# FutureFuel Corp. (FF)

Informational only - not investment advice.

CIK: 0001337298
SIC: 2860 Industrial Organic Chemicals
SIC breadcrumb: [Manufacturing](/division/D/) > [Chemicals And Allied Products](/major-group/28/) > [SIC 2860 Industrial Organic Chemicals](/industry/2860/)
Latest 10-K filed: 2026-03-16
SEC page: https://www.sec.gov/edgar/browse/?CIK=1337298
Filing source: https://www.sec.gov/Archives/edgar/data/1337298/000143774926008411/ff20251231_10k.htm

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 95742000 | USD | 2025 | 2026-03-16 |
| Net income | -49397000 | USD | 2025 | 2026-03-16 |
| Assets | 192242000 | USD | 2025 | 2026-03-16 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-16. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001337298.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 253,193,000 | 275,026,000 | 291,018,000 | 205,226,000 | 204,505,000 | 321,386,000 | 396,014,000 | 368,250,000 | 243,339,000 | 95,742,000 |
| Net income | 56,341,000 | 23,511,000 | 53,158,000 | 88,181,000 | 46,564,000 | 26,255,000 | 15,211,000 | 37,382,000 | 15,503,000 | -49,397,000 |
| Operating income | 36,523,000 | 9,887,000 | 63,439,000 | 65,309,000 | 22,339,000 | 12,898,000 | 17,546,000 | 27,368,000 | 6,372,000 | -52,990,000 |
| Gross profit | 46,858,000 | 20,261,000 | 73,398,000 | 74,139,000 | 31,307,000 | 23,537,000 | 28,993,000 | 40,979,000 | 19,644,000 | -39,425,000 |
| Diluted EPS | 1.29 | 0.54 | 1.22 | 2.02 | 1.06 | 0.60 | 0.35 | 0.85 | 0.35 | -1.13 |
| Operating cash flow | 90,975,000 | 39,347,000 | 85,613,000 | 34,638,000 | 96,403,000 | 44,084,000 | 52,451,000 | 21,299,000 | 24,802,000 | -28,735,000 |
| Capital expenditures | 4,495,000 | 3,581,000 | 4,867,000 | 6,971,000 | 4,464,000 | 1,456,000 | 4,778,000 | 6,022,000 | 14,668,000 | 17,247,000 |
| Dividends paid | 10,493,000 | 110,688,000 | 10,498,000 | 10,498,000 | 141,728,000 | 119,906,000 | 10,503,000 | 10,503,000 | 119,911,000 | 10,513,000 |
| Assets | 529,043,000 | 425,563,000 | 471,155,000 | 586,505,000 | 441,304,000 | 344,330,000 | 355,969,000 | 367,081,000 | 247,691,000 | 192,242,000 |
| Liabilities | 196,230,000 | 73,967,000 | 82,077,000 | 119,407,000 | 69,421,000 | 55,402,000 | 72,969,000 | 57,201,000 | 41,870,000 | 37,534,000 |
| Stockholders' equity | 332,813,000 | 351,596,000 | 389,078,000 | 467,098,000 | 371,883,000 | 288,928,000 | 283,000,000 | 309,880,000 | 205,821,000 | 154,708,000 |
| Cash and cash equivalents | 199,272,000 | 114,627,000 | 214,972,000 | 243,331,000 | 198,122,000 | 137,521,000 | 175,640,000 | 219,444,000 | 109,541,000 | 51,316,000 |
| Free cash flow | 86,480,000 | 35,766,000 | 80,746,000 | 27,667,000 | 91,939,000 | 42,628,000 | 47,673,000 | 15,277,000 | 10,134,000 | -45,982,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 22.25% | 8.55% | 18.27% | 42.97% | 22.77% | 8.17% | 3.84% | 10.15% | 6.37% | -51.59% |
| Operating margin | 14.42% | 3.59% | 21.80% | 31.82% | 10.92% | 4.01% | 4.43% | 7.43% | 2.62% | -55.35% |
| Return on equity | 16.93% | 6.69% | 13.66% | 18.88% | 12.52% | 9.09% | 5.37% | 12.06% | 7.53% | -31.93% |
| Return on assets | 10.65% | 5.52% | 11.28% | 15.03% | 10.55% | 7.62% | 4.27% | 10.18% | 6.26% | -25.70% |
| Liabilities / equity | 0.59 | 0.21 | 0.21 | 0.26 | 0.19 | 0.19 | 0.26 | 0.18 | 0.20 | 0.24 |
| Current ratio | 2.81 | 8.80 | 9.18 | 5.81 | 10.39 | 7.30 | 4.88 | 7.03 | 4.95 | 5.67 |

## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001337298.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q2 | 2022-06-30 |  |  | -0.07 | reported discrete quarter |
| 2022-Q3 | 2022-09-30 |  |  | 0.36 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.48 | reported discrete quarter |
| 2023-Q2 | 2023-03-31 |  | 21,081,000 |  | reported discrete quarter |
| 2023-Q2 | 2023-06-30 | 85,308,000 |  | -0.23 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | -9,859,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 116,752,000 |  | 0.06 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 92,009,000 | 23,384,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 58,281,000 | 4,330,000 | 0.10 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 |  | 4,330,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 72,409,000 |  | 0.22 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 |  | 9,571,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 51,140,000 |  | -0.03 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 61,509,000 | 2,797,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 17,538,000 | -17,643,000 | -0.40 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 |  | -17,643,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 35,673,000 |  | -0.24 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 |  | -10,416,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 22,689,000 |  | -0.21 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 19,842,000 | -12,011,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 31,952,000 | -20,582,000 | -0.47 | reported discrete quarter |

## Macro Cross-References
- [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- [UNRATE](/indicator/UNRATE/): Unemployment Rate
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit
- [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food
- [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy
- [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter
- [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index
- [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate
- [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate
- [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio
- [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed
- [CE16OV](/indicator/CE16OV/): Employment Level
- [ICSA](/indicator/ICSA/): Initial Claims
- [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm
- [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period
- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units
- [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade
- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income
- [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate
- [M2SL](/indicator/M2SL/): M2
- [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance
- [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States
- [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States
- [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States
- [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States
- [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States
- [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized
- [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized
- [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks
- [GDP](/indicator/GDP/): Gross Domestic Product
- [GPDI](/indicator/GPDI/): Gross Private Domestic Investment
- [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment
- [PCEC](/indicator/PCEC/): Personal Consumption Expenditures
- [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services
- [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt
- [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit
- [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts
- [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures
- [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing
- [USCONS](/indicator/USCONS/): All Employees, Construction
- [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade
- [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities
- [USGOVT](/indicator/USGOVT/): All Employees, Government
- [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private
- [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods
- [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- [BUSINV](/indicator/BUSINV/): Total Business Inventories
- [EXPGS](/indicator/EXPGS/): Exports of Goods and Services
- [IMPGS](/indicator/IMPGS/): Imports of Goods and Services
- [IR](/indicator/IR/): Import Price Index (End Use): All Commodities
- [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1337298/000143774926016116/ff20260331_10q.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-05-11
Report date: 2026-03-31

