Operating margins remain strained by high fixed depreciation costs, evidenced by the -3.5% operating margin reported in 2026Q1 despite a 9.3% net margin bolstered by non-operating items.
OPAL Fuels Inc. (OPAL) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Revenue | 339.11M | 348.98M | 299.97M | 256.11M | 235.53M | 166.12M | 117.71M | 119.7M |
| Revenue Growth % | 2.78% | 16.34% | 17.13% | 8.74% | 41.78% | 41.13% | -1.67% | - |
| Cost of Revenue | 245.06M | 242.79M | 199.85M | 183.9M | 162.79M | 115.06M | 90.17M | 90.97M |
| Gross Profit | 94.05M | 106.18M | 100.12M | 72.21M | 72.74M | 51.06M | 27.54M | 28.73M |
| Gross Margin % | 27.74% | 30.43% | 33.38% | 28.19% | 30.88% | 30.74% | 23.4% | 24% |
| Gross Profit Growth % | - | 6.05% | 38.66% | -0.73% | 42.46% | 85.41% | -4.15% | - |
| Operating Expenses | 87.39M | 101.39M | 78.9M | 65.17M | 65.18M | 40.03M | 45.37M | 25.83M |
| Other Operating Expenses | - | - | - | - | - | - | - | - |
| EBITDA | 29.7M | 28.03M | 39.35M | 21.73M | 21.35M | 21.68M | -9.5M | 8.67M |
| EBITDA Margin % | 8.76% | 8.03% | 13.12% | 8.48% | 9.06% | 13.05% | -8.07% | 7.24% |
| EBITDA Growth % | -0.73% | -28.77% | 81.12% | 1.78% | -1.53% | 328.25% | -209.58% | - |
| Depreciation & Amortization | 23.04M | 23.24M | 18.13M | 14.69M | 13.79M | 10.65M | 8.34M | 7.85M |
| D&A / Revenue % | 6.79% | 6.66% | 6.04% | 5.73% | 5.85% | 6.41% | 7.08% | 6.56% |
| Operating Income (EBIT) | 6.66M | 4.79M | 21.22M | 7.04M | 7.56M | 11.03M | -17.84M | 814K |
| Operating Margin % | 1.97% | 1.37% | 7.07% | 2.75% | 3.21% | 6.64% | -15.15% | 0.68% |
| Operating Income Growth % | - | -77.44% | 201.45% | -6.92% | -31.41% | 161.82% | -2291.15% | - |
| Interest Expense | 4M | 27.52M | 21.53M | 10.66M | 6.95M | 6.82M | 4.85M | 6.25M |
| Interest Coverage | - | 0.41x | 1.06x | 12.76x | 5.69x | 6.98x | -0.25x | 0.16x |
| Interest / Revenue % | 1.18% | 7.89% | 7.18% | 4.16% | 2.95% | 4.1% | 4.12% | 5.22% |
| Non-Operating Income | -4M | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | -1000K |
| Pretax Income | -23.64M | -16.34M | 5.42M | 127.02M | 32.58M | 40.77M | -25.37M | -5.25M |
| Pretax Margin % | -6.97% | -4.68% | 1.81% | 49.6% | 13.83% | 24.54% | -21.55% | -4.39% |
| Income Tax | -41.47M | -52.75M | -8.91M | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 175.41% | 322.9% | -164.35% | 0% | 0% | 0% | 0% | 0% |
| Net Income | 18.7M | 14.75M | 11.03M | 29.95M | 11.32M | 210K | -25.36M | -5.25M |
| Net Margin % | 5.51% | 4.23% | 3.68% | 11.69% | 4.81% | 0.13% | -21.54% | -4.39% |
| Net Income Growth % | 54.99% | 33.73% | -63.16% | 164.48% | 5291.9% | 100.83% | -383.1% | - |
| EPS (Diluted) | 0.63 | 0.15 | 0.02 | 0.69 | 0.13 | 1.64 | -1.01 | -0.44 |
| EPS Growth % | -128.85% | 638.92% | -97.06% | 430.77% | -92.07% | 262.38% | -129.55% | - |
| EPS (Basic) | - | 0.15 | 0.02 | 0.70 | 0.13 | 1.64 | -1.01 | -0.44 |
| Diluted Shares Outstanding | 29.64M | 29.25M | 27.69M | 27.49M | 26.06M | 25.17M | 25.17M | 25.17M |
Quick answers to the most common questions about buying OPAL stock.
