| Ethanol (gallons) | 52,786,884 | 44,555,886 | 8,230,998 | 18 | % | |||||||||||||||||||||
| Ethanol co-products (tons) | 181,580 | 139,229 | 42,351 | 30 | % | |||||||||||||||||||||
| Carbon sequestered (metric tons) | 136,950 | 112,602 | 24,348 | 22 | % | |||||||||||||||||||||
RNG operating metrics. The following tables summarize the key operating metrics used to measure performance for the RNG segment and cover the three and nine months ended September 30, 2026 and 2025.
| Three Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Production of RNG (MMBtu) | 91,729 | 92,396 | (667) | (1) | % | |||||||||||||||||||||
| LCFS generation | 33,889 | 36,320 | (2,431) | (7) | % | |||||||||||||||||||||
| RINs Generation | 1,072,630 | 1,080,428 | (7,798) | (1) | % | |||||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Production of RNG (MMBtu) | 279,343 | 264,592 | 14,751 | 6 | % | |||||||||||||||||||||
| LCFS generation | 105,201 | 95,761 | 9,440 | 10 | % | |||||||||||||||||||||
| RINs Generation | 3,266,486 | 3,094,961 | 171,525 | 6 | % | |||||||||||||||||||||
Results of Operations
The following discussion of our financial condition and results of operations should be read in conjunction with our Condensed Consolidated Financial Statements and the notes to those Condensed Consolidated Financial Statements appearing in this Quarterly Report. This discussion contains forward-looking statements that involve significant risks and uncertainties. As a result of many factors, such as those set forth under "Risk Factors" in Part I, Item 1A of our 2025 Annual Report, our actual results may differ materially from those anticipated in these forward-looking statements.
This section discusses comparisons between the three and nine months ended September 30, 2026 and 2025. Management's Discussion and Analysis of Financial Condition and Results of Operations for year-to-year comparisons between 2025 and 2024 and other discussions of 2025 items can be found within Part II, Item 7, of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 5, 2026, which is available free of charge on the SEC's website at www.sec.gov and our corporate website at www.gevo.com.
Consolidated Comparison of the Three Months Ended September 30, 2026 and 2025 (in thousands):
| Three Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Total revenues | $ | 82,953 | $ | 42,710 | $ | 40,243 | 94 | % | ||||||||||||||||||
| Cost of production | 28,216 | 22,285 | 5,931 | 27 | % | |||||||||||||||||||||
| Depreciation and amortization | 6,925 | 7,404 | (479) | (6) | % | |||||||||||||||||||||
| Gross profit | 47,812 | 13,021 | 34,791 | 267 | % | |||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||
| Research and development expense | 1,141 | 1,273 | (132) | (10) | % | |||||||||||||||||||||
| General and administrative expense | 13,712 | 11,647 | 2,065 | 18 | % | |||||||||||||||||||||
| Project development costs | 2,259 | 3,229 | (970) | (30) | % | |||||||||||||||||||||
| Facility idling costs | - | 472 | (472) | 100 | % | |||||||||||||||||||||
| Allowance for credit losses on refundable deposits | 500 | - | 500 | 100 | % | |||||||||||||||||||||
| Total operating expenses | 17,612 | 16,711 | 901 | 5 | % | |||||||||||||||||||||
| Income (loss) from operations | 30,200 | (3,690) | 33,890 | (918) | % | |||||||||||||||||||||
| Other (expense) income | ||||||||||||||||||||||||||
| Interest expense | (5,548) | (5,207) | (341) | 7 | % | |||||||||||||||||||||
| Interest and investment income | 449 | 988 | (539) | (55) | % | |||||||||||||||||||||
| Other expense, net | (32) | 332 | (364) | (110) | % | |||||||||||||||||||||
| Total other (expense) income, net | (5,131) | (3,887) | (1,244) | 32 | % | |||||||||||||||||||||
| Net income (loss) and comprehensive income (loss) | 25,069 | (7,577) | 32,646 | (431) | % | |||||||||||||||||||||
| Net income attributable to non-controlling interest | 2,355 | 377 | 1,978 | 525 | % | |||||||||||||||||||||