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations of FutureFuel Corp. (“FutureFuel”, “the Company”, “we”, or “our”) should be read together with our consolidated financial statements, including the notes thereto, set forth herein and in our 2025 Annual Report on Form 10-K. This discussion contains forward-looking statements that reflect our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements. See “Forward-Looking Information” below for additional discussion regarding risks associated with forward-looking statements. 

In the first quarter of 2026, the Company elected to change its method of accounting for certain inventories in the U.S. from last in, first out ("LIFO") to weighted average cost. The Company believes the change to weighted average cost is preferable because it provides a better matching of costs and revenues, conforms the Company's inventory to a single method of accounting and improves comparability with the Company's peers. The Company retrospectively applied this change in accounting principle to all prior periods contained herein.

Unless otherwise stated, all dollar amounts are in thousands.

The designation “NA” (Not Applicable) in the tables below appears when a percentage change is calculated between a negative and a positive number (or positive and negative), rendering the result meaningless.

Overview

Our Company is managed and reported in two reportable segments: chemicals and biofuels. Within the chemical segment are two product groupings: custom chemicals and performance chemicals. The custom product group is composed of specialty chemicals manufactured for a single customer whereas the performance product group is composed of chemicals manufactured for multiple customers. The biofuel segment is composed of one product group. Management believes that the diversity of each segment strengthens the Company in its ability to utilize resources and is committed to growing each segment.

The biodiesel segment was supported by the United States Environmental Protection Agency (“EPA”) Renewable Fuel Standard (“RFS”). We generate 1.5 Renewable Identification Numbers (“RINs”) for each gallon of biodiesel sold in the United States with a classification of a D4 or D6 RIN. RINs are used to monitor the level of renewable fuel traded in a given year in accordance with RFS within the EPA moderated transaction system.  We do not assign cost of goods sold to the generation of RINs as the physical fuel generates the full cost. As of March 31, 2026, we held 0.2 million D4 RINs with a fair market value of $298. Comparatively, as of March 31, 2025, we held 2.3 million D4 RINs with a fair market value of $2,077. 

On March 27, 2026, the EPA finalized the “Set 2” RFS volumes establishing the highest blending mandates in the program’s history targeting a 60% increase over 2025.  The EPA estimates the mandate will require roughly 5.3 to 5.4 billion physical gallons of biomass diesel in 2026 and 5.7 to 5.8 billion gallons in 2027. The rule reduced the RIN equivalency factor for renewable diesel from 1.7 to 1.6 (from a revenue advantage on every gallon sold of 13% to 6%) and further to 1.5 (the same as biodiesel) by 2027 which represents a fundamental shift in the competitive and structural landscape of biodiesel. To meet the 2027 volume targets, utilization of domestic capacity is expected to be 100%. The EPA delayed the implementation of the half RIN penalty for imported fuels and feedstocks until January 1, 2028.

On February 4, 2026, the Treasury Department and the Internal Revenue Service issued proposed regulations providing expanded guidance on the clean fuel production credit (“CFPC”) integrating changes from the Budget Reconciliation Act of 2025, which made modifications to the CFPC. The proposed rule is expected to help level the competitive environment for biodiesel by: (i) reducing the tax credit for sustainable aviation fuel from $1.75 per gallon to $1.00 per gallon effective January 1, 2026, and (ii) requiring that all feedstock be sourced from North America, as required for biomass-based diesel.

20

Summary of Financial Results

Set forth below is a summary of certain consolidated financial information for the periods indicated.

Three Months Ended March 31,

As Adjusted (Note 1)

Dollar

%

2026

2025

Change

Change

Revenue

$

31,952

$

17,538

$

14,414

82

%

Loss from operations

$

(20,843

)

$

(19,463

)

$

(1,380

)

(7

)%

Net loss

$

(20,582

)

$

(18,094

)

$

(2,488

)

(14

)%

Loss per common share:

Basic

$

(0.47

)

$

(0.41

)

$

(0.06

)

(14

)%

Diluted

$

(0.47

)

$

(0.41

)

$

(0.06

)

(14

)%

Adjusted EBITDA

$

(13,823

)

$

(16,103

)

$

2,280

14

%

We use adjusted EBITDA as a key operating metric to measure both performance and liquidity. Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA is not a substitute for operating income, net income, or cash flow from operating activities (each as determined in accordance with GAAP) as a measure of performance or liquidity. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP. We define adjusted EBITDA as net (loss) income before interest, income taxes, depreciation, and amortization expenses, excluding, when applicable, non-cash stock-based compensation expenses, public offering expenses, acquisition-related transaction costs, purchase accounting adjustments, losses on disposal of property and equipment, non-cash gains or losses on derivative instruments, and other non-operating income or expenses. Information relating to adjusted EBITDA is provided so that investors have the same data that we employ in assessing the overall operation and liquidity of our business. Our calculation of adjusted EBITDA may be different from similarly titled measures used by other companies; therefore, the results of our calculation are not necessarily comparable to the results of other companies.

Adjusted EBITDA allows our chief operating decision maker to assess the performance and liquidity of our business on a consolidated basis to assess the ability of our operating segments to produce operating cash flow to fund working capital needs, to fund capital expenditures, and to pay dividends. In particular, our management believes that adjusted EBITDA permits a comparative assessment of our operating performance and liquidity, relative to performance and liquidity based on GAAP results. This measure isolates the effects of certain items, including depreciation and amortization (which may vary among our operating segments without any correlation to their underlying operating performance), non-cash stock-based compensation expense (which is a non-cash expense that varies widely among similar companies), and non-cash gains and losses on derivative instruments (which can cause net income to appear volatile from period to period relative to the sale of the underlying physical product).

