Revenue surged 54.7% year-over-year to $607.3M in Q2 2026 with gross margin expanding to 70.5%, but TTM net income remains deeply negative at -$0.6B, indicating the recovery is driven by non-cash items and remains fragile.
Kosmos Energy Ltd. (KOS) annual income statement — 16-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 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 |
|---|
| Sales/Revenue | 1.64B | 1.3B | 1.68B | 1.7B | 2.25B | 1.33B | 804.03M | 1.5B | 886.67M | 578.14M | 310.38M | 446.7M | 855.88M | 851.21M | 667.95M | 667.69M | 5.11M |
| Revenue Growth % | 10.04% | -22.53% | -1.54% | -24.22% | 68.57% | 65.67% | -46.38% | 69.1% | 53.37% | 86.27% | -30.52% | -47.81% | 0.55% | 27.44% | 0.04% | 12968.84% | - |
| Cost of Goods Sold | 1.05B | 1.49B | 987.29M | 835.02M | 907.55M | 813.23M | 824.34M | 378.36M | 554.56M | 382.05M | 259.77M | 261.3M | 298.2M | 319.33M | 280.82M | 209.96M | 73.13M |
| COGS % of Revenue | - | 114.75% | 58.93% | 49.07% | 40.42% | 61.05% | 102.53% | 25.23% | 62.54% | 66.08% | 83.7% | 58.5% | 34.84% | 37.52% | 42.04% | 31.45% | 1431.32% |
| Gross Profit | 591.21M | -191.45M | 688.07M | 866.58M | 1.34B | 518.79M | -20.31M | 1.12B | 332.1M | 196.09M | 50.61M | 185.39M | 557.67M | 531.88M | 387.13M | 457.73M | -68.02M |
| Gross Margin % | 36.1% | -14.75% | 41.07% | 50.93% | 59.58% | 38.95% | -2.53% | 74.77% | 37.46% | 33.92% | 16.3% | 41.5% | 65.16% | 62.48% | 57.96% | 68.55% | -1331.32% |
| Gross Profit Growth % | - | -127.82% | -20.6% | -35.22% | 157.87% | 2654.84% | -101.81% | 237.55% | 69.37% | 287.48% | -72.7% | -66.76% | 4.85% | 37.39% | -15.42% | 772.96% | - |
| Operating Expenses | 268.58M | 79.48M | 216.89M | 147.84M | 231.81M | 163.26M | -20.31M | 290.96M | 408.3M | 284.35M | 304.86M | 293.01M | 228.75M | 388.74M | 257.74M | 302.03M | 199.41M |
| OpEx % of Revenue | - | 6.12% | 12.95% | 8.69% | 10.32% | 12.26% | -2.53% | 19.41% | 46.05% | 49.18% | 98.22% | 65.6% | 26.73% | 45.67% | 38.59% | 45.23% | 3903.15% |
| Selling, General & Admin | 132.71M | 76.12M | 100.16M | 99.53M | 100.86M | 91.53M | 85.3M | 290.96M | 106.81M | 68.3M | 102.58M | 136.81M | 135.23M | 158.42M | 160.03M | 113.58M | 98.97M |
| SG&A % of Revenue | - | 5.87% | 5.98% | 5.85% | 4.49% | 6.87% | 10.61% | 19.41% | 12.05% | 11.81% | 33.05% | 30.63% | 15.8% | 18.61% | 23.96% | 17.01% | 1937.11% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 3.36M | 116.74M | 48.31M | 130.95M | 71.73M | -105.61M | 0 | 14.54M | 53.41M | 51.86M | -5.04M | 1.01M | -2.57M | 1.68M | 188.45M | 199.41M |
| Operating Income | 322.63M | -270.93M | 471.18M | 718.74M | 1.11B | 355.52M | 0 | 830.06M | -76.2M | -87.45M | -254.26M | -107.62M | 328.93M | 143.14M | 129.4M | 155.7M | -267.43M |
| Operating Margin % | 19.7% | -20.88% | 28.12% | 42.24% | 49.26% | 26.69% | - | 55.36% | -8.59% | -15.13% | -81.92% | -24.09% | 38.43% | 16.82% | 19.37% | 23.32% | -5234.47% |
| Operating Income Growth % | - | -157.5% | -34.44% | -35.01% | 211.09% | - | -100% | 1189.33% | 12.86% | 65.61% | -136.26% | -132.72% | 129.79% | 10.62% | -16.89% | 158.22% | - |
| EBITDA | 808.12M | 322.91M | 936.66M | 1.17B | 1.61B | 833.33M | 180.73M | 1.39B | 253.64M | 167.76M | -113.85M | 58.67M | 537.55M | 376.74M | 324.09M | 312.36M | -236.18M |
| EBITDA Margin % | 49.35% | 24.88% | 55.91% | 68.97% | 71.91% | 62.56% | 22.48% | 92.97% | 28.61% | 29.02% | -36.68% | 13.13% | 62.81% | 44.26% | 48.52% | 46.78% | -4622.8% |
