Shares of Gevo (NASDAQ: GEVO) surged 7.55% in after-hours trading on Monday following the release of the company's third-quarter 2025 financial results, which exceeded analyst expectations and showcased improved operational performance.

The renewable fuels company reported a quarterly loss of $0.03 per share, significantly beating the analyst consensus estimate of a $0.06 loss. This represents a 66.67% improvement from the $0.09 loss per share in the same period last year. Gevo's revenue for the quarter came in at $42.71 million, surpassing the analyst estimate of $39.5 million and marking a substantial increase from $1.965 million in the previous year.

Investors appear to be encouraged by Gevo's achievement of positive Adjusted EBITDA of approximately $6.7 million for the second consecutive quarter, attributed to consistent performance at its Gevo North Dakota and renewable natural gas facilities. The company also highlighted several strategic moves to strengthen profitability, including: - Signing a multi-year carbon credit sales agreement expected to generate $26 million over five years - Selling its Agri-Energy subsidiary, eliminating $3 million in annual idling costs - Targeting optimization efforts that could potentially drive Adjusted EBITDA to $100 million With these developments and the company's continued focus on its jet fuel business, Gevo's management expressed optimism about the company's growth trajectory and improved financial health, which seems to have resonated with investors and contributed to the stock's after-hours rally.