Revenue accelerated 21.1% YoY to $391.1M in 2026Q2, with gross margin expanding from 36.5% in 2024Q2 to 44.6% in 2026Q1, and operating margin reaching 31.8% in 2026Q2, though net income remains volatile.
Kodiak Gas Services, Inc. (KGS) annual income statement — 6-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Sales/Revenue | 1.39B | 1.31B | 1.16B | 850.38M | 707.91M | 606.38M | 532.42M |
| Revenue Growth % | 8.23% | 12.83% | 36.33% | 20.13% | 16.75% | 13.89% | - |
| Cost of Goods Sold | 567.29M | 756.11M | 718.65M | 533.74M | 441.81M | 370.22M | 324.94M |
| COGS % of Revenue | - | 57.8% | 61.99% | 62.76% | 62.41% | 61.06% | 61.03% |
| Gross Profit | 434.08M | 551.99M | 440.66M | 316.64M | 266.1M | 236.15M | 207.47M |
| Gross Margin % | 31.17% | 42.2% | 38.01% | 37.24% | 37.59% | 38.95% | 38.97% |
| Gross Profit Growth % | - | 25.26% | 39.17% | 18.99% | 12.68% | 13.82% | - |
| Operating Expenses | 376.88M | 137.47M | 191.21M | 72.53M | 44.01M | 47.2M | 39.04M |
| OpEx % of Revenue | - | 10.51% | 16.49% | 8.53% | 6.22% | 7.78% | 7.33% |
| Selling, General & Admin | 150.91M | 137.47M | 151.68M | 73.31M | 44.88M | 37.66M | 39.04M |
| SG&A % of Revenue | - | 10.51% | 13.08% | 8.62% | 6.34% | 6.21% | 7.33% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 39.53M | -777K | -874K | 9.53M | 0 |
| Operating Income | 448.32M | 414.52M | 249.45M | 244.11M | 222.09M | 188.96M | 168.43M |
| Operating Margin % | 32.2% | 31.69% | 21.52% | 28.71% | 31.37% | 31.16% | 31.64% |
| Operating Income Growth % | - | 66.17% | 2.19% | 9.91% | 17.54% | 12.19% | - |
| EBITDA | 735.17M | 693.34M | 509.72M | 426.98M | 396.55M | 349M | 314.06M |
| EBITDA Margin % | 52.8% | 53% | 43.97% | 50.21% | 56.02% | 57.56% | 58.99% |
| EBITDA Growth % | 18.09% | 36.02% | 19.38% | 7.67% | 13.63% | 11.12% | - |
| D&A (Non-Cash Add-back) | 286.85M | 278.82M | 260.27M | 182.87M | 174.46M | 160.04M | 145.63M |
| EBIT | 193.24M | 311.84M | 273.05M | 257.65M | 305.22M | 207.03M | 118.77M |
| Net Interest Income | -154.13M | -198.37M | -197.14M | -222.51M | -165.87M | -84.64M | -113.44M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 104.07M | 198.37M | 197.14M | 222.51M | 165.87M | 84.64M | 113.44M |
| Other Income/Expense | -335.98M | -301.05M | -173.54M | -208.97M | -82.73M | -66.56M | -163.1M |
| Pretax Income | 112.34M | 113.47M | 75.91M | 35.14M | 139.36M | 122.39M | 5.33M |
| Pretax Margin % | 8.07% | 8.67% | 6.55% | 4.13% | 19.69% | 20.18% | 1% |
| Income Tax | 31.77M | 31.88M | 25.57M | 15.07M | 33.09M | -58.57M | 7.52M |
| Effective Tax Rate % | 28.28% | 28.1% | 33.69% | 42.89% | 23.75% | -47.86% | 140.96% |
| Net Income | 80.39M | 80.52M | 49.9M | 20.07M | 106.27M | 180.96M | -2.19M |
| Net Margin % | 5.77% | 6.16% | 4.3% | 2.36% | 15.01% | 29.84% | -0.41% |
| Net Income Growth % | -3.54% | 61.38% | 148.65% | -81.12% | -41.28% | 8382.06% | - |
| Net Income (Continuing) | 80.4M | 81.59M | 50.33M | 20.07M | 106.27M | 180.96M | -2.19M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 3.16M | 4.91M | 13.69M | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.83 | 0.89 | 0.56 | 0.29 | 1.42 | 2.41 | -0.03 |
| EPS Growth % | -4.76% | 58.93% | 93.1% | -79.58% | -41.08% | 8381.79% | - |
| EPS (Basic) | - | 0.92 | 0.60 | 0.29 | 1.42 | 2.41 | -0.03 |
| Diluted Shares Outstanding | 96.81M | 87.48M | 85.17M | 68.33M | 75M | 75M | 75M |
| Basic Shares Outstanding | 95.46M | 86.18M | 83.09M | 68.06M | 75M | 75M | 75M |
| Dividend Payout Ratio | - | 198.16% | 268.34% | 359.28% | 788.59% | 0.63% | - |
Quick answers to the most common questions about buying KGS stock.
