Structural margin compression remains a persistent concern, with gross margins falling from a 16.9% peak in 2024Q4 to just 8.4% by 2026Q1.
| 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 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.2B | 1.16B | 1.13B | 1.1B | 1.22B | 1.05B | 838.56M | 885.39M | 885.46M | 705.01M | 670.65M | 724.24M | 718.98M | 684.55M | 674.25M | 652.63M | 649.75M | 588.69M | 773.91M | 712.53M | 683.83M | 643.05M | 603.62M | 582.46M | 564.42M | 547.03M | 552.43M | 472.74M | 370.55M | 297.86M | 236.27M |
| Revenue Growth % | 7.15% | 2.92% | 2.53% | -9.31% | 16.33% | 24.74% | -5.29% | -0.01% | 25.6% | 5.12% | -7.4% | 0.73% | 5.03% | 1.53% | 3.31% | 0.44% | 10.37% | -23.93% | 8.62% | 4.2% | 6.34% | 6.53% | 3.63% | 3.2% | 3.18% | -0.98% | 16.86% | 27.58% | 24.4% | 26.07% | 31.04% |
| Cost of Goods Sold | 1.05B | 1.07B | 941.83M | 939.37M | 1.03B | 898.72M | 729.01M | 780.47M | 741.02M | 612.1M | 573.43M | 593.36M | 606.02M | 601.64M | 585.42M | 332.92M | 66.52M | 38.85M | 137.03M | 398.13M | 368.93M | 354.56M | 344.42M | 297.13M | 265.76M | 329.9M | 322.51M | 242.77M | 165.29M | 121.37M | 85.9M |
| COGS % of Revenue | - | 91.99% | 83.24% | 85.12% | 84.72% | 85.92% | 86.94% | 88.15% | 83.69% | 86.82% | 85.5% | 81.93% | 84.29% | 87.89% | 86.82% | 51.01% | 10.24% | 6.6% | 17.71% | 55.88% | 53.95% | 55.14% | 57.06% | 51.01% | 47.09% | 60.31% | 58.38% | 51.35% | 44.61% | 40.75% | 36.36% |
| Gross Profit | 153.89M | 93.31M | 189.65M | 164.2M | 185.99M | 147.28M | 109.55M | 104.92M | 144.44M | 92.91M | 97.22M | 130.88M | 112.96M | 82.91M | 88.84M | 319.71M | 583.23M | 549.84M | 636.88M | 314.39M | 314.89M | 288.5M | 259.2M | 285.32M | 298.65M | 217.12M | 229.92M | 229.97M | 205.25M | 176.5M | 150.37M |
| Gross Margin % | 12.8% | 8.01% | 16.76% | 14.88% | 15.28% | 14.08% | 13.06% | 11.85% | 16.31% | 13.18% | 14.5% | 18.07% | 15.71% | 12.11% | 13.18% | 48.99% | 89.76% | 93.4% | 82.29% | 44.12% | 46.05% | 44.86% | 42.94% | 48.99% | 52.91% | 39.69% | 41.62% | 48.65% | 55.39% | 59.25% | 63.64% |
| Gross Profit Growth % | - | -50.8% | 15.5% | -11.71% | 26.28% | 34.44% | 4.41% | -27.36% | 55.46% | -4.44% | -25.71% | 15.86% | 36.24% | -6.67% | -72.21% | -45.18% | 6.07% | -13.67% | 102.57% | -0.16% | 9.15% | 11.3% | -9.15% | -4.46% | 37.55% | -5.57% | -0.02% | 12.04% | 16.29% | 17.37% | 8.57% |
| Operating Expenses | 134.56M | 79.34M | 144.89M | 105.38M | 105.63M | 83.92M | 123.58M | 96.15M | 85.45M | 64.75M | 64.78M | 63.09M | 73.31M | 62.52M | 65.63M | 309.23M | 338.31M | 337.68M | 410.79M | 721.54M | 674.2M | 625.99M | 589.67M | 554.24M | 539.44M | 612.16M | 599.78M | 479.31M | 359.1M | 278.23M | 216.8M |
| OpEx % of Revenue | - | 6.81% | 12.81% | 9.55% | 8.68% | 8.02% | 14.74% | 10.86% | 9.65% | 9.18% | 9.66% | 8.71% | 10.2% | 9.13% | 9.73% | 47.38% | 52.07% | 57.36% | 53.08% | 101.27% | 98.59% | 97.35% | 97.69% | 95.15% | 95.58% | 111.91% | 108.57% | 101.39% | 96.91% | 93.41% | 91.76% |
