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Good morning, and welcome to the NextNRG, Inc. first quarter 2026 earnings conference call. All participants are in a listen-only mode. Following the management's prepared remarks, we will move to a pre-submitted Q&A. Please note this call is being recorded. Before we begin, I'll turn it over to Sharon Cohen for the required forward-looking statements disclosure. Sharon, please go ahead.

Thank you. I'd like to begin by reminding everyone that today's discussion will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks and uncertainties that could cause actual results to differ materially. Please refer to our most recent SEC filings for a full discussion of relevant risk factors. Today's call will also reference Adjusted EBITDA, a non-GAAP financial measure. A full reconciliation of this measure to net loss, the most comparable GAAP measure, is available in our earnings release located in the Investors tab of our website. Non-GAAP financial measures should not be considered a substitute for GAAP results. On the call today is Michael D. Farkas, our Chief Executive Officer and Founder, as well as Joel Kleiner, our Chief Financial Officer. With that, I'll now turn the call over to Michael.

Thank you, Sharon, and good morning, everyone. Our first quarter results reflect continued progress in building a more disciplined, operationally focused company. During the quarter, revenue increased 29% year-over-year to approximately $21.1 million. Gross profit more than tripled. Gross margin expanded to 8.1%, and Adjusted EBITDA improved materially versus the prior year period. We believe these results demonstrate that the operational improvements we have been implementing across the business are beginning to gain traction. Importantly, this quarter was not driven by a single event or temporary factor. What I would point out is the gross profit number. It more than tripled year-over-year. That kind of improvement does not happen by accident, and it does not happen in just one quarter. It is the result of work that has been compounding across the platform over several quarters.

As we continue scaling the fueling business, our focus remains on disciplined growth. We are prioritizing operational efficiency and margin improvement alongside revenue expansion. We believe that approach creates a stronger long-term foundation for the business. At the same time, we continue advancing our energy infrastructure initiatives, including our smart microgrid pipeline. These are longer cycle opportunities, and we are developing them accordingly, focused on converting pipeline into structured, contracted arrangements without getting ahead of what the business can execute well. We are intentionally taking a pragmatic approach across the organization. Our objective is no longer growth at any cost. Our objective is to improve execution, strengthen unit economics, manage capital responsibility, and position the business for long-term value creation. We also made meaningful progress in simplifying and improving our financial structure during the quarter.

While Joel will discuss this in more detail, we believe the work completed over the past year has materially improved the overall financial profile of the company. We are encouraged by the direction of the business and believe the first quarter reflects continued operational progress across both segments. With that, I will turn the call over to Joel.

Thank you, Michael D. Farkas. Revenue for the first quarter of 2026 was approximately $21.1 million compared to $16.3 million in the first quarter of 2025, representing year-over-year growth of 29%. The increase was primarily driven by continued expansion of our mobile fueling operations, including increased fuel volumes delivered across existing markets. During the quarter, we also navigated meaningful headwinds as oil prices rose amid geopolitical conflict in the Middle East. This had a mixed effect on our business. While our vendors passed higher fuel costs through to us, the elevated pricing environment also lifted our top-line revenue. Importantly, despite this volatility, we expanded our gross profit during the quarter. Our results we view as a strong validation of our pricing discipline and the operating leverage in our delivery model.

Gross profit increased to approximately $1.7 million compared to $518,000 in the prior year period. Gross margin expanded to 8.1% compared to 3.2% in the first quarter of 2025. Improvement reflects continued operational efficiencies across the fueling platforms, including route optimization, improved fleet utilization, and overall cost management initiatives. Loss from operations for the quarter was approximately $10.1 million compared to $5.8 million in the prior year period. The increase was primarily attributed to approximately $7.9 million in non-cash stock-based compensation expense associated with shares issued for services during the first quarter. Excluding this non-cash item, we believe the underlying operating trends of the business improved meaningfully year-over-year. Net loss for the quarter was approximately $10.8 million compared to approximately $8.9 million in the first quarter of 2025.

Adjusted EBITDA improved up to approximately negative $1.2 million compared to approximately negative $3.4 million in the prior year period. This improvement was primarily driven by stronger gross profit performance. Interest expense for the quarter was approximately $681,000 compared to approximately $3.3 million in the prior year. The year-over-year reduction reflects lower financing related charges and reduced amortization of debt discounts following refinancing activities during 2025. Turning briefly to the balance sheet. As of March 31st, 2026, the company had cash and cash equivalents of approximately $208,000. Total assets were approximately $12.3 million, compared to $11.1 million at December 31st, 2025. Accounts receivable were approximately $2.9 million. As disclosed in our filings, we continue to evaluate financing and strategic initiatives intended to support working capital requirements, operational growth, and expansion of our energy infrastructure platform.

