Executive Summary
Laredo Oil Inc delivered a modest top-line in QQ2 2025, with reported revenue of 1.64 million and gross profit matching revenue, yielding a gross margin effectively at 100% on the face of the figures. However, the quarter is defined by a heavy drag from operating expenses and financing costs, resulting in a substantial EBITDA loss of 0.704 million and a net loss of 0.816 million. The quarter’s cash flow showed a negative operating cash flow of 0.605 million, paired with a sizable capital expenditure program of 1.757 million, pressuring near-term liquidity and highlighting the need for capital discipline and balance-sheet stabilization. Notably, the balance sheet shows a heavily levered liability position with total liabilities of 16.45 million against total assets of 4.94 million and a negative shareholders’ equity of 11.51 million, signaling significant solvency and equity concerns despite a cash balance of 1.88 million. The reported data suggests a business at an early-stages of transformation within its mature-field EOR (enhanced oil recovery) strategy, but the absence of a credible, disclosed forward guidance and the lack of a management call transcript clouds near-term visibility. Investors should monitor whether LRDC can align capex with cash generation, stabilize liquidity, and demonstrate meaningful production uplift from its EOR program before re-rating the stock.
Key Performance Indicators
QoQ: -72.88% | YoY:124.68%
QoQ: -73.83% | YoY:-18.95%
QoQ: -70.77% | YoY:-9.90%
Key Insights
Revenue: 1.64m; Gross Profit: 1.64m; Gross Margin: 100.0%; EBITDA: -0.704m; Operating Income: -0.711m; Net Income: -0.816m; EPS: -0.0111; YoY changes (where available): Gross Profit +124.7%; Operating Income +7.9%; Net Income -18.95%; EPS -9.90%. QoQ changes: Revenue -72.88%; Gross Profit -72.88%; Operating Income -7.04%; Net Income -73.83%; EPS -70.77%. CFO: -0.605m; Capex: -1.758m; Free Cash Flow (reported): 1.152m; Beginning cash: 1.935m; Ending cash: 1.883m; Cash Conversion Metrics: Current ...
Financial Highlights
Revenue: 1.64m; Gross Profit: 1.64m; Gross Margin: 100.0%; EBITDA: -0.704m; Operating Income: -0.711m; Net Income: -0.816m; EPS: -0.0111; YoY changes (where available): Gross Profit +124.7%; Operating Income +7.9%; Net Income -18.95%; EPS -9.90%. QoQ changes: Revenue -72.88%; Gross Profit -72.88%; Operating Income -7.04%; Net Income -73.83%; EPS -70.77%. CFO: -0.605m; Capex: -1.758m; Free Cash Flow (reported): 1.152m; Beginning cash: 1.935m; Ending cash: 1.883m; Cash Conversion Metrics: Current ratio 0.13, Quick ratio 0.13. Leverage: Total liabilities 16.45m vs. cash ~1.88m; Equity: -11.51m; Net debt: -1.84m (negative due to cash vs. debt).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.64K |
N/A |
-72.88% |
| Gross Profit |
1.64K |
124.68% |
-72.88% |
| Operating Income |
-711.10K |
7.91% |
-7.04% |
| Net Income |
-815.72K |
-18.95% |
-73.83% |
| EPS |
-0.01 |
-9.90% |
-70.77% |
Key Financial Ratios
operatingProfitMargin
-43360%
operatingCashFlowPerShare
$-0.01
freeCashFlowPerShare
$0.02
Management Commentary
Transcript not available in the provided data for QQ2 2025 LRDC results. Management quotes and call-by-call remarks are therefore not included. When available, include themes on strategy execution (EOR maturity-field monetization, capex discipline, capital structure moves), operations (field-level production performance, well results), and market conditions (oil price outlook, hedging stance, regulatory environment).
Transcript not available for QQ2 2025 LRDC results.
— N/A
Transcript not available for QQ2 2025 LRDC results.
— N/A
Forward Guidance
No explicit forward guidance is provided in the data set. Given the liquidity pressures (low current ratio, negative equity) and a large capex program relative to quarterly revenue, the company will likely need external liquidity or asset monetization to stabilize the balance sheet. Near-term guidance would hinge on: (1) achievement of production uplift from EOR initiatives in mature fields, (2) stabilization or improvement in oil prices to support revenue scale, (3) capital allocation strategy to align capex with cash flow, and (4) potential balance-sheet actions (debt financing, equity infusion, asset dispositions). Investors should monitor quarterly production updates, field-level cash costs, capex intensity, and any shifts in financing strategy that could alter liquidity trajectory.