21

We utilize commodity derivative instruments primarily to attempt to mitigate the effect of commodity price volatility and to provide greater certainty of cash flows associated with sales of our commodities. We utilize mark-to-market accounting to account for these instruments. Thus, our results in any given period can be impacted, sometimes significantly, by changes in market prices relative to our contract price along with the timing of the valuation change in the derivative instruments relative to the sale of biofuel. We include the mark-to-market or non-cash portion of this item as an adjustment to adjusted EBITDA as we believe it provides a relevant indicator of the underlying performance of our business in a given period.

The following table reconciles net (loss) income, the most directly comparable GAAP performance financial measure, with adjusted EBITDA. 

Three Months Ended March 31,

As Adjusted (Note 1)

2026

2025

Net loss

$

(20,582

)

$

(18,094

)

Depreciation

2,557

2,328

Non-cash stock-based compensation

305

226

Interest income, net

(269

)

(1,237

)

Non-cash interest expense and amortization of deferred financing costs

28

35

Gain on disposal of property and equipment

-

(31

)

Unrealized loss on derivative instruments

2,488

259

Change in allowance for credit losses

16

(1

)

Change in inventory reserve

269

(453

)

Extraordinary maintenance costs

1,357

1,033

Income tax provision (benefit)

8

(168

)

Adjusted EBITDA

$

(13,823

)

$

(16,103

)

The following table reconciles cash flows from operations, the most directly comparable GAAP liquidity financial measure, with adjusted EBITDA.

Three Months Ended March 31,

As Adjusted (Note 1)

2026

2025

Net cash used in operating activities

$

(19,996

)

$

(5,395

)

Deferred income taxes, net

(2

)

174

Interest income, net

(269

)

(1,237

)

Income tax provision (benefit)

8

(168

)

Change in operating assets and liabilities, net

5,079

(10,510

)

Extraordinary maintenance costs

1,357

1,033

Adjusted EBITDA

$

(13,823

)

$

(16,103

)

22

Results of Operations 

Consolidated

Three Months Ended March 31,

As Adjusted (Note 1)

Change

2026

2025

Amount

%

Revenues

$

31,952

$

17,538

$

14,414

82

%

Volume/product mix effect

10,800

62

%

Price effect

3,614

21

%

Gross loss

(15,858

)

(15,188

)

(670

)

(4

)%

Operating expenses

(4,985

)

(4,275

)

(710

)

(17

)%

Other income, net

269

1,201

(932

)

(78

)%

Income tax provision (benefit)

8

(168

)

176

NA

Net loss

$

(20,582

)

$

(18,094

)

$

(2,488

)

(14

)%

Consolidated revenue in the three months ended March 31, 2026, increased 82% or $14,414 compared to the three months ended March 31, 2025, driven by two factors

•

The change in volume and product mix of $10,800 was largely due to growth in the chemical segment's energy market products, specifically supported by a new plant within our facility that became operational in the fourth quarter of 2025 and additional regulatory clarity, supporting an additional contribution from the biofuels segment. The biofuel segment added $4,147 following regulatory clarity.

•

Both segments saw improved price variance totaling $3,614, primarily due to the energy market's performance: Chemicals (+$1,007) and Biofuels (+$2,607).

Gross loss in the three months ended March 31, 2026, increased $670 as compared to the same period of 2025. This variance was primarily driven by two factors:

•

Derivative activity within the biofuel segment. Total gains and losses on derivative instruments and changes in fair value of the derivative instruments were a net loss of $11,629 (including settlements of $9,141) for the three months ended March 31, 2026, and a net loss of $166 (including settlements of $93) for the three months ended March 31, 2025. While the $9,141 in derivative settlements contributed significantly to the gross loss this quarter, these settlement costs are expected to be offset upon the sale of the underlying physical product. This timing difference often creates a temporary disconnect between realized derivative losses and the eventual revenue recognition of the physical inventory.

•

Mostly offsetting these gross losses was the improvement in margins in product sold into the chemical energy market and in biodiesel with clarity obtained from the Treasury Department and the EPA on previously mentioned renewable energy regulations.

23

Operating expenses

Operating expenses increased $710 in the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. The net increase was primarily from winter storm Fern freeze repair expenses of $1,357, partially off

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high

Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read together with our consolidated financial statements, including the Notes thereto, set forth herein. Further, for additional discussion of our results for 2024, compared to 2023, please see “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 31, 2025, which discussion is incorporated herein by reference and which is available through the SEC’s official website at www.sec.gov and through the “Investors” section of the Company’s website (https://futurefuel-corporation.ir.rdgfilings.com).

This discussion contains forward-looking statements that reflect our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements. See “Forward-Looking Information” below for additional discussion regarding risks associated with forward-looking statements.

Unless otherwise stated, all dollar amounts are in thousands.

Overview 

In General

Our company is managed and reported in two reporting segments: chemicals segment and biofuels segment. Within the chemicals segment are two product groups: custom chemicals and performance chemicals. The custom chemicals group is comprised of chemicals manufactured for a single customer, whereas the performance chemicals product group is comprised of chemicals manufactured for multiple customers. The biofuels segment is comprised of one product group. Management believes that the diversity of each segment strengthens the Company by better using resources and is committed to growing each segment.

Major products in the custom chemicals group include: (i) consumer products (cosmetics and personal care products, specialty polymers, and specialty products used in the fuels industry); (ii) chlorinated polyolefin adhesion promoters and antioxidant precursors for a customer; and (iii) a biocide intermediate.

Pricing for the other custom manufacturing products is negotiated directly with the customer. Some, but not all, of these products have pricing mechanisms and/or protections against raw material, energy, or conversion cost changes.

Performance chemicals consist of specialty chemicals that are manufactured to general market-determined specifications and are sold to a broad customer base. A major product line in the performance chemicals group is SSIPA/LiSIPA, a polymer modifier that aids the properties of nylon and polyesters. This group of products also includes other sulfonated monomers and hydrotropes, specialty solvents, polymer additives, and chemical intermediates, such as glycerin.

SSIPA/LiSIPA revenues are generated from a diverse customer base of nylon and polyester fiber manufacturers and other customers that produce condensation polymers. Contract sales are, in certain instances, indexed to key raw materials for inflation; otherwise, there is no pricing mechanism or specific protection against raw material or conversion cost changes.

Pricing for the other performance chemical products is established based upon competitive market conditions. Some, but not all, of these products have pricing mechanisms and/or specific protections against raw material or conversion cost changes.

For our biofuels segment, we procure all of our own feedstock and only sell biodiesel for our own account. We have the capability to process multiple types of feedstocks including vegetable oils, animal fats, and separated food waste oils. We can receive feedstock by rail or truck, and we have substantial storage capacity to acquire feedstock at advantaged prices when market conditions permit. Our annual biodiesel production capacity is 59 million gallons per year.

