The company's gross margin profile has exhibited extreme instability, plummeting to zero in 2026Q1 from a peak of 66.1% in 2025Q3, suggesting severe operational or accounting disruptions.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Mar'05 | Mar'03 | Mar'02 | Mar'01 | Mar'00 |
|---|
| Sales/Revenue | 1.52B | 1.49B | 1.16B | 990.34M | 845.57M | 781.46M | 874.97M | 965.49M | 904.44M | 794.65M | 807.07M | 998.11M | 959.15M | 862.77M | 2.79B | 2.61B | 2.42B | 2.72B | 3.02B | 2.54B | 1.59B | 1.3B | 763.07M | 688.79M | 625.22M | 679.99M | 232.47M |
| Revenue Growth % | 22.66% | 28.7% | 16.89% | 17.12% | 8.2% | -10.69% | -9.38% | 6.75% | 13.82% | -1.54% | -19.14% | 4.06% | 11.17% | -69.12% | 6.95% | 8.09% | -10.99% | -10.2% | 19.04% | 59.45% | 22.16% | 70.93% | 10.78% | 10.17% | -8.05% | 192.51% | - |
| Cost of Goods Sold | 453.24M | 766.19M | 458.5M | 449.02M | 419.48M | 358.92M | 377.19M | 456.24M | 464.37M | 418.92M | 379.92M | 495.05M | 504.39M | 470.98M | 1.96B | 2.25B | 2.01B | 1.8B | 2B | 1.72B | 1.05B | 839.65M | 452.82M | 399.31M | 357.25M | 411.64M | 123.06M |
| COGS % of Revenue | - | 51.43% | 39.61% | 45.34% | 49.61% | 45.93% | 43.11% | 47.25% | 51.34% | 52.72% | 47.07% | 49.6% | 52.59% | 54.59% | 70.32% | 85.93% | 83.25% | 66.28% | 66.08% | 67.63% | 65.68% | 64.38% | 59.34% | 57.97% | 57.14% | 60.54% | 52.94% |
| Gross Profit | 689.41M | 723.63M | 699.09M | 541.32M | 426.08M | 422.54M | 497.78M | 509.25M | 440.07M | 375.73M | 427.15M | 503.06M | 454.76M | 391.79M | 829.41M | 367.62M | 404.94M | 915.58M | 1.03B | 822.31M | 546.78M | 464.66M | 310.25M | 289.48M | 267.97M | 268.35M | 109.41M |
| Gross Margin % | 45.46% | 48.57% | 60.39% | 54.66% | 50.39% | 54.07% | 56.89% | 52.75% | 48.66% | 47.28% | 52.93% | 50.4% | 47.41% | 45.41% | 29.68% | 14.07% | 16.75% | 33.72% | 33.92% | 32.37% | 34.32% | 35.62% | 40.66% | 42.03% | 42.86% | 39.46% | 47.06% |
| Gross Profit Growth % | - | 3.51% | 29.15% | 27.04% | 0.84% | -15.11% | -2.25% | 15.72% | 17.12% | -12.04% | -15.09% | 10.62% | 16.07% | -52.76% | 125.62% | -9.21% | -55.77% | -10.74% | 24.74% | 50.39% | 17.67% | 49.77% | 7.18% | 8.03% | -0.14% | 145.27% | - |
| Operating Expenses | 352.79M | 147.81M | 139.12M | 116.64M | 117.18M | 107.17M | 105.1M | 117.73M | 101.56M | 109.37M | 115.87M | 131.92M | 132.65M | 118.85M | 813.93M | 367.62M | 404.94M | 915.58M | 1.03B | 564.5M | 373.21M | 349.48M | 169.55M | 153.17M | 177.72M | 164.89M | 69.03M |
| OpEx % of Revenue | - | 9.92% | 12.02% | 11.78% | 13.86% | 13.71% | 12.01% | 12.19% | 11.23% | 13.76% | 14.36% | 13.22% | 13.83% | 13.78% | 29.13% | 14.07% | 16.75% | 33.72% | 33.92% | 22.22% | 23.42% | 26.79% | 22.22% | 22.24% | 28.43% | 24.25% | 29.69% |
| Selling, General & Admin | 155.83M | 147.81M | 139.12M | 116.64M | 117.18M | 107.17M | 105.1M | 117.73M | 101.56M | 109.37M | 115.87M | 131.92M | 132.65M | 118.85M | 375.65M | 352.1M | 352M | 337.62M | 352.9M | 265.06M | 197.28M | 176.83M | 75.76M | 67.52M | 114.02M | 116.29M | 35.53M |
| SG&A % of Revenue | - | 9.92% | 12.02% | 11.78% | 13.86% | 13.71% | 12.01% | 12.19% | 11.23% | 13.76% | 14.36% | 13.22% | 13.83% | 13.78% | 13.44% | 13.48% | 14.56% | 12.43% | 11.67% | 10.43% | 12.38% | 13.56% | 9.93% | 9.8% | 18.24% | 17.1% | 15.29% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 15.53M | 52.94M | 577.96M | 672.83M | 299.44M | 175.93M | 172.65M | 93.8M | 85.65M | 63.71M | 48.6M | 33.49M |
| Operating Income | 381.86M | 575.83M | 559.97M | 424.68M | 308.9M | 315.38M | 392.68M | 391.52M | 338.51M | 266.36M | 311.28M | 371.14M | 322.11M | 272.94M | 107.58M | 15.53M | 52.94M | 225.18M | 341.95M | 257.81M | 173.57M | 115.18M | 140.7M | 136.31M | 90.25M | 103.45M | 40.38M |
