Revenue growth has shifted to a 7.5% contraction in 2026Q1, while gross margins have plummeted from a 41.3% peak in 2025Q2 to just 12.0%.
| Sales/Revenue | 1.73B | 1.76B | 1.48B | 1.26B | 1.21B | 662.04M | 410.18M | 378.74M | 571.37M | 15.14M |
| Revenue Growth % | 9.23% | 18.98% | 18.03% | 3.54% | 83.29% | 61.4% | 8.3% | -33.71% | 3673.42% | - |
| Cost of Goods Sold | 1.25B | 1.44B | 944.82M | 796.71M | 801.86M | 477.18M | 288.82M | 272.94M | 532.66M | 22.59M |
| COGS % of Revenue | - | 81.61% | 63.71% | 63.41% | 66.08% | 72.08% | 70.41% | 72.06% | 93.22% | 149.17% |
| Gross Profit | 479.04M | 324.39M | 538.11M | 459.7M | 411.63M | 184.87M | 121.36M | 105.81M | 38.71M | -7.45M |
| Gross Margin % | 27.67% | 18.39% | 36.29% | 36.59% | 33.92% | 27.92% | 29.59% | 27.94% | 6.78% | -49.17% |
| Gross Profit Growth % | - | -39.72% | 17.06% | 11.68% | 122.66% | 52.33% | 14.7% | 173.32% | 619.9% | - |
| Operating Expenses | 337.24M | 159.47M | 358.88M | 300.45M | 261.14M | 131.38M | 1.14B | 117.88M | 65.11M | 4.09M |
| OpEx % of Revenue | - | 9.04% | 24.2% | 23.91% | 21.52% | 19.84% | 278.38% | 31.12% | 11.4% | 27% |
| Selling, General & Admin | 137.22M | 130.62M | 134.16M | 97.91M | 94.27M | 28.59M | 22.92M | 22.6M | 19.41M | 3.99M |
| SG&A % of Revenue | - | 7.4% | 9.05% | 7.79% | 7.77% | 4.32% | 5.59% | 5.97% | 3.4% | 26.36% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 28.85M | 224.72M | 202.54M | 166.87M | 102.79M | 1.12B | 95.28M | 45.7M | 0 |
| Operating Income | 141.82M | 164.93M | 179.23M | 159.25M | 150.49M | 53.49M | -1.02B | -12.07M | -26.4M | -11.53M |
| Operating Margin % | 8.19% | 9.35% | 12.09% | 12.68% | 12.4% | 8.08% | -248.79% | -3.19% | -4.62% | -76.17% |
| Operating Income Growth % | - | -7.98% | 12.54% | 5.83% | 181.34% | 105.24% | -8351.12% | 54.26% | -128.9% | - |
| EBITDA | 533.63M | 547.57M | 503.43M | 440.24M | 410.83M | 297.05M | -796.71M | 190.59M | 90.55M | -5.54M |
| EBITDA Margin % | 30.83% | 31.03% | 33.95% | 35.04% | 33.86% | 44.87% | -194.24% | 50.32% | 15.85% | -36.61% |
| EBITDA Growth % | 3.48% | 8.77% | 14.35% | 7.16% | 38.31% | 137.28% | -518.03% | 110.49% | 1733.5% | - |
| D&A (Non-Cash Add-back) | 391.81M | 382.64M | 324.2M | 280.99M | 260.35M | 243.56M | 223.76M | 202.66M | 116.95M | 5.99M |
| EBIT | 726.62M | 810.03M | 477.06M | 353.2M | 393.02M | 107.34M | -1.03B | -6.54M | -25.93M | -11.53M |
| Net Interest Income | -226.33M | -233.37M | -207M | -197.66M | -148.76M | -99.85M | -2.18M | -131.8M | -82.55M | 0 |
| Interest Income | 2.73M | 0 | 2.8M | 2M | 489K | 4.14M | 9K | 1.74M | 0 | 544.02K |
| Interest Expense | 229.06M | 233.37M | 209.8M | 199.66M | 149.25M | 104M | 2.19M | 133.53M | 83.06M | 0 |
| Other Income/Expense | 407.12M | 411.73M | 88.03M | -5.71M | 102.85M | -50.14M | -134.35M | -128M | -82.58M | 0 |
| Pretax Income | 548.92M | 576.66M | 267.27M | 153.54M | 253.34M | 3.35M | -1.15B | -140.07M | -10.74M | -11.53M |
| Pretax Margin % | 31.71% | 32.68% | 18.02% | 12.22% | 20.88% | 0.51% | -281.54% | -36.98% | -1.88% | -76.17% |
| Income Tax | 47.38M | 50.73M | 23.04M | -232.91M | 2.62M | 1.86M | 968K | 4.36M | 476K | 7.04M |
| Effective Tax Rate % | 8.63% | 8.8% | 8.62% | -151.69% | 1.03% | 55.72% | -0.08% | -3.11% | -4.43% | -61.05% |
| Net Income | 228.06M | 178.26M | 244.23M | 386.45M | 135.52M | 1.48M | -1.16B | -144.43M | -108.98M | -18.57M |
| Net Margin % | 13.17% | 10.1% | 16.47% | 30.76% | 11.17% | 0.22% | -281.78% | -38.13% | -19.07% | -122.67% |
| Net Income Growth % | -0.01% | -27.01% | -36.8% | 185.17% | 9044.26% | 100.13% | -700.25% | -32.53% | -486.7% | - |
| Net Income (Continuing) | 501.54M | 525.93M | 244.23M | 386.45M | 250.72M | 1.48M | -1.16B | -144.43M | -108.98M | -18.57M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 3.5B | 5.96B | 3.16B | 3.11B | 1.01B | 0 | 1.26B | 1.94B | 0 |
| EPS (Diluted) | 3.42 | 2.63 | 1.02 | 2.52 | 1.48 | 0.04 | -30.55 | -3.82 | -2.88 | -2.98 |
| EPS Growth % | 159.2% | 157.84% | -59.52% | 70.27% | 3675.51% | 100.13% | -699.74% | -32.64% | 3.36% | - |
| EPS (Basic) | - | 2.66 | 1.03 | 5.25 | 1.48 | 0.04 | -30.55 | -3.82 | -2.88 | -2.98 |
| Diluted Shares Outstanding | 66.68M | 62.66M | 60.12M | 51.82M | 41.36M | 37.79M | 37.79M | 74.93M | 37.79M | 47.16M |
| Basic Shares Outstanding | 65.91M | 61.96M | 59.28M | 51.82M | 41.36M | 37.79M | 37.79M | 74.93M | 37.79M | 47.16M |
