Perma-Fix Environmental Services, Inc. (PESI): Business Model Canvas [Dec-2025 Updated]

You're looking to see how a specialized player in the complex nuclear and environmental cleanup space actually makes its money, so let's cut right to the chase on Perma-Fix Environmental Services, Inc. (PESI). Honestly, their model hinges on owning four licensed treatment facilities and commercializing their proprietary Perma-FAS™ technology, which offers a cost-effective, zero-emission alternative for destroying tough stuff like PFAS. With a trailing twelve-month revenue of $60.7 million as of September 30, 2025, a solid $16.4 million in cash against minimal debt, and a massive $240 million Navy contract in the books, the foundation looks solid, but the real story is in the details of how they lock in those federal dollars versus chasing commercial waste volumes. Dive into the full Business Model Canvas below to see exactly how these key resources translate into revenue streams and customer relationships.

Perma-Fix Environmental Services, Inc. (PESI) - Canvas Business Model: Key Partnerships

You're looking at how Perma-Fix Environmental Services, Inc. (PESI) builds value through its external relationships, which is crucial given the capital-intensive nature of their treatment facilities and the reliance on large government contracts. These partnerships are key to scaling capacity and accessing specific waste streams.

Joint distribution agreement with Enforcer One, LLC for PFAS solutions

This collaboration with Enforcer One, LLC, announced in December 2025, creates a cradle-to-grave PFAS solution. It pairs Perma-Fix Environmental Services, Inc.'s destruction capability with Enforcer One's next-generation, fluorine-free firefighting agents and equipment. The destruction side uses the Perma-FAS™ technology, which operates in a closed system and offers a cost advantage over incineration.

The immediate operational impact is clear:

• The first-generation Perma-FAS™ 1,000-gallon reactor in Florida is reported as fully booked into the new year (early 2026).
• The technology has demonstrated PFAS destruction efficiencies exceeding regulatory requirements with no air emissions.
• Management projects PFAS revenue ramping to approximately $500,000 per month by the end of 2026, with construction on a second-generation unit near Oak Ridge expected to finish commissioning in Q1 of 2026.

Strategic alliances with subcontractors for large federal services contracts

Perma-Fix Environmental Services, Inc.'s Services Segment relies heavily on its ability to secure and execute work under larger prime contracts, often with the Department of Energy (DOE) or Department of Defense (DoD). While this segment showed some near-term headwinds, the pipeline remains substantial.

Here's a look at the recent segment performance and potential:

To be fair, these project timing issues are common when federal leadership changes, but the long-term structure is solid. For instance, Perma-Fix Environmental Services, Inc. is part of a select group eligible to compete for task orders under a 10-year DOE Deactivation, Decommissioning and Removal (DD&R) small business IDIQ contract with a maximum ceiling of $2 billion.

Collaboration with international waste generators for treatment volume

The Treatment Segment's success in 2025 is directly tied to securing waste volumes, including those from outside the US. This international collaboration helps keep plant utilization high, which is vital for margin expansion.

The Q3 2025 results highlight this success:

• Treatment Segment Revenue reached $13.1 million, a 45% year-over-year increase from $9.1 million in Q3 2024.
• This growth was supported by increased revenue generated from both international and commercial customers.
• The Treatment Segment gross margin improved significantly to 17.3%, up from 4.5% in the prior year period.

Waste sales, which are a component of this, totaled $14.6 million in Q3 2025, a 74% increase from $8.4 million the prior year.

Relationships with DOE/DoD prime contractors for project execution

Direct engagement with DOE and DoD prime contractors is essential for the Services Segment's revenue base. Perma-Fix Environmental Services, Inc. provides specialized nuclear services, waste management, and environmental restoration support to these entities.

Key current and near-term engagements include:

Perma-Fix Environmental Services, Inc. continues collaboration with BWXT on the DOE's West Valley end state contract. Furthermore, the DOE's Direct-Feed Low-Activity Waste (DFLAW) facility at Hanford has begun hot commissioning, positioning Perma-Fix Northwest to support effluent treatment operations, with initial waste receipts anticipated in late Q4 2025 or early 2026.