For fiscal year 2025, OPAL Fuels Inc. (OPAL) reported total revenue of $349.0M. This represents a 191.5% increase compared to $119.7M in 2019.
OPAL Fuels Inc. (OPAL) is profitable, generating $14.8M in net income for the fiscal year ending 2025 with a net profit margin of 4.2%.
OPAL Fuels Inc. (OPAL) reported an operating income of $4.8M, resulting in an operating profit margin of 1.4%. This margin reflects the operational efficiency of the business before interest and taxes.
OPAL Fuels Inc. (OPAL) generated $106.2M in gross profit for the year, representing a gross profit margin of 30.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
High exposure to environmental credit price volatility and project commissioning delays.
Metrics are mathematically derived from official filings.
Volatile Revenue Amidst Scaling Efforts
As reported in financial statements, OPAL's revenue trajectory remains inconsistent, with a 16.37% year-over-year growth rate that masks significant quarterly fluctuations, such as the 14.8% decline observed in 2026Q1, suggesting that revenue stability is highly dependent on project commissioning timelines rather than predictable, regulated rate-based growth.
The revenue profile appears heavily influenced by the timing of environmental credit monetization and project-based EPC work, which lacks the predictability of traditional utility rate recovery. Investors should monitor whether the company can transition toward more recurring fuel supply revenue to mitigate the cyclicality inherent in its current construction-heavy model.
Margin Compression From Fixed Costs
Based on the provided income statement data, OPAL's operating margin has frequently dipped into negative territory, reaching -3.5% in 2026Q1, which indicates that the company's high fixed depreciation costs are currently outpacing the gross profit generated from its RNG production and retail dispensing activities.
The disparity between gross margins and operating margins suggests that the company is struggling to achieve the necessary scale to cover its corporate overhead and asset depreciation. This cost structure may create significant operating leverage risk if environmental credit prices remain under pressure or if project utilization rates fail to improve.
Non-Operating Items Obscure Earnings
According to recent SEC filings, OPAL's net margin of 9.3% in 2026Q1 significantly exceeds its operating margin of -3.5%, implying that reported net income is being bolstered by non-operating income or tax benefits that may not reflect the underlying sustainable earnings power of the regulated business.
The reliance on non-operating items to drive bottom-line results warrants further investigation into the sustainability of these gains. Analysts should be cautious of headline EPS figures, as they appear disconnected from the core operational performance of the biogas production and fueling infrastructure segments.
Capital Intensity Without Immediate Returns
As indicated by the company's financial history, the aggressive expansion of the biogas project portfolio to 24 sites has yet to translate into consistent operating income, suggesting that the current CAPEX cycle is still in a capital-intensive phase that has not yet reached an earnings inflection point.
While the low debt-to-equity ratio of 0.71% provides a buffer, the lack of meaningful operating leverage suggests that incremental capital expenditure is not currently yielding proportional returns. The market may be overestimating the speed at which these assets will contribute to core regulated earnings growth.
Regulatory Sensitivity Beyond Utility Norms
Based on reported figures, OPAL's earnings quality is highly sensitive to the regulatory volatility of RIN and LCFS markets, which behave more like volatile commodities than the stable, predictable rate-based returns typically associated with the regulated utility sector in which the company is classified.
The income statement likely masks the structural risk that current environmental credit pricing may be politically unsustainable or subject to sudden regulatory shifts. Investors should consider that the company's valuation may be misaligned if the market continues to treat these commodity-exposed earnings as stable, long-term utility cash flows.