Revenue grew 36.3% year-over-year to $581.4M in Q2 2026, with gross margin expanding to 59.1% from 29.1% in the prior quarter, though net income of $49.5M was far below operating income of $134.0M due to non-operating items.
Kinetik Holdings Inc. (KNTK) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Sales/Revenue | 1.89B | 1.76B | 1.48B | 1.26B | 1.21B | 662.04M | 410.18M | 378.74M | 571.37M | 15.14M |
| Revenue Growth % | 14.15% | 18.98% | 18.03% | 3.54% | 83.29% | 61.4% | 8.3% | -33.71% | 3673.42% | - |
| Cost of Goods Sold | 1.13B | 1.17B | 944.82M | 796.71M | 801.86M | 477.18M | 288.82M | 272.94M | 532.66M | 22.59M |
| COGS % of Revenue | - | 66.23% | 63.71% | 63.41% | 66.08% | 72.08% | 70.41% | 72.06% | 93.22% | 149.17% |
| Gross Profit | 755.56M | 595.8M | 538.11M | 459.7M | 411.63M | 184.87M | 121.36M | 105.81M | 38.71M | -7.45M |
| Gross Margin % | 40.07% | 33.77% | 36.29% | 36.59% | 33.92% | 27.92% | 29.59% | 27.94% | 6.78% | -49.17% |
| Gross Profit Growth % | - | 10.72% | 17.06% | 11.68% | 122.66% | 52.33% | 14.7% | 173.32% | 619.9% | - |
| Operating Expenses | 557.18M | 430.87M | 358.88M | 300.45M | 261.14M | 131.38M | 1.14B | 117.88M | 65.11M | 4.09M |
| OpEx % of Revenue | - | 24.42% | 24.2% | 23.91% | 21.52% | 19.84% | 278.38% | 31.12% | 11.4% | 27% |
| Selling, General & Admin | 139.24M | 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 | 300.25M | 224.72M | 202.54M | 166.87M | 102.79M | 1.12B | 95.28M | 45.7M | 0 |
| Operating Income | 198.33M | 164.93M | 179.23M | 159.25M | 150.49M | 53.49M | -1.02B | -12.07M | -26.4M | -11.53M |
| Operating Margin % | 10.52% | 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 | 837.29M | 547.57M | 503.43M | 440.24M | 410.83M | 297.05M | -796.71M | 190.59M | 90.55M | -5.54M |
| EBITDA Margin % | 44.4% | 31.03% | 33.95% | 35.04% | 33.86% | 44.87% | -194.24% | 50.32% | 15.85% | -36.61% |
| EBITDA Growth % | 50.8% | 8.77% | 14.35% | 7.16% | 38.31% | 137.28% | -518.03% | 110.49% | 1733.5% | - |
| D&A (Non-Cash Add-back) | 638.97M | 382.64M | 324.2M | 280.99M | 260.35M | 243.56M | 223.76M | 202.66M | 116.95M | 5.99M |
| EBIT | 827.55M | 802.16M | 477.06M | 353.2M | 393.02M | 107.34M | -1.03B | -6.54M | -25.93M | -11.53M |
| Net Interest Income | -221.91M | -221.52M | -207M | -197.66M | -148.76M | -99.85M | -2.18M | -131.8M | -82.55M | 0 |
| Interest Income | 930K | 3.98M | 2.8M | 2M | 489K | 4.14M | 9K | 1.74M | 0 | 544.02K |
| Interest Expense | 222.84M | 225.5M | 209.8M | 199.66M | 149.25M | 104M | 2.19M | 133.53M | 83.06M | 0 |
| Other Income/Expense | 406.39M | 411.73M | 88.03M | -5.71M | 102.85M | -50.14M | -134.35M | -128M | -82.58M | 0 |
| Pretax Income | 604.72M | 576.66M | 267.27M | 153.54M | 253.34M | 3.35M | -1.15B | -140.07M | -10.74M | -11.53M |
| Pretax Margin % | 32.07% | 32.68% | 18.02% | 12.22% | 20.88% | 0.51% | -281.54% | -36.98% | -1.88% | -76.17% |
| Income Tax | 54.48M | 50.73M | 23.04M | -232.91M | 2.62M | 1.86M | 968K | 4.36M | 476K | 7.04M |
| Effective Tax Rate % | 9.01% | 8.8% | 8.62% | -151.69% | 1.03% | 55.72% | -0.08% | -3.11% | -4.43% | -61.05% |
| Net Income | 476.66M | 525.93M | 244.23M | 386.45M | 135.52M | 1.48M | -1.16B | -144.43M | -108.98M | -18.57M |
| Net Margin % | 25.28% | 29.81% | 16.47% | 30.76% | 11.17% | 0.22% | -281.78% | -38.13% | -19.07% | -122.67% |
| Net Income Growth % | 146.27% | 115.34% | -36.8% | 185.17% | 9044.26% | 100.13% | -700.25% | -32.53% | -486.7% | - |
| Net Income (Continuing) | 550.24M | 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 | 4.1B | 3.5B | 5.96B | 3.16B | 3.11B | 1.01B | 0 | 1.26B | 1.94B | 0 |
| EPS (Diluted) | 6.29 | 2.63 | 1.02 | 2.52 | 1.48 | 0.04 | -30.55 | -3.82 | -2.88 | -2.98 |
| EPS Growth % | 275.41% | 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 | 75.81M | 62.66M | 60.12M | 51.82M | 41.36M | 37.79M | 37.79M | 74.93M | 37.79M | 47.16M |
| Basic Shares Outstanding | 75.14M | 61.96M | 59.28M | 51.82M | 41.36M | 37.79M | 37.79M | 74.93M | 37.79M | 47.16M |
| Dividend Payout Ratio | - | 95.08% | 71.74% | 21.23% | 29% | 3454.05% | - | - | - | - |
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 $525.9M in net income for the fiscal year ending 2025 with a net profit margin of 29.8%.