Historically, contracts with these agencies provide significant revenue visibility. For example, eight new contracts awarded in early 2023, including DOE and DoD projects, totaled approximately $15 million in expected 2023 revenue, with options potentially adding over $14 million extending into 2024.

Finance: draft 13-week cash view by Friday.

Perma-Fix Environmental Services, Inc. (PESI) - Canvas Business Model: Key Activities

You're looking at the core engine driving Perma-Fix Environmental Services, Inc. (PESI) right now-the actual work they do to generate revenue and secure future growth. It's a mix of established facility operations and deploying new, high-tech destruction methods.

Operating four nuclear waste treatment facilities nationwide is foundational to the Treatment Segment. This infrastructure is a critical, limited-supply asset. For instance, in the third quarter ending September 30, 2025, the Treatment segment revenue hit $13.1 million, a significant jump of 45% year-over-year, showing high throughput at these plants.

The company actively engages in providing on-site waste management and environmental restoration services, which falls under the Services segment. While project timing caused a dip in Services revenue in Q3 2025, the segment's gross profit saw a notable increase of $975,000 year-over-year in Q1 2025 due to improved profitability on projects performed that quarter.

Executing Decontamination and Decommissioning (D&D) projects is a core capability within the Services group, alongside project management and radiological protection services. The company's nuclear services group provides this capability to clients across DOE, DoD, and commercial sites.

The push to commercialize proprietary Perma-FAS™ PFAS destruction technology is a major near-term focus. The first full-scale commercial unit, a 1,000-gallon reactor at the Florida facility, started processing commercial waste in late 2024, showing destruction efficiencies of more than 99.99%. As of December 4, 2025, this unit was reportedly fully booked into the new year (early 2026). The technology was expanded in August 2025 to treat PFAS concentrate from leachate and wastewater, with the first commercial batch received in June 2025.

Finally, securing and managing multi-year federal contracts provides long-term revenue visibility. The Perma-Fix ERRG Services joint venture was awarded a contract by NAVFAC Southwest for the Navy's RADMAC III program. This is a $240,000,000 firm-fixed-price, multiple-award contract, with a maximum dollar value of $240,000,000 expected to be completed by November 2033. Furthermore, the DOE's Direct-Feed Low-Activity Waste (DFLAW) program at Hanford, a 10-year contract, is anticipated to drive revenue growth, with initial waste receipts expected in late Q4 2025 or early 2026.

Here's a quick look at the scale of these major activities as of late 2025:

The operational focus is clearly on maximizing throughput at the existing licensed assets while simultaneously scaling the new PFAS destruction capacity. You can see this in the Treatment Segment's performance:

• Treatment Segment Revenue increased 45% year-over-year in Q3 2025.
• Waste sales totaled $14.6 million in Q3 2025, a 74% increase year-over-year.
• Treatment Segment Gross Margin improved to 17.3% in Q3 2025, up from 4.5% the prior year.

The Services Segment backlog, which supports D&D and environmental restoration, was $10.2 million at the end of Q1 2025.

Perma-Fix Environmental Services, Inc. (PESI) - Canvas Business Model: Key Resources

You're looking at the core assets that drive Perma-Fix Environmental Services, Inc. (PESI) right now, based on their late 2025 standing, particularly the Q3 2025 figures. These are the tangible and intangible things the company absolutely needs to make its business model work.

Proprietary Perma-FAS™ non-incineration PFAS destruction technology

The Perma-FAS™ technology is a key differentiator. It's a patent-pending, non-incineration process for destroying PFAS (Per- and polyfluoroalkyl) compounds, operating in a closed system. The first-generation unit at the Florida facility has shown strong results.

• Demonstrated complete PFAS destruction with a 10% to 20% cost advantage over incineration.
• Achieved destruction with zero air emissions.
• The first-generation reactor has a capacity of 1,000 gallons.
• The company had a backlog of 20,000 gallons under contract, with anticipated commitments for another 25,000 gallons for PFAS destruction services.
• A second-generation unit, designed to triple capacity, is on track for commissioning in Q1 2026.

