Operating income scaled to $10.9 million in 2026Q1 with a 42.5% operating margin, though gross margins remain sensitive to regional gas basis differentials, fluctuating between 27.4% and 58.0% historically.
| 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 |
|---|
| Sales/Revenue | 61.02M | 51.59M | 31.52M | 30.73M | 69.96M | 42.4M | 24.43M | 26.69M | 29.68M | 26.94M | 25.4M | 23.83M | 52.94M | 46.51M | 43.08M | 58.81M | 14.75M | 5.44M | 8.3M | 3.68M | 249.15K |
| Revenue Growth % | 53.71% | 63.65% | 2.58% | -56.08% | 64.99% | 73.61% | -8.49% | -10.09% | 10.19% | 6.08% | 6.57% | -54.98% | 13.81% | 7.98% | -26.75% | 298.63% | 171.26% | -34.47% | 125.5% | 1377.21% | - |
| Cost of Goods Sold | 31.06M | 27.05M | 19.72M | 16.55M | 15.85M | 15.25M | 18.04M | 15.3M | 15.13M | 16.21M | 20.92M | 23.18M | 34.79M | 28.39M | 36.32M | 2.4M | 1.49M | 1.34M | 1.79M | 540.5K | 62.27K |
| COGS % of Revenue | - | 52.44% | 62.54% | 53.86% | 22.66% | 35.97% | 73.86% | 57.31% | 50.96% | 60.19% | 82.39% | 97.25% | 65.72% | 61.04% | 84.32% | 4.08% | 10.07% | 24.64% | 21.59% | 14.69% | 24.99% |
| Gross Profit | 29.96M | 24.54M | 11.81M | 14.18M | 54.11M | 27.15M | 6.39M | 11.39M | 14.56M | 10.73M | 4.47M | 654.49K | 18.15M | 18.12M | 6.76M | 56.41M | 13.27M | 4.1M | 6.51M | 3.14M | 186.88K |
| Gross Margin % | 49.1% | 47.56% | 37.46% | 46.14% | 77.34% | 64.03% | 26.14% | 42.69% | 49.04% | 39.81% | 17.61% | 2.75% | 34.28% | 38.96% | 15.68% | 95.92% | 89.93% | 75.36% | 78.41% | 85.31% | 75.01% |
| Gross Profit Growth % | - | 107.8% | -16.73% | -73.79% | 99.27% | 325.24% | -43.96% | -21.73% | 35.72% | 139.88% | 583.18% | -96.39% | 0.12% | 168.27% | -88.02% | 325.15% | 223.73% | -37.02% | 107.24% | 1580.25% | - |
| Operating Expenses | 13.3M | 8.91M | 8.38M | 8.76M | 7.13M | 6.54M | 7.36M | 3.21M | 4.94M | 4.5M | 2.13M | 1.98M | 932.79K | 7.07M | 3.61M | 8.71M | 9M | 8.07M | 9.59M | 6.22M | 937.67K |
| OpEx % of Revenue | - | 17.28% | 26.59% | 28.51% | 10.2% | 15.42% | 30.14% | 12.02% | 16.63% | 16.71% | 8.39% | 8.3% | 1.76% | 15.2% | 8.39% | 14.81% | 60.99% | 148.37% | 115.55% | 169.09% | 376.34% |
| Selling, General & Admin | 10.63M | 8.91M | 6.93M | 7.31M | 7.35M | 6.83M | 5.59M | 4.5M | 4.94M | 4.5M | 2.13M | 1.98M | 932.79K | 7.07M | 3.61M | 3.75M | 4.08M | 4.61M | 7.52M | 3.75M | 784.77K |
| SG&A % of Revenue | - | 17.28% | 21.99% | 23.79% | 10.5% | 16.11% | 22.89% | 16.86% | 16.63% | 16.71% | 8.39% | 8.3% | 1.76% | 15.2% | 8.39% | 6.38% | 27.64% | 84.78% | 90.59% | 101.82% | 314.97% |
| Research & Development | 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 | 1.45M | 1.45M | -212.1K | -291.55K | 1.77M | -1.29M | 0 | 27.31K | 0 | 0 | 0 | 1.84K | 0 | 4.96M | 53.23K | 2.75M | 6.09M | 2.48M | 152.9K |
