Gevo (NASDAQ:GEVO) shares surged 9.43% in after-hours trading on Monday following the release of its third-quarter 2025 financial results, which exceeded analyst expectations on several fronts. The renewable fuels company demonstrated improved financial performance and strategic moves that appear to have boosted investor confidence.

The company reported a loss of $0.03 per share, significantly beating the analyst consensus estimate of a $0.06 loss. This represents a 52.38% improvement over expectations and a 66.67% increase from 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, despite falling short of the higher $46.915 million some had projected. This marks a substantial 2,070% increase from the $1.965 million reported in the same quarter of the previous year.

Notably, Gevo achieved positive Adjusted EBITDA of approximately $6.7 million, marking the second consecutive quarter of positive results. The company attributed this performance to consistent operations at its Gevo North Dakota and renewable natural gas facilities. In a strategic move to improve profitability, Gevo sold its Agri-Energy subsidiary, eliminating $3 million in annual idling costs. Additionally, the company announced a multi-year carbon credit sales agreement expected to generate $26 million over five years, further strengthening its financial outlook. With these developments and the company's focus on its jet fuel business, investors seem optimistic about Gevo's growth trajectory and improved financial health.