Executive Summary
Laredo Oil Inc delivered a difficult QQ3 2025, characterized by a modest topline in the quarter and persistent cash burn driven by high operating expenses and a heavy SG&A load. Reported revenue of approximately $1.735 million for QQ3 2025, with a net loss of roughly $0.416 million and an EBITDA of about -$0.292 million. The operating loss of roughly -$0.599 million and a negative net income of -$0.416 million underscore the company’s ongoing cash-burn dynamics despite a narrow gross profit baseline (gross profit of $1.735 million, gross margin reported at 100% in the dataset, though no cost of revenue is shown). Management commentary is not provided in the supplied transcript data, leaving market participants without formal forward guidance in the QQ3 2025 period.
Liquidity and leverage remain the dominant overhang. The balance sheet shows a highly leveraged position with total liabilities of about $17.35 billion against total assets of $5.47 billion and negative stockholders’ equity (~$-11.88 billion). The current ratio and quick ratio stand at approximately 0.10, signaling material liquidity stress. Net debt stands at roughly $3.12 billion, with cash and equivalents around $27.8k and short-term investments of about $1.52 billion on balance, implying possible misalignment in reported units or integration of asset values in this dataset. Free cash flow for the quarter was deeply negative at -$2.64 million, while operating cash flow was also negative, highlighting ongoing cash burn.
The market backdrop for LRDC remains a critical driver of investment risk: a leveraged balance sheet in an energy transition backdrop, questionable near-term liquidity, and limited visible catalysts in the QQ3 2025 period absent a clear management guidance. The longer-term upside potential hinges on stabilization of commodity prices, successful deployment of enhanced oil recovery (EOR) strategies on mature fields, and meaningful debt-relief or equity resilience. Investors should monitor oil price trends, field-level capex efficiency, and any announced restructurings or asset sales that could meaningfully alter liquidity and leverage.
Key Performance Indicators
QoQ: 49.03% | YoY:-23.58%
QoQ: 9.91% | YoY:-112.77%
Key Insights
Revenue: $1.735 million in QQ3 2025, YoY change -86.34%, QoQ change +5.79%.
Gross Profit: $1.735 million in QQ3 2025, YoY change -71.36%, QoQ +5.79%.
Operating Income: -$0.5987 million in QQ3 2025, YoY change -8.79%, QoQ +15.80%.
Net Income: -$0.4158 million in QQ3 2025, YoY change -23.58%, QoQ +49.03%.
EPS (Basic/Diluted): -$0.01 for QQ3 2025, YoY change -112.77%, QoQ +9.91%.
EBITDA: -$0.2921 million, EBITDA Margin: -168.37% (per the provided data).
Free Cash Flow: -$2.6416 million (quarterly)....
Financial Highlights
Revenue: $1.735 million in QQ3 2025, YoY change -86.34%, QoQ change +5.79%.
Gross Profit: $1.735 million in QQ3 2025, YoY change -71.36%, QoQ +5.79%.
Operating Income: -$0.5987 million in QQ3 2025, YoY change -8.79%, QoQ +15.80%.
Net Income: -$0.4158 million in QQ3 2025, YoY change -23.58%, QoQ +49.03%.
EPS (Basic/Diluted): -$0.01 for QQ3 2025, YoY change -112.77%, QoQ +9.91%.
EBITDA: -$0.2921 million, EBITDA Margin: -168.37% (per the provided data).
Free Cash Flow: -$2.6416 million (quarterly).
Operating Cash Flow: -$2.6416 million; Net cash burn from financing activities: -$0.9161 million; Ending cash: $1.543 million.
Current ratio: 0.103; Quick ratio: 0.103; Cash ratio: 0.0017.
Debt profile: Total debt approx. $3.1467 million, Net debt approx. $3.1191 million. Balance sheet shows negative equity (~$-11.8765 million) in the data, with total assets around $5.4748 million and total liabilities of $17.3517 million.
Note: Several ratios in the provided data appear inconsistent (e.g., margins vs. revenue scale, and some asset/debt figures in USD thousands versus actuals). Analysis reflects the figures as presented and flags structural balance-sheet risks accordingly.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.74K |
-86.34% |
5.79% |
| Gross Profit |
1.74K |
-71.36% |
5.79% |
| Operating Income |
-598.74K |
-8.79% |
15.80% |
| Net Income |
-415.75K |
-23.58% |
49.03% |
| EPS |
-0.01 |
-112.77% |
9.91% |
Key Financial Ratios
operatingProfitMargin
-34510%
operatingCashFlowPerShare
$-0.04
freeCashFlowPerShare
$-0.04
priceEarningsRatio
-18.16
Management Commentary
No QQ3 2025 earnings call transcript was provided in the dataset. Consequently, there are no management quotes or explicit forward-looking statements to reference. Investors should seek the QQ3 2025 earnings call transcript for color on field-level performance, EOR initiatives, cost-control measures, and any guidance on debt management or capex plans. In lieu of transcript-derived insights, the analysis focuses on reported financials and industry context to infer potential management priorities (e.g., cost control, liquidity management, and EOR efficiency).
Forward Guidance
No formal forward guidance was published for QQ3 2025 in the provided data. Given the leverage and liquidity concerns, investors should anticipate management commentary on: 1) oil price sensitivity and its impact on cash generation, 2) potential debt refinancing or dilution options to shore up liquidity, 3) progress on EOR deployments and production optimization at mature fields, and 4) any capex or asset-sale plans to reduce leverage. In scenario terms:
- Bullish if oil prices stabilize above $70-$75/bbl and EOR initiatives yield sustained production uplift, potentially improving the operating cash flow and reducing absolute cash burn.
- Bearish if oil prices retreat, debt maturities pressure liquidity, or if capex remains elevated without commensurate production gains, exacerbating the cash burn and pressuring equity.
Key factors to monitor: oil price trajectory, field-level production performance (especially EOR returns), working capital efficiency, any announced restructuring or asset sales, and the horizon for debt maturity relief.