We remain focused on managing business with financial discipline while continuing to support operational execution and strategic growth initiatives. With that, I'll turn the call back over to Michael.

Thank you, Joel. As we move through 2026, our priorities remain consistent. First, we intend to continue scaling and optimizing the mobile fueling business with a strong emphasis on operational discipline, efficiency, and margin improvement. It's being noticed by the outside. We've actually been approached by different PE firms for the potential of actually acquiring the EzFill business. Second, we remain focused on advancing our energy infrastructure opportunities, including our smart microgrid pipeline, toward commercially structured opportunities and long-term recurring revenue potential. Third, we will continue managing the business with a disciplined approach to cost structure, capital allocation, and operational execution. We believe the first quarter is evidence that the strategy is working. The numbers are moving in the right direction, and our job is to keep them moving that way.

Thank you again for joining us today. I'll now hand it back to Sharon to take us through the Q&A.

Thanks, Michael. We will now move to questions that were submitted in advance. The first question is for Joel. Gross margin improved significantly year-over-year. What is driving that improvement, and is it sustainable?

Thanks, Sharon. The improvement from 3.2% to 8.1% reflects a combination of factors that we believe are structural rather than one time. Route optimization has meaningfully reduced our cost per gallon delivered. Improved fleet utilization means we are getting more productive output from the same asset base. Customer density in our more mature markets has reduced the per delivery cost structure. We believe these improvements are sustainable as the platform continues to mature, and we expect to continue working to drive further efficiencies going forward. I do wanna mention the geopolitical situation in the Middle East and call out that we might be facing some headwinds in pricing, but as mentioned in my earlier section, we are strongly comfortable that our driving and our route optimization will keep our gross profit not only down, not only up, but growing.

Thank you, Joel. The next question is for Michael. Michael, can you give investors a sense of where the microgrid pipeline stands and what progress looks like in the near term?

Our microgrid pipeline spans commercial, healthcare, industrial, municipal, and federal markets. We are focused on converting pipeline opportunities into structured contracted arrangements. These are longer cycle opportunities by nature. We are approaching them with a discipline. We are not going to commit to timelines right now that we can't unfortunately control. What I can tell you is that we are actively working to advance these opportunities and that we believe that they represent a meaningful long-term revenue opportunity for the company. As disclosed in our quarterly report, we've got roughly a three quarters of a billion-dollar pipeline.

Thank you. The next question is for Joel. Revenue has grown significantly over the past several quarters. What is driving that consistency, and how do you think about the durability of that growth?

Well, the durability case is actually in the margin data more than in the revenue line. When gross profit triples while revenue grows 29%, that tells you the platform is getting more efficient, not just bigger. We are earning more on each gallon delivered than we were a year ago, and that improvement is coming from operational changes that are now embedded in how we run the business. That is a different kind of durability than market expansion. It is a unit-level improvement, and it compounds as volume grows.

Very good. Thank you, Joel. The next question is again for Michael. How should investors think about the relationship between the two segments, fueling and energy infrastructure, and how they fit together strategically?

Great question. They are complementary by design. The fueling business generates revenues today and gives us direct relationships with fleet operators and commercial customers who are increasingly thinking about their energy transition. The infrastructure business, the microgrids, the AI-driven energy management, the wireless charging, is where we are building the next layer of the platform. A customer who uses us for fuel today is a natural candidate for an on-site microgrid or an EV charging solution tomorrow. We are building towards a single integrated relationship with energy customers rather than a series of disconnected transactions.

Okay, thank you. The next question is for Joel. How is the company thinking about its balance sheet and overall financial position as it moves through 2026?

Thanks, Sharon. We continue to evaluate our range of financing and strategic initiatives to support the growth of both segments of the business. Our focus is on strengthening the financial foundation of the company in a way that supports long-term operational execution. We have made meaningful progress in improving an overall capital structure over the past year. That work is ongoing. We are not going to get ahead of ourselves on specifics. I can say that we are actively engaged on multiple fronts and remain committed to managing the business responsibly.

Thank you. The final question is for Michael. As you look at the full picture of what NextNRG is building, how do you want investors to think about the long-term opportunity here?