33

Table of Contents

There remains significant uncertainty regarding our future biodiesel production volumes. This outlook is primarily driven by the volatility of feedstock prices relative to finished biodiesel market prices and a systemic lack of permanency in critical government mandates. Our operational strategy is heavily dependent on federal and state incentive structures, which are subject to legislative change or expiration. Key factors contributing to this uncertainty include:

●

The Clean Fuel Production Credit (CFPC): With the CFPC becoming effective on January 1, 2025, the industry is transitioning away from the traditional BTC.  The CFPC is in proposed rule status and expected to be finalized before mid-year 2026.

●

Expiring Credits: The lack of extension for the BTC while the CFPC is finalized creates a non-permanent fiscal environment.

●

Delayed RFS2 renewable volume obligation: Uncertainty negatively impacts the value of each RIN and causes uncertainty in the renewable fuel market.

●

Program Flux: Ongoing shifts in the federal renewable fuels program continue to impact our revenue projections.

Furthermore, government mandates have increasingly strengthened competing sectors, creating headwinds for our biodiesel operations. These include:

●

Renewable Diesel: Incentives favoring renewable diesel over traditional biodiesel given the higher equivalency renewable fuel value of 1.7 as compared to 1.5 for biodiesel and higher GHG benefit.

●

Electric Vehicles (EVs): Policy shifts and subsidies that accelerate the adoption of electric vehicles, potentially reducing long-term demand for liquid combustion fuels.

For a detailed analysis of these variables, please refer to "Risk Factors" and Note 3 of our consolidated financial statements.

While biodiesel is the principal component of the biofuels segment, we also generate revenue from the sale of petrodiesel both in blends with our biodiesel and, from time to time, with no biodiesel added. We have both truck and rail access at our Batesville facility. In addition, we deliver blended product to a small group of customers within our region, and from time to time, sell D4 and D6 RINs. At December 31, 2025, we held 0.4 million RINs with a market value of $379 and at December 31, 2024, we held 3.1 million RINs in inventory with a market value of $1,831.

Most of our sales are FOB the Batesville plant, although some transfer points are in other states or foreign ports. Many of our chemicals are used to manufacture products that are shipped, further processed, and/or consumed throughout the world, and we are not always aware of the exact quantities of our products that are moved into foreign markets by our customers. We do track the addresses of our customers for invoicing purposes and use this address to determine whether a particular sale is within or outside the United States. Our revenue for the last three fiscal years attributable to the United States and foreign countries (based upon the billing addresses of our customers) is set forth in the following table.

All Foreign

Period

United States

Countries

Total

Year ended December 31, 2025

$

94,790

$

952

$

95,742

Year ended December 31, 2024

$

242,685

$

654

$

243,339

Year ended December 31, 2023

$

367,368

$

882

$

368,250

The majority of our expenses are cost of goods sold. Cost of goods sold includes raw material costs as well as both fixed and variable conversion costs, such conversion costs being those expenses that are directly or indirectly related to the operation of our plant. Significant conversion costs include labor, benefits, energy, supplies, depreciation, and maintenance and repair. In addition to raw material and conversion costs, cost of goods sold includes environmental reserves and costs related to idle capacity. Finally, cost of goods sold includes hedging gains and losses recognized by us related to our biofuels segment. Cost of goods sold is allocated to the Chemicals and Biofuels segments based on equipment and resource usage for most conversion costs and based on revenue for most other costs.

Operating costs include selling, general and administrative, and research and development expenses.

The discussion of results of operations that follows is based on revenue and expenses in total and for individual product lines and does not differentiate related party transactions.

34

Table of Contents

Fiscal Year Ended December 31, 2025 Compared to Fiscal Year Ended December 31, 2024

Set forth below is a summary of certain financial information for the periods indicated.

(Dollars in thousands other than per share amounts)

Year

Year

Ended

Ended

December 31,

December 31,

Dollar

%

2025

2024

Change

Change

Revenue

$

95,742

$

243,339

$

(147,597

)

(61

)%

(Loss) income from operations

$

(52,990

)

$

6,372

$

(59,362

)

NA

Net (loss) income

$

(49,397

)

$

15,503

$

(64,900

)

NA

(Loss) earnings per common share:

Basic

$

(1.13

)

$

0.35

$

(1.48

)

NA

Diluted

$

(1.13

)

$

0.35

$

(1.48

)

NA

Adjusted EBITDA

$

(38,317

)

$

21,317

$

(59,634

)

NA

We use adjusted EBITDA as a key operating metric to measure both performance and liquidity. Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA is not a substitute for operating income, net income, or cash flow from operating activities (each as determined in accordance with GAAP) as a measure of performance or liquidity. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP. We define adjusted EBITDA as net income before interest, income taxes, depreciation, and amortization expenses, excluding, when applicable, non-cash stock-based compensation expenses, public offering expenses, acquisition-related transaction costs, purchase accounting adjustments, losses on disposal of property and equipment, unrealized gains or losses on derivative instruments, and other non-operating income or expenses. Information relating to adjusted EBITDA is provided so that investors have the same data that we employ in assessing the overall operation and liquidity of our business. Our calculation of adjusted EBITDA may be different from similarly titled measures used by other companies; therefore, the results of our calculation are not necessarily comparable to the results of other companies.

Adjusted EBITDA allows our chief operating decision maker to assess the performance and liquidity of our business on a consolidated basis to assess the ability of our operating segments to produce operating cash flow to fund working capital needs, to fund capital expenditures and to pay dividends. In particular, our management believes that adjusted EBITDA permits a comparative assessment of our operating performance and liquidity, relative to a performance and liquidity based on GAAP results, while isolating the effects of depreciation and amortization, which may vary among our operating segments without any correlation to their underlying operating performance, and of non-cash stock-based compensation expense, which is a non-cash expense that varies widely among similar companies, and unrealized gains and losses on derivative instruments, which can cause net income to appear volatile from period to period relative to the sale of the underlying physical product.

We enter into commodity derivative instruments to protect our operations from downward movements in commodity prices and to provide greater certainty of cash flows associated with sales of our commodities. We enter into hedges, and we use mark-to-market accounting to account for these instruments. Thus, our results in any given period can be impacted, and sometimes significantly, by changes in market prices relative to our contract price along with the timing of the valuation change in the derivative instruments relative to the sale of biofuel. We include the unrealized gains and losses on the derivative instruments as an adjustment as we believe it provides a relevant indicator of the underlying performance of our business in a given period.