| Net income (loss) attributed to Gevo, Inc. | $ | 22,714 | $ | (7,954) | $ | 30,668 | (386) | % | ||||||||||||||||||
| Three Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| GevoND | $ | 77,463 | $ | 38,228 | $ | 39,235 | 103 | % | ||||||||||||||||||
| GevoRNG | 4,635 | 3,965 | 670 | 17 | % | |||||||||||||||||||||
| Gevo | 855 | 517 | 338 | 65 | % | |||||||||||||||||||||
| Total revenues | $ | 82,953 | $ | 42,710 | $ | 40,243 | 94 | % | ||||||||||||||||||
Operating revenue. During the three months ended September 30, 2026, operating revenue increased by $40.2 million compared to the three months ended September 30, 2025. Revenue from GevoND increased by $39.2 million to $77.5 million for the three months ended September 30, 2026, compared to $38.2 million in the prior-year period, primarily due to $29.4 million of revenue associated with Canadian Clean Fuel Regulations ("CFR") credits, including a $20.0 million true-up related to credits accumulated prior to regulatory approval received in the third quarter of 2026, as well as higher sales volumes, and increased environmental attribute sales, including carbon credits. Revenue from GevoRNG increased by $0.7 million for the three months ended September 30, 2026, due to higher LCFS and RIN prices, while Gevo segment revenue increased by $0.3 million due to higher specialty fuels sales.
| Three Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Cost of production: | ||||||||||||||||||||||||||
| GevoND | $ | 24,814 | $ | 19,467 | $ | 5,347 | 27 | % | ||||||||||||||||||
| GevoRNG | 2,199 | 1,329 | 870 | 65 | % | |||||||||||||||||||||
| GevoFuels | - | 3 | (3) | (100) | % | |||||||||||||||||||||
| Gevo | 1,203 | 1,486 | (283) | (19) | % | |||||||||||||||||||||
| Total cost of production | $ | 28,216 | $ | 22,285 | $ | 5,931 | 27 | % | ||||||||||||||||||
Cost of production. Cost of production increased by $5.9 million during the three months ended September 30, 2026, compared to the three months ended September 30, 2025. GevoND's cost of production increased by $5.3 million to $24.8 million for the three months ended September 30, 2026, compared to $19.5 million in the prior-year period, reflecting higher production and sales volumes and related increases in corn expense, higher net loss on commodity hedging activities, utilities, and repairs and maintenance costs. These increases were partially offset by higher CFPCs generated during the period. GevoRNG's cost of production increased by $0.9 million to $2.2 million for the three months ended September 30, 2026, compared to $1.3 million in the prior-year period, primarily reflecting increased production and sales activity during the period. Cost of production for the Gevo segment decreased by $0.3 million for the three months ended September 30, 2026, compared to the prior-year period, primarily due to lower specialty fuels production costs resulting from decreased production.
| Three Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Depreciation and amortization: | ||||||||||||||||||||||||||
| GevoND | $ | 4,917 | $ | 4,820 | $ | 97 | 2 | % | ||||||||||||||||||
| GevoRNG | 1,101 | 1,776 | (675) | (38) | % | |||||||||||||||||||||
| Gevo | 907 | 808 | 99 | 12 | % | |||||||||||||||||||||
| Total depreciation and amortization | $ | 6,925 | $ | 7,404 | $ | (479) | (6) | % | ||||||||||||||||||
Depreciation and amortization. Depreciation and amortization decreased by $0.5 million during the three months ended September 30, 2026, compared to the three months ended September 30, 2025, primarily due to a $0.7 million decrease in depreciation in the GevoRNG segment due to the extension of the depreciable lives of certain assets following revisions to the underlying lease terms. Depreciation and amortization increased by $0.1 million in both GevoND and the Gevo segment compared to the prior-year period.
