Revenue declined 19.3% year-over-year to $215.9M in 2026Q1, with gross margin recovering to 19.8% from a -7.4% trough in 2025Q4, yet net losses persisted at -$127.4M due to non-operating charges.
HighPeak Energy, Inc. (HPK) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 843M | 863.36M | 1.07B | 1.11B | 755.69M | 220.12M | 24.62M | 8.12M |
| Revenue Growth % | -12.57% | -19.27% | -3.77% | 47.06% | 243.3% | 793.98% | 203.43% | - |
| Cost of Goods Sold | 558.36M | 684.65M | 692.67M | 628.26M | 285.78M | 101M | 30.41M | 8.09M |
| COGS % of Revenue | - | 79.3% | 64.77% | 56.53% | 37.82% | 45.88% | 123.51% | 99.69% |
| Gross Profit | 284.64M | 178.71M | 376.74M | 483.04M | 469.9M | 119.12M | -5.79M | 25K |
| Gross Margin % | 33.77% | 20.7% | 35.23% | 43.47% | 62.18% | 54.12% | -23.51% | 0.31% |
| Gross Profit Growth % | - | -52.57% | -22.01% | 2.79% | 294.47% | 2157.41% | -23260% | - |
| Operating Expenses | 152.22M | 28.73M | 39.33M | 56.57M | 47.34M | 17.28M | 23.39M | 11.6M |
| OpEx % of Revenue | - | 3.33% | 3.68% | 5.09% | 6.26% | 7.85% | 95% | 142.99% |
| Selling, General & Admin | 28.83M | 25.89M | 33.09M | 42.55M | 45.82M | 15.56M | 23.39M | 8.68M |
| SG&A % of Revenue | - | 3% | 3.09% | 3.83% | 6.06% | 7.07% | 95% | 106.99% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2.17M | 2.84M | 6.24M | 14.02M | 1.52M | 1.72M | 0 | 2.92M |
| Operating Income | 132.42M | 149.98M | 337.41M | 426.46M | 422.56M | 101.85M | -29.18M | -11.58M |
| Operating Margin % | 15.71% | 17.37% | 31.55% | 38.38% | 55.92% | 46.27% | -118.51% | -142.69% |
| Operating Income Growth % | - | -55.55% | -20.88% | 0.92% | 314.9% | 449.02% | -152.02% | - |
| EBITDA | 574.67M | 572.83M | 838.16M | 850.89M | 600.68M | 167.22M | -12.78M | -7.24M |
| EBITDA Margin % | 68.17% | 66.35% | 78.38% | 76.57% | 79.49% | 75.96% | -51.9% | -89.19% |
| EBITDA Growth % | -21.68% | -31.66% | -1.5% | 41.65% | 259.22% | 1408.51% | -76.55% | - |
| D&A (Non-Cash Add-back) | 442.26M | 422.85M | 500.75M | 424.42M | 178.11M | 65.37M | 16.4M | 4.34M |
| EBIT | -21.15M | 173.3M | 291.35M | 418.26M | 362.82M | 74.95M | -29.18M | -11.58M |
| Net Interest Income | -138.97M | -143.29M | -160.03M | -144.99M | -50.34M | -2.48M | -2K | 0 |
| Interest Income | 3.63M | 3.85M | 8.69M | 2.91M | 266K | 1K | 6K | 0 |
| Interest Expense | 142.6M | 147.14M | 168.71M | 147.9M | 50.61M | 2.48M | 8K | 0 |
| Other Income/Expense | -242.74M | -123.81M | -206.49M | -144.69M | -110.35M | -29.38M | -76.5M | 0 |
| Pretax Income | -110.32M | 26.17M | 130.92M | 281.77M | 312.21M | 72.46M | -105.69M | -11.58M |
| Pretax Margin % | -13.09% | 3.03% | 12.24% | 25.36% | 41.32% | 32.92% | -429.22% | -142.69% |
| Income Tax | -21.6M | 7.21M | 35.85M | 65.91M | 75.36M | 16.9M | -4.22M | 0 |
| Effective Tax Rate % | 19.58% | 27.53% | 27.38% | 23.39% | 24.14% | 23.33% | 4% | 0% |
| Net Income | -88.72M | 18.96M | 95.07M | 215.87M | 236.85M | 55.56M | -101.46M | -11.58M |
| Net Margin % | -10.52% | 2.2% | 8.89% | 19.42% | 31.34% | 25.24% | -412.07% | -142.69% |
| Net Income Growth % | -173.07% | -80.05% | -55.96% | -8.86% | 326.31% | 154.76% | -776.27% | - |
| Net Income (Continuing) | -88.72M | 18.96M | 95.07M | 215.87M | 236.85M | 55.56M | -101.46M | -11.58M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.70 | 0.13 | 0.67 | 1.58 | 1.93 | 0.54 | -1.10 | -0.13 |
| EPS Growth % | -188.44% | -80.6% | -57.59% | -18.13% | 257.41% | 149.09% | -746.15% | - |
| EPS (Basic) | - | 0.13 | 0.69 | 1.64 | 2.04 | 0.55 | -1.10 | -0.13 |
| Diluted Shares Outstanding | 126.41M | 125.27M | 129.21M | 123.02M | 111.16M | 94.77M | 91.97M | 91.59M |
| Basic Shares Outstanding | 126.41M | 125.27M | 125.28M | 117.96M | 104.74M | 93.13M | 91.97M | 91.59M |
| Dividend Payout Ratio | - | 121.31% | 23.34% | 6.08% | 4.9% | 22.73% | - | - |
Quick answers to the most common questions about buying HPK stock.
