Sky Quarry Inc (SKYQ) AI Stock Analysis
SKYQ AI stock analysis summary
AI ResearchSky Quarry Inc is an oil production, refining, and environmental remediation company headquartered in Woods Cross, Utah. Annual revenue contracted from $50.7M in FY2023 to $12.5M in FY2025, alongside a net loss of -$12.2M. Over the trailing twelve months ended June 30, 2026, revenue stood at $1.6M with an operating margin of -558.1%.
- Market cap
- $21.1M
- Revenue (TTM)
- $1.6M
- P/E
- —
- 1Y return
- -39.5% S&P 500 16.8%
- Avg. target
- —
Bull case
- The stock has demonstrated positive price momentum in 2026, recording a year-to-date return of 34.5%.
- Sky Quarry holds a 100% interest in asphalt bitumen leases spanning approximately 5,930 acres in Utah's PR Spring region.
- The company maintained $7.2M in cash and short-term investments as of June 30, 2026.
Bear case
- Annual revenue fell 46.5% to $12.5M in FY2025, and quarterly revenue declined 100.0% year-over-year in the quarter ended June 30, 2026.
- The company has generated negative free cash flow for four consecutive fiscal years, including -$3.4M in FY2025.
- Valuation multiples remain elevated, with a price-to-sales ratio of 13.1x compared to the median of 1.8x for US-listed Energy peers.
What Sky Quarry does
Sky Quarry Inc. operates as an oil production, refining, and development-stage environmental remediation company in the United States. It facilitates the recycling of waste asphalt shingles and remediation of oil-saturated sands and soils. The company also refines heavy crude oil to produce diesel and other petroleum products, such as paving asphalt liquids, vacuum gas oil, and naphtha. In addition, it holds a 100% interest in asphalt bitumen leases covering approximately 5,930 acres in the PR Spring region in Utah. Headquartered in Woods Cross, Utah, Sky Quarry Inc. was incorporated in 2019.
Growth and profitability
Revenue reached $50.7M in FY2023 after growing 211.5% from $16.3M in FY2022, but subsequently declined 53.9% to $23.4M in FY2024 and fell 46.5% to $12.5M in FY2025. Gross margin deteriorated over this timeframe, shifting from 21.4% in FY2022 to -25.5% in FY2025. Operating margin worsened from -9.1% in FY2022 to -73.9% in FY2025, while net losses expanded from -$2.7M in FY2022 to -$12.2M in FY2025. Across the three years from FY2022 to FY2025, revenue compound annual growth rate was -8.5%. For the trailing twelve months ended June 30, 2026, revenue was $1.6M, marked by a quarterly revenue decline of 100.0% year-over-year and an EPS of -$3.69.
Balance sheet and cash flow
As of June 30, 2026, Sky Quarry held $7.2M in cash and short-term investments against total debt of $10.5M, leaving net debt at $3.3M. The company had a current ratio of 0.74, a debt-to-equity ratio of 0.89, and shareholders' equity of $11.8M on total assets of $28.3M. Cash flow generation remained negative, with operating cash flow of -$3.3M and free cash flow of -$3.4M in FY2025. In FY2025, capital expenditures were $133,636.
Valuation and performance
Sky Quarry carries a market capitalization of $21.1M and an enterprise value of $27.3M. The stock trades at a price-to-sales ratio of 13.1x and an enterprise value to revenue ratio of 16.9x, both higher than the median of its US-listed Energy peers, which stands at a price-to-sales ratio of 1.8x. Its price-to-book ratio is 1.9x. Over the past year, the stock fell 39.5%, underperforming the S&P 500 (SPY) return of 16.8%. However, its year-to-date return is 34.5%, with the shares trading 30.2% below their 200-day moving average.
What analysts expect
The company's next earnings report is scheduled for November 13, 2026. For FY2025, the company reported diluted earnings per share of -$1.34, following an EPS of -$0.19 in FY2024 and trailing twelve month EPS of -$3.69 as of June 30, 2026.
Key risks and what to watch
- A current ratio of 0.74 as of June 30, 2026, indicates short-term obligations exceed current liquid assets.
- The trailing twelve month operating margin stood at -558.1%, reflecting severe operating losses relative to revenue.
- With net debt of $3.3M and continued cash burn of -$3.3M in operating cash flow for FY2025, capital reserves face pressure.
- A high beta of 2.20 reflects elevated share price volatility relative to the broader market.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SKYQ AI stock analysis
This page is an AI-written research summary of Sky Quarry Inc (SKYQ). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SKYQ income statement, SKYQ balance sheet, SKYQ key metrics, SKYQ chart. See the SKYQ stock overview for the latest quote and news.
SKYQ AI stock analysis FAQ
What does Sky Quarry Inc do?
Sky Quarry Inc operates as an oil production, refining, and development-stage environmental remediation company that recycles waste asphalt shingles, remediates oil-saturated sands and soils, and refines heavy crude oil into products like diesel and paving asphalt liquids.
Does Sky Quarry pay a dividend?
No, Sky Quarry does not pay a dividend.
What were Sky Quarry's recent financial results?
In FY2025, Sky Quarry reported revenue of $12.5M and a net loss of -$12.2M, with an operating margin of -73.9% and diluted EPS of -$1.34.
What is Sky Quarry's debt and cash position?
As of June 30, 2026, the company held $7.2M in cash and short-term investments and $10.5M in total debt, resulting in net debt of $3.3M.
When is Sky Quarry's next earnings report?
Sky Quarry's next earnings date is scheduled for November 13, 2026.