Four licensed nuclear waste treatment facilities (physical assets)

Perma-Fix Environmental Services, Inc. operates four nuclear waste treatment facilities nationwide. These fixed-base facilities allow the company to offer specialized treatment options without clients needing to develop internal programs. For example, the Diversified Scientific Services, Inc. (DSSI) facility has the capacity to store up to 30,000 gallons of liquid waste in its tank farm for blending prior to processing. Since 1989, the DSSI facility has thermally treated nearly four million gallons of liquid waste, totaling over 30 million pounds.

Highly specialized nuclear services group personnel and expertise

The personnel are critical for executing complex projects across government and commercial sectors. The nuclear services group provides capabilities in several areas, which supports the overall service delivery.

• Provides project management, waste management, environmental restoration, decontamination and decommissioning, and new build construction.
• Offers radiological protection, safety, and industrial hygiene services.
• The company notes it has a large team of industry experts.

Strong balance sheet with $16.4 million cash and $1.9 million total debt (Q3 2025)

The financial position as of the end of the third quarter of 2025 shows a relatively lean debt structure supporting operations. Here's a quick look at the balance sheet highlights from that period.

$15.4 million Treatment Segment backlog (Q3 2025)

The backlog provides visibility into near-term revenue, especially for the Treatment Segment, which is a major driver of current performance. The backlog has grown significantly from the end of 2024.

This backlog growth, up approximately $7.5 million from the December 31, 2024, balance of $7.9 million, is expected to lead to continued improvement into 2026. Also, total revenue for Q3 2025 was $17.5 million.

Finance: draft 13-week cash view by Friday.

Perma-Fix Environmental Services, Inc. (PESI) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Perma-Fix Environmental Services, Inc. (PESI) over the competition, especially as environmental regulations tighten. It's about proven destruction and comprehensive service packages, not just waste disposal.

Compliant, Permanent Destruction of PFAS with Zero Air Emissions

The primary draw here is the destruction of Per- and polyfluoroalkyl substances (PFAS) using the Perma-FAS technology. This process is validated to deliver destruction efficiencies that surpass regulatory requirements, and critically, it does so with zero air emissions. This is a huge differentiator when dealing with persistent contaminants.

Operationally, the first-generation 1,000-gallon PFAS Destruction Reactor in Florida has been running reliably, and it was fully booked into the new year (early 2026) as of late 2025. The company has a current backlog of 20,000 gallons under contract, with expectations for another 25,000 gallons committed. To meet this demand, the second-generation unit, designed to triple capacity (processing 1,000 to 2,000 gallons per shift), is set for commissioning in Q1 2026.

Cost-Effective Alternative to Incineration for PFAS

When you compare the Perma-FAS process to traditional incineration, the math starts to look good for the customer. The technology has demonstrated a 10% to 20% cost advantage over incineration for PFAS destruction. This cost saving, combined with the environmental benefit of zero air emissions, makes it a compelling financial and compliance choice.

Here's a quick look at the financial segment performance supporting this technology:

What this estimate hides is that the Services Segment revenue actually decreased to approximately $4.4 million in Q3 2025, so the Treatment Segment is carrying the current revenue growth.

Specialized Treatment for Complex Nuclear, Mixed, and Hazardous Waste

Perma-Fix Environmental Services, Inc. is a key player in complex waste streams, particularly for federal agencies. A major value proposition is their role at the Hanford site, where Perma-Fix Northwest is the designated commercial treatment pathway for secondary waste from the Department of Energy's (DOE) Direct-Feed Low-Activity Waste (DFLAW) facility. You can expect initial waste receipts from DFLAW in late Q4 2025 or early 2026, positioning the company for what management sees as a multi-decade revenue opportunity.

The company also solidified its long-term service capability by acquiring the Environmental Waste Operations Center (EWOC) near Oak Ridge, Tennessee, which has over 29,000 square feet of licensed area for radioactive materials processing.

End-to-End Service for AFFF Replacement: Destruction and Fluorine-Free Foam Supply

To simplify the transition away from legacy firefighting agents, Perma-Fix Environmental Services, Inc. announced a joint distribution agreement with Enforcer One, LLC on December 4, 2025. This creates a bundled offering that covers the entire lifecycle for customers like fire departments and airports.

