NG Energy (TSXV:GASX) Net Loss Widens to $7.1M, Reinforcing Profitability Concerns Despite Revenue Growth

NG Energy International (TSXV:GASX) has just released its Q3 2025 financial results, reporting total revenue of $10.4 million and a basic EPS of -$0.028. The company has seen revenue move from $6.3 million in Q2 and $5.3 million in Q1, while earnings per share have remained negative each quarter. Persistent margin pressure means profitability remains out of reach, keeping the focus on how the revenue trend could drive the next chapter for shareholders.

See our full analysis for NG Energy International.

Next, we are putting these headline numbers up against the market’s key narratives to see whether the established storylines are confirmed or turned upside down.

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Losses Widen Despite Strong Revenue Growth

• Net income for Q3 2025 came in at -$7.1 million, up from -$5.8 million in Q1 and -$8.1 million in Q2. This shows continued lack of profitability even as revenue rises.
• Bears highlight that trailing twelve month net losses have neared -$29 million, with no signs of bottom line improvement. This creates tension with bullish hopes for a turnaround.
  • The net profit margin remains negative and has not improved over the last year according to the risk summary.
  • This directly challenges the case for near-term upside since earnings losses have increased at a rate of 23.6% per year over the past five years.

Short Cash Runway Heightens Financial Risk

• The company reports less than one year of cash runway, as flagged in risk data. This puts pressure on operational durability and raises questions about access to further funding.
• Consensus narrative notes that although revenue is forecast to grow by more than 100% per year, the company’s unprofitability and limited cash position create a high-stakes scenario.
  • Despite rising revenues and sector-leading expected growth, the balance sheet risk could overshadow growth prospects if losses persist.
  • Net income has not improved in tandem with the significant forecasted revenue growth, so achieving financial stability remains a central hurdle.

Premium Valuation Versus Peers Raises Expectations

• NG Energy International trades at a price-to-sales ratio of 6.1x, which is well above the Canadian Oil and Gas sector average of 2.5x and closer to the immediate peer group’s 6.7x.
• Consensus narrative focuses on how the premium valuation creates high expectations for future performance. This is only defensible if the company sustains rapid top-line expansion.
  • With the current share price at $0.97, investors are paying a premium compared to most of the industry and may see little upside unless projected revenue growth accelerates or unprofitability narrows.
  • This heightens sensitivity to quarterly results, leaving the company exposed if cash flow improvements do not materialize as quickly as anticipated.

If you want to see how analysts balance high revenue growth with heavy losses, check out the full consensus take on NG Energy International. 📊 Read the full NG Energy International Consensus Narrative.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on NG Energy International's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

NG Energy International faces persistent losses, limited cash runway, and a premium valuation. This leaves investors exposed to significant financial stability risks and unproven upside.

If you want to steer clear of companies struggling with balance sheet pressure, check for stronger options among solid balance sheet and fundamentals stocks screener (1924 results) to focus on stocks with healthier fundamentals and less risk of short-term setbacks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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