| Operating Margin % | 25.18% | 38.65% | 48.37% | 42.88% | 36.53% | 40.36% | 44.88% | 40.55% | 37.43% | 33.52% | 38.57% | 37.18% | 33.58% | 31.64% | 3.85% | 0.59% | 2.19% | 8.29% | 11.31% | 10.15% | 10.89% | 8.83% | 18.44% | 19.79% | 14.43% | 15.21% | 17.37% |
| Operating Income Growth % | - | 2.83% | 31.86% | 37.48% | -2.05% | -19.69% | 0.3% | 15.66% | 27.09% | -14.43% | -16.13% | 15.22% | 18.01% | 153.7% | 592.97% | -70.67% | -76.49% | -34.15% | 32.63% | 48.53% | 50.7% | -18.14% | 3.22% | 51.05% | -12.77% | 156.2% | - |
| EBITDA | 788.65M | 837.26M | 753.16M | 590.92M | 473.16M | 494.32M | 585.82M | 579.6M | 513.46M | 454.93M | 520.27M | 600.27M | 534.38M | 460.42M | 453.76M | 368.32M | 445.09M | 577.96M | 672.83M | 531.65M | 298.22M | 198.07M | 239.44M | 226.85M | 157.93M | 155.47M | 75.34M |
| EBITDA Margin % | 52.01% | 56.2% | 65.06% | 59.67% | 55.96% | 63.26% | 66.95% | 60.03% | 56.77% | 57.25% | 64.46% | 60.14% | 55.71% | 53.37% | 16.24% | 14.1% | 18.41% | 21.28% | 22.25% | 20.93% | 18.72% | 15.19% | 31.38% | 32.93% | 25.26% | 22.86% | 32.41% |
| EBITDA Growth % | -4.84% | 11.17% | 27.46% | 24.89% | -4.28% | -15.62% | 1.07% | 12.88% | 12.87% | -12.56% | -13.33% | 12.33% | 16.06% | 1.47% | 23.2% | -17.25% | -22.99% | -14.1% | 26.56% | 78.28% | 50.56% | -17.28% | 5.55% | 43.64% | 1.58% | 106.35% | - |
| D&A (Non-Cash Add-back) | 270.08M | 261.44M | 193.19M | 166.24M | 164.26M | 178.95M | 193.14M | 188.08M | 174.95M | 188.56M | 208.99M | 229.13M | 212.27M | 187.48M | 346.18M | 352.79M | 392.15M | 352.79M | 330.89M | 273.84M | 124.64M | 82.89M | 98.74M | 90.53M | 67.69M | 52.02M | 34.96M |
| EBIT | 469.1M | 588.98M | 366.77M | 258.44M | 144.64M | 136.43M | 199.54M | 203.44M | 163.56M | 77.8M | 103.69M | 142.02M | 109.84M | 85.47M | 107.58M | -193.82M | -80.13M | -74.71M | -814.83M | 304.54M | 173.57M | 115.18M | 140.7M | 136.31M | 90.25M | 103.45M | 40.38M |
| Net Interest Income | -127.6M | -165.34M | -123.61M | -111.49M | -101.26M | -108.14M | -105.72M | -104.68M | -93.33M | -88.76M | -83.9M | -107.62M | -112.27M | -112.19M | -134.38M | -149.47M | -136.15M | -122.84M | -129.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 167.11M | 165.34M | 123.61M | 111.49M | 101.26M | 108.14M | 105.72M | 104.68M | 93.33M | 88.76M | 83.9M | 107.62M | 112.27M | 112.19M | 134.38M | 149.47M | 136.15M | 122.84M | 129.72M | 392.25M | 55.81M | 39.27M | 102.1M | 35.09M | 23.21M | 50.12M | 34.33M |
| Other Income/Expense | -50.53M | -152.69M | -327.59M | -282.43M | -248.31M | -276.42M | -478.66M | -333.06M | -303.2M | -308.98M | -400.7M | -477.33M | -367.29M | -293.83M | -226.48M | -358.82M | -269.22M | -422.73M | -1.29B | -205.04M | -59.07M | -124.61M | -89.88M | -87.79M | -35.75M | -23.12M | -31.62M |
| Pretax Income | 429.01M | 423.64M | 232.38M | 142.25M | 60.59M | 38.96M | -85.98M | 58.46M | 35.31M | -42.62M | -89.42M | -106.19M | -45.18M | -20.89M | -118.9M | -347.12M | -225.17M | -197.56M | -898.28M | 52.77M | 129.93M | 86.42M | 48.53M | 54.49M | 80.34M | 8.76M | -7.98M |
| Pretax Margin % | 28.29% | 28.44% | 20.07% | 14.36% | 7.17% | 4.99% | -9.83% | 6.05% | 3.9% | -5.36% | -11.08% | -10.64% | -4.71% | -2.42% | -4.26% | -13.29% | -9.32% | -7.27% | -29.7% | 2.08% | 8.15% | 6.63% | 6.36% | 7.91% | 12.85% | 1.29% | -3.43% |
| Income Tax | 103.11M | 100.84M | 60.15M | 37.25M | 16.29M | 10.74M | -17.54M | -39.15M | 6.15M | -61.08M | -24.6M | 53.19M | -28.07M | -17.84M | -45.76M | -11.72M | -62.3M | 51.67M | 37.22M | 11.89M | 28.78M | 27.71M | 17.21M | 17.74M | 20.98M | 30.93M | 3.65M |
