Sky Quarry, Inc. (SKYQ) AI Stock Analysis

• Market Cap: $11.36M
• Dividend Yield: N/A
• Average Volume (3M): 839.77K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.27
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 26
• Sector: Energy
• Sector Strength: 60
• Industry: Oil & Gas Integrated
• EPS (TTM): -0.59
• Shares Outstanding: 22,480,036
• 10 Day Avg. Volume: 464,932
• 30 Day Avg. Volume: 839,767
• PEG Ratio: -0.09
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.59
• Enterprise Value/Market Cap: 2.12
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: -8.28
• Enterprise Value/Ebitda: -2.52
• 1Y Price Target: $0.50
• Price Target Upside: 0.00%
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: $0.50 ▲(0.00%Upside)

Sky Quarry, Inc. faces significant financial and technical challenges, with declining revenues and bearish market momentum. While recent corporate initiatives are positive, they are not enough to offset the substantial financial and valuation concerns. Focus on improving profitability and cash flow is essential for future stability.

Sky Quarry, Inc. Business Overview & Revenue Model

Company Description

Sky Quarry, Inc. (SKYQ) is an environmental solutions company focused on the remediation and repurposing of waste materials from the oil and gas sector. The company operates in the environmental services and waste management sectors, offering proprietary technology and processes to reclaim and recycle oil sands and other petroleum-related waste materials. Sky Quarry aims to provide sustainable solutions that help reduce the environmental impact of industrial waste, while also creating value-added products.

How the Company Makes Money

Sky Quarry, Inc. makes money through the processing and reclamation of oil-related waste materials, turning these into reusable products. The company's revenue is primarily generated through contracts with oil and gas companies, where they are paid for the cleanup and remediation of waste sites. Additionally, Sky Quarry may earn income from the sale of recycled materials and by-products that are processed and refined using their proprietary technologies. Partnerships with energy companies and governmental bodies for sustainable waste management solutions also contribute to their earnings.

Sky Quarry, Inc. Financial Statement Overview

Summary

Sky Quarry, Inc. is experiencing significant financial challenges, with a steep revenue decline, negative profitability, and cash flow issues. The company's balance sheet shows moderate leverage but lacks strong equity returns. Improvements in operational efficiency and cash management are critical.

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
Income Statement
Total Revenue	10.52M	23.36M	50.73M
Gross Profit	-2.91M	-1.40M	2.34M
EBITDA	-4.38M	-7.33M	-379.92K
Net Income	-7.54M	-14.73M	-4.44M
Balance Sheet
Total Assets	24.59M	26.95M	28.18M
Cash, Cash Equivalents and Short-Term Investments	213.00K	385.12K	326.82K
Total Debt	9.27M	10.94M	10.18M
Total Liabilities	15.01M	15.45M	15.09M
Stockholders Equity	9.58M	11.50M	13.09M
Cash Flow
Free Cash Flow	-4.75M	-8.97M	-2.07M
Operating Cash Flow	-4.84M	-7.49M	-376.06K
Investing Cash Flow	101.75K	-1.48M	-731.94K
Financing Cash Flow	2.57M	7.62M	4.46M

Sky Quarry, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.5 is below the 20-day moving average (MA) of 0.63, below the 50-day MA of 0.71, and below the 200-day MA of 1.07, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 33.50 is Neutral, neither overbought nor oversold. The STOCH value of 4.15 is Positive, 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	67 Neutral	$85.54M	55.83	2.37%	―	7.30%	208.99%
Sector *	52 Neutral	C$2.99B	-1.51	-3.48%	6.43%	2.60%	-49.87%
SKYQ	46 Neutral	$11.36M	―	-80.01%	―	―	―

Sky Quarry, Inc. Corporate Events

Sky Quarry Subsidiary Issues $1M Promissory Note

On July 24, 2025, Sky Quarry Inc.’s subsidiary, Foreland Refining Corporation, issued a secured promissory note worth $1,000,000 to KF Business Ventures, LP. As part of the deal, Sky Quarry provided 500,000 shares of common stock and warrants for 2,000,000 additional shares as an incentive. The note, maturing on November 24, 2025, carries a 30% annual interest rate and is secured by the assets of another subsidiary, 2020 Resources LLC. This financial maneuver is significant for Sky Quarry as it involves extending the term of previous warrants and allocating a substantial portion of proceeds from ongoing offerings to repay this and other notes, indicating a strategic focus on managing financial obligations.

Sky Quarry Launches Crowdfunding for Refinery Upgrades

On July 23, 2025, Sky Quarry Inc. announced a crowdfunding campaign by its subsidiary, Foreland Refining Corporation, to capitalize on shifting fuel markets in the Western U.S. The campaign aims to support refinery upgrades, improve efficiency, and integrate recycled heavy oil from future operations. This initiative reflects Sky Quarry’s commitment to sustainable energy solutions and positions the company to influence the future of digital securities and decentralized finance.

Sky Quarry Announces Digital Asset Treasury Initiative

On July 15, 2025, Sky Quarry Inc. announced a strategic initiative to establish a digital asset treasury as part of its capital allocation strategy. The company is exploring how digital assets can enhance its existing business model, aiming to strengthen its balance sheet and unlock shareholder value. By forming an internal working group and engaging industry advisors, Sky Quarry plans to secure a diversified portfolio of digital assets, positioning itself at the forefront of the energy transition. This initiative seeks to bridge traditional and renewable energy sectors through a transparent digital marketplace, potentially expanding the model across the energy spectrum.

Sky Quarry Inc. Secures Flexible Funding with Varie

On July 9, 2025, Sky Quarry Inc. entered into a purchase agreement with Varie Asset Management LLC, allowing Varie to purchase up to $8.125 million of Sky Quarry’s common stock. The agreement provides Sky Quarry with the option, but not the obligation, to sell shares to Varie over a 24-month period, subject to certain conditions including SEC registration. This strategic financial move is designed to provide Sky Quarry with flexible funding options based on market conditions and stock trading prices, while Varie is committed to purchasing shares as directed by Sky Quarry, with certain limitations on ownership percentage.