Revenue has experienced a sustained multi-quarter decline to $144.7 million in 2026Q1, while gross margins have compressed to a thin 2.6% due to intense competitive pricing.
| Sales/Revenue | 627.2M | 636.6M | 709.3M | 888.4M | 781.6M | 436.1M | 276.8M | 544M | 495.3M | 320.5M | 152.2M |
| Revenue Growth % | -8.92% | -10.25% | -20.16% | 13.66% | 79.22% | 57.55% | -49.12% | 9.83% | 54.54% | 110.58% | - |
| Cost of Goods Sold | 589.1M | 596.7M | 549.7M | 672.5M | 621.3M | 442.5M | 314.8M | 470M | 370.4M | 269.1M | 181.3M |
| COGS % of Revenue | - | 93.73% | 77.5% | 75.7% | 79.49% | 101.47% | 113.73% | 86.4% | 74.78% | 83.96% | 119.12% |
| Gross Profit | 38.1M | 39.9M | 159.6M | 215.9M | 160.3M | -6.4M | -38M | 74M | 124.9M | 51.4M | -29.1M |
| Gross Margin % | 6.07% | 6.27% | 22.5% | 24.3% | 20.51% | -1.47% | -13.73% | 13.6% | 25.22% | 16.04% | -19.12% |
| Gross Profit Growth % | - | -75% | -26.08% | 34.69% | 2604.69% | 83.16% | -151.35% | -40.75% | 143% | 276.63% | - |
| Operating Expenses | 64M | 70.2M | 175.1M | 159M | 127.8M | 54.7M | 89.5M | 102.7M | 102.8M | 75.4M | 60.4M |
| OpEx % of Revenue | - | 11.03% | 24.69% | 17.9% | 16.35% | 12.54% | 32.33% | 18.88% | 20.76% | 23.53% | 39.68% |
| Selling, General & Admin | 62.3M | 68.5M | 79.6M | 86.7M | 70.4M | 54.1M | 88.8M | 100M | 100.4M | 73.4M | 60.1M |
| SG&A % of Revenue | - | 10.76% | 11.22% | 9.76% | 9.01% | 12.41% | 32.08% | 18.38% | 20.27% | 22.9% | 39.49% |
| Research & Development | 1.7M | 1.7M | 1.4M | 1.4M | 600K | 600K | 700K | 2.7M | 2.4M | 2M | 300K |
| R&D % of Revenue | - | 0.27% | 0.2% | 0.16% | 0.08% | 0.14% | 0.25% | 0.5% | 0.48% | 0.62% | 0.2% |
| Other Operating Expenses | 0 | 0 | 94.1M | 70.9M | 56.8M | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -25.9M | -30.3M | -15.5M | 56.9M | 32.5M | -61.1M | -301.1M | -28.7M | 22.1M | -24M | -89.5M |
| Operating Margin % | -4.13% | -4.76% | -2.19% | 6.4% | 4.16% | -14.01% | -108.78% | -5.28% | 4.46% | -7.49% | -58.8% |
| Operating Income Growth % | - | -95.48% | -127.24% | 75.08% | 153.19% | 79.71% | -949.13% | -229.86% | 192.08% | 73.18% | - |
| EBITDA | 66.5M | 64.9M | 78.5M | 129.7M | 89.3M | -7.2M | -242.1M | 35.4M | 63.6M | 9.5M | -53.3M |
| EBITDA Margin % | 10.6% | 10.19% | 11.07% | 14.6% | 11.43% | -1.65% | -87.46% | 6.51% | 12.84% | 2.96% | -35.02% |
| EBITDA Growth % | -14.63% | -17.32% | -39.48% | 45.24% | 1340.28% | 97.03% | -783.9% | -44.34% | 569.47% | 117.82% | - |
| D&A (Non-Cash Add-back) | 92.4M | 95.2M | 94M | 72.8M | 56.8M | 53.9M | 59M | 64.1M | 41.5M | 33.5M | 36.2M |
| EBIT | -25.9M | -30.3M | -13M | 58.7M | 32.5M | -64.1M | -301.1M | -75.7M | 22.1M | -24M | -89.5M |
| Net Interest Income | -46.5M | -44.8M | -36.9M | -34.7M | -35M | -29.4M | -30.7M | -29.2M | -7.1M | 0 | 0 |
| Interest Income | 100K | 400K | 2.5M | 1.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 46.6M | 45.2M | 39.4M | 36.5M | 35M | 29.4M | 30.7M | 29.2M | 7.1M | 0 | 0 |
| Other Income/Expense | -46.5M | -46M | -36.9M | -34.7M | -35M | -32.4M | -30.7M | -29.2M | -7.1M | 0 | 0 |
| Pretax Income | -72.4M | -76.3M | -52.4M | 22.2M | -2.5M | -93.5M | -331.8M | -104.9M | 15M | -24M | -89.5M |
| Pretax Margin % | -11.54% | -11.99% | -7.39% | 2.5% | -0.32% | -21.44% | -119.87% | -19.28% | 3.03% | -7.49% | -58.8% |
| Income Tax | 800K | 800K | 600K | 3M | 600K | 300K | 400K | -8.5M | 600K | 100K | 100K |
| Effective Tax Rate % | -1.1% | -1.05% | -1.15% | 13.51% | -24% | -0.32% | -0.12% | 8.1% | 4% | -0.42% | -0.11% |
| Net Income | -73.2M | -77.1M | -53M | 19.2M | -3.1M | -93.8M | -332.2M | -96.4M | 14.4M | -24.1M | -89.6M |
| Net Margin % | -11.67% | -12.11% | -7.47% | 2.16% | -0.4% | -21.51% | -120.01% | -17.72% | 2.91% | -7.52% | -58.87% |
| Net Income Growth % | -24.7% | -45.47% | -376.04% | 719.35% | 96.7% | 71.76% | -244.61% | -769.44% | 159.75% | 73.1% | - |
| Net Income (Continuing) | -73.2M | -77.1M | -53M | 19.2M | -3.1M | -93.8M | -332.2M | -96.4M | 14.4M | -24.1M | -89.6M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -3.75 | -4.12 | -3.27 | 1.22 | -0.27 | -10.78 | -51.11 | -21.61 | 3.56 | -5.91 | -21.96 |
| EPS Growth % | -4.99% | -25.99% | -368.03% | 551.85% | 97.5% | 78.91% | -136.51% | -707.02% | 160.24% | 73.09% | - |
| EPS (Basic) | - | -4.12 | -3.27 | 1.23 | -0.27 | -10.78 | -51.11 | -21.61 | 3.58 | -6.02 | -22.40 |
| Diluted Shares Outstanding | 19.5M | 18.7M | 16.2M | 15.7M | 11.3M | 8.7M | 6.5M | 4.46M | 4.04M | 4.08M | 4.08M |
