Answer
The company’s Q2 2025 press release shows that Clean Energy’s revenue rose to $102.6 million (up from $98.0 million in Q2 2024), yet the GA GA P net loss widened to $(20.2) million (or $(0.09) per share) compared with a $(16.3) million loss a year earlier.
The headline “higher revenue but larger loss” tells us that the extra sales were not enough to offset a greater increase in the company’s costs and expenses during the quarter. While the release does not item‑by‑item break out every cost line, the typical drivers of a widening loss—especially for a company that is still scaling a renewable‑natural‑gas (RNG) business—are the following:
| Cost/Expense Category | Why it can rise faster than revenue |
|---|---|
| Cost of goods sold (COGS) / fuel procurement | Clean Energy’s RNG supply chain is still maturing. If the price of the underlying natural‑gas feedstock, the cost of processing RNG, or the price of purchased RNG contracts increased, the per‑gallon cost of the 61.4 million gallons sold could have risen sharply, eroding gross margin. |
| Transportation & logistics | As the company expands its network of RNG‑fueling stations, the expense of moving larger volumes of fuel to more locations (truck fuel, rail, or ship freight) can outpace the incremental revenue from those gallons. |
| Selling, general & administrative (SG&A) expenses | Q2 2025 likely included higher marketing spend to promote the new RNG offering, additional hiring (sales, operations, compliance staff), and higher professional‑services costs (legal, accounting, consulting) tied to the company’s growth initiatives. |
| Depreciation, amortization & impairment | New capital‑intensive equipment (e.g., RNG processing units, storage tanks, fueling infrastructure) is depreciated over a short period, adding a non‑cash charge that reduces GAAP net income. If any assets were re‑valued or impaired, the charge would be reflected in the quarter’s loss. |
| Interest & financing costs | The company continues to fund expansion through debt or revolving‑credit facilities. Higher borrowings or a higher effective interest rate increase the interest‑expense line, which directly widens the net loss. |
| Other GAAP adjustments (e.g., stock‑based compensation, tax expense) | Stock‑option exercises, changes in the fair‑value of derivative hedges, or a higher effective tax rate can add to the GAAP loss even when cash‑flow‑positive. |
How the numbers line up
- Revenue growth (+4.7 % YoY) – The $4.6 million increase in sales shows the company is successfully moving more RNG gallons (61.4 M gallons sold).
- Net loss expansion (+24 % YoY) – The loss grew by $3.9 million (from $16.3 M to $20.2 M).
- Resulting margin shift – The gross margin (revenue less COGS) must have fallen, and/or operating expenses must have risen enough to turn the additional revenue into a net‑loss increase.
Because the press release only provides the top‑line figures, we can’t pinpoint the exact expense line that drove the loss, but the pattern is typical for a growth‑stage clean‑fuel company:
- Higher fuel‑costs (RNG is still more expensive than conventional gasoline/diesel).
- Accelerated capital‑expenditure roll‑up (new processing plants, storage, and fueling stations) that adds depreciation and financing costs.
- Increased SG&A to support market‑development, regulatory compliance, and the broader sales force needed to service a growing customer base.
Bottom line
The net loss widened to $(20.2) million in Q2 2025 despite higher revenue because Clean Energy’s expenses grew faster than its sales. The company is still in a scaling phase—investing heavily in RNG production, expanding its fueling‑station network, and incurring higher operating and financing costs—so the incremental revenue from the 61.4 M gallons sold was not sufficient to offset those rising cost structures on a GAAP basis. This is reflected in the larger loss per share of $(0.09) versus $(0.07) a year earlier.