| Effective Tax Rate % | 24.03% | 23.8% | 25.88% | 26.19% | 26.89% | 27.58% | 20.4% | -66.96% | 17.42% | 143.32% | 27.51% | -50.09% | 62.12% | 85.41% | 38.48% | 3.38% | 27.67% | -26.15% | -4.14% | 22.54% | 22.15% | 32.07% | 35.47% | 32.56% | 26.11% | 353.21% | -45.7% |
| Net Income | 325.23M | 322.29M | 172.23M | 105M | 44.3M | 28.22M | -68.44M | 97.33M | 21.06M | 18.95M | -54.55M | -132.55M | 60.95M | 94.03M | -39.49M | -340.61M | -101.83M | -549.41M | -947.35M | 34.57M | 86.52M | -38.02M | 33.61M | 30.79M | 33.52M | 49.41M | -4.39M |
| Net Margin % | 21.45% | 21.63% | 14.88% | 10.6% | 5.24% | 3.61% | -7.82% | 10.08% | 2.33% | 2.39% | -6.76% | -13.28% | 6.35% | 10.9% | -1.41% | -13.04% | -4.21% | -20.23% | -31.33% | 1.36% | 5.43% | -2.91% | 4.4% | 4.47% | 5.36% | 7.27% | -1.89% |
| Net Income Growth % | 60.57% | 87.13% | 64.03% | 137.04% | 56.98% | 141.23% | -170.32% | 362.09% | 11.13% | 134.74% | 58.84% | -317.49% | -35.18% | 338.13% | 88.41% | -234.5% | 81.47% | 42.01% | -2840.46% | -60.05% | 327.59% | -213.11% | 9.17% | -8.15% | -32.16% | 1225.21% | - |
| Net Income (Continuing) | 325.42M | 322.29M | 172.23M | 105M | 44.3M | 28.22M | -68.44M | 97.6M | 29.16M | 18.46M | -64.82M | -159.37M | -17.11M | -3.05M | -73.14M | -331.57M | -153.98M | -249.22M | -981.83M | 34.57M | 85.72M | -37.15M | 33.61M | 30.79M | 33.52M | 49.41M | 5.11M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -273K | 0 | -54K | -426K | 33.68M | 105.77M | 129.65M | 35.98M | -8.04M | 40.74M | -296.24M | 46.75M | 0 | 431K | -869K | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -41.43M | -34.04M | 53.35M | 155.78M | 151.34M | 223.65M | 242.81M | 192.98M | 176.86M | 184.29M | 191.3M | 122.08M | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.86 | 1.84 | 1.05 | 0.67 | 0.28 | 0.18 | -0.45 | 0.70 | 0.19 | 0.26 | -0.79 | -1.55 | 1.40 | 1.86 | -0.62 | -5.44 | -1.64 | -8.95 | -14.67 | 0.75 | 2.82 | -1.28 | 0.98 | 1.08 | 1.63 | -0.29 | -0.68 |
| EPS Growth % | 55.93% | 75.24% | 56.72% | 139.29% | 55.56% | 140% | -164.29% | 268.42% | -26.92% | 132.91% | 49.03% | -210.71% | -24.73% | 400% | 88.6% | -231.71% | 81.68% | 38.99% | -2056% | -73.4% | 320.31% | -230.61% | -9.26% | -33.74% | 662.07% | 57.35% | - |
| EPS (Basic) | - | 1.85 | 1.05 | 0.67 | 0.28 | 0.18 | -0.45 | 0.70 | 0.19 | 0.26 | -0.79 | -1.55 | 1.46 | 1.88 | -0.62 | -5.44 | -1.64 | -8.95 | -14.67 | 0.76 | 2.93 | -1.28 | 1.00 | 1.09 | 1.65 | -0.30 | -0.68 |
| Diluted Shares Outstanding | 174.5M | 174.75M | 162.38M | 154.34M | 153.41M | 151.83M | 150.83M | 137.53M | 109.42M | 69.66M | 68.99M | 68.43M | 69.09M | 66.2M | 63.44M | 62.62M | 61.99M | 61.41M | 64.58M | 46.3M | 31.03M | 32.76M | 31.28M | 30.93M | 30.25M | 15.08M | 8.82M |
| Basic Shares Outstanding | 174.08M | 174.44M | 162.04M | 154.13M | 153.28M | 151.68M | 150.83M | 137.49M | 109.31M | 69.55M | 68.99M | 68.34M | 66.23M | 65.66M | 63.41M | 62.62M | 61.99M | 61.41M | 64.58M | 45.58M | 29.91M | 31.77M | 30.85M | 30.66M | 30.01M | 14.76M | 8.82M |
| Dividend Payout Ratio | - | 43.94% | 64.08% | 91.24% | 203.89% | 316.63% | - | 80.68% | 276.73% | 179.72% | - | - | 66.16% | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and margin volatility
According to the provided quarterly data, Archrock experienced a notable revenue deceleration in 2026Q1, with growth slowing to 7.7% compared to the 41.6% peak observed in 2025Q2, suggesting that the prior momentum in compression services may be encountering significant headwinds in the current operating environment.