For fiscal year 2025, HighPeak Energy, Inc. (HPK) reported total revenue of $863.4M. This represents a 10539.1% increase compared to $8.1M in 2019.
HighPeak Energy, Inc. (HPK) is profitable, generating $19.0M in net income for the fiscal year ending 2025 with a net profit margin of 2.2%.
HighPeak Energy, Inc. (HPK) reported an operating income of $150.0M, resulting in an operating profit margin of 17.4%. This margin reflects the operational efficiency of the business before interest and taxes.
HighPeak Energy, Inc. (HPK) generated $178.7M in gross profit for the year, representing a gross profit margin of 20.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent net losses and margin compression
Metrics are mathematically derived from official filings.
Revenue Slide Reflects Strategic Pullback
HighPeak's revenue contracted 19.3% year-over-year to $215.9M in 2026Q1, marking the fifth consecutive quarter of decline, according to the latest financial statements.
The revenue trajectory shows a clear deceleration from the 2023Q4 peak of $301.2M, with each subsequent quarter posting negative year-over-year growth. This pattern suggests a deliberate slowdown in drilling activity or sustained lower commodity realizations, rather than a temporary blip. The sequential uptick from $165.8M in 2025Q4 to $215.9M in 2026Q1 may indicate a partial recovery, but the overall trend remains downward, warranting close monitoring of production volumes and pricing.
Gross Margin Volatility Signals Cost Pressures
Gross margin swung from 37.8% in 2025Q1 to -7.4% in 2025Q4, then recovered to 19.8% in 2026Q1, as reported in quarterly filings, indicating unstable cost structures.
The extreme volatility in gross margin, including a negative quarter, suggests that HighPeak's cost of goods sold is not well-aligned with revenue fluctuations, possibly due to fixed costs or hedging impacts. The 20.7% average gross margin over the period is notably lower than peers like Civitas (41.2%) and Matador (43.7%), implying a higher cost base or lower realizations. This may reflect the company's focus on a single basin, where service cost inflation can hit all operations simultaneously, and investors should monitor whether this is a structural disadvantage or a temporary phase.
Operating Leverage Fails to Offset Revenue Decline
Operating income fell from $103.0M in 2024Q1 to -$16.4M in 2025Q4, with SG&A remaining relatively stable, indicating that fixed overheads are not scaling down with revenue.
SG&A expenses have hovered between $4.1M and $9.5M over the past ten quarters, showing little correlation with the revenue decline. This suggests that HighPeak's cost structure has a high fixed component, leading to negative operating leverage during downturns. The operating margin of 16.7% in 2026Q1 is a recovery from the negative quarter but remains below the 35%+ levels seen in early 2024, implying that the company cannot easily adjust its overhead to match lower revenue.
Net Losses Masked by Non-Operating Items
Despite positive operating income of $36.0M in 2026Q1, HighPeak reported a net loss of -$127.4M, per the income statement, suggesting significant non-operating charges.
The gap between operating income and net income is substantial, with net margins of -59.0% versus operating margins of 16.7%. This implies large interest expenses, tax adjustments, or impairment charges that are eroding profitability. The low stock-based compensation (under $1M) does not explain the discrepancy, so investors should investigate the nature of these non-operating items, as they may not be recurring but could signal financial stress.
COGS Dominates Cost Structure, R&D Absent
COGS averaged 78% of revenue over the last ten quarters, while R&D is zero, as per financial data, indicating a cost structure heavily weighted toward production and depletion.
The absence of R&D spending is typical for an E&P company, but the high COGS ratio suggests that depletion, depreciation, and amortization (DD&A) are significant, likely due to aggressive capital spending in prior years. The variability in COGS, from $144.0M to $187.4M, does not perfectly track revenue, implying that some costs are fixed or hedged. Management's expense discipline appears limited to SG&A, which has been kept low, but the core cost structure remains rigid, making margins highly sensitive to commodity prices.
2025Q4 Marks a Critical Downturn
The quarter ending 2025Q4 saw a gross loss of -$12.2M and an operating loss of -$16.4M, as reported, representing the worst operational performance in the series.
This inflection point likely reflects a combination of low commodity prices and possibly one-time charges, but it also highlights the company's vulnerability to market conditions. The subsequent recovery in 2026Q1, with gross profit of $42.7M, suggests some stabilization, but the net loss of -$127.4M indicates that financial leverage or other obligations are weighing heavily. The lasting impact is a weakened earnings base, which may affect the company's ability to fund future growth without additional equity or debt.
Sustainability of Positive Operating Income Questioned
Despite a positive operating margin of 16.7% in 2026Q1, the persistent net losses and skipped guidance, as per recent filings, raise doubts about the durability of core profitability.
Short-sellers might argue that the positive operating income is not translating into shareholder value due to the large net losses, which could indicate hidden costs or a flawed capital structure. The lack of guidance suggests management may be uncertain about future performance, and the high debt-to-equity ratio of 0.71 could amplify risks if commodity prices fall further. The company's reliance on a single basin and the recent revenue decline make it vulnerable to continued margin compression, and investors should question whether the current operating income is sustainable or just a temporary reprieve.