| Operating Income | 16.66M | 15.62M | 3.42M | 5.42M | 46.97M | 20.61M | -977.7K | 8.19M | 9.62M | 6.22M | 2.34M | -35.83M | 17.63M | -2.26M | 5.98M | 4.92M | 3.97M | -22.75M | -37.18M | -3.08M | -750.79K |
| Operating Margin % | 27.3% | 30.29% | 10.86% | 17.63% | 67.14% | 48.61% | -4% | 30.67% | 32.41% | 23.1% | 9.22% | -150.37% | 33.31% | -4.85% | 13.88% | 8.36% | 26.94% | -418.38% | -448% | -83.78% | -301.34% |
| Operating Income Growth % | - | 356.24% | -36.8% | -88.47% | 127.89% | 2208.24% | -111.94% | -14.92% | 54.6% | 165.78% | 106.53% | -303.23% | 881.06% | -137.77% | 21.61% | 23.69% | 117.46% | 38.8% | -1105.83% | -310.7% | - |
| EBITDA | 28.35M | 27.79M | 13.61M | 13.1M | 53.41M | 27.24M | 8.58M | 15.57M | 16.8M | 17.3M | 14.21M | -22.61M | 41.1M | 14.73M | 29.69M | 9.8M | 8.89M | -19.3M | -35.11M | -1.73M | -600.53K |
| EBITDA Margin % | 46.47% | 53.88% | 43.17% | 42.64% | 76.34% | 64.24% | 35.13% | 58.35% | 56.61% | 64.2% | 55.97% | -94.87% | 77.64% | 31.68% | 68.92% | 16.66% | 60.29% | -354.79% | -423.04% | -46.9% | -241.03% |
| EBITDA Growth % | 38.53% | 104.22% | 3.86% | -75.47% | 96.08% | 217.47% | -44.9% | -7.32% | -2.85% | 21.67% | 162.87% | -155.01% | 178.96% | -50.38% | 203% | 10.17% | 146.09% | 45.04% | -1934.22% | -187.41% | - |
| D&A (Non-Cash Add-back) | 11.7M | 12.17M | 10.19M | 7.69M | 6.44M | 6.63M | 9.56M | 7.39M | 7.18M | 11.07M | 11.87M | 13.23M | 23.47M | 16.99M | 23.71M | 4.88M | 4.92M | 3.46M | 2.07M | 1.36M | 150.27K |
| EBIT | -8.57M | -4.81M | 3.6M | 10.23M | 47.56M | 16.17M | 1.57M | 12.59M | 7.55M | 6.27M | 1.83M | -35.86M | 16.82M | -4.27M | 8.47M | 4.92M | 3.36M | -3.97M | -3.08M | -1.96M | 249.15K |
| Net Interest Income | -1.33M | -435.79K | 446.88K | 1.59M | 402.1K | -62.52K | -70.97K | 43.52K | -128.53K | -929.18K | -3.84M | -3.92M | -4.32M | -4.43M | -3.52M | 50.5K | 0 | -224.58K | 1.08M | 853.66K | 157.77K |
| Interest Income | 218.61K | 188.37K | 493.28K | 1.67M | 452.88K | 38.87K | 43.54K | 158.88K | 12.09K | 26.52K | 75.47K | 14.3K | 76.58K | 13.86K | 95.55K | 50.5K | 0 | 0 | 1.21M | 853.66K | 157.77K |
| Interest Expense | 1.55M | 624.16K | 46.4K | 80.38K | 50.78K | 101.38K | 114.52K | 115.36K | 141K | 955.7K | 3.91M | 3.93M | 4.4M | 4.44M | 3.61M | 0 | 0 | 224.58K | 123.94K | 0 | 0 |
| Other Income/Expense | -26.78M | -21.06M | 132.46K | 4.73M | 538.7K | -4.54M | 2.43M | 4.29M | -2.03M | 1.72M | -4.42M | -3.96M | -5.21M | -6.45M | -1.12M | 6.18M | -906.82K | -16.26M | -28M | 851.26K | 160.05K |
| Pretax Income | -10.13M | -5.44M | 3.56M | 10.15M | 47.51M | 16.07M | 1.45M | 12.48M | 7.4M | 7.73M | -2.08M | -39.79M | 12.43M | -8.71M | 4.86M | 4.92M | 4.03M | -20.23M | -31.09M | -4.2M | 0 |
| Pretax Margin % | -16.59% | -10.54% | 11.28% | 33.02% | 67.91% | 37.89% | 5.94% | 46.74% | 24.94% | 28.7% | -8.19% | -166.99% | 23.47% | -18.73% | 11.28% | 8.36% | 27.3% | -371.93% | -374.57% | -114.17% | - |