35

Table of Contents

The following table reconciles adjusted EBITDA with net income, the most directly comparable GAAP financial measure. 

(Dollars in thousands)

Years ended December 31:

2025

2024

Net (loss) income

$

(49,397

)

$

15,503

Depreciation

9,657

9,208

Non-cash stock-based compensation

1,008

359

Interest income, net

(3,758

)

(7,656

)

Non-cash interest expense and amortization of deferred financing costs

118

138

(Gain) loss on disposal of property and equipment

(34

)

30

Unrealized (gain) loss on derivative instruments

(221

)

1,971

Turnaround costs

3,801

3,723

Other loss (income)

344

(2,751

)

Income tax provision

165

792

Adjusted EBITDA

$

(38,317

)

$

21,317

The following table reconciles adjusted EBITDA with cash flows from operations, the most directly comparable GAAP liquidity financial measure:

(Dollars in thousands)

Years ended December 31:

2025

2024

Net cash (used in) provided by operating activities

$

(28,735

)

$

24,802

Provision for deferred income taxes

(137

)

(773

)

Interest income, net

(3,758

)

(7,656

)

Income tax provision

165

792

Changes in operating assets and liabilities, net

(9,997

)

3,180

Turnaround costs

3,801

3,723

Other non-operating (loss) income

344

(2,751

)

Adjusted EBITDA

$

(38,317

)

$

21,317

36

Table of Contents

Results of Operations

Consolidated

2025 Compared to 2024:

Change

(Dollars in thousands)

2025

2024

$

%

Sales

$

95,742

$

243,339

$

(147,597

)

(61%

)

Volume/product mix effect

$

(137,218

)

(56

)%

Price effect

$

(10,379

)

(4

)%

Gross (loss) profit

$

(39,425

)

$

19,644

$

(59,069

)

NA

Operating expense

$

13,565

$

13,272

$

293

2

%

Other (income) expense

$

(3,758

)

$

(9,923

)

$

6,165

62

%

Pretax (loss) income

$

(49,232

)

$

16,295

$

(65,527

)

NA

Income tax provision (benefit)

$

165

$

792

$

(627

)

(79%

)

Net (loss) income

$

(49,397

)

$

15,503

$

(64,900

)

NA

2025 Compared to 2024

For the fiscal year ended December 31, 2025, consolidated revenue decreased 61% ($147,597) compared to 2024. This significant contraction was primarily driven by severe regulatory headwinds in the Biofuels segment and operational interruptions within the Chemicals segment.

Biofuels Segment Revenue Impact

The Biofuels segment was the primary driver of the consolidated revenue decline, contributing $127,155 of the total decrease ($122,836 from lower volumes and $4,319 from lower pricing).

●

Regulatory Uncertainty: The downturn is largely attributed to ongoing market ambiguity surrounding the CFPC, which materially impacted production economics.

●

Cost Mitigation: In response to these conditions, we proactively implemented cost-reduction measures, including the idling of the biodiesel plant and a corresponding reduction in force to preserve liquidity.

Chemicals Segment Revenue Impact

The Chemicals segment contributed $20,442 to the consolidated revenue decrease, driven by:

●

Operational Delays: A $14,382 decline in sales volume resulting from weather-related complications that extended the scheduled plant turnaround, combined with slower production ramp-up speeds during the facility restart.

●

Market Demand: Reduced volumes for products serving the energy markets.

●

Contractual Transition: A $5,492 reduction in the amortization of deferred revenue following the 2024 expiration of a long-term contract. While the customer relationship continues, it has transitioned to a short-term contractual framework.

Consolidated gross profit decreased by $59,069 in 2025 compared to the prior year. This margin compression was driven by a confluence of regulatory headwinds, operational interruptions, and the expiration of legacy contractual benefits.

Segment Contributions to Gross Profit Decline

●

Chemicals Segment: Contributed ($35,639) to the decrease.

●

Biofuels Segment: Contributed ($23,430) to the decrease.

37

Table of Contents

Primary Drivers of the Decrease.  The year-over-year reduction in profitability was primarily influenced by:

●

Operational Idling & Market Uncertainty: Significant volume losses in biodiesel and its byproduct, glycerin, followed the strategic decision to idle biodiesel production in June 2025. This proactive measure was taken in response to persistent regulatory ambiguity surrounding the CFPC.

●

Extended Plant Turnaround: Gross profit in the Chemicals segment was further pressured by weather-related complications that extended the duration of the scheduled plant turnaround. This resulted in heightened maintenance expenditures and inefficiencies during the subsequent restart of operations.

●

Contractual Amortization: A $5,492 reduction resulting from the completed amortization of deferred revenue within the Chemicals segment following the 2024 expiration of a major long-term contract.

●

Inventory Accounting (LIFO): Valuation adjustments under the Last-In, First-Out (“LIFO”) method negatively impacted gross profit by $1,706 in 2025, a significant reversal from the $3,028 gain recognized through LIFO in 2024.

Mitigating Factors. The overall decline was partially offset by a favorable swing in the change in derivatives. The unrealized activity of derivative instruments yielded a gain of $221 in 2025, compared to a loss of $1,971 in the prior year.

Operating expenses increased $293 in 2025 compared to 2024. This increase was primarily the result of increased executive compensation expense.

Other income decreased $6,165 in 2025 as compared to 2024. This net decrease was due to (i) the reduction of interest income of $3,745, and (ii) the prior year receipt of a $2,750 settlement in 2024 (see Note 22 of our consolidated financial statements for further details).

Income tax provision

The income tax provision was $165 in 2025 or an effective tax rate of (0.3%) as compared to a provision in 2024 of $792 or an effective tax rate of 4.9%. 

The Company's effective tax rate for the years 2025 and 2024 reflects the effect of certain tax credits and incentives.  Most notable to the 2025 effective tax rate was the effect of the CFPC, a new 2025 non-refundable, transferable incentive recorded as a reduction in cost of goods sold following International Accounting Standards (“IAS”) 20 principles. The Budget Reconciliation Act of 2025 also reinstated the Small Agri-biodiesel Producer Tax Credit, a non-refundable, transferable incentive similarly recorded as a reduction in cost of goods sold following IAS 20. The reduction in cost of goods sold is excluded from the Company’s taxable income, impacting the effective tax rate.