Research and development expense. Research and development expenses were entirely attributable to the Gevo segment and decreased by $0.1 million to $1.1 million for the three months ended September 30, 2026, compared to $1.3 million in the prior-year period, primarily due to reduced third-party research and development activities.
| Three Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| General and administrative expense: | ||||||||||||||||||||||||||
| GevoND | $ | 5,831 | $ | 1,734 | $ | 4,097 | 236 | % | ||||||||||||||||||
| GevoRNG | 1,016 | 378 | 638 | 169 | % | |||||||||||||||||||||
| Gevo | 6,865 | 9,535 | (2,670) | (28) | % | |||||||||||||||||||||
| Total general and administrative expense | $ | 13,712 | $ | 11,647 | $ | 2,065 | 18 | % | ||||||||||||||||||
General and administrative expense. General and administrative expense increased by $2.1 million during the three months ended September 30, 2026, compared to the three months ended September 30, 2025. General and administrative expenses for GevoND increased by $4.1 million to $5.8 million for the three months ended September 30, 2026, compared to $1.7 million in the prior-year period, primarily due to higher insurance and legal fees associated with 45Z transactions.
The increase was partially offset by a decrease of $2.7 million in the Gevo segment, primarily due to lower professional services related expenses.
| Three Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Project development costs: | ||||||||||||||||||||||||||
| GevoND | $ | - | $ | (115) | $ | 115 | (100) | % | ||||||||||||||||||
| GevoFuels | 453 | 547 | (94) | (17) | % | |||||||||||||||||||||
| Gevo | 1,806 | 2,797 | (991) | (35) | % | |||||||||||||||||||||
| Total project development costs | $ | 2,259 | $ | 3,229 | $ | (970) | (30) | % | ||||||||||||||||||
Project development costs. Project development costs are primarily related to our development projects and Verity, and consist mainly of employee expenses, preliminary engineering costs, and technical consulting fees. Project development costs decreased by $1.0 million during the three months ended September 30, 2026, compared to the three months ended September 30, 2025, primarily due to lower employee costs and spending in the GevoFuels segment related to ATJ development activities. The decrease was partially offset by a $0.1 million increase in the GevoND segment, primarily due to higher professional services costs incurred during the current period.
Facility idling costs: Facility idling costs of $0.5 million for the three months ended September 30, 2025 were entirely attributable to the Gevo segment and were related to care and maintenance of our former facility in Luverne, Minnesota, which was sold as part of the sale of Agri-Energy, LLC in October 2025.
Allowance for credit losses on refundable deposits: During the three months ended September 30, 2026, the Company recorded an allowance for credit losses of $0.5 million within the Gevo segment related to a $3.5 million deposit for wind turbine equipment associated with the Zero6 wind development project. During the period, the Company received proceeds of $3.0 million of the deposit from the sale of the related equipment. See Note 14, Deposits and Other Assets, to the Condensed Consolidated Financial Statements for additional information.
| Three Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||||
| GevoND | $ | (3,165) | $ | (3,357) | $ | 192 | (6) | % | ||||||||||||||||||
| GevoRNG | (2,375) | (1,732) | (643) | 37 | % | |||||||||||||||||||||
| Gevo | (8) | (118) | 110 | (93) | % | |||||||||||||||||||||
| Total interest expense | $ | (5,548) | $ | (5,207) | $ | (341) | 7 | % | ||||||||||||||||||
Interest expense. Interest expense increased by $0.3 million during the three months ended September 30, 2026, compared to the three months ended September 30, 2025, primarily due to the amendment of the Company's term loan, which closed in February 2026. Although the Company's debt balance did not increase significantly, the term loan accrues interest at a higher rate than the bonds that were repaid with the proceeds.
| Three Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Interest and investment income: | ||||||||||||||||||||||||||
| GevoND | $ | 3 | $ | 157 | $ | (154) | (98) | % | ||||||||||||||||||
| GevoFuels segment | 7 | - | 7 | - | % | |||||||||||||||||||||
| Gevo | 439 | 831 | (392) | (47) | % | |||||||||||||||||||||
| Total interest and investment income | $ | 449 | $ | 988 | $ | (539) | (55) | % | ||||||||||||||||||
Interest and investment income. Interest and investment income decreased by $0.5 million during the three months ended September 30, 2026, compared to the three months ended September 30, 2025, primarily due to lower balances of
cash and cash equivalents and restricted cash at the Gevo segment during the three months ended September 30, 2026, compared to the three months ended September 30, 2025.