| Selling, General & Admin | 102.24M | 65.56M | 131.31M | 104.56M | 93.69M | 73.02M | 93.09M | 84.78M | 73.62M | 54.88M | 53.07M | 52.08M | 62.35M | 51.55M | 54.58M | 262.96M | 275.42M | 277.45M | 334.47M | 293.81M | 283.69M | 17.78M | 15.1M | 14.49M | 14.68M | 79.54M | 100.77M | 74.05M | 43.65M | 24.77M | 13.43M |
| SG&A % of Revenue | - | 5.63% | 11.6% | 9.47% | 7.7% | 6.98% | 11.1% | 9.57% | 8.31% | 7.78% | 7.91% | 7.19% | 8.67% | 7.53% | 8.1% | 40.29% | 42.39% | 47.13% | 43.22% | 41.24% | 41.49% | 2.76% | 2.5% | 2.49% | 2.6% | 14.54% | 18.24% | 15.66% | 11.78% | 8.32% | 5.68% |
| 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 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 13.78M | 13.58M | 824K | 11.93M | 10.9M | 30.48M | 11.37M | 11.83M | 9.88M | 11.71M | 11.02M | 13K | 3K | 13K | 46.27M | 62.9M | 60.23M | 76.31M | 427.73M | 390.51M | 608.21M | 574.57M | 539.74M | 524.77M | 532.62M | 499.01M | 405.26M | 315.45M | 253.46M | 203.37M |
| Operating Income | 19.33M | 13.97M | 44.76M | 58.82M | 80.36M | 63.36M | -14.03M | 8.77M | 58.99M | 28.16M | 32.45M | 67.78M | 39.65M | 20.39M | 23.21M | -1.06M | 26.01M | -4.72M | -55.68M | -10.68M | 9.63M | 17.07M | 13.95M | 28.22M | 24.97M | -63K | 28.78M | 42.69M | 35.7M | 28.12M | 20.07M |
| Operating Margin % | 1.61% | 1.2% | 3.96% | 5.33% | 6.6% | 6.06% | -1.67% | 0.99% | 6.66% | 3.99% | 4.84% | 9.36% | 5.51% | 2.98% | 3.44% | -0.16% | 4% | -0.8% | -7.19% | -1.5% | 1.41% | 2.65% | 2.31% | 4.85% | 4.42% | -0.01% | 5.21% | 9.03% | 9.63% | 9.44% | 8.49% |
| Operating Income Growth % | - | -68.78% | -23.91% | -26.8% | 26.82% | 551.72% | -259.96% | -85.13% | 109.5% | -13.23% | -52.13% | 70.97% | 94.4% | -12.13% | 2287.46% | -104.08% | 650.78% | 91.52% | -421.29% | -210.93% | -43.58% | 22.32% | -50.56% | 13% | 39741.27% | -100.22% | -32.58% | 19.59% | 26.93% | 40.15% | -28.84% |
| EBITDA | 114.23M | 113.19M | 131.29M | 128.77M | 137.87M | 117.24M | 51.45M | 89.3M | 134.84M | 100.58M | 104.09M | 129.79M | 88.69M | 64.85M | 71.34M | 51.94M | 82.11M | 43.27M | 30.28M | 41.12M | 52.86M | 56.84M | -31.05M | -14.82M | -24.52M | -56.39M | 67.96M | 78.35M | 67.77M | 55.49M | 42.85M |
| EBITDA Margin % | 9.5% | 9.72% | 11.6% | 11.67% | 11.33% | 11.21% | 6.14% | 10.09% | 15.23% | 14.27% | 15.52% | 17.92% | 12.34% | 9.47% | 10.58% | 7.96% | 12.64% | 7.35% | 3.91% | 5.77% | 7.73% | 8.84% | -5.14% | -2.54% | -4.34% | -10.31% | 12.3% | 16.57% | 18.29% | 18.63% | 18.14% |
| EBITDA Growth % | -16.07% | -13.78% | 1.96% | -6.6% | 17.59% | 127.87% | -42.38% | -33.78% | 34.07% | -3.38% | -19.8% | 46.35% | 36.76% | -9.1% | 37.36% | -36.74% | 89.78% | 42.88% | -26.36% | -22.21% | -6.99% | 283.05% | -109.51% | 39.57% | 56.51% | -182.97% | -13.26% | 15.61% | 22.14% | 29.5% | 275.86% |
| D&A (Non-Cash Add-back) | 94.91M | 99.22M | 86.53M | 69.94M | 57.51M | 53.88M | 65.48M | 80.53M | 75.86M | 72.42M | 71.65M | 62.01M | 49.04M | 44.46M | 48.13M | 53M | 56.1M | 47.99M | 85.96M | 51.8M | 43.23M | 39.77M | -45M | -43.04M | -49.5M | -56.32M | 39.18M | 35.66M | 32.07M | 27.36M | 22.78M |