| Income Tax | -1.04M | 362.73K | 1.63M | 3.2M | 12.16M | 4.44M | 575.42K | 3.78M | 742.42K | -4.4M | 874.91K | -14.27M | 5.81M | 4.81M | 8.99M | -14.29M | 296.42K | 19.01M | 2.6M | -1.97M | -160.4K |
| Effective Tax Rate % | 10.27% | -6.67% | 45.8% | 31.55% | 25.59% | 27.64% | 39.67% | 30.28% | 10.03% | -56.97% | -42.07% | 35.86% | 46.76% | -55.23% | 185% | -290.63% | 7.36% | -93.97% | -8.36% | 46.93% | - |
| Net Income | -9.09M | -5.8M | 1.93M | 6.95M | 35.35M | 11.63M | 875.17K | 8.7M | 6.66M | 12.13M | -2.95M | -25.52M | 6.62M | -13.52M | -4.13M | 19.2M | 4.03M | -20.23M | -33.69M | -2.23M | -590.39K |
| Net Margin % | -14.89% | -11.24% | 6.12% | 22.6% | 50.53% | 27.42% | 3.58% | 32.59% | 22.44% | 45.05% | -11.63% | -107.11% | 12.5% | -29.07% | -9.59% | 32.65% | 27.3% | -371.93% | -405.9% | -60.59% | -236.96% |
| Net Income Growth % | -304.77% | -400.8% | -72.24% | -80.36% | 204.06% | 1228.6% | -89.94% | 30.56% | -45.1% | 510.75% | 88.43% | -485.79% | 148.93% | -227.44% | -121.51% | 376.8% | 119.91% | 39.95% | -1410.75% | -277.69% | - |
| Net Income (Continuing) | -9.09M | -5.8M | 1.93M | 6.95M | 35.35M | 11.63M | 875.17K | 8.7M | 6.66M | 7.44M | -3.09M | -25.52M | 6.62M | -13.52M | -4.13M | 19.2M | 3.07M | -20.23M | -33.69M | -2.22M | -590.39K |
| Discontinued Operations | 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 |
| EPS (Diluted) | -0.41 | -0.21 | 0.09 | 0.31 | 1.51 | 0.49 | 0.03 | 0.32 | 0.24 | 0.28 | -0.13 | -1.05 | 0.25 | -0.52 | -0.16 | 0.74 | 0.12 | -0.78 | -1.38 | -0.16 | -0.04 |
| EPS Growth % | -283.96% | -338.91% | -71.65% | -79.47% | 208.16% | 1308.05% | -89.13% | 33.33% | -14.29% | 315.38% | 87.62% | -520% | 148.08% | -225% | -121.62% | 516.67% | 115.38% | 43.48% | -762.5% | -281.86% | - |
| EPS (Basic) | - | -0.21 | 0.09 | 0.31 | 1.52 | 0.49 | 0.03 | 0.32 | 0.24 | 0.28 | -0.13 | -1.08 | 0.25 | -0.54 | -0.16 | 0.76 | 0.12 | -0.78 | -1.38 | -0.16 | -0.06 |
| Diluted Shares Outstanding | 22.43M | 23.02M | 21.93M | 22.51M | 23.41M | 23.86M | 25.12M | 27.13M | 27.47M | 26.13M | 22.94M | 24.2M | 25.52M | 25.85M | 25.73M | 25.87M | 26.32M | 25.88M | 24.43M | 13.96M | 14.09M |
| Basic Shares Outstanding | 22.43M | 23.02M | 21.93M | 22.5M | 23.32M | 23.71M | 25.12M | 27.13M | 27.46M | 26.12M | 22.94M | 23.52M | 25.49M | 25.04M | 25.64M | 25.59M | 25.69M | 25.88M | 24.43M | 13.96M | 10.57M |
| Dividend Payout Ratio | - | - | 284.62% | 80.64% | 16.58% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Commodity price volatility exposure
According to recent quarterly filings, Epsilon Energy achieved a notable 58.4% year-over-year revenue growth in 2026Q1, signaling a significant expansion in top-line performance that appears to be driven by a combination of increased production volumes and favorable commodity price realizations across its core asset base.