The value proposition here is the seamless pairing of services:

• Destruction of legacy PFAS-based Aqueous Film-Forming Foams (AFFF) using Perma-FAS technology.
• Supply of next-generation, fluorine-free replacement foams, specifically Enforcer One's FIREBULL® concentrates.
• Provision of Enforcer® brand Compressed Air Foam Systems (CAFS) equipment.

This 'cradle-to-grave' approach converts remediation demand into follow-on equipment and consumable supply opportunities, which is a smart way to lock in future revenue streams.

Project Management and Technical Services for Federal Cleanup Sites

Through its Services Segment, Perma-Fix Environmental Services, Inc. offers deep technical capability for federal cleanup, including project investigation, radiological engineering, and decontamination/decommissioning (D&D). This expertise is demonstrated by past contract wins, such as the $40 million, 5-year contract awarded in 2023 to its joint venture, Enviro-Fix Solutions, LLC, by the U.S. Army Corps of Engineers (USACE) for work at the Niagara Falls Storage Site (NFSS). While the Services Segment revenue saw a dip to $4.4 million in Q3 2025, the underlying capability remains a core value proposition for securing complex, long-term government remediation work.

Finance: draft 13-week cash view by Friday.

Perma-Fix Environmental Services, Inc. (PESI) - Canvas Business Model: Customer Relationships

You're looking at how Perma-Fix Environmental Services, Inc. (PESI) manages its relationships across its diverse customer base, which spans long-term federal contracts and transactional commercial work. It's a mix of deep partnership and straightforward service delivery.

Dedicated personal assistance for complex, long-term government projects

For major federal initiatives, the relationship is built on long-term support and specialized technical integration. Perma-Fix Environmental Services, Inc. is the designated commercial treatment pathway for secondary waste streams generated during the hot commissioning of the U.S. Department of Energy's (DOE) Direct-Feed Low-Activity Waste (DFLAW) facility at Hanford, a program expected to generate a multi-decade, high-volume revenue opportunity. The company is prepared to support these operations as volumes ramp up, anticipating initial waste receipts from DFLAW later in the fourth quarter or early 2026. This level of involvement requires close, dedicated coordination with federal agencies.

Co-creation of solutions for new waste streams like PFAS and Hanford DFLAW

The development of proprietary destruction technology demonstrates a co-creation approach, especially for emerging waste challenges. Perma-Fix Environmental Services, Inc.'s first-generation Perma-FAS system has achieved complete destruction of Per- and polyfluoroalkyl substances (PFAS) compounds at a 10% to 20% cost advantage to incineration with 0 air emissions. This technology has a current backlog of 20,000 gallons under contract, with anticipated commitments for another 25,000 gallons. Management forecasted PFAS revenue starting around $150,000 a month through the end of 2025, with expectations to approach $500,000 a month in revenue later in 2026. The company also received its first commercial shipments of new PFAS waste types in June 2025.

Contractual relationships with federal agencies

Federal relationships are cemented through multi-year, large-scale contract vehicles. While the specific $240 million Navy IDIQ you mentioned wasn't detailed in the latest reports, Perma-Fix Environmental Services, Inc. did secure a position on the Navy's RADMAC III Indefinite Delivery, Indefinite Quantity (IDIQ) contract, which is expected to provide a steady stream of task order bid opportunities. Separately, the company is part of a bidding conglomerate for the West Valley cleanup project, which is a 10-year IDIQ contract with a maximum value up to $3.0 billion, where Perma-Fix Environmental Services, Inc. acts as a teaming subcontractor. The Services Segment, which handles many government services, saw revenue decrease to approximately $4.4 million for the three months ended September 30, 2025, from $7.7 million in the corresponding period of 2024, partly due to project mobilization delays from existing government contracts.

The nature of federal contracts often leads to variable short-term revenue, as seen in the Services Segment performance:

Transactional sales for commercial waste treatment volumes

The Treatment Segment relies on more transactional sales driven by waste volume and mix, serving both commercial and international customers. Treatment Segment revenue increased year-over-year to approximately $13.1 million for the third quarter of 2025, up from $9.1 million in Q3 2024. This revenue growth was supported by increases from both commercial and international waste customers. Waste receipts in the Treatment Segment more than doubled in Q2 2025 to approximately 14.0 million units (likely gallons) compared to Q2 2024. The Treatment Segment gross margin improved significantly to 17.3% in Q3 2025 from 4.5% in Q3 2024, driven by higher waste volume and a better averaged price from the waste mix.