| EBIT | 16.21M | 17.65M | 59.47M | 80.21M | 145.88M | 81.94M | -10.08M | 7.12M | 55.71M | 28.16M | 32.45M | 67.78M | 39.65M | 23.15M | 25.1M | -231K | 26.03M | -15.86M | -55.81M | -10.02M | 9.64M | -337.49M | -330.46M | -268.91M | -239.36M | -395.04M | -369.86M | -249.34M | -63.3M | 43.06M | -66.44M |
| Net Interest Income | -13.08M | -12.05M | -13.58M | -7.97M | -3.08M | -2.79M | -6.84M | -8.22M | -7.34M | -8.26M | -8.23M | -8.45M | -10.79M | -10.4M | -12.7M | -16.18M | -16.56M | -14.04M | -9.94M | -11.81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8.22M | 1.36M | 0 | 0 | 0 | 13K | 0 | 0 | 32K | 2K | 144K | 435K | 477K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 13.08M | 12.05M | 13.58M | 7.97M | 3.08M | 2.79M | 6.84M | 11.11M | 8.71M | 8.26M | 8.23M | 8.45M | 10.81M | 10.4M | 12.7M | 16.21M | 16.57M | 14.18M | 10.37M | 12.29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -16.2M | -8.38M | 1.14M | 13.42M | 62.43M | 15.79M | -2.9M | -1.2M | 2.59M | -4.86M | -5.23M | -3.88M | -7.06M | -7.65M | -10.81M | -15.38M | -16.54M | -25.33M | -10.5M | -11.63M | -6.43M | -3.39M | -2.12M | -1.75M | -5.83M | -8.33M | -9.01M | -5.51M | -5.92M | -6.32M | -5.99M |
| Pretax Income | 3.13M | 5.59M | 45.9M | 72.24M | 142.79M | 79.15M | -16.92M | 7.57M | 58.01M | 23.3M | 27.22M | 63.91M | 32.58M | 12.75M | 12.4M | -16.44M | 9.46M | -30.05M | -66.18M | -22.31M | 3.2M | 13.67M | 11.83M | 26.47M | 20.58M | -8.39M | 19.77M | 37.18M | 29.77M | 21.85M | 14.08M |
| Pretax Margin % | 0.26% | 0.48% | 4.06% | 6.55% | 11.73% | 7.57% | -2.02% | 0.85% | 6.55% | 3.3% | 4.06% | 8.82% | 4.53% | 1.86% | 1.84% | -2.52% | 1.46% | -5.1% | -8.55% | -3.13% | 0.47% | 2.13% | 1.96% | 4.54% | 3.65% | -1.53% | 3.58% | 7.86% | 8.03% | 7.34% | 5.96% |
| Income Tax | 861K | 1.18M | 10.58M | 17.61M | 34.86M | 20.96M | -2.8M | 2.35M | 15.51M | -32.14M | 10.39M | 21.82M | 14.77M | 7.5M | 6.33M | -2.17M | 6.17M | -5.02M | -12.79M | -5.58M | 4.58M | 8M | 8.45M | 14.31M | 11.41M | -1.73M | 7.9M | 14.9M | 11.49M | 8.15M | 5.1M |
| Effective Tax Rate % | 27.53% | 21.12% | 23.04% | 24.38% | 24.41% | 26.48% | 16.57% | 31.04% | 26.73% | -137.97% | 38.15% | 34.15% | 45.34% | 58.86% | 51.09% | 13.21% | 65.25% | 16.7% | 19.33% | 25.02% | 143.14% | 58.53% | 71.46% | 54.08% | 55.47% | 20.59% | 39.95% | 40.08% | 38.59% | 37.29% | 36.24% |
| Net Income | 5.1M | 7.24M | 35.92M | 55.23M | 108.68M | 60.73M | -42.72M | 8.48M | 42.5M | 55.44M | 16.84M | 42.09M | 17.81M | 5.24M | 6.07M | -14.27M | 3.29M | -25.03M | -53.39M | -16.73M | -1.38M | 5.19M | 3.38M | 12.16M | 8.27M | -6.66M | 11.88M | 22.28M | 18.28M | 13.7M | 8.98M |
| Net Margin % | 0.42% | 0.62% | 3.17% | 5% | 8.93% | 5.81% | -5.09% | 0.96% | 4.8% | 7.86% | 2.51% | 5.81% | 2.48% | 0.77% | 0.9% | -2.19% | 0.51% | -4.25% | -6.9% | -2.35% | -0.2% | 0.81% | 0.56% | 2.09% | 1.47% | -1.22% | 2.15% | 4.71% | 4.93% | 4.6% | 3.8% |