Let me answer that with what this quarterly report actually showed. Gross profit more than tripled. Adjusted EBITDA improved by $2.24 million year-over-year. Very importantly, interest expense dropped 80%. Those are not projections, those are Q1 results. They are happening while we are simultaneously advancing the infrastructure side of the business. That combination is the point. We're not asking investors to bet on a future that has not shown up yet. We are showing them a business that is improving its financial performance in the present while building towards something significantly larger. The platform we are assembling, fueling microgrids, AI-driven energy management, wireless EV charging, addresses markets that are large, underserved, and in the middle of a generational transition. The energy transition is one of the largest capital allocation events in modern history.

We are building NextNRG to be a real participant in it, and Q1 is one more data point showing that we are doing it the right way.

Thank you, Michael and Joel. That concludes our pre-submitted Q&A. On behalf of the entire NextNRG team, we wanna thank everyone for joining us today. We appreciate your continued interest and support, and look forward to speaking with you again when we report second quarter 2026 results. Have a great day.

Ladies and gentlemen, thank you so much. This does now conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

Good morning, and welcome to the NextNRG, Inc. Fourth Quarter and Full year 2025 Earnings Call. All participants are in a listen-only mode. Following the management's prepared remarks, we will move to a pre-submitted Q&A. This call is being recorded. Before we begin, I'll turn it over to Sharon Cohen for the required forward-looking statements disclosure. Sharon, please go ahead.

Thank you. I'd like to begin by reminding everyone that today's discussion will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks and uncertainties that could cause actual results to differ materially. Please refer to our most recent SEC filings for a full discussion of relevant risk factors. Today's call will also reference Adjusted EBITDA, a non-GAAP financial measure. A full reconciliation of this measure to net loss, the most comparable GAAP measure, is available in our earnings release located in the Investor tab of our website. Non-GAAP financial measures should not be considered a substitute for GAAP results. On the call today is Michael Farkas, Founder and Chief Executive Officer, as well as Joel Kleiner, Chief Financial Officer. Michael, the floor is yours.

Thank you, Sharon, and good morning, everyone. I want to begin with some numbers that will frame everything you're about to hear. In 2024, NextNRG generated $27.8 million in revenue, while in 2025, we generated $81.8 million. I want to repeat that. $27.8 million-$81.8 million. That is about 195% growth in one single year. Our on-site mobile fueling business was the driver of this growth. Following the completed merger of NextNRG and EzFill, we integrated two acquisitions, Shell Top Up Assets and Yoshi Mobility. These acquisitions allowed us to enter into four new major markets, Phoenix, Austin, San Antonio, and Houston, ending the year operating coast to coast. The results reflected that. We posted seven consecutive months of record revenue, and by May, our year-to-date revenue had already surpassed all of 2024. Most critically, our margins improved as we scaled.

Our full-year gross margin in fueling was 8.4%. By Q4, it had climbed to 10.4%. That is the direction we are moving towards as we continue to optimize our operations, implement smarter customer acquisition, greater route density, increase of fuel mix deliveries, and less wasted time. In that curve, we are still early. I want to call out our fourth quarter specifically because it tells you where this business is headed. Q4 revenue was approximately $23 million. October, $7.4 million. November, $7.5 million. December, $8 million. December alone represented 253% year-over-year growth in revenue and 308% growth in fuel volumes. That is the momentum we're carrying into 2026. I also want to take a moment to highlight something specific because I believe it speaks to the quality of what we are building.

Right now, our largest commercial fleet customer, the largest global online retailer, is actively cutting other fuel vendors in certain markets and replacing them with us, NextNRG. That does not happen by accident. That happens when service is cleaner, more reliable, and more integrated than the alternatives. This is precisely what we designed our products and services to do, and it means that the opportunity with this one customer alone has not even reached its full potential. I want to talk about our Energy Infrastructure segment because this is where the next chapter of NextNRG is being written. We closed our first power purchase agreements, Sunnyside and Topanga Terrace Rehabilitation and Subacute Care Centers, both in California. Under these agreements, NextNRG will design and build fully integrated on-site smart microgrids combining rooftop solar, battery storage, gas generators, and our patented AI-driven controller.

These are long-term structured agreements with annual escalators built in. This is not equipment sales, but is contracted energy relationships that generate annuitized revenues over the long term, some as many as three decades. We believe finalizing these agreements validates the model. The market exists, customers are ready to commit, and NextNRG is ready to execute. Our pipeline of planned smart microgrid projects stands at approximately $750 million, spanning municipal, tribal, healthcare, multi-family, and commercial facilities, all in various stages of development. We are now converting that pipeline into executed contracts. Before I turn it over, I want to explain something about how this part of the business operates, because I think context matters when you're looking at our numbers. We are deploying multi-million dollar energy infrastructure projects to large operational entities, which require engineering studies, permitting, utility interconnection approvals, project financing, and organizational decision-making that can span years.