| Three Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Other income (expense), net: | ||||||||||||||||||||||||||
| GevoND | $ | (31) | $ | (117) | $ | 86 | (74) | % | ||||||||||||||||||
| GevoRNG | - | - | - | - | % | |||||||||||||||||||||
| Gevo | (1) | 449 | (450) | (100) | % | |||||||||||||||||||||
| Total other income (expense), net | $ | (32) | $ | 332 | $ | (364) | (110) | % | ||||||||||||||||||
Other income (expense), net. Other income (expense), net remained relatively flat for the three months ended September 30, 2026, compared to the three months ended September 30, 2025.
Comparison of the Nine Months Ended September 30, 2026 and 2025 (in thousands):
| Nine Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Total revenues | $ | 172,402 | $ | 115,232 | $ | 57,170 | 50 | % | ||||||||||||||||||
| Cost of production | 68,366 | 60,996 | 7,370 | 12 | % | |||||||||||||||||||||
| Depreciation and amortization | 20,569 | 20,239 | 330 | 2 | % | |||||||||||||||||||||
| Gross profit | 83,467 | 33,997 | 49,470 | 146 | % | |||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||
| Research and development expense | 3,080 | 3,259 | (179) | (5) | % | |||||||||||||||||||||
| General and administrative expense | 42,809 | 33,514 | 9,295 | 28 | % | |||||||||||||||||||||
| Project development costs | 7,702 | 9,062 | (1,360) | (15) | % | |||||||||||||||||||||
| Acquisition related costs | - | 4,528 | (4,528) | (100) | % | |||||||||||||||||||||
| Facility idling costs | - | 1,667 | (1,667) | (100) | % | |||||||||||||||||||||
| Impairment of long-lived assets | 135,788 | - | 135,788 | 100 | % | |||||||||||||||||||||
| Allowance for credit losses on refundable deposits | 40,282 | - | 40,282 | 100 | % | |||||||||||||||||||||
| Loss on disposal of assets, net | 210 | - | 210 | 100 | % | |||||||||||||||||||||
| Total operating expenses | 229,871 | 52,030 | 177,841 | 342 | % | |||||||||||||||||||||
| Loss from operations | (146,404) | (18,033) | (128,371) | 712 | % | |||||||||||||||||||||
| Other (expense) income | ||||||||||||||||||||||||||
| Interest expense | (16,349) | (12,846) | (3,503) | 27 | % | |||||||||||||||||||||
| Loss on extinguishment of bonds | (10,304) | - | (10,304) | 100 | % | |||||||||||||||||||||
| Interest and investment income | 1,892 | 4,080 | (2,188) | (54) | % | |||||||||||||||||||||
| Other expense, net | (1,378) | 178 | (1,556) | (874) | % | |||||||||||||||||||||
| Total other (expense) income, net | (26,139) | (8,588) | (17,551) | 204 | % | |||||||||||||||||||||
| Net loss and comprehensive loss | (172,543) | (26,621) | (145,922) | 548 | % | |||||||||||||||||||||
| Net income attributable to non-controlling interest | 3,381 | 917 | 2,464 | 269 | % | |||||||||||||||||||||
| Net loss attributed to Gevo, Inc. | $ | (175,924) | $ | (27,538) | $ | (148,386) | 539 | % | ||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| GevoND | $ | 156,020 | $ | 98,221 | $ | 57,799 | 59 | % | ||||||||||||||||||
| GevoRNG | 13,639 | 13,918 | (279) | (2) | % | |||||||||||||||||||||
| Gevo | 2,743 | 3,093 | (350) | (11) | % | |||||||||||||||||||||
| Total revenues | $ | 172,402 | $ | 115,232 | $ | 57,170 | 50 | % | ||||||||||||||||||
Operating revenue. During the nine months ended September 30, 2026, operating revenue increased by $57.2 million compared to the nine months ended September 30, 2025. GevoND revenue increased by $57.8 million to $156.0 million for the nine months ended September 30, 2026, compared to $98.2 million for the nine months ended September 30, 2025, primarily driven by an increase in revenue from operations, including $29.4 million of revenue associated with Canadian Clean Fuel Regulations ("CFR") credits, including a $20.0 million true-up related to credits accumulated prior to regulatory approval received during the third quarter of 2026. GevoND results reflected nine months of operating activity during 2026, compared to eight months in the prior-year period following the acquisition of the GevoND plant in January 2025. These increases were partially offset by a slight decline of $0.3 million in RNG revenue and a $0.4 million decrease in revenue from specialty fuels sales at Gevo.
