Dallas, TX, Nov. 20, 2025 (GLOBE NEWSWIRE) -- Vivakor, Inc. (Nasdaq: VIVK) ("Vivakor" or the "Company"), an integrated provider of energy transportation, storage, reuse, and remediation service, today announced financial and operational results for the three and nine months ended September 30, 2025.
Key Financial Highlights for the Three Months Ended September 30, 2025 (YoY):
- Revenue increased 7% to $17.0 million;
- Gross profit increased 173% to $4.7 million;
- Gross margin improved 1700 basis points to 27.8%;
- Adjusted EBITDA increased to approximately $4 million, reflecting significant operational improvements;
- Total assets at $160.1 million; and
- Stockholders' equity at $64.0 million.
Revenue Breakdown:
- Transportation and Logistics: $4.7 million
- Transportation and Logistics (related party): $2.5 million
- Terminaling and Storage (related party): $0.9 million
- Supply and Trading: $8.9 million
Divestiture on July 30, 2025
On July 30, 2025, Vivakor completed the sale of certain non-core business units of Meridian Equipment Leasing, LLC and Equipment Transport, LLC-subsidiaries formerly acquired with the Endeavor Entities in October 2024. The divestitures were executed as part of the Company's strategic plan to streamline operations and sharpen its focus on core midstream transportation, terminaling, and environmental processing services.
The transaction generated approximately $11 million in net consideration and resulted in the elimination of approximately $59 million of debt, significantly improving Vivakor's credit profile and strengthening its overall capital structure.
By exiting the produced water transportation segment, the Company expects to realize meaningful annualized interest expense savings. The divestiture also enhances operational efficiency and frees up both capital and management resources to concentrate on higher-margin, higher-growth business lines aligned with Vivakor's long-term strategic direction.
Management Commentary
Vivakor Chairman and Chief Executive Officer James Ballengee commented, "This third quarter represents a pivotal turning point for Vivakor. In July, we completed the divestiture of non-performing assets, a strategic move that strengthened our balance sheet and sharpened our focus on core, high-growth opportunities. Our remaining midstream assets, including our trucking fleet, pipeline infrastructure, crude oil transfer stations, terminal equipment, and storage facilities, are now better aligned to support and create synergies with our expanding supply and trading platform."
Ballengee continued, "We are particularly excited about the momentum in our supply and trading business. With the recent closing of an intermediation facility and the expected launch of our Remediation Processing Center in Houston during the first quarter of 2026, we are well positioned for continued growth. Early commodity trading transactions in crude oil and liquefied petroleum gas have been highly encouraging, and we are focused on accelerating activity across these markets. This initiative enhances our ability to manage commodity flows, integrate volumes across our transportation and terminal assets, and generate immediate, accretive revenue while diversifying and expanding our crude oil marketing capabilities."
Vivakor Chief Financial Officer Kimberly Hawley added, "With the divestiture and several capital initiatives now completed, we have significantly strengthened our liquidity profile and enhanced our financial flexibility. Since taking on the role of CFO, my priority has been to execute a disciplined and accretive capital plan that expands our working capital resources to support increased customer demand. We are now well positioned to scale our trading and logistics operations efficiently while maintaining a strong balance sheet, financial stability, and operational agility."
Financial Results for Three Months Ended September 30, 2025
- Revenue for the three months ended September 30, 2025, increased $1.1 million, or 7%, to $17.0 million, compared to $15.9 million in the prior-year period. The increase was primarily driven by higher activity within our transportation and logistics and terminaling and storage segments, largely attributable to the operations of the Endeavor Entities acquired in the business combination completed on October 1, 2024.
- Gross profit increased $3.0 million, or 173%, to $4.7 million, compared to $1.7 million for the three months ended September 30, 2024. Gross margin expanded to 27.8%, up from 10.8% in the prior-year period, reflecting operational efficiencies and improved mix across our service offerings.
- Operating loss increased $7.1 million, or 361%, to $9.0 million, compared to $1.9 million in the third quarter of 2024. The 2025 operating loss included $4.28 million in non-cash expenses, comprised of $3.0 million of depreciation and amortization and $1.28 million in stock-based compensation. This compares to $1.59 million of non-cash expenses in the prior-year period, including $1.1 million of depreciation and amortization and $0.49 million of stock-based compensation.
- Adjusted EBITDA for the three months ended September 30, 2025, improved by $5.5 million to $4.0 million from a loss of $1.5 million for the same period in 2024. Adjusted EBITDA reflects EBITDA further adjusted for non-cash and one-time items, including unrealized gains/losses on marketable securities, stock compensation, non-qualified option expenses, loss on conversion of debt, and loss on disposition of assets. These adjustments totaled approximately $9.9 million for the three months ended September 30, 2025, and $0.83 million for the three months ended September 30, 2024.
- Net loss for the three months ended September 30, 2025, was $36.0 million, an increase of $34.3 million compared to a net loss of $1.7 million in the prior-year period. Net loss per share was ($2.09), compared to ($0.06) in the third quarter of 2024. The increase was primarily driven by the non-cash loss on conversion of debt of $9.8 million and non-cash interest expense of $14.4 million.
About Vivakor, Inc.
Vivakor, Inc. is an integrated provider of sustainable energy transportation, storage, reuse, and remediation services, operating one of the largest fleets of oilfield trucking services in the continental United States. Its corporate mission is to develop, acquire, accumulate, and operate assets, properties, and technologies in the energy sector. Vivakor's integrated facilities assets provide crude oil and produced water gathering, storage, transportation, reuse, and remediation services under long-term contracts.
Once operational, Vivakor's oilfield waste remediation facilities will facilitate the recovery, reuse, and disposal of petroleum byproducts and oilfield waste products.
For more information, please visit our website: http://vivakor.com
Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements. Forward-looking statements may be identified but not limited by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," or "continue" and variations or similar expressions. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including, but not limited to,, the expected transaction and ownership structure, the valuation of the transaction, the likelihood and ability of the parties to successfully and timely consummate planned acquisitions, the risk that any required regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect Vivakor or the expected benefits of the such transaction, our ability to maintain the listing of our securities on The Nasdaq Capital Market, the parties failure to realize the anticipated benefits of pending transactions, disruption and volatility in the global currency, capital, and credit markets, changes in federal, local and foreign governmental regulation, changes in tax laws and liabilities, tariffs, legal, regulatory, political and economic risks, our ability to successfully develop products, rapid change in our markets, changes in demand for our future products, and general economic conditions.
These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in Vivakor's filings with the U.S. Securities and Exchange Commission, which factors may be incorporated herein by reference. Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as projected financial information and other information are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond our control. All information set forth herein speaks only as of the date hereof in the case of information about Vivakor and the Endeavor Entities or the date of such information in the case of information from persons other than Vivakor and the Endeavor Entities, and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication. Forecasts and estimates regarding the Endeavor Entities industries and markets are based on sources we believe to be reliable; however, there can be no assurance these forecasts and estimates will prove accurate in whole or in part.
Investors Contact:
P:949-281-2606
info@vivakor.com