Key drivers for the Treatment Segment's transactional revenue include:

• Treatment Segment Revenue in Q3 2025: $13.1 million.
• Year-over-year Treatment Revenue Increase (Q3 2025 vs Q3 2024): 45%.
• Waste Receipts in Q2 2025: More than doubled compared to Q2 2024.
• Treatment Segment Gross Margin in Q3 2025: 17.3%.

Finance: draft 13-week cash view by Friday.

Perma-Fix Environmental Services, Inc. (PESI) - Canvas Business Model: Channels

You're looking at how Perma-Fix Environmental Services, Inc. (PESI) gets its services and technology to the people who need them, especially as of late 2025. It's a mix of direct government work and commercial partnerships.

Direct contracting with federal agencies (DOE, DoD)

Direct engagement with federal bodies remains a cornerstone channel, particularly for the Treatment segment. You see this through major contract vehicles that secure future work. For instance, in August 2025, Perma-Fix Environmental Services, Inc. was named one of five awardees for Basic Ordering Agreements (BOAs) by the U.S. Department of Energy (DOE) Office of Environmental Management for nationwide low-level and mixed low-level commercial waste treatment services. The value for these BOAs is set at the task-order level over a five-year ordering period. Also in the pipeline is eligibility for task orders under a 10-year, small business set-aside Indefinite Delivery/Indefinite Quantity (IDIQ) contract with the DOE for Deactivation, Decommissioning and Removal (DD&R) services, which has a maximum ceiling value of $2 billion over the decade. To be fair, the most recent direct dollar figure found for a Department of Defense (DoD) contract was much smaller, recorded at $26,800 back in 2022/2023, but the larger vehicles are where the future revenue potential lies.

Direct sales force targeting commercial nuclear and industrial customers

The direct sales effort targets commercial and international entities, primarily feeding the Treatment segment. This channel shows strong recent traction. For the third quarter of 2025, revenue in the Treatment segment hit $13.1 million, which was a 45% year-over-year increase from $9.1 million in Q3 2024. Management noted these gains were supported by increases from both commercial and international waste customers. This segment's gross margin also expanded significantly to 17.3% in Q3 2025, up from 4.5% the prior year, showing the effectiveness of their direct sales approach on project mix and pricing for these customers.

Joint distribution network with Enforcer One for PFAS solutions

This is a newer, strategic channel established in December 2025 to offer an end-to-end solution for PFAS foam transition. Perma-Fix Environmental Services, Inc. offers its Perma-FAS PFAS destruction technology, while Enforcer One provides FIREBULL fluorine-free foams and Enforcer compressed air foam systems (CAFS). The channel is already showing immediate demand; the company's 1,000-gallon Florida-based Perma-FAS unit has achieved full bookings into the new year (early 2026) based on this partnership and other PFAS destruction demand. This channel directly addresses fire departments, airports, industrial facilities, and defense organizations needing to retire legacy Aqueous Film Forming Foams (AFFF).

On-site presence at customer facilities for Services segment execution

The Services segment relies heavily on an on-site presence for execution, providing project management, waste management, and other support services directly at customer locations, often government-related. This channel experienced a dip in activity late in 2025. For the three months ended September 30, 2025, Services Segment revenue decreased to approximately $4.4 million, down from $7.7 million in the same period of 2024. This lower activity, attributed partly to delays in project mobilization and contract awards from government entities, also impacted profitability; the Services Segment gross profit decreased by $633,000, and its gross margin fell to 6.7% from 11.9% year-over-year.

Here's a quick look at the revenue distribution across the main service delivery channels for Q3 2025:

The PFAS destruction services, which are a growing part of the Treatment segment, are clearly a key focus area for future channel development, especially with the new Enforcer One partnership.

• DOE BOAs awarded in August 2025 for low-level waste treatment.
• Eligibility for a 10-year DOE IDIQ contract with a $2 billion ceiling.
• PFAS destruction unit fully booked into early 2026.
• Services segment revenue dropped to $4.4 million in Q3 2025.

