Clean Energy Fuels Corp. (NASDAQ:CLNE), a leading provider of renewable natural gas (RNG) for transportation, reported its fourth-quarter and full-year 2025 financial results after the market close on Monday. The company's performance presented a mixed financial picture, with revenue exceeding analyst expectations but profitability metrics reflecting significant one-time charges and ongoing investments in its RNG production infrastructure.
Earnings and Revenue Versus Estimates
For the quarter ending December 31, 2025, Clean Energy posted revenue of $112.3 million. This figure surpassed the consensus analyst estimate of approximately $107.8 million. The company's non-GAAP earnings per share (EPS) came in at $0.00, which was better than the estimated loss of $0.037 per share.
The full-year 2025 results showed a similar trend:
- Annual Revenue: $424.8 million, compared to $415.9 million in 2024.
- Annual GAAP Net Loss: $(222.0) million, or $(1.01) per share.
- Annual Adjusted EBITDA: $67.6 million, down from $76.6 million in the prior year.
The significant GAAP net loss for the year was heavily impacted by several large, non-cash items, including a $64.3 million goodwill impairment charge and $56.0 million in accelerated depreciation related to station equipment removal.
Market Reaction and Price Action
The initial market reaction in after-hours trading was modestly positive, with shares rising approximately 0.4%. This muted response suggests investors are weighing the top-line beat against the deeper GAAP losses and a year-over-year decline in Adjusted EBITDA. The stock's performance over recent weeks has been volatile, showing a slight decline over the past two weeks but remaining up over the past month, indicating some anticipation or positioning ahead of the earnings release.
Strategic and Operational Highlights
Beyond the financial figures, the earnings release emphasized several key operational milestones that management believes position the company for future growth in the alternative fuel sector:
- RNG Volume Growth: Sold 64.1 million gallons of RNG in Q4 2025, a 3.4% increase year-over-year. Full-year RNG gallons sold reached 237.4 million.
- Major Production Facility: Successfully completed its RNG production plant at South Fork Dairy in Texas, one of the largest in the U.S., with an annual production capacity of approximately 2.6 million gallons.
- Fleet Adoption: Reported expanded adoption of RNG across transit, freight, and municipal fleet segments.
- Balance Sheet Management: Reduced long-term debt by $65 million using available cash, strengthening the company's financial position.
CEO Andrew J. Littlefair stated, "Considering the rather volatile market... we are very pleased to end 2025 in a strong position with our operating results coming in slightly better than expected." He attributed the resilience to RNG being viewed as a "viable, affordable, and ready-now clean fuel solution" for fleets.
Forward Outlook and Analyst Comparisons
Management provided guidance for 2026, projecting an Adjusted EBITDA range of $70 million to $75 million. This outlook compares to the current full-year 2026 analyst sales estimate of approximately $448.2 million. The company's EBITDA forecast offers a benchmark for operational profitability against which future quarters will be measured.
The GAAP net loss for 2026 is expected to be between $(71) million and $(66) million, which includes an estimated $47 million in non-cash Amazon warrant charges. This projection highlights that while the core operating business is expected to generate positive Adjusted EBITDA, significant accounting charges will continue to impact the bottom line.
For a detailed breakdown of future quarterly estimates and to track Clean Energy's performance against these targets, more earnings and estimate data can be viewed here.
Conclusion
Clean Energy Fuels' Q4 2025 report underscores its position as a volume leader in the RNG fueling space, successfully growing sales and expanding its production capabilities. The revenue beat is a positive signal of demand strength. However, the market's tempered reaction reflects the complex financial narrative, where robust fuel sales and strategic progress are juxtaposed with substantial non-cash charges that result in deep GAAP losses. Investors appear to be focusing on the company's long-term trajectory in the decarbonization of heavy transport, its ability to execute on its RNG production strategy, and the path toward translating top-line growth into sustained, clean profitability as outlined in its 2026 Adjusted EBITDA guidance.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