The recent acceleration in revenue suggests that the company's strategic focus on the Anadarko Basin is beginning to yield tangible top-line results. Investors should monitor whether this growth trajectory remains sustainable or if it is primarily a function of short-term price spikes in natural gas markets.
As reported in financial statements, Epsilon Energy's gross margin fluctuated significantly, reaching a peak of 58.0% in 2025Q1 before settling at 57.8% in 2026Q1, reflecting the inherent sensitivity of the company's upstream production costs to regional natural gas basis differentials and operational overhead.
The wide variance in gross margins over the last ten quarters suggests that the company's profitability is highly susceptible to external market conditions rather than internal cost efficiencies. This volatility warrants further investigation into how the midstream gathering assets act as a hedge against upstream margin compression.
Based on Epsilon Energy's reported figures, operating income scaled to $10.9 million in 2026Q1, demonstrating that the company is successfully leveraging its fixed cost base as revenue expands, with operating margins reaching 42.5% during the most recent period of increased production activity.
The ability to maintain high operating margins while scaling revenue suggests that the company's non-operator model effectively limits administrative bloat. This operational leverage appears to be a key driver of the company's ability to remain profitable at the operating level despite periodic net income volatility.
Financial disclosures indicate that Epsilon Energy's net income has experienced extreme swings, including a negative $12.4 million result in 2025Q4, which appears to be driven by non-cash accounting charges rather than a fundamental deterioration in the company's core operational cash-generating capabilities.
The disconnect between strong operating income and erratic net income suggests that investors should focus on cash flow metrics rather than GAAP earnings. These non-cash impairments may indicate conservative reserve accounting, but they complicate the assessment of the company's true underlying profitability.
Analysis of the income statement suggests that the recent revenue surge may be unsustainable, as the company's reliance on non-operator production limits its control over capital expenditure timing and long-term reserve replacement, potentially exposing shareholders to unforeseen operational risks in the Anadarko Basin.
Short-term growth figures may mask the underlying risks associated with the company's lack of operational control in its drilling partnerships. Investors should remain cautious regarding whether the current revenue expansion can be maintained without significant future capital outlays that could pressure the balance sheet.
Quick answers to the most common questions about buying EPSN stock.
For fiscal year 2025, Epsilon Energy Ltd. (EPSN) reported total revenue of $51.6M. This represents a 20605.1% increase compared to $0.2M in 2006.
Epsilon Energy Ltd. (EPSN) reported a net loss of $5.8M for the fiscal year ending 2025.
Epsilon Energy Ltd. (EPSN) reported an operating income of $15.6M, resulting in an operating profit margin of 30.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Epsilon Energy Ltd. (EPSN) generated $24.5M in gross profit for the year, representing a gross profit margin of 47.6%. This demonstrates the company's core pricing power and production efficiency.