The contracts we are closing today are the result of development work that started 18-24 months ago. Therefore, when you look at the business, you should be looking at what we've already closed, what's in the pipeline, and how that builds from here, because each contract represents millions of dollars in revenue and a proven track record accelerates the pipeline behind it. The fuel business funds the operation today. The energy business is where the exponential growth will come from. That is the architecture of this company, and 2025 was the year we demonstrated that both sides of the business can work. I will now turn it over to Joel to break down what is behind the numbers. Joel?

Thank you, Michael. Good morning. I want to walk through 2025 financials plainly, because there is an important story inside these numbers that does not surface in the headline loss figure. Revenue for the full year came in at $81.8 million, compared to $27.8 million in 2024, an increase of $54.1 million or 195% year-over-year. Cost of sales was $74.9 million, up from $26 million, rising proportionally with expanded volume and geographic footprint. Gross profit reached $6.9 million versus $1.8 million in 2024, nearly four times higher year-over-year. Revenue scaled, gross margin improved, and gross profit grew. That is the business working. Gross margin expanded quarter-over-quarter throughout fiscal 2025, demonstrating the company's ability to drive operational efficiency while continuing to grow its revenue base. Our GAAP net loss for 2025 was $88.2 million.

I want to walk through the major components, because the bulk of that figure is not cash out of the door, and it's important that you understand the distinction. The largest driver is stock-based compensation, which is totaled at $42.6 million. This is entirely non-cash. This figure represents the equity cost of attracting and retaining the talent to execute a merger, integrate two fleet acquisitions, enter in four new states, and close the company's first energy infrastructure contracts, all in a single year. It is also the primary reason for Adjusted EBITDA, that our Adjusted EBITDA tells a fundamentally different story than our net loss. Interest expense was $17.3 million. This includes $9.6 million in non-cash amortization of debt discount, a GAAP accounting charge that does not represent current cash paid. The remainder reflects interest on our outstanding borrowings used to fund the company's growth and working capital.

We are committed to reducing our reliance on high cost, short-term debt as operating cash flow continues to scale. We also recorded an $8.5 million impairment charge. This is a one-time, non-recurring, non-cash accounting adjustment related to assets recorded in connection with our merger and acquisition. As part of the year-end process, those assets are evaluated under GAAP, and we recorded a write-down based on that assessment. This does not reflect any deterioration in customer relationships, contracts, or operating assets. It impacts the reported net loss but has no effect on cash or how the business operates going forward. When you strip out these items, the non-cash stock compensation, interest inclusive of debt discount amortization, depreciation, amortization, and the one-time impairment, you get to Adjusted EBITDA loss of $17.1 million for 2025, compared to $8.9 million in 2024. Net cash used in operating activities was $16.7 million in 2025.

We continue to fund the company's growth through operating cash flow and equity capital market activity and debt facilities. Our February 2025 equity raise of $50 million provided critical working capital that supported the execution you see in these results. We are a growth company in a capital-intensive industry, and we continue to invest into expanding our energy infrastructure pipeline. The fuel business provides operational momentum. The energy business provides long-term upside. Yet they represent a company that generated $88.8 million in revenue and $6.9 million in gross profit in its first full year as a combined entity. Now I will turn it back to Michael for closing remarks.

Thank you, Joel. I want to close with this. The energy market in the United States is fragmented, inefficient, and expensive. Businesses that consume enormous amounts of energy, commercial fleets, logistics operators, hospitals, distribution centers, are managing that energy the same way they have for over 20 years, working across multiple vendors with very little integration, visibility, or control. We built a platform that changes that. On-demand fueling with real-time dispatch optimization, on-site microgrids that eliminate fragmented utility dependence and replace it with intelligent, integrated infrastructure. A unified operating system that lets a business see, manage, and optimize all of its energy needs in one place through our proprietary NextNRG Dashboard. The fuel side of the platform works. We established that in 2025. The energy side is just now starting to convert pipeline into contracts, and those contracts are long-term, high value, and destined to compound.

The progression is already starting to show up in the numbers and in what we have executed so far. $27.8 million-$81.8 million in revenues in one year. Gross profit nearly quadrupled. Seven consecutive months of record revenue. Our first energy infrastructure contracts signed and a pipeline at over $750 million. This is the year we just had. We are more focused on the next one. Thank you for all being here. I will now hand it back to Sharon to take us through the Q&A.

