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.