The sharp decline in growth rates from the mid-2025 highs indicates that the company's ability to capture incremental demand is waning. Investors should monitor whether this trend reflects a broader cooling in natural gas gathering activity or a saturation of the company's high-horsepower fleet capacity.
As reported in financial statements, Archrock's gross margin profile has exhibited significant instability, plummeting to zero in 2026Q1 from a peak of 66.1% in 2025Q3, which warrants further investigation into potential accounting anomalies or severe operational disruptions within the core contract operations segment.
The extreme variance in gross margins suggests that the company's cost structure is highly sensitive to operational variables that are not yet fully transparent. Such volatility undermines the narrative of a stable, infrastructure-like business model and implies that profitability may be more cyclical than previously assumed.
Based on Archrock's reported figures, the operating margin collapsed to zero in 2026Q1, a stark reversal from the 53.3% margin achieved in 2025Q1, indicating that the company's fixed-cost base is currently failing to scale effectively against the recent revenue deceleration and operational cost pressures.
The inability to maintain operating profitability during periods of revenue growth suggests that SG&A and other overhead costs are not being managed with the discipline required for a high-fixed-cost business. This lack of operating leverage may indicate that the company is struggling to maintain efficiency as it scales its fleet.
Analysis of the income statement reveals that net income remained positive at $73.8 million in 2026Q1 despite the reported zero gross profit, suggesting that non-operating items or accounting adjustments are significantly distorting the underlying quality of earnings and masking the true operational performance of the business.
The disconnect between the reported net income and the absence of gross profit suggests that investors should be cautious regarding the sustainability of current EPS figures. This pattern of earnings generation appears detached from core operational output, which may indicate reliance on non-recurring items or aggressive accounting practices.
Data indicates that Archrock maintains a cash position of only $1.55 million, which appears dangerously thin for a capital-intensive industrial firm, potentially leaving the company vulnerable to liquidity shocks if the current trend of margin compression and revenue deceleration continues into the coming fiscal quarters.
The combination of minimal cash reserves and volatile margins suggests that the company may lack the financial buffer necessary to navigate a downturn in the energy sector. Short-term observers may view this liquidity profile as a primary risk factor that could necessitate dilutive financing or restricted capital expenditure.
Quick answers to the most common questions about buying AROC stock.
For fiscal year 2025, Archrock, Inc. (AROC) reported total revenue of $1.49B. This represents a 540.9% increase compared to $232.5M in 2000.
Archrock, Inc. (AROC) is profitable, generating $322.3M in net income for the fiscal year ending 2025 with a net profit margin of 21.6%.
Archrock, Inc. (AROC) reported an operating income of $575.8M, resulting in an operating profit margin of 38.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Archrock, Inc. (AROC) generated $723.6M in gross profit for the year, representing a gross profit margin of 48.6%. This demonstrates the company's core pricing power and production efficiency.