NextNRG, Inc. reported higher first-quarter revenue and sharply improved gross profit, while management said operational changes in its mobile fueling business are beginning to show results.
On the company’s first quarter 2026 earnings call, Chief Executive Officer and Founder Michael D. Farkas said revenue rose 29% year over year to approximately $21.1 million. Gross profit more than tripled, and gross margin expanded to 8.1%, up from 3.2% in the prior-year quarter.
Revenue Growth Led by Mobile Fueling
Chief Financial Officer Joel Kleiner said first-quarter revenue increased from $16.3 million in the first quarter of 2025, primarily due to continued expansion of mobile fueling operations and increased fuel volumes delivered across existing markets.
Kleiner said the company also faced higher oil prices tied to geopolitical conflict in the Middle East. While vendors passed higher fuel costs through to the company, the elevated pricing environment also lifted reported revenue. Despite that volatility, he said NextNRG expanded gross profit, which management viewed as evidence of pricing discipline and operating leverage in the delivery model.
Gross profit rose to approximately $1.7 million, compared with $518,000 a year earlier. Kleiner attributed the improvement to operational efficiencies across the fueling platform, including route optimization, better fleet utilization and cost-management initiatives.
In the Q&A portion of the call, Kleiner said the margin improvement reflected factors the company views as structural rather than one-time. He said route optimization reduced cost per gallon delivered, improved fleet utilization increased output from the same asset base, and stronger customer density in mature markets reduced per-delivery costs.
Loss Widens on Stock-Based Compensation
NextNRG’s loss from operations was approximately $10.1 million, compared with $5.8 million in the prior-year period. Kleiner said the increase was primarily due to approximately $7.9 million in non-cash stock-based compensation expense associated with shares issued for services during the quarter.
Net loss was approximately $10.8 million, compared with approximately $8.9 million in the first quarter of 2025.
Adjusted EBITDA, a non-GAAP measure, improved to approximately negative $1.2 million, compared with approximately negative $3.4 million in the prior-year quarter. Kleiner said the improvement was primarily driven by stronger gross profit performance.
Interest expense declined to approximately $681,000, down from about $3.3 million a year earlier. The reduction reflected lower financing-related charges and reduced amortization of debt discounts following refinancing activities during 2025, according to the company.
Balance Sheet and Financing Plans
As of March 31, 2026, NextNRG had cash and cash equivalents of approximately $208,000. Total assets were approximately $12.3 million, up from $11.1 million at Dec. 31, 2025. Accounts receivable were approximately $2.9 million.
Kleiner said the company continues to evaluate financing and strategic initiatives intended to support working capital needs, operational growth and expansion of its energy infrastructure platform.
“Our focus is on strengthening the financial foundation of the company in a way that supports long-term operational execution,” Kleiner said during the Q&A. He said the company has made progress improving its capital structure over the past year and remains “actively engaged on multiple fronts,” though he did not provide specific details.
Microgrid Pipeline Remains a Long-Term Focus
Management also discussed NextNRG’s energy infrastructure initiatives, including its smart microgrid pipeline. Farkas said the pipeline spans commercial, healthcare, industrial, municipal and federal markets.
He said the company is focused on converting pipeline opportunities into structured, contracted arrangements, while noting that these are longer-cycle opportunities and that management is not committing to timelines it cannot control. Farkas said the company has “roughly a three quarters of a billion-dollar pipeline,” as disclosed in its quarterly report.
Farkas described the company’s fueling and energy infrastructure businesses as complementary. The fueling business generates revenue today and provides relationships with fleet operators and commercial customers, while the infrastructure business includes microgrids, AI-driven energy management and wireless charging.
“A customer who uses us for fuel today is a natural candidate for an on-site microgrid or an EV charging solution tomorrow,” Farkas said.
Management Emphasizes Disciplined Growth
Farkas said the company’s priorities for 2026 remain scaling and optimizing mobile fueling, advancing energy infrastructure opportunities and maintaining discipline in costs, capital allocation and execution.
He also said the company has been approached by private equity firms about potentially acquiring the EZFill (NASDAQ:EZFL) business, though he did not provide additional details.
Farkas said the company’s strategy has shifted away from “growth at any cost” toward improving execution, unit economics and capital management. He said the first-quarter results are a sign the strategy is working.
“The numbers are moving in the right direction, and our job is to keep them moving that way,” Farkas said.
About EZFill (NASDAQ:EZFL)
EZFill Holdings Inc operates as a mobile fueling company primarily in Florida. It offers on-demand fueling services to consumer, fleet, marine, and other specialty markets. The company was incorporated in 2019 and is based in Miami, Florida.