| Nine Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Cost of production: | ||||||||||||||||||||||||||
| GevoND | $ | 58,693 | $ | 50,203 | $ | 8,490 | 17 | % | ||||||||||||||||||
| GevoRNG | 5,969 | 5,723 | 246 | 4 | % | |||||||||||||||||||||
| GevoFuels | - | 3 | (3) | (100) | % | |||||||||||||||||||||
| Gevo | 3,704 | 5,067 | (1,363) | (27) | % | |||||||||||||||||||||
| Total cost of production | $ | 68,366 | $ | 60,996 | $ | 7,370 | 12 | % | ||||||||||||||||||
Cost of production. Cost of production increased by $7.4 million during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. GevoND's cost of production increased by $8.5 million to $58.7 million for the nine months ended September 30, 2026, compared to $50.2 million in the prior-year period, primarily due to nine months of operations following the acquisition of the GevoND plant in January 2025, compared to eight months in the prior-year period, and higher production driven corn costs, utilities and maintenance costs. GevoRNG's production costs increased by $0.2 million to $6.0 million for the nine months ended September 30, 2026, compared to $5.7 million in the prior-year period, primarily due to higher production and sales volumes during the period. Cost of production for the Gevo segment decreased by $1.4 million to $3.7 million for the nine months ended September 30, 2026, compared to $5.1 million for the prior-year period, primarily due to lower specialty fuels production costs associated with decreased production during the same period.
| Nine Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Depreciation and amortization: | ||||||||||||||||||||||||||
| GevoND | $ | 14,731 | $ | 13,352 | $ | 1,379 | 10 | % | ||||||||||||||||||
| GevoRNG | 3,106 | 4,553 | (1,447) | (32) | % | |||||||||||||||||||||
| Gevo | 2,732 | 2,334 | 398 | 17 | % | |||||||||||||||||||||
| Total depreciation and amortization | $ | 20,569 | $ | 20,239 | $ | 330 | 2 | % | ||||||||||||||||||
Depreciation and amortization. Depreciation and amortization increased by $0.3 million during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, primarily due to a $1.4 million increase in depreciation related to GevoND, primarily due to nine months of operations following the acquisition of the GevoND plant in January 2025 compared to eight months in the prior-year period. The increase was partially offset by a $1.4 million decrease in depreciation in the GevoRNG segment due to the extension of the depreciable lives of certain assets following revisions to the underlying lease terms.
Research and development expense. Research and development expenses were entirely attributable to the Gevo segment and remained relatively flat for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025.
| Nine Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| General and administrative expense: | ||||||||||||||||||||||||||
| GevoND | $ | 9,862 | $ | 4,239 | $ | 5,623 | 133 | % | ||||||||||||||||||
| GevoRNG | 1,889 | 1,235 | 654 | 53 | % | |||||||||||||||||||||
| Gevo | 31,058 | 28,040 | 3,018 | 11 | % | |||||||||||||||||||||
| Total general and administrative expense | $ | 42,809 | $ | 33,514 | $ | 9,295 | 28 | % | ||||||||||||||||||
General and administrative expense. General and administrative expense increased by $9.3 million during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. General and administrative expense for GevoND increased by $5.6 million to $9.9 million for the nine months ended September 30, 2026, compared to $4.2 million in the prior-year period, primarily due to nine months of operations following the acquisition of the GevoND plant in January 2025 compared to eight months in the prior-year period, an increase in professional services, and higher tax credit transaction costs. General and administrative expense for GevoRNG increased by $0.7 million for the nine months ended September 30, 2026, compared to the prior-year period, primarily due to higher tax credit transaction costs. General and administrative expense for the Gevo segment increased by $3.0 million for the nine months ended September 30, 2026, compared to the same period in the prior year. The increase was primarily attributable to $3.0 million in accrued executive severance costs, partially offset by lower professional services costs.
