Sky Quarry, Inc. (SKYQ) AI Stock Analysis

• Market Cap: $8.99M
• Dividend Yield: N/A
• Average Volume (3M): 13.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 26
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): -0.17
• Shares Outstanding: 24,776,380
• 10 Day Avg. Volume: 350,446
• 30 Day Avg. Volume: 13,170,332
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 0.94
• P/FCF Ratio: -2.44
• Enterprise Value/Market Cap: 2.62
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: -5.76
• Enterprise Value/Ebitda: -2.83
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: $0.36 ▲(1.43% Upside)

Sky Quarry, Inc. is currently facing severe financial difficulties, with declining revenues and negative cash flows being the most significant concerns. The technical analysis suggests a bearish trend, and the valuation metrics are unattractive due to negative earnings. While recent corporate events are positive, they do not sufficiently offset the overall negative outlook.

Positive Factors

Sustainable Business Model

Sky Quarry's focus on recycling and sustainable practices positions it well in the growing market for eco-friendly construction materials, providing a durable competitive advantage.

Strategic Board Appointments

The addition of experienced board members can enhance strategic direction and governance, supporting long-term growth and stability.

Preferred Stock Offering

The preferred stock offering strengthens Foreland's capital structure, providing funds for growth initiatives and potentially improving financial stability.

Negative Factors

Declining Revenues

Significant revenue decline indicates challenges in market demand or operational execution, impacting long-term profitability and growth prospects.

Negative Cash Flow

Negative cash flow suggests inefficiencies in operations and financial strain, limiting the company's ability to invest in growth and meet obligations.

Nasdaq Compliance Risk

Failure to meet Nasdaq listing requirements poses a risk of delisting, which could affect investor confidence and access to capital markets.

Sky Quarry, Inc. Business Overview & Revenue Model

Company Description

Sky Quarry, Inc. (SKYQ) is an innovative company focused on sustainable practices within the construction and materials sector. The company specializes in recycling waste materials to produce high-quality construction aggregates and other sustainable building solutions. By utilizing advanced technology and environmentally friendly processes, Sky Quarry aims to reduce landfill waste while providing cost-effective alternatives to traditional construction materials.

How the Company Makes Money

Sky Quarry generates revenue primarily through the production and sale of recycled construction aggregates. The company sources waste materials, processes them into valuable products, and sells these aggregates to construction companies and contractors. Key revenue streams include the direct sale of these aggregates, as well as potential partnerships with municipal and industrial organizations that supply waste materials for recycling. Additionally, Sky Quarry may benefit from government incentives or grants aimed at promoting sustainable practices, further contributing to its earnings.

Sky Quarry, Inc. Financial Statement Overview

Summary

Sky Quarry, Inc. faces significant financial challenges, with declining revenues, negative profitability, and cash flow issues. The balance sheet shows moderate leverage but lacks strong equity returns. Focused efforts on improving operational efficiency and cash management are critical for financial stability.

Income Statement

Sky Quarry, Inc. has faced significant revenue decline and profitability challenges with a sharp drop in total revenue from $50.7M to $23.4M, a decrease of 53.9%. The company reported negative gross profit and net income, leading to negative profit margins, indicating operational inefficiencies and losses.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.95, reflecting a balanced leverage level. However, the negative return on equity and low equity ratio highlight financial strain and limited shareholder returns.

Cash Flow

Sky Quarry's cash flow is under pressure with negative operating and free cash flows, indicating cash burn. The operating cash flow to net income ratio is negative, showcasing cash inefficiencies. Despite financing inflows, the overall cash position remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	16.40M	23.36M	50.73M	16.29M
Gross Profit	-4.09M	-1.40M	2.34M	3.49M
EBITDA	-8.32M	-7.33M	-379.92K	-1.32M
Net Income	-13.54M	-14.73M	-4.44M	-2.71M
Balance Sheet
Total Assets	20.85M	26.95M	28.18M	26.85M
Cash, Cash Equivalents and Short-Term Investments	362.52K	385.12K	326.82K	572.20K
Total Debt	9.37M	10.94M	10.18M	3.30M
Total Liabilities	15.39M	15.45M	15.09M	10.47M
Stockholders Equity	5.46M	11.50M	13.09M	16.38M
Cash Flow
Free Cash Flow	-4.92M	-8.97M	-2.07M	-7.99M
Operating Cash Flow	-4.86M	-7.49M	-376.06K	-2.72M
Investing Cash Flow	-47.63K	-1.48M	-731.94K	-9.27M
Financing Cash Flow	2.91M	7.62M	4.46M	11.68M

Sky Quarry, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKYQ, the sentiment is Negative. The current price of 0.35 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.42, and below the 200-day MA of 0.59, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 42.73 is Neutral, neither overbought nor oversold. The STOCH value of 41.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKYQ.

Sky Quarry, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLNG	68 Neutral	$95.11M	92.12	1.54%	―	-2.40%	-74.09%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SKYQ	40 Underperform	$8.99M	-0.54	-192.25%	―	―	―

Sky Quarry, Inc. Corporate Events

Sky Quarry Appoints New Independent Board Members

On November 21, 2025, Sky Quarry, Inc. appointed Robert Byrne, Alexander Monje, and Omar Hussein as independent members of its board of directors, filling vacancies created by an earlier expansion of the board in August 2025. These appointments are expected to enhance the company’s strategic direction, given the extensive experience of the new directors in areas such as capital markets, legal affairs, and strategic growth in technology and finance sectors.

Sky Quarry Approves Key Proposals at Annual Meeting

On November 4, 2025, Sky Quarry, Inc. held its Annual Meeting of Stockholders where several key proposals were approved. These included the election of four directors, an amendment to increase authorized common stock from 100 million to 2 billion shares, authorization for a reverse stock split, an amendment to the 2020 Stock Plan to increase shares for issuance, and the ratification of Tanner LLC as the independent registered public accounting firm for 2025. These decisions are poised to significantly impact the company’s capital structure and governance, potentially affecting its market positioning and shareholder value.

Sky Quarry Completes Preferred Stock Offering

In July 2025, Foreland Refining Corporation, a wholly-owned subsidiary of Sky Quarry, Inc., initiated an offering of its Series A 10% Redeemable Preferred Stock under Regulation C. By October 1, 2025, Foreland completed the sale of 1,182 shares, raising $416,700 from the sale of 4,167 shares, with plans to continue the offering to reach up to $1,235,000. The Preferred Stock offers a 10% annual dividend and a royalty payment tied to crude oil sales, with redemption terms varying based on the duration held. This strategic financial move aims to bolster Foreland’s capital structure, potentially enhancing its market position and providing attractive returns to investors.

Sky Quarry Granted 180-Day Nasdaq Compliance Extension

Sky Quarry Inc. received a notification from Nasdaq on September 25, 2025, granting an additional 180-day period until March 23, 2026, to comply with the Minimum Bid Price Requirement of $1.00 per share. The company had initially failed to meet this requirement as its stock price fell below $1.00 for 30 consecutive days. The extension was granted because Sky Quarry met other listing requirements and expressed intent to rectify the issue. If compliance is not achieved by the deadline, the company risks delisting but can appeal the decision.