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 $595.8M in gross profit for the year, representing a gross profit margin of 33.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
High leverage and Waha volatility
Metrics are mathematically derived from official filings.
Volatile Growth with Record Quarter
Revenue surged 36.3% year-over-year to $581.4M in Q2 2026, the strongest quarter in company history, according to recent SEC filings, though prior quarters showed uneven growth.
The 36.3% revenue growth in Q2 2026 marks a sharp acceleration from the 11.6% growth in Q4 2025 and the 17.1% in Q3 2025, suggesting a step-change in volumes or contract mix. However, Q1 2026 saw a 7.5% decline, indicating volatility likely tied to commodity-linked contracts or timing of producer activity. The integration of Durango Midstream and the Permian Highway Pipeline expansion appear to be driving the recent surge, but investors should monitor whether this pace is sustainable given the cyclicality of Delaware Basin drilling.
Margin Volatility Reflects Contract Mix
Gross margin swung from 29.1% in Q1 2026 to 59.1% in Q2 2026, as reported in financial statements, highlighting the impact of percent-of-proceeds contracts and commodity price spreads.
The dramatic margin fluctuation—from 28.7% in Q3 2025 to 59.1% in Q2 2026—suggests significant exposure to natural gas and NGL prices, likely through keep-whole or POP arrangements. The 18.39% gross margin mentioned in the company intelligence appears inconsistent with the reported quarterly figures, which may indicate a different calculation basis or a one-time adjustment. Structural margin expansion could occur if utilization rises, but the high fixed-cost base and exposure to Waha basis differentials introduce persistent volatility.
Operating Leverage Amplifies Earnings Swings
Operating income swung from a $3.9M loss in Q1 2026 to $134.0M in Q2 2026, per company filings, demonstrating significant operating leverage but also vulnerability to volume and margin shifts.
The 23.0% operating margin in Q2 2026 versus -0.9% in Q1 2026 illustrates how fixed costs amplify earnings changes when volumes or margins fluctuate. SG&A remained relatively stable at $26.3M in Q2 2026, down from $44.2M in Q1, suggesting cost discipline, but the sharp revenue increase drove the margin expansion. This leverage cuts both ways: if volumes decline, operating income could compress rapidly, as seen in Q1 2026.
Non-Operating Items Distort Net Income
Net income of $49.5M in Q2 2026 was far below operating income of $134.0M, while Q4 2025 net income of $416.7M dwarfed operating income, indicating significant non-operating gains or losses.
The divergence between operating and net income suggests substantial non-operating items, likely from equity method investments, impairments, or one-time gains. Q4 2025's net income of $416.7M on operating income of $48.4M implies a large non-operating gain, possibly from asset sales or revaluation. Stock-based compensation of $29.7M in Q2 2026 is notable, and investors should adjust for these items to assess core earnings power.
COGS Volatility Drives Margin Variability
Cost of goods sold jumped to $330.8M in Q3 2025 and $290.6M in Q1 2026, as per income statement data, reflecting commodity-linked costs and processing expenses that vary with volumes and prices.
COGS as a percentage of revenue ranged from 40.9% in Q2 2026 to 71.3% in Q3 2025, indicating that a significant portion of costs are variable, likely tied to energy costs and POP arrangements. The low gross margin in Q1 2026 (29.1%) suggests higher input costs or unfavorable commodity spreads. Management's ability to control these costs is limited by market prices, but operational efficiency and utilization can mitigate the impact.
Q2 2026 Marks a Turning Point
Q2 2026 delivered record revenue and operating income, with revenue up 36.3% year-over-year and operating margin at 23.0%, according to reported figures, signaling a potential inflection in earnings power.
The combination of the Durango Midstream acquisition and PHP expansion appears to have created a step-change in scale and integration, driving the strongest quarter in company history. The 93.9% EPS growth year-over-year, despite a high base, suggests that the integrated model is generating meaningful incremental returns. However, the sustainability of this inflection depends on continued producer activity and the resolution of Waha basis issues, which could reverse the gains if volumes falter.
Leverage and Commodity Exposure Pose Risks
Despite record Q2 2026 results, the debt-to-equity ratio of 1.32 and volatile margins suggest that the earnings surge may not be durable, as per balance sheet data.
Short-sellers could argue that the Q2 2026 performance is a peak, driven by favorable commodity spreads and one-time gains, and that the high leverage limits financial flexibility. The negative operating income in Q1 2026 demonstrates the downside risk, and the reliance on Delaware Basin volumes exposes the company to regional gas takeaway constraints. If Waha prices remain negative, producers may curtail output, reducing volumes and margins, which would pressure the ability to service debt.