| Nine Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Project development costs: | ||||||||||||||||||||||||||
| GevoND | $ | 222 | $ | (76) | $ | 298 | (392) | % | ||||||||||||||||||
| GevoFuels | 1,594 | 1,647 | (53) | (3) | % | |||||||||||||||||||||
| Gevo | 5,886 | 7,491 | (1,605) | (21) | % | |||||||||||||||||||||
| Total project development costs | $ | 7,702 | $ | 9,062 | $ | (1,360) | (15) | % | ||||||||||||||||||
Project development costs. Project development costs are primarily related to our ATJ projects and Verity, and consist mainly of employee expenses, preliminary engineering costs, and technical consulting fees. Project development costs decreased by $1.4 million during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, primarily due to lower employee expenses, consulting and professional services fees.
Acquisition related costs: Acquisition related costs of $4.5 million for the nine months ended September 30, 2025 were entirely attributable to our Gevo segment and were related to the acquisition of the GevoND plant, which we completed on January 31, 2025.
Facility idling costs: Facility idling costs of $1.7 million for the nine months ended September 30, 2025 were entirely attributable to our Gevo segment and were related to the care and maintenance of our former facility in Luverne, Minnesota, which was sold as part of the sale of Agri-Energy, LLC in October 2025.
Impairment of long-lived assets: During the nine months ended September 30, 2026, the Company recorded an impairment charge of $135.8 million, reducing the carrying value of certain long-lived assets to their estimated fair value. The impairment charge consisted of $134.4 million related to construction in progress attributable to the GevoFuels segment and $1.4 million related to intangible assets attributable to the Gevo segment. See Note 3, Impairment of long-lived assets, to the Condensed Consolidated Financial Statements for additional information.
Allowance for credit losses on refundable deposits: During the nine months ended September 30, 2026, the Company recorded an allowance for credit losses on refundable deposits of $40.3 million within the GevoFuels segment, attributable
to deposits that the Company no longer expects to be reimbursed. See Note 14, Deposits and Other Assets, to the Condensed Consolidated Financial Statements for additional information.
Loss on disposal of assets: During the nine months ended September 30, 2026, the Company recorded a $0.2 million loss on disposal of assets related to GevoRNG machinery and equipment.
| Nine Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||||
| GevoND | $ | (9,598) | $ | (8,868) | $ | (730) | 8 | % | ||||||||||||||||||
| GevoRNG | (6,722) | (3,486) | (3,236) | 93 | % | |||||||||||||||||||||
| Gevo | (29) | (492) | 463 | (94) | % | |||||||||||||||||||||
| Total interest expense | $ | (16,349) | $ | (12,846) | $ | (3,503) | 27 | % | ||||||||||||||||||
Interest expense. Interest expense increased by $3.5 million during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, primarily due to the amendment of the Company's term loan, which closed in February 2026. Although the Company's debt balance did not increase significantly, the term loan accrues interest at a higher rate than the bonds that were repaid with the proceeds.
Loss on extinguishment of bonds. During the nine months ended September 30, 2026, the Company recognized a $10.3 million loss on extinguishment of bonds at GevoRNG. The loss represents the amount paid to extinguish the bonds in excess of their carrying amounts. The Company paid a $6.4 million prepayment penalty and wrote off $3.9 million of unamortized debt issuance costs associated with the redemption of the bonds.