| Net Income Growth % | -86.77% | -79.85% | -34.96% | -49.18% | 78.96% | 242.17% | -603.93% | -80.06% | -23.33% | 229.31% | -60% | 136.33% | 239.59% | -13.54% | 142.51% | -533.78% | 113.14% | 53.12% | -219.21% | -1111.15% | -126.63% | 53.61% | -72.23% | 46.92% | 224.2% | -156.1% | -46.69% | 21.85% | 33.43% | 52.62% | -3.46% |
| Net Income (Continuing) | 2.27M | 4.41M | 35.32M | 54.63M | 107.93M | 58.19M | -14.12M | 5.22M | 40.86M | 55.44M | 16.84M | 42.09M | 17.81M | 5.24M | 6.07M | -14.27M | 3.29M | -25.03M | -53.39M | -16.73M | -1.38M | 5.67M | 3.38M | 12.16M | 8.27M | -6.66M | 11.88M | 22.28M | 18.3M | 13.7M | 8.98M |
| Discontinued Operations | 1000K | 2.83M | 600K | 600K | 0 | 0 | -28.6M | 3.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 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 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.19 | 0.27 | 1.30 | 2.00 | 3.50 | 1.81 | -0.81 | 0.45 | 2.30 | 3.02 | 0.92 | 2.30 | 1.15 | 0.35 | 0.41 | -0.97 | 0.23 | -1.77 | -3.80 | -1.19 | -0.10 | 0.36 | 0.23 | 0.83 | 0.57 | -0.48 | 0.82 | 1.48 | 1.27 | 1.03 | 0.67 |
| EPS Growth % | -89.93% | -79.23% | -35% | -42.86% | 93.37% | 323.46% | -280% | -80.43% | -23.84% | 228.26% | -60% | 100% | 228.57% | -14.63% | 142.27% | -521.74% | 112.99% | 53.42% | -219.33% | -1105.67% | -127.42% | 56.52% | -72.29% | 45.61% | 218.75% | -158.54% | -44.59% | 16.54% | 23.3% | 53.73% | -4.29% |
| EPS (Basic) | - | 0.28 | 1.37 | 2.12 | 3.62 | 1.81 | -0.81 | 0.46 | 2.32 | 3.03 | 0.93 | 2.32 | 1.17 | 0.35 | 0.41 | -0.97 | 0.23 | -1.77 | -3.80 | -1.19 | -0.10 | 0.37 | 0.23 | 0.84 | 0.58 | -0.48 | 0.82 | 1.49 | 1.27 | 1.03 | 0.67 |
| Diluted Shares Outstanding | 26.43M | 25.01M | 27.71M | 27.67M | 31.05M | 34.04M | 34.72M | 37.27M | 36.94M | 36.74M | 36.53M | 36.62M | 31.03M | 30.08M | 29.62M | 29.38M | 29.01M | 28.25M | 28.08M | 28.04M | 27.99M | 28.54M | 29.67M | 29.42M | 29.04M | 27.97M | 29.07M | 30.06M | 28.88M | 26.6M | 26.7M |
| Basic Shares Outstanding | 25.08M | 25.01M | 26.31M | 26.1M | 30.01M | 33.61M | 34.72M | 36.87M | 36.68M | 36.56M | 36.36M | 36.29M | 30.5M | 29.67M | 29.48M | 29.38M | 28.75M | 28.25M | 28.08M | 28.04M | 27.99M | 28.35M | 29.28M | 28.93M | 28.45M | 27.97M | 28.81M | 29.82M | 28.79M | 26.6M | 26.7M |
| Dividend Payout Ratio | - | 98.94% | 16.14% | 10.47% | 3.94% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Thin operating margin volatility
According to quarterly financial data, CVLG achieved a 14.0% revenue increase in 2026Q1, yet this growth appears inconsistent when compared to the 3.4% contraction observed in 2025Q1, suggesting that top-line performance remains highly sensitive to broader industrial production cycles and fluctuating freight demand across its core segments.
