Revenue growth remains volatile at 9.9% in 2025Q3, while operating margins have significantly compressed from 52.7% in 2024Q1 to 37.7% in 2025Q3.
| Sales/Revenue | 331.47M | 322.51M | 361.38M | 220.32M | 161.96M |
| Revenue Growth % | -1.71% | -10.76% | 64.03% | 36.03% | - |
| Cost of Goods Sold | 126.46M | 77.33M | 136.32M | 97.77M | 93.54M |
| COGS % of Revenue | - | 23.98% | 37.72% | 44.38% | 57.76% |
| Gross Profit | 205.01M | 245.18M | 225.07M | 122.54M | 68.41M |
| Gross Margin % | 61.85% | 76.02% | 62.28% | 55.62% | 42.24% |
| Gross Profit Growth % | - | 8.94% | 83.66% | 79.12% | - |
| Operating Expenses | 38.51M | 82.23M | 24.17M | 13.74M | 566K |
| OpEx % of Revenue | - | 25.5% | 6.69% | 6.23% | 0.35% |
| Selling, General & Admin | 21.75M | 21.94M | 24.17M | 13.74M | 586K |
| SG&A % of Revenue | - | 6.8% | 6.69% | 6.23% | 0.36% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 1000K | 60.3M | 0 | 0 | 0 |
| Operating Income | 142.73M | 162.95M | 200.89M | 108.81M | 72.85M |
| Operating Margin % | 43.06% | 50.53% | 55.59% | 49.39% | 44.98% |
| Operating Income Growth % | - | -18.89% | 84.63% | 49.36% | - |
| EBITDA | 221.57M | 223.24M | 259.89M | 167.78M | 116.33M |
| EBITDA Margin % | 66.85% | 69.22% | 71.92% | 76.15% | 71.83% |
| EBITDA Growth % | -7.74% | -14.1% | 54.9% | 44.23% | - |
| D&A (Non-Cash Add-back) | 78.84M | 60.3M | 59M | 58.97M | 43.48M |
| EBIT | 123.38M | 162.95M | 257.11M | 116.01M | 72.44M |
| Net Interest Income | -73.93M | -75.71M | -73.23M | -28.83M | -17.61M |
| Interest Income | 16.72M | 2.95M | 6.96M | 1.25M | 6.82K |
| Interest Expense | 90.62M | 78.66M | 80.19M | 30.08M | 17.61M |
| Other Income/Expense | -81.4M | -61.87M | -23.97M | -22.88M | -18.5M |
| Pretax Income | 61.33M | 101.08M | 176.92M | 85.93M | 54.35M |
| Pretax Margin % | 18.5% | 31.34% | 48.96% | 39% | 33.56% |
| Income Tax | 169K | 277K | 556K | 108.87K | 0 |
| Effective Tax Rate % | 0.28% | 0.27% | 0.31% | 0.13% | 0% |
| Net Income | 59.13M | 98.14M | 174.73M | 84.1M | 21.85M |
| Net Margin % | 17.84% | 30.43% | 48.35% | 38.17% | 13.49% |
| Net Income Growth % | -36.32% | -43.83% | 107.77% | 284.89% | - |
| Net Income (Continuing) | 61.16M | 100.8M | 176.36M | 85.82M | 54.35M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 70.38M | 68.96M | 174.5M |
| EPS (Diluted) | - | 1.82 | 3.25 | 1.57 | 15.30 |
| EPS Growth % | -48.28% | -44% | 107.01% | -89.74% | - |
| EPS (Basic) | - | 1.83 | 3.25 | 1.57 | 15.30 |
| Diluted Shares Outstanding | 0 | 53.83M | 53.69M | 53.69M | 1.01M |
| Basic Shares Outstanding | 0 | 53.73M | 53.7M | 53.69M | 1.01M |
| Dividend Payout Ratio | - | 75.51% | 50.08% | - | - |
TFDE fleet obsolescence risk
According to the latest quarterly filings, Cool Company Ltd. experienced a 9.9% revenue increase in 2025Q3, yet this follows a prolonged period of contraction, suggesting that the firm is struggling to maintain consistent top-line growth as legacy charter contracts roll over into a more competitive spot environment.
The recent revenue uptick appears to be a departure from the negative growth trends observed throughout 2024, which may indicate a temporary stabilization in charter rates. However, investors should monitor whether this growth is sustainable or merely a reflection of seasonal spot market fluctuations rather than a fundamental improvement in long-term contract pricing.
As reported in financial statements, the company's gross margin fluctuated significantly from 48.2% in 2025Q1 to 74.0% in 2025Q3, highlighting the inherent sensitivity of the firm's cost structure to voyage-related expenses and the timing of vessel maintenance cycles within the current operating environment.
The wide variance in gross margins suggests that the company's profitability is highly susceptible to the specific terms of its charter agreements, particularly regarding who bears the burden of fuel and port costs. This volatility warrants further investigation into whether the recent margin expansion is a result of improved operational efficiency or simply a shift in the mix of spot versus time-charter deployments.
Based on the provided income statement data, the operating margin compressed from 52.7% in 2024Q1 to 37.7% in 2025Q3, indicating that the company is currently failing to scale its operating income in proportion to its gross profit, potentially due to rising fixed overheads or inefficient fleet utilization.
The decline in operating margins suggests that the company's cost base is becoming less flexible as revenue growth remains inconsistent. If this trend persists, it may indicate that the firm is unable to pass through inflationary cost pressures to its charterers, thereby eroding the profitability of its aging TFDE fleet.
Analysis of the income statement reveals that EPS has experienced extreme quarterly swings, such as the drop to 0.00 in 2025Q3 from 0.66 in 2024Q1, which suggests that reported net income is being heavily impacted by non-operating items or significant fluctuations in tax and impairment charges.
The erratic nature of the bottom line makes it difficult to ascertain the true underlying earnings power of the business. Investors should be wary of relying on headline EPS figures, as the impact of stock-based compensation and potential asset impairments may be masking the core operational performance of the shipping fleet.
While the company maintains a strong balance sheet, the persistent decline in net margins from 52.4% in 2023Q2 to 12.6% in 2025Q3 suggests that the market's concerns regarding the long-term viability of the TFDE fleet may be well-founded and could lead to future asset impairment charges.
Short-sellers may focus on the potential for structural margin compression as environmental regulations tighten and the TFDE fleet becomes less competitive against newer, more efficient vessels. The company's reliance on older technology may necessitate significant capital expenditure for retrofits, which could ultimately undermine the current dividend-focused capital allocation strategy.
Quick answers to the most common questions about buying CLCO stock.
For fiscal year 2024, Cool Company Ltd. (CLCO) reported total revenue of $322.5M. This represents a 99.1% increase compared to $162.0M in 2021.
Cool Company Ltd. (CLCO) is profitable, generating $98.1M in net income for the fiscal year ending 2024 with a net profit margin of 30.4%.
Cool Company Ltd. (CLCO) reported an operating income of $162.9M, resulting in an operating profit margin of 50.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Cool Company Ltd. (CLCO) generated $245.2M in gross profit for the year, representing a gross profit margin of 76.0%. This demonstrates the company's core pricing power and production efficiency.