| Nine Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Interest and investment income: | ||||||||||||||||||||||||||
| GevoND | $ | 61 | $ | 282 | $ | (221) | (78) | % | ||||||||||||||||||
| GevoRNG | 38 | - | 38 | - | % | |||||||||||||||||||||
| GevoFuels segment | 17 | - | 17 | - | % | |||||||||||||||||||||
| Gevo | 1,776 | 3,798 | (2,022) | (53) | % | |||||||||||||||||||||
| Total interest and investment income | $ | 1,892 | $ | 4,080 | $ | (2,188) | (54) | % | ||||||||||||||||||
Interest and investment income. Interest and investment income decreased by $2.2 million during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, primarily due to lower balances of cash and cash equivalents and restricted cash at the Gevo segment during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
| Nine Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | Change | Change % | |||||||||||||||||||||||
| Other expense, net: | ||||||||||||||||||||||||||
| GevoND | $ | (235) | $ | (175) | $ | (60) | 34 | % | ||||||||||||||||||
| GevoRNG | (114) | (20) | (94) | 470 | % | |||||||||||||||||||||
| GevoFuels segment | (478) | - | (478) | - | % | |||||||||||||||||||||
| Gevo | (551) | 373 | (924) | (248) | % | |||||||||||||||||||||
| Total other expense, net | $ | (1,378) | $ | 178 | $ | (1,556) | (874) | % | ||||||||||||||||||
Other expense, net. Other expense, net increased by $1.6 million during the nine months ended September 30, 2026, primarily due to the write off of deferred debt financing costs in connection with the Company's withdrawal from the Department of Energy loan guarantee process.
Critical Accounting Policies and Estimates
There have been no significant changes to our critical accounting estimates and policies since December 31, 2025. For a description of our other critical accounting policies and estimates that affect our significant judgments and estimates used in the preparation of our condensed consolidated financial statements, refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Estimates" contained in our 2025 Annual Report.
Our unaudited condensed consolidated financial statements are prepared in conformity with GAAP and require our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates, and such estimates may change if the underlying conditions or assumptions change.
Liquidity and Capital Resources
As of September 30, 2026, we had cash and cash equivalents of $67.6 million. Our cash equivalents consist of investments in U.S. government money market funds. We expect to use our cash and cash equivalents for the following purposes: (i) operation and maintenance of our production facilities; (ii) site improvement, debottlenecking and growth through expansion of our facilities; (iii) identification, development, engineering, licensing, acquisition and construction of new production facilities; (iv) general corporate purposes including commercial, marketing, sustainability and research and development work; and (v) debt service obligations associated with our current debt and future borrowings. We believe that as a result of our cash and cash equivalents balances and the performance of our current and expected operations, we will be able to meet our obligations and other potential cash requirements during the next 12 months from the date of this report.
Since our inception in 2005, we have devoted most of our cash resources to the development and commercialization of routes to efficiently produce fuels and chemicals from carbohydrates, such as renewable feedstock, using alcohols (isobutanol and ethanol) as intermediates. We have incurred losses since inception, have a significant accumulated deficit, and expect to incur losses for the foreseeable future. Historically, we have financed our operations primarily with proceeds from the issuance of equity, warrants, borrowings under debt facilities, ethanol sales and interest income. Our current sources of cash include sales of ethanol and ethanol related co-products (including carbon credits), the sale of Section 45Z CFPC tax credits, RNG, environmental attributes, hydrocarbons and licensing fees. We may also fund future operations through additional private and/or public offerings of equity or debt securities. In addition, we may seek additional capital, on acceptable terms, through arrangements with strategic partners or from other sources. Notwithstanding, there can be no assurance that we will be able to raise additional funds or achieve or sustain profitability or positive cash flows from operations.
Our transition to profitability is dependent upon, among other things, the successful development and commercialization of our projects, the development, licensing, acquisition and construction of commercial level production facilities to support our offtake agreements, the achievement of a level of revenues adequate to support the Company's cost structure, and the ability to raise capital to finance the development, licensing, acquisition, and construction of additional production facilities.