The recent revenue acceleration warrants caution as it may be driven by volatile spot market conditions rather than sustainable contractual volume. Investors should monitor whether the company can maintain this growth trajectory without relying on fuel surcharge inflation, which often masks underlying organic volume weakness.
As reported in recent income statements, CVLG's gross margin plummeted to 8.4% in 2026Q1 from a peak of 16.9% in 2024Q4, indicating that the company faces significant challenges in maintaining pricing power while managing the high fixed-cost base inherent in its specialized team-driven expedited freight model.
This sharp contraction suggests that the company lacks the necessary pricing leverage to offset rising operational costs or shifts in freight mix. The inability to sustain double-digit gross margins implies that the current service model may be structurally vulnerable to even minor fluctuations in industry-wide capacity and demand.
Based on the provided income statement history, CVLG's net income has exhibited extreme volatility, swinging from a $18.3M loss in 2025Q4 to a $4.4M profit in 2026Q1, which suggests that non-operating items or significant quarterly adjustments may be distorting the true underlying profitability of the core logistics business.
The erratic nature of EPS growth, which saw a 71.4% increase in 2025Q1 followed by a 73.0% decline in 2024Q4, indicates that investors should look past headline figures to assess operational consistency. Such fluctuations often point to reliance on asset sales or other non-recurring items that do not reflect long-term value creation.
Financial filings reveal that CVLG operates with a razor-thin 1.4% net margin as of 2026Q1, a figure that highlights the significant risk of insolvency or liquidity stress should the company encounter a sustained downturn in freight rates or an unexpected spike in equipment maintenance and fuel costs.
Short-sellers would likely focus on the company's limited ability to absorb operational shocks given its high debt-to-equity ratio and minimal cash reserves. The transition to a logistics-focused brand appears to be an attempt to mitigate these risks, yet the financials suggest that the asset-heavy nature of the business remains the primary driver of performance.
Quick answers to the most common questions about buying CVLG stock.
For fiscal year 2025, Covenant Logistics Group, Inc. (CVLG) reported total revenue of $1.16B. This represents a 392.9% increase compared to $236.3M in 1996.
Covenant Logistics Group, Inc. (CVLG) is profitable, generating $7.2M in net income for the fiscal year ending 2025 with a net profit margin of 0.6%.
Covenant Logistics Group, Inc. (CVLG) reported an operating income of $14.0M, resulting in an operating profit margin of 1.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Covenant Logistics Group, Inc. (CVLG) generated $93.3M in gross profit for the year, representing a gross profit margin of 8.0%. This demonstrates the company's core pricing power and production efficiency.