Sky Quarry, Inc. (SKYQ) AI Stock Analysis

• Market Cap: $13.24M
• Dividend Yield: N/A
• Average Volume (3M): 13.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• 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: 25,546,358
• 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: 1.78
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $0.30 ▲(28.26% Upside)

The score is primarily weighed down by poor financial performance (sharp revenue decline, losses, and ongoing cash burn). Technicals are also weak with the stock trading below key moving averages and a negative MACD. Valuation is constrained by a negative P/E and no dividend yield, while recent corporate events provide only a limited positive offset.

Positive Factors

Sustainable Business Model

Sky Quarry's core model of converting waste into construction aggregates aligns with long-term sustainability trends and regulatory emphasis on circular materials. Durable demand for lower-carbon alternatives can support steady volumes and niche pricing over multiple years if execution scales efficiently.

Municipal/Industrial Partnerships & Incentives

Access to municipal and industrial feedstock plus potential grants can provide stable, low-cost inputs and non-dilutive funding. Such structural partnerships reduce raw-material volatility, support predictable throughput, and improve long-term unit economics versus competitors lacking secured supply.

Board Strengthening

Adding independent directors with capital markets, legal, and strategic-growth experience can materially improve governance, capital-raising ability, and strategic focus. Stronger oversight supports durable execution on scaling operations and navigating regulatory or financing complexities.

Negative Factors

Sharp Revenue Decline

A >50% revenue drop with negative gross profit signals loss of scale and persistent operational issues. Sustained top-line erosion undermines fixed-cost absorption and long-term margin recovery, making it harder to fund growth or reach breakeven without structural changes to sales or pricing.

Negative Cash Flows

Ongoing negative operating and free cash flows indicate the company is burning cash to run operations. Over months this limits reinvestment, forces reliance on external financing, and raises refinancing risk, constraining the ability to scale or withstand industry downturns without dilutive or expensive capital.

Leverage & Weak Returns

A near-1.0 debt-to-equity with negative ROE suggests limited balance-sheet flexibility and shareholder value erosion. This structural leverage level increases vulnerability to cash-flow shortfalls and restricts capacity for capital investment or opportunistic growth until profitability and equity strength improve.

Sky Quarry, Inc. Business Overview & Revenue Model

Company Description

Sky Quarry Inc. operates as an oil production, refining, and environmental remediation company. The company facilitates recycling of waste asphalt shingles and remediation of oil-saturated sands and soils. It also engages in the refining of heavy oil into diesel and other petroleum products; and exploration and development of oil sand properties. The company was formerly known as Recoteq Inc. and changed its name to Sky Quarry Inc. in April 2020. Sky Quarry Inc. was incorporated in 2019 and is headquartered in Woods Cross, Utah.

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: Positive
• Last Price: 0.23
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 0.23 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.37, and below the 200-day MA of 0.56, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 56.43 is Neutral, neither overbought nor oversold. The STOCH value of 46.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKYQ.

Sky Quarry, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLNG	66 Neutral	$84.24M	79.47	1.54%	―	-2.40%	-74.09%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SKYQ	41 Neutral	$13.24M	-0.78	-192.25%	―	―	―

Sky Quarry, Inc. Corporate Events

Sky Quarry Ends Equity Purchase Agreement, Explores Financing Alternatives

On January 7, 2026, Sky Quarry, Inc. terminated, without cause, its equity purchase agreement with Varie Asset Management LLC, originally entered into on July 9, 2025, which had allowed the company to compel Varie to buy up to $8.125 million of its common stock under specified conditions. Although Varie had previously received 366,260 shares as consideration for its purchase commitment, Sky Quarry never utilized the facility to sell any additional shares, and determined that ending the agreement immediately—without incurring penalties—was in its best interest as it pursues alternative financing options, signaling a shift in its capital-raising strategy that may affect how the company funds its operations going forward.

The most recent analyst rating on (SKYQ) stock is a Hold with a $0.30 price target. To see the full list of analyst forecasts on Sky Quarry, Inc. stock, see the SKYQ Stock Forecast page.

Sky Quarry Settles Liabilities with Share Issuance

On December 11, 2025, Sky Quarry, Inc. issued 699,977 shares of its common stock to LendSpark Corporation as part of a settlement agreement to resolve outstanding liabilities of $491,384 owed by its subsidiary, Foreland Refining Corporation. Additionally, LendSpark is set to receive another 699,977 shares, along with 70,000 shares issued for incurred fees, marking a significant move to settle debts and stabilize financial relations.

The most recent analyst rating on (SKYQ) stock is a Sell with a $0.36 price target. To see the full list of analyst forecasts on Sky Quarry, Inc. stock, see the SKYQ Stock Forecast page.

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.

The most recent analyst rating on (SKYQ) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Sky Quarry, Inc. stock, see the SKYQ Stock Forecast page.

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.

The most recent analyst rating on (SKYQ) stock is a Sell with a $0.50 price target. To see the full list of analyst forecasts on Sky Quarry, Inc. stock, see the SKYQ Stock Forecast page.