| Basic Shares Outstanding | 19.5M | 18.7M | 16.2M | 15.6M | 11.3M | 8.7M | 6.5M | 4.46M | 4.02M | 4M | 4M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and solvency pressure
According to the provided quarterly financial data, KLXE has experienced a consistent decline in top-line performance, with revenue falling to $144.7 million in 2026Q1, representing a sustained multi-quarter contraction that underscores the company's sensitivity to reduced drilling activity and diminished pricing power across its core basins.
The consistent year-over-year revenue decline suggests that the company is struggling to maintain market share in a tightening US onshore environment. This downward trajectory appears to be driven by both volume attrition and an inability to command premium pricing, which may indicate that the company's service offerings are increasingly viewed as commoditized by E&P operators.
As reported in financial statements, KLXE's gross margin has deteriorated significantly, reaching a thin 2.6% in 2026Q1, which highlights the company's inability to effectively pass through inflationary cost pressures or maintain profitability amidst intense competitive pricing dynamics within the oilfield services sector.
The collapse in gross margins from the 20% range seen in late 2024 to current low single digits suggests a structural weakness in the company's cost-to-revenue conversion. This margin profile implies that the company lacks the pricing power necessary to offset the high fixed costs inherent in its equipment-heavy service model.
Based on the income statement data, KLXE's operating margin has remained consistently negative, bottoming out at -8.4% in 2026Q1, which indicates that the company is currently unable to achieve the necessary scale to cover its overhead and equipment maintenance costs during this cyclical downturn.
The failure of operating income to scale positively even during periods of higher revenue suggests that the company's SG&A and depreciation burdens are disproportionately high relative to its current activity levels. Investors should monitor whether management can rationalize this cost structure, as the current operating leverage appears to be a significant drag on bottom-line performance.
Analysis of the company's cost structure reveals that COGS remains stubbornly high relative to revenue, consuming nearly 97% of top-line proceeds in 2026Q1, which suggests that the company's reliance on a large, capital-intensive rental fleet creates a rigid cost base that is difficult to adjust.
The high proportion of COGS relative to revenue indicates that the company is burdened by significant maintenance and labor costs that do not scale down in tandem with declining activity. This cost rigidity appears to be the primary factor preventing the company from reaching a break-even point in the current market environment.
Financial disclosures indicate that KLXE's cash position has dwindled to $5.7 million, a precarious level that, when viewed alongside persistent net losses, suggests the company may face significant liquidity risks if it cannot rapidly improve its cash-generating capabilities or secure additional external financing.
While some might argue that the company's diversified service footprint provides a buffer, the current cash balance relative to its quarterly revenue base suggests a very limited margin for error. The market may be correctly pricing in the risk of dilutive capital raises or distressed financing as the company attempts to navigate this prolonged period of negative cash flow.
Quick answers to the most common questions about buying KLXE stock.
For fiscal year 2025, KLX Energy Services Holdings, Inc. (KLXE) reported total revenue of $636.6M. This represents a 318.3% increase compared to $152.2M in 2016.
KLX Energy Services Holdings, Inc. (KLXE) reported a net loss of $77.1M for the fiscal year ending 2025.
KLX Energy Services Holdings, Inc. (KLXE) reported an operating income of $-30.3M, resulting in an operating profit margin of -4.8%. This margin reflects the operational efficiency of the business before interest and taxes.
KLX Energy Services Holdings, Inc. (KLXE) generated $39.9M in gross profit for the year, representing a gross profit margin of 6.3%. This demonstrates the company's core pricing power and production efficiency.