Gevo, Inc. (NASDAQ:GEVO) is one of the best renewable energy penny stocks to buy.

On March 5, 2026, Gevo reported fourth-quarter and full-year 2025 financial results and paired them with a business update centered on its Gevo North Dakota platform. The company posted fourth-quarter revenue of $45 million and full-year revenue of $161 million. Loss from operations narrowed to $2.2 million in the quarter, while non-GAAP adjusted EBITDA reached $7.7 million, marking Gevo’s third straight quarter of positive adjusted EBITDA. Gevo also generated $20 million of positive operating cash flow in the fourth quarter and ended the year with $117 million in cash, cash equivalents, and restricted cash.

Alexey Y. Petrov/Shutterstock.com

The North Dakota asset was a key part of the update. Gevo said the plant produced a record 69 million gallons of low-carbon ethanol in 2025, up 3% from 67 million gallons in 2024. Management also approved a capital plan to expand Gevo North Dakota’s ethanol capacity to 75 million gallons per year, while aiming to produce more co-products, improve energy efficiency, capture more carbon dioxide, and strengthen operational reliability. The company said those projects are expected to begin delivering returns in early 2027.

Management tied the stronger results to execution across fuels, carbon markets, and tax credit monetization. Gevo sold $52 million of production tax credits in 2025 related to Gevo North Dakota and received about $41 million of cash proceeds during the year. It is now targeting neutral-to-positive cash flow from operations for 2026 and has reaffirmed its near-term goal of reaching a run-rate non-GAAP adjusted EBITDA of about $40 million per year.

Gevo, Inc. (NASDAQ:GEVO) is a renewable fuels and carbon management company focused on low-carbon ethanol, renewable natural gas, carbon removal credits, and sustainable aviation fuel development.

While we acknowledge the potential of GEVO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years

Disclosure: None. Follow Insider Monkey on Google News.