The most notable effect of tax credits and incentives to the 2024 effective tax rate was from the BTC, which expired December 31, 2024.  The BTC was also recorded as a reduction in cost of goods sold following IAS 20.  Based on technical guidance from the Internal Revenue Service, the Company excluded the portion of the BTC not used to satisfy excise tax liabilities from its taxable income, impacting the effective tax rate.

The Company’s effective tax rate for 2025 and 2024 includes an expense of $11,558 or 23.5% and $8,169 or 50.1%, respectively, from the recording of a valuation allowance against its deferred tax assets. The Company evaluates its deferred tax assets and records a valuation allowance to reduce these assets to the amount that is more likely than not to be realized. As of December 31, 2025, based on all available and allowable evidence, the Company determined that its deferred tax assets of $53,400 are more likely than not realizable only to the extent of $19,484, resulting in a net deferred tax liability of $910. As of December 31, 2024, based on all available and allowable evidence, the Company determined that its deferred tax assets were more likely than not realizable only to the extent of $18,691, resulting in a net deferred tax liability of $773.

The Company’s unrecognized tax benefit totaled $0 at December 31, 2025 and 2024.

38

Table of Contents

Chemicals Segment

2025 Compared to 2024:

Change

(Dollars in thousands)

2025

2024

$

%

Sales

$

59,565

$

80,007

$

(20,442

)

(25.6

)%

Volume/product mix effect

(14,382

)

(18.0

)%

Price effect

(6,060

)

(7.6

)%

Gross (loss) profit

$

(13,007

)

$

22,632

$

(35,639

)

NA

2025 Compared to 2024

For the fiscal year 2025, chemical sales revenue totaled $59,565, a 26% ($20,442) contraction compared to 2024. This downturn was largely driven by operational headwinds, including weather-related complications that extended the scheduled plant turnaround and subsequent slower production rates during the facility restart. These factors, combined with diminished volumes in the energy sector, impacted both primary chemical product lines.

Custom Chemicals

Revenue from our custom manufacturing product line decreased 26% ($17,798) to $51,675 in 2025. This decline was primarily influenced by:

●

Sector Softness: Reduced demand and lower sales volumes for chemicals utilized in the automotive coatings and energy markets.

●

Contractual Roll-off: A $5,492 reduction resulting from the completed amortization of deferred revenue following the 2024 expiration of a long-term energy market contract.

Performance Chemicals

Performance chemicals revenue fell 25% ($2,644) to $7,890 in 2025. Key factors included:

●

Production Interdependencies: Lower volumes of glycerin products resulting from the decision to idle biodiesel production during the second half of 2025.

●

Market Conditions: A general softening of demand within agricultural chemical markets.

●

Strategic Offset: These decreases were partially mitigated by the successful launch and sale of a new energy-market product following the completion of a major chemical production construction project.

Gross profit for the Chemicals segment decreased by $35,639 in 2025 compared to the prior year. This margin compression was primarily driven by the following factors:

●

Volume Contraction: Lower overall sales volumes across both custom and performance product lines, exacerbated by the extended plant turnaround and subsequent production restart.

●

Contractual Amortization: A $5,492 non-cash decrease resulting from the completed amortization of deferred revenue following the expiration of a significant long-term contract in 2024.

●

Operational Reinvestment: Increased spending on plant reliability initiatives and heightened maintenance costs incurred during the fiscal year to ensure long-term facility integrity.

39

Table of Contents

Biofuels Segment

2025 Compared to 2024:

Change

(Dollars in thousands)

2025

2024

$

%

Sales

$

36,177

$

163,332

$

(127,155

)

(77.9

)%

Volume/product mix effect

(122,836

)

(75.2

)%

Price effect

(4,319

)

(2.6

)%

Gross (loss) profit

$

(26,418

)

$

(2,988

)

$

(23,430

)

(784.1%

)

2025 Compared to 2024

Biofuels sales revenue decreased 78% in 2025 compared to 2024. This contraction was primarily driven by a 75% reduction in sales volume and a 3% decline in the average selling price of fuel, inclusive of D4 RIN values.

The decline in performance is attributable to an extended plant turnaround initiated to enhance long-term reliability, followed by the subsequent strategic decision to idle production due to regulatory uncertainty surrounding the CFPC and other adverse market conditions.

Customer Concentration and Market Dynamics. Historically, a portion of our biodiesel output was sold to two major United States refiners. In 2025, however, we had no major customers with revenue greater than 10%.

●

Market Fungibility: We do not believe the loss of any single major customer, including these refiners, results in a material adverse effect. Unlike our custom chemical products, biodiesel is a commodity with a broad, active customer base.

●

Demand vs. Capacity: We believe our product can be readily redirected to alternative buyers, as potential market demand consistently exceeds our current production capacity.

●

Contractual Flexibility: Our sales are typically executed through short-term purchase orders at prevailing market rates rather than long-term, fixed-volume obligations.

Biofuels Gross Profit Analysis. Gross profit for the Biofuels segment decreased by $23,430 in 2025 compared to 2024. The primary drivers of this variance include:

●

Production Idling: The significant drop in sales volume followed the idling of the biodiesel facility in the second quarter of 2025.

●

Inventory Valuation (LIFO): Adjustments to the carrying value of inventory under the LIFO method negatively impacted gross profit by $1,739 in 2025, a sharp reversal from the $2,370 gain recognized in 2024.

●

Derivative Activity Offset: These losses were partially mitigated by a favorable year-over-year swing in hedging results, with the segment realizing an unrealized gain on derivative instruments of $221 in 2025 compared to a $1,971 loss in 2024.

Critical Accounting Policies and Estimates

Useful Lives of Property, Plant, and Equipment

The determination of an asset's useful life is a fundamental estimate that impacts our financial results. We primarily establish these estimates based on historical experience with similar assets. However, the actual useful life may vary significantly from these projections due to several factors:

●

Build Quality: Variations in manufacturing standards and materials.

●

Utilization: The intensity and specific manner in which an asset is operated.

●

Economic Conditions: Shifts in the business climate or technological advancements that may render an asset obsolete.

40

Table of Contents

Depreciation Methodology

To ensure our financial statements accurately reflect the consumption of economic benefits, we adhere to the following standards:

●

Continuous Monitoring: We regularly review and adjust estimated useful lives to align with current operational data.

●

Straight-Line Method: Depreciation is calculated using the straight-line method, allocating the cost of the asset evenly over its projected functional lifespan.

Changes in estimates are accounted for prospectively, meaning any adjustments to useful lives will impact depreciation expense in the current and future periods.