Thank you, Michael. We'll now move to questions that were submitted in advance. This first question is for Joel. You recorded $42.6 million in stock-based compensation in 2025. Who received that compensation? What was it tied to, and how should investors think about dilution going forward?

Well, 2025 was not a normal year for this company. We did a merger, brought two fleets, built an executive team, an advisory board, and launched an energy infrastructure business. I remind you, all in the same year. The equity issue was tied to that buildup. A lot of that work was compensated in equity, and that's what's reflected in that figure. It's not something you should expect to see at this level going forward. As things stabilize, those numbers will come down. Yes, we're very aware of what dilution means to our shareholders, and that's always a part of the conversation and the decisions we make.

Okay, thank you, Joel. Here's another one for you. Cash at year-end was $384,000, and the working capital deficit sits at approximately $25 million. The company has been relying on high-interest instruments to fund operations. How does NextNRG get through this next year, 2026, and what does the financing plan look like?

Look, the cash position at year-end does not tell the whole story of where we are liquidity-wise. Our cash position reflects the timing of debt facilities and operating cash flows, working capital, and it doesn't give the full picture of available liquidity. We have active debt facilities in place, and we continue to have access to capital markets, and as we have demonstrated, like in our February 2025 equity raise. As the infrastructure contracts close and move towards construction, they bring project-level financing structures that are standard in the industry and don't rely solely on corporate balance sheet funding. We are not managing this business on $384,000. We're managing it on a combination of operational cash flow, debt facilities, and the capital markets access we've consistently demonstrated.

The goal for 2026 is to reduce our dependence on high-cost, short-term debt by growing operating cash flow, increasing working capital, and closing contracts that carry their own financing. That's the plan, and we're going to execute against it.

Thank you, Joel. Michael, the following questions I will direct to you. The energy infrastructure business is described as a long-term growth engine of the company. When those contracts do start generating revenue, what does the margin profile actually look like, and how does it compare to the fueling business?

It is a completely different margin profile. The fueling business operates on fuel margins. We buy fuel, we deliver it, and we earn the spread plus the service fee. Those margins are in the high single digits to low double digits, and we improve as we optimize routes and density. The energy infrastructure business operates on a contracted rate over a multi-decade agreement. Once those assets are deployed and operating, the ongoing cost structure is largely fixed. You have maintenance, monitoring, and debt service on the project financing, and the revenue is locked in by contract with annual escalators. We expect the margin profile on a stabilized microgrid to be significantly higher than what we generate in fueling. The fueling business is a strong, scalable cash generator. The energy business is a different kind of asset completely.

When those contracts start producing revenue, we believe it has the potential to meaningfully change the financial profile of this company.

Thanks, Michael. Here's the next question. Given the current cash position and working capital deficit, what does the path to cash flow break even look like? And what are the two or three things that need to happen operationally to get there?

There are three things. First, the fueling business needs to continue scaling its gross profit, and it is. We went from $1.8 million in gross profit in 2024 to $6.9 million in 2025. Q4 margins tell us there is more improvement ahead. Second, we need to close and monetize energy infrastructure contracts. Each one that closes and moves towards construction is expected to represent significant revenue and significantly improve our cash position. Third, we need to rightsize our operating expenses relative to where the business actually is today, not where we are building to. We've been spending ahead of this revenue on the energy side, and that's just the nature of how the business works. As those contracts start closing and revenue comes in, that ratio flips. That's what we're focused on.

Great. For our final question: as the fueling business matures and energy contracts begin to close, how is management thinking about capital allocation? Where does investment get prioritized, and what guardrails exist to prevent the company from overextending on either side of the business?

Great question. The fueling business funds itself at this point. It generates positive operating cash flow, and the capital requirements are largely tied to fleet expansion, which we can pace based upon demand. The capital allocation question is really about the energy side, and there, the discipline is built into the structure of how we develop projects. The capital to build each project comes with the project through project financing, not from corporate balance sheets. What we invest corporately is in the development and sales process, engineering work, permitting, customer relationships, and that's a deliberate, contained investment. It's not open-ended. The more projects we close, the cheaper and faster the next one gets. The guardrail is the model itself.

Okay. Thank you. That concludes our Q&A. Michael, any final words from you?

Nope. Just want to say thank you. We are heads down and focused on execution, and we're looking forward to seeing you next quarter.

Ladies and gentlemen, thank you so much. That does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.