| Dividend Payout Ratio | - | 280.52% | 71.74% | 21.23% | 29% | 3454.05% | - | - | - | - |
Basin-specific volume volatility
According to the latest quarterly filings, KNTK's revenue growth has shifted from double-digit expansion to a 7.5% contraction in 2026Q1, reflecting the inherent sensitivity of its Delaware Basin operations to regional drilling activity and the persistent challenges of managing throughput in a constrained midstream environment.
The transition from consistent 20% year-over-year growth in 2024 to recent declines suggests that the company's top-line is increasingly vulnerable to the capital expenditure cycles of its upstream customers. Investors should monitor whether this deceleration represents a temporary pause in basin development or a more structural shift in regional production capacity.
Based on reported financial statements, KNTK's gross margin plummeted to 12.0% in 2026Q1 from a peak of 41.3% in 2025Q2, highlighting significant exposure to commodity price fluctuations and the rising costs associated with maintaining integrated gathering and processing infrastructure within the highly competitive Delaware Basin.
The sharp contraction in margins suggests that the company's reliance on percent-of-proceeds or keep-whole contracts may be backfiring during periods of regional price weakness. This volatility indicates that KNTK lacks the pricing power of more diversified peers, making its profitability highly dependent on favorable gas-to-oil ratios and stable NGL pricing.
As indicated by the income statement data, KNTK's operating income turned negative in 2026Q1, falling to -$3.8 million, which demonstrates that the company's high fixed-cost structure fails to provide the expected operating leverage when throughput volumes decline and processing expenses remain elevated across its integrated network.
The inability to maintain positive operating margins during revenue downturns suggests that SG&A and maintenance costs are not sufficiently flexible to offset volume volatility. This lack of operational efficiency warrants further investigation into whether the company's 'super-system' architecture is truly scalable or simply capital-intensive.
Analysis of KNTK's recent filings reveals significant fluctuations in net income, ranging from a $267.4 million gain in 2023Q4 to a $5.1 million loss in 2026Q1, largely driven by non-operating items and inconsistent stock-based compensation charges that complicate the assessment of true underlying earnings power.
The wide variance in net margins suggests that investors should prioritize Adjusted EBITDA over GAAP net income to strip away the noise of non-cash depreciation and equity method investment accounting. The erratic nature of these bottom-line results may indicate that the company's financial performance is heavily influenced by accounting adjustments rather than core operational growth.
While management emphasizes the strategic value of its Delaware Basin integration, the recent income statement data suggests that KNTK's business model is susceptible to margin compression, with gross margins falling to 12% as the company struggles to navigate the high costs of field operations and regional takeaway constraints.
Short-sellers would likely focus on the company's inability to maintain profitability during the most recent quarter, questioning whether the 'super-system' moat is sufficient to protect cash flows in a downturn. The reliance on specific basin dynamics creates a binary risk profile that may not be fully reflected in the current valuation.
Quick answers to the most common questions about buying KNTK stock.
For fiscal year 2025, Kinetik Holdings Inc. (KNTK) reported total revenue of $1.76B. This represents a 11552.3% increase compared to $15.1M in 2017.
Kinetik Holdings Inc. (KNTK) is profitable, generating $178.3M in net income for the fiscal year ending 2025 with a net profit margin of 10.1%.
Kinetik Holdings Inc. (KNTK) reported an operating income of $164.9M, resulting in an operating profit margin of 9.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Kinetik Holdings Inc. (KNTK) generated $324.4M in gross profit for the year, representing a gross profit margin of 18.4%. This demonstrates the company's core pricing power and production efficiency.