The following table sets forth the major sources and uses of cash for each of the periods set forth below (in thousands):
| Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net cash provided by (used in) operating activities | $ | 12,025 | $ | (33,356) | ||||||||||
| Net cash used in investing activities | $ | (53,725) | $ | (217,368) | ||||||||||
| Net cash (used in) provided by financing activities | $ | (7,685) | $ | 100,065 | ||||||||||
Operating Activities
Our primary uses of cash from operating activities include costs associated with operating our ethanol and RNG production facilities, including feedstock procurement, utilities, maintenance, logistics, and related working capital requirements. We also incur personnel-related and research and development expenses as we continue to invest in
renewable fuels and chemicals using ethanol and isobutanol as intermediates. As our operations have evolved, a significant portion of our operating cash flows is driven by production-related and working capital requirements associated with these facilities.
During the nine months ended September 30, 2026, net cash provided by operating activities was $12.0 million compared to net cash used in operating activities of $33.4 million for the nine months ended September 30, 2025. Operating cash flow for the 2026 period reflected significant non-cash adjustments, primarily an impairment loss on construction-in-progress and development assets of $135.8 million, an allowance for credit losses on refundable deposits of $40.3 million, $20.6 million in depreciation and amortization, a $10.3 million loss on extinguishment of bonds, and $7.1 million in stock-based compensation expense. These adjustments were partially offset by $49.4 million CPFCs recognized under Section 45Z, which reduced cost of production. During the period, the Company received $41.1 million from the sale of production tax credits. Changes in operating assets and liabilities included an $18.9 million increase in accounts receivable and a $9.1 million net decrease in accounts payable, accrued expenses and long-term liabilities, which partially offset operating cash flow.
Investing Activities
During the nine months ended September 30, 2026, the Company made capital investments totaling $51.6 million for its ongoing projects. These investments are comprised of $18.8 million at Gevo, $29.5 million at GevoND, $2.2 million at GevoFuels, and $1.1 million at GevoRNG, and primarily relate to the acquisition of property, plant, and equipment aimed at advancing the Company's strategic initiatives in renewable energy and related sectors. Additionally, during the nine months ended September 30, 2026, the Company made a $1.5 million equity investment in an unconsolidated entity.
We have substantially completed the engineering design on our ATJ-30 project and are proceeding with detailed engineering and modularization design. We are refining the project cost estimates with engineering, procurement, and construction ("EPC") partners to identify opportunities to reduce and negotiate the cost. We currently expect to finance the construction of ATJ plants at the subsidiary level using a combination of Company equity and third-party capital.
Gevo is in the process of identifying and performing early site development work for additional ATJ production locations. These potential sites include greenfield and brownfield (i.e., at an existing ethanol plant) locations that are advantageous in terms of potential economics, opportunities to decarbonize, and time to market.
During the nine months ended September 30, 2025, we had $217.4 million of cash used in investing activities, comprised of our acquisition of the assets of Red Trail Energy of $198.5 million and investments in our capital projects of $18.9 million.
Financing Activities
During the nine months ended September 30, 2026, the Company entered into an amendment to the credit agreement with affiliates of OIC for additional borrowings of $70 million. The proceeds from the amendment were partially used to redeem the Remarketed Bonds and the Series 2025A Bonds at Gevo NW Iowa RNG.
We currently expect to finance the construction of the ATJ-30 plant at the subsidiary level using a combination of our own, third-party, and debt capital. The Company expects to retain an equity interest in the project and may invest equity in the project using the proceeds from the reimbursement of the Company's ATJ-30 project development expenditures. Cash distributions from future ATJ-30 project earnings would be proportionate to Gevo's ownership in such ATJ-30 project under this expected financing structure, which would allow us to conserve and redeploy our capital on other growth projects, including other ATJ projects. We expect to apply similar development and financing strategies to future ATJ projects to enable growth of SAF production to meet demand for SAF.
During the nine months ended September 30, 2025, the Company entered into a credit agreement with affiliates of OIC for $105 million. The proceeds from this credit agreement were partially used to fund the acquisition of substantially all of the assets and certain liabilities of Red Trail Energy. Additionally, the lenders made an equity investment of $5 million in Gevo Intermediate HoldCo, LLC on January 31, 2025. This equity investment is reflected as a cash inflow within financing activities.
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