OPAL Fuels stock slipped about 6% to US$2.46 today, even though the headline from Q2 is clear. Profitability pressure eased while cash generation and tax credits did the heavy lifting. Adjusted earnings before interest, tax, depreciation and amortization were reported at US$23.1 million and revenue came in at US$83.4 million.

The stock had gained over the past month. Today’s pullback appears more linked to sentiment than to a collapse in fundamentals. The market is reacting to lingering losses on the income statement, while the core theme of this quarter was margin repair rather than revenue volatility.

OPAL Fuels appears to be easing profitability pressures, but there are still concerns about the losses on the income statement and…