Perma-Fix Environmental Services, Inc. (PESI) - Canvas Business Model: Customer Segments

You're looking at the customer base for Perma-Fix Environmental Services, Inc. (PESI) as of the third quarter of 2025. The business model clearly segments its clients across federal, commercial, and international waste streams, with the Treatment Segment being the primary revenue engine.

For the third quarter ending September 30, 2025, total revenue was $17.5 million, with the Treatment Segment contributing $13.1 million, marking a 45% year-over-year increase. The Services Segment brought in $4.4 million for the same period. The Trailing Twelve Month (TTM) revenue as of September 30, 2025, stood at approximately $60.7 million.

Here's a breakdown of the key customer groups:

• Federal Government: Department of Energy (DOE) and Department of Defense (DoD)
• Commercial Nuclear Industry: Power plants and decommissioning projects
• Industrial/Municipal: Fire departments, airports, and industrial facilities (for PFAS)
• Hospitals, Research Labs, and Institutions generating low-level radioactive waste
• International Customers providing waste for treatment

Federal Government: Department of Energy (DOE) and Department of Defense (DoD)

Federal agencies, including the DOE and DoD, are significant customers, primarily served through the Services Segment, which experienced lower activity in Q3 2025 due to project mobilization delays and slower contract award timing from these government-related entities. Still, the long-term potential from federal work is substantial. Perma-Fix Environmental Services, Inc. is a subcontractor on a DOE cleanup project at the West Valley Demonstration Project, which has a 10-year ordering period with a potential maximum value up to $3 billion. Furthermore, Perma-Fix Environmental Services, Inc. was selected by the DOE for a 10-year, small business set-aside IDIQ contract to provide Deactivation, Decommissioning and Removal (DD&R) services, with a maximum ceiling of $2 billion over the decade. The Hanford Direct Feed Low-Activity Waste (DFLAW) program is also a critical area, positioning Perma-Fix Environmental Services, Inc. as a key commercial link for secondary waste streams.

Commercial Nuclear Industry: Power plants and decommissioning projects

This segment contributes to the Treatment Segment's performance. The increase in Treatment Segment revenue in Q3 2025 was supported by gains from commercial waste customers, reflecting higher overall waste volumes and improved throughput at facilities. The Treatment Segment backlog ended Q3 2025 at $15.4 million, up from $7.9 million at the end of 2024, providing strong revenue visibility.

Industrial/Municipal: Fire departments, airports, and industrial facilities (for PFAS)

Perma-Fix Environmental Services, Inc. is a leader in the emerging Per- and polyfluoroalkyl substances (PFAS) destruction market using its Perma-FAS system, which achieves over 99.99% destruction efficiency. The company is engaged with multiple industrial and municipal customers for multi-year destruction programs. As of Q3 2025, there was a backlog of 20,000 gallons under contract for PFAS destruction, with anticipated commitments for another 25,000 gallons. Management projected a revenue ramp for PFAS treatment to reach $500,000 per month by the end of 2026.

Hospitals, Research Labs, and Institutions generating low-level radioactive waste

This customer base utilizes Perma-Fix Environmental Services, Inc.'s nuclear waste services, which include management and treatment of radioactive and mixed waste. These services are part of the core offerings managed through the Treatment Segment.

International Customers providing waste for treatment

International business is a noted contributor to the Treatment Segment's growth. The Q3 2025 revenue increase included gains from international waste customers. Earlier guidance mentioned a €50 million contract in Italy.

The revenue contribution across the primary operational segments for Q3 2025 was:

The Treatment Segment's gross margin improved significantly to 17.3% in Q3 2025, up from 4.5% in the prior year period, driven by higher waste volumes and better pricing mix.

Finance: draft 13-week cash view by Friday.

Perma-Fix Environmental Services, Inc. (PESI) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Perma-Fix Environmental Services, Inc.'s operational costs as of late 2025. It's a business heavily reliant on specialized infrastructure and expert teams, so fixed costs play a big role.