For fiscal year 2025, Kodiak Gas Services, Inc. (KGS) reported total revenue of $1.31B. This represents a 145.7% increase compared to $532.4M in 2020.
Kodiak Gas Services, Inc. (KGS) is profitable, generating $80.5M in net income for the fiscal year ending 2025 with a net profit margin of 6.2%.
Kodiak Gas Services, Inc. (KGS) reported an operating income of $414.5M, resulting in an operating profit margin of 31.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Kodiak Gas Services, Inc. (KGS) generated $552.0M in gross profit for the year, representing a gross profit margin of 42.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue concentration and cyclicality
Metrics are mathematically derived from official filings.
Revenue Momentum Accelerates
KGS's revenue grew 21.1% year-over-year in 2026Q2, reaching $391.1M, the highest in the reported period, according to the latest quarterly data.
The sequential acceleration from 4.9% growth in 2026Q1 to 21.1% in 2026Q2 suggests strengthening demand for compression services, likely driven by increased utilization or new contracts. The revenue base has expanded from $215.5M in 2024Q1 to $391.1M, indicating a robust growth trajectory that may be supported by industry tailwinds in natural gas infrastructure.
Gross Margin Expansion Reflects Pricing Power
Gross margin improved from 36.5% in 2024Q2 to 44.6% in 2026Q1, as reported in financial statements, indicating enhanced pricing power or cost efficiencies.
The consistent upward trend in gross margin, despite revenue fluctuations, suggests that KGS is able to pass through costs or benefit from higher-margin services. This margin expansion outpaces peer USA Compression (38.5%) and approaches Archrock's 48.6%, positioning KGS favorably in the compression services market.
Operating Leverage Drives Margin Gains
Operating margin reached 31.8% in 2026Q2, up from 17.5% in 2024Q2, as per the income statement, showing that operating income is scaling faster than revenue.
SG&A expenses have grown modestly from $24.8M to $40.9M over the period, while revenue increased by over 80%, indicating strong operating leverage. This suggests that KGS is efficiently managing overhead costs, allowing incremental revenue to flow through to operating income at a higher rate.
Earnings Volatility Masks Underlying Strength
Net income swung from -$14.0M in 2025Q3 to $52.0M in 2026Q2, with EPS of $0.53, based on reported figures, highlighting non-operating factors affecting profitability.
The volatility in net income, despite stable operating income, suggests the influence of non-operating items such as tax adjustments or one-time charges. Stock-based compensation has increased to $14.5M in 2026Q2, which may dilute EPS but is non-cash and should be considered when assessing earnings quality.
COGS and SG&A Discipline
COGS as a percentage of revenue declined from 60.6% in 2024Q2 to 55.4% in 2026Q1, as per the income statement, indicating improved cost management.
The reduction in COGS ratio suggests better operational efficiency or favorable input costs. SG&A expenses have remained relatively stable as a percentage of revenue, indicating disciplined overhead control. This cost discipline supports margin expansion and enhances profitability.
Cyclicality and Concentration Risks
Despite strong growth, KGS's revenue is tied to natural gas activity, and a downturn could compress margins, as seen in 2025Q3's net loss of -$14.0M.
The company's performance is highly sensitive to energy prices and drilling activity, which could lead to demand volatility. Additionally, the reliance on a few large customers for compression services may pose concentration risk. Investors should monitor the sustainability of revenue growth and margin expansion in a cyclical industry.