Revenue Recognition

We recognize revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, when performance obligations of the customer contract are satisfied. We sell to customers through master sales agreements or standalone purchase orders. The majority of our revenue is from short-term contracts with revenue recognized when a single performance obligation to transfer product under the terms of a contract with a customer is satisfied. Accordingly, we recognize revenue when control is transferred to the customer, which is when products are considered to meet customer specification per the customer contract and title and risk of loss are transferred. This typically occurs at the time of shipment or delivery; or for certain contracts, this occurs upon delivery of the material to one of our storage locations, ready for customer pickup and separated from our other inventory. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products and is generally based upon a negotiated price. We sell products directly to customers generally under agreements with payment terms of 30 to 75 days for chemical segment customers and 5 to 10 days for biofuels segment customers.

Certain long-term contracts have an upfront non-refundable payment considered a material right. The Company applies the renewal option approach in allocating the transaction price to the material right. For each of these contracts, the Company estimated the expected contractual term and expected volumes to be sold at the most likely expected sales price as a basis for allocating the transaction price to the material right. Each estimate is updated quarterly on a prospective basis. These custom chemical contracts have payment terms of 30 days. See Notes 2 and 4 of our consolidated financial statements for additional discussion.

For most product sales, revenue is recognized when product is shipped from our facilities and when control has transferred to the customer, which is in accordance with our customer contracts and the stated shipping terms. Nearly all custom manufactured products are manufactured under written master service agreements. Performance chemicals and biodiesel are generally sold pursuant to the terms of written purchase orders. In general, customers do not have any rights of return, except for quality disputes. All of our products are tested for quality before shipment, and historically returns have been inconsequential. We do not offer rebates, except those related to the BTC when transactions are occurring when the BTC is not in effect.  See Note 3 of our consolidated financial statements for additional discussion on the BTC.

Biodiesel selling prices can at times fluctuate based on the timing of unsold, internally generated RINs. From time to time, sales of biodiesel are on a “RINs-free” basis. Such method of selling results in applicable RINs being held. The value of RINs is not reflected in revenue until such time as the RINs sale has been completed with the transfer of the RINs.

Revenue from bill-and-hold transactions in which a performance obligation exists is recognized when the total performance obligation has been met and control of the product has transferred. Bill-and-hold transactions for 2025 and 2024 were related to custom chemicals customers whereby revenue was recognized in accordance with contractual agreements based upon product being produced and ready for use by the customer. These sales were subject to written monthly purchase orders with agreement that production was reasonable. The product was custom manufactured and stored at the customer’s request and could not be sold to another buyer. Credit and payment terms for bill-and-hold customers are similar to other custom chemicals customers. Sales revenue under bill-and-hold arrangements were $36,690, $43,959, and $43,766 for the years ended December 31, 2025, 2024 and 2023, respectively. At December 31, 2025 and 2024, $5,147 and $7,301, respectively, was included in revenue for products that had not shipped. The latter amounts do not include Contract Assets of $40 and $29 that have not been billed nor shipped at December 31, 2025 and 2024, respectively.

Taxes collected from customers remitted to governmental authorities are recorded as a reduction of the transaction price. Shipping and handling fees related to sales transactions are billed to customers and recorded as sales revenue with an offsetting expense included in cost of goods sold.

41

Table of Contents

Income Taxes

The provision for (benefit from) income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for (benefit from) income taxes represent income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax bases of the Company's assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. 

A tax valuation allowance is recognized if it is more likely than not that some portion or all of the deferred tax assets will not be realized. In assessing the recoverability of its deferred tax assets, the Company evaluates available positive and negative evidence to estimate whether it is more likely than not that sufficient future taxable income will be generated to permit use of the existing deferred tax assets in each taxing jurisdiction. In making this determination, the Company considers positive evidence in the form of projections of future taxable income, reversing temporary differences, and tax planning strategies. In years in which the Company has experienced objective negative evidence in the form of three cumulative years of tax losses, the Company no longer uses taxable income projections to overcome the presumption of losses and deferred tax asset valuations are computed taking into account tax planning strategies and the reversing net deferred tax liability from temporary differences as sources of income. 

The Company recognizes income tax positions only when they meet the more likely than not threshold. The Company's policy is to record interest and penalties related to unrecognized benefits as a component of the income tax provision in the Consolidated Statement of Income and Comprehensive Income.

Liquidity and Capital Resources

Our net cash provided by (used in) operating activities, investing activities, and financing activities for the years ended December 31, 2025, 2024 and 2023 are set forth in the following table.

(Dollars in thousands) 

2025

2024

2023

Net cash (used in) provided by operating activities

$

(28,735

)

$

24,802

$

21,299

Net cash (used in) provided by investing activities

$

(18,601

)

$

(14,794

)

$

33,022

Net cash used in financing activities

$

(10,889

)

$

(119,911

)

$

(10,517

)

Operating Activities 

Cash used in operating activities was $28,735 in 2025 compared to cash provided by operating activities of $24,802 in 2024, a net decrease in cash of $53,537 primarily attributed to a decrease of $64,900 in net income from 2025 to 2024.  Also contributing to the decrease in cash was the change in (i) accrued expenses and other current liabilities of $14,830, (ii) inventory of $5,351, and (iii) other assets of $4,214. Partially offsetting the decrease in cash from operations was the change in (i) deferred revenue of $18,156, (ii) accounts payable, including accounts payable - related parties, of $11,383, (iii) accounts receivable, including accounts receivable - related parties, of $5,980, and (iv) other non-current liabilities of $4,593.

Cash provided by operating activities increased in 2024 to $24,802 from $21,299 in 2023, a net increase of $3,503. This increase was attributed to the change in (i) inventory of $9,815, (ii) accounts receivable, including accounts receivable – related parties, of $8,714, (iii) accrued expenses and other current liabilities of $7,043, (iv) change in fair value of derivative instruments of $3,849, (v) change in fair value of equity securities of $3,117, and (vi) accounts payable, including accounts payable - related parties, of $2,249. Partially offsetting the increase in cash from operations was the decrease of $21,879 in net income in 2025 compared to 2024 and the change in deferred revenue of $6,787 and other non-current liabilities of $3,317.

42

Table of Contents

Investing Activities

Cash used in investing activities was $18,601 in 2025 compared to $14,794 in 2024 for a net decrease in cash of $3,807. This decrease in cash was primarily attributable to increased capital expenditures of $2,579 and the change in the collateralization of derivative instruments of $1,256.