High fixed costs for maintaining licensed treatment facilities are a foundational element here. While the exact number of all licensed facilities isn't explicitly detailed in the latest reports, we see the impact of facility operations. For instance, the gross profit improvement in the Treatment segment during Q3 2025 was partially offset by an increase in fixed costs. This suggests that keeping the operational footprint ready-including the Perma-Fix Florida, Inc. facility housing the first-generation PFAS system-requires significant ongoing investment regardless of immediate throughput.

Significant labor costs for specialized nuclear services personnel are embedded within the operating expenses. The increase in Selling, General, and Administrative (SG&A) expenses for Q3 2025 reflected higher personnel-related costs, particularly at executive levels, alongside increased professional services. This points directly to the cost of maintaining the specialized human capital required for nuclear and environmental services.

The overhead structure is quantified by the SG&A figures. For the third quarter ended September 30, 2025, SG&A expenses were $4.1 million. This was an increase of approximately $451,000 compared to the prior year period. Looking at the year-to-date figures for the nine months ended September 30, 2025, SG&A expenses increased by $1,597,000, representing a 15.0% rise over the same period in 2024.

Investment in future capacity drives capital expenditure. The company is actively spending on technology deployment. Year-to-date capital expenditures through September 30, 2025, totaled $2.61 million, focused on the Treatment segment, which included spending for PFAS treatment systems. Furthermore, management anticipated an additional capex of up to $3.23 million for the remainder of 2025 to support projects like the second-generation PFAS unit, which is nearing completion with commissioning expected in Q1 2026.

Variable costs associated with waste processing and disposal are inherent in the Treatment segment's cost of revenue, though they are often masked by the fixed cost structure when volumes are low. The gross margin for the Treatment segment improved significantly to 17.3% in Q3 2025 from 4.5% in Q3 2024, driven by higher waste volumes and better mix. This margin fluctuation shows that as volume increases, the fixed costs are spread thinner, improving overall profitability, which is typical when variable processing costs are managed effectively relative to revenue.

Here's a quick look at the key cost and performance metrics from Q3 2025:

The Services segment cost structure is different; its gross margin is impacted because projects are competitively bid on, leading to varying margin structures. This contrasts with the Treatment segment, where fixed costs are a more dominant factor that is leveraged by higher throughput.

• Personnel-related costs contributed to the rise in SG&A expenses.
• The first-generation PFAS system offers a 10% to 20% cost advantage to incineration.
• Operating lease liabilities totaled $2.23 million at quarter end.
• Total debt stood at $1.9 million as of September 30, 2025.

Finance: draft 13-week cash view by Friday.

Perma-Fix Environmental Services, Inc. (PESI) - Canvas Business Model: Revenue Streams

You're looking at the core income drivers for Perma-Fix Environmental Services, Inc. (PESI) as of late 2025, and honestly, the story is about a major shift toward the Treatment Segment. The trailing twelve-month revenue, as of September 30, 2025, stands at approximately $60.7 million. This total revenue for the third quarter of 2025 was $17.5 million, which shows the company is generating revenue, even while managing near-term segment volatility.

The Treatment Segment is clearly the engine right now, showing significant operational improvement. This segment, focused on waste processing, brought in $13.1 million in Q3 2025. That's a year-over-year revenue increase of 45% for the segment, and the gross margin improved substantially to 17.3% from just 4.5% in the prior year's third quarter. Here's a quick look at how the two main operational segments stacked up for the quarter:

The Services Segment, which covers on-site technical work, contributed $4.4 million in Q3 2025. This was a step down from the $7.7 million seen in Q3 2024, largely due to delays in project mobilization and slower contract awards, especially from government-related entities. It's a timing issue, but it does create near-term revenue choppiness.

Looking ahead, the real financial upside is tied to multi-year, high-volume programs and new technology adoption. These represent the recurring and high-potential revenue streams that analysts are watching closely:

• Recurring revenue from long-term contracts like the Hanford DFLAW program, with initial waste receipts anticipated later in Q4 2025 or early 2026.
• Sales of PFAS destruction services and related equipment/foam, with the second-generation unit, capable of tripling capacity, on track for commissioning in Q1 2026.
• The Treatment Segment backlog is building, ending the quarter at $15.4 million, which provides strong visibility into 2026.

The company is defintely positioning for a multi-decade revenue opportunity at Hanford. Finance: draft 13-week cash view by Friday.