Cash used in investing activities was $14,794 in 2024 compared to cash provided by investing activities of $33,022 in 2023 for a net decrease in cash of $47,816. This decrease was primarily attributable to the sale of marketable securities in 2023 of $37,701. In addition, increased capital expenditures decreased cash from investing activities by $8,646.

Financing Activities

Cash used in financing activities was $10,889 in 2025, primarily from the payment of dividends of $10,513.

Cash used in financing activities was $119,911 in 2024, primarily from the payment of a special cash dividend of $109,408 in addition to regular cash dividends.

Capital Expenditure Commitments

We had $4,302 of new chemical production equipment and infrastructure capital repair projects that generated commitments as of December 31, 2025.  We plan to continue to invest in capital infrastructure to increase the reliability of plant operations. 

Historically, we finance capital requirements for our business with cash flows from operations and have not had the need to incur bank indebtedness to finance any of our operations during the periods discussed herein.

43

Table of Contents

Credit Facility

On February 21, 2025, the Company, with FutureFuel Chemical Company as the borrower and certain of the Company’s other subsidiaries as guarantors, amended and restated its credit agreement, as further amended effective as of June 30, 2025 and December 22, 2025 (the “Credit Agreement”), originally entered into on April 16, 2015 with the lenders party thereto, Regions Bank as administrative agent and collateral agent, and PNC Bank, N.A., as syndication agent (as amended, the “Prior Credit Agreement”). The Credit Agreement consists of a five-year revolving credit facility in a dollar amount of up to $35,000, which includes a sublimit of $30,000 for letters of credit and $15,000 for swingline loans (collectively, the “Credit Facility”). The Credit Facility expires on February 21, 2030.

We will be permitted to use net proceeds of any borrowings under the Credit Facility for working capital and other general corporate purposes. No borrowings were made under the Prior Credit Agreement as of December 31, 2025 and 2024. See Note 12 of the consolidated financial statements for additional information regarding our Credit Agreement.

The Credit Facility contains certain affirmative and negative covenants, including negative covenants that limit or restrict, among other things, indebtedness, liens and encumbrances, dividends, burdensome agreements, mergers and fundamental changes, assets sales, investments, transactions with affiliates, changes in fiscal years, and other matters customarily restricted in such agreements.

The interest rate floats at the following margins over SOFR or base rate based upon our leverage ratio.

Adjusted SOFR

Rate Loans

Consolidated Leverage Ratio

and Letter of Credit Fee

Base Rate Loans

Commitment Fee

 1.00:1.0

1.00

%

0.00

%

0.15

%

≥ 1.00:1.0 And 1.50:1.0

1.25

%

0.25

%

0.15

%

≥ 1.50:1.0 And 2.00:1.0

1.50

%

0.50

%

0.20

%

≥ 2.00:1.0 And 2.50:1.0

1.75

%

0.75

%

0.20

%

≥ 2.50:1.0

2.00

%

1.00

%

0.25

%

Certain of our subsidiaries have entered into guarantees of payment on behalf of the Company for amounts outstanding under the Credit Facility. In addition, we and certain subsidiaries have entered into a pledge and security agreement with the lender parties to secure the obligations under the Credit Facility. Pursuant to the pledge and security agreement, we and certain of our subsidiaries have pledged certain collateral, including but not limited to, interests in intellectual property rights and certain equity interests in our subsidiaries.

We intend to fund future capital requirements for our businesses from cash flow generated by us as well as from existing cash, cash investments, and, if the need should arise, borrowings under our credit facility. We do not believe there will be a need to issue any securities to fund such capital requirements.

Dividends

In 2025, we paid regular cash dividends aggregating $0.24 per share on our common stock with record dates and payment dates as previously discussed. The regular cash dividends declared in 2025 totaled $2,681 to be paid in the first quarter of 2026. Dividend equivalents accruing on the outstanding restricted stock units (“RSUs”) total $49; $10 has vested and $39 contingent upon full services vesting in accordance with the service agreement with Mr. Polet.

In 2024, we paid regular cash dividends aggregating $0.24 per share on our common stock with record dates and payment dates as previously discussed. The regular cash dividends declared in 2024 totaled $10,513 to be paid in 2025. On March 12, 2024, we also declared a special cash dividend of $2.50 per share on our common stock.  This special dividend paid on April 9, 2024 amounted to $109,408.  Total cash dividends paid in 2024 were $119,911.

In 2023, we paid regular cash dividends aggregating $0.24 per share on our common stock with record dates and payment dates as previously discussed. The regular cash dividends declared in 2023 totaled $10,503 to be paid in 2024.

44

Table of Contents

Capital Management

As a result of historical positive operating results, we accumulated excess working capital. We intend to retain the remaining cash to fund infrastructure and capacity expansion at our Batesville plant or to otherwise fund our future growth. Third parties have not placed significant restrictions on our working capital management decisions.

We maintain depository accounts such as checking accounts, money market accounts, and other similar accounts at selected financial institutions. As of December 31, 2025, approximately 89% of these deposits were insured by the Federal Deposit Insurance Corporation.

Off-Balance Sheet Arrangements

We engage in two types of hedging transactions. First, we hedge our biofuels sales through the purchase and sale of futures contracts and options on futures contracts of energy commodities. This activity was captured on our consolidated balance sheets at December 31, 2025 and 2024. Second, we hedge our biofuels feedstock through the execution of purchase contracts and supply agreements with certain vendors which meet the normal purchase and normal sales exception of ASC 815 Derivatives and Hedging. These hedging transactions are recognized in earnings and do not qualify as a hedge accounting treatment on our consolidated balance sheets at December 31, 2025 or 2024, as they do not meet the definition of a hedge instrument as defined under GAAP. The purchase of biofuels feedstock generally involves two components: basis and price. Basis covers any refining or processing required as well as transportation. Price covers the purchases of the actual agricultural commodity. Both basis and price fluctuate over time. A supply agreement with a vendor constitutes a hedge when we have committed to a certain volume of feedstock in a future period and have fixed the basis for that volume.

Contractual Obligations

Purchase obligations include the purchase of biodiesel feedstock and various other infrastructure and capital repairs as follows:

Less than 1 year

$

11,029

1-3 years

412

4-5 years

-

Total

$

11,441

A component of other noncurrent liabilities is a reserve for asset retirement obligations and environmental contingencies of $1,503 at December 31, 2025. We are liable for these asset retirement obligations and environmental contingencies only in certain events, primarily the closure of our Batesville, Arkansas facility. As such, we do not expect a payment related to these liabilities in the foreseeable future and therefore we have excluded this amount from the table above.

45

Table of Contents