| EBITDA Growth % | 34.93% | -65.53% | -20.19% | -27.32% | 93.76% | 361.08% | -87.03% | 449.57% | 51.19% | 247.34% | -294.05% | -89.09% | 42.69% | 16.25% | 3.75% | 232.26% | - |
| D&A (Non-Cash Add-back) | 422.01M | 593.84M | 465.48M | 454.85M | 508.66M | 477.8M | 495.21M | 563.86M | 329.83M | 255.2M | 140.4M | 166.29M | 208.63M | 233.6M | 194.69M | 156.66M | 31.25M |
| EBIT | -215.5M | -574.49M | 428.94M | 475.67M | 460.19M | 68.44M | -314.48M | 177.88M | 40.07M | -95.77M | -249.54M | 113M | 610.9M | 112.77M | 83.74M | 164.79M | -234.37M |
| Net Interest Income | -204.06M | -49.96M | -54.72M | -84.48M | -107.67M | -98.17M | -101.82M | -124.91M | -96.85M | -72.41M | -43.07M | -37.35M | -43.76M | -48.68M | -57.62M | -72.85M | -55.35M |
| Interest Income | 15.85M | 10.14M | 24.41M | 19.46M | 15.46M | 13.66M | 4.77M | 3.69M | 3.46M | 3.42M | 1.95M | 844K | 529K | 275K | 1.11M | 9.09M | 4.23M |
| Interest Expense | 219.9M | 60.1M | 79.13M | 103.94M | 123.12M | 111.82M | 106.59M | 128.61M | 101.18M | 75.83M | 45.02M | 38.19M | 44.28M | 48.95M | 58.73M | 65.75M | 59.58M |
| Other Income/Expense | -758.03M | -363.65M | -121.36M | -347M | -768.92M | -398.9M | -416.8M | -804.94M | 25.34M | -100.86M | -40.31M | 36.91M | 51.43M | -67.19M | -66.9M | -56.66M | -107.39M |
| Pretax Income | -435.4M | -634.58M | 349.81M | 371.74M | 337.07M | -43.38M | -416.8M | 25.12M | -50.86M | -177.85M | -294.56M | 85.44M | 578.27M | 75.95M | 34.16M | 99.04M | -322.78M |
| Pretax Margin % | -26.59% | -48.89% | 20.88% | 21.85% | 15.01% | -3.26% | -51.84% | 1.68% | -5.74% | -30.76% | -94.91% | 19.13% | 67.56% | 8.92% | 5.11% | 14.83% | -6317.87% |
| Income Tax | 106.83M | 65.2M | 159.96M | 158.22M | 110.52M | 34.46M | -5.21M | 80.89M | 43.13M | 44.94M | -10.78M | 155.27M | 298.9M | 167M | 101.18M | 76.69M | -77.11M |
| Effective Tax Rate % | -24.54% | -10.28% | 45.73% | 42.56% | 32.79% | -79.43% | 1.25% | 322.07% | -84.8% | -25.27% | 3.66% | 181.74% | 51.69% | 219.87% | 296.24% | 77.43% | 23.89% |
| Net Income | -542.24M | -699.79M | 189.85M | 213.52M | 226.55M | -77.84M | -411.59M | -55.78M | -93.99M | -222.79M | -283.78M | -69.84M | 279.37M | -91.04M | -67.03M | 22.36M | -245.67M |
| Net Margin % | -33.11% | -53.92% | 11.33% | 12.55% | 10.09% | -5.84% | -51.19% | -3.72% | -10.6% | -38.54% | -91.43% | -15.63% | 32.64% | -10.7% | -10.03% | 3.35% | -4808.61% |
| Net Income Growth % | -239% | -468.6% | -11.09% | -5.75% | 391.06% | 81.09% | -637.91% | 40.66% | 57.81% | 21.49% | -306.35% | -125% | 406.85% | -35.83% | -399.81% | 109.1% | - |
| Net Income (Continuing) | -542.24M | -699.79M | 189.85M | 213.52M | 226.55M | -77.84M | -411.59M | -55.78M | -93.99M | -222.79M | -283.78M | -69.84M | 279.37M | -91.04M | -67.03M | 22.36M | -245.67M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.90 | -1.47 | 0.40 | 0.44 | 0.48 | -0.19 | -1.02 | -0.14 | -0.23 | -0.57 | -0.74 | -0.18 | 0.72 | -0.24 | -0.18 | -0.01 | -0.66 |
| EPS Growth % | -260.61% | -467.5% | -9.09% | -8.33% | 352.63% | 81.37% | -628.57% | 39.13% | 59.65% | 22.97% | -311.11% | -125% | 400% | -33.33% | - | 99.2% | - |
| EPS (Basic) | - | -1.47 | 0.40 | 0.46 | 0.50 | -0.19 | -1.02 | -0.14 | -0.23 | -0.57 | -0.74 | -0.18 | 0.73 | -0.24 | -0.18 | -0.01 | -0.66 |
| Diluted Shares Outstanding | 604.71M | 478.33M | 476.69M | 481.07M | 474.86M | 416.94M | 405.21M | 401.37M | 404.58M | 388.38M | 385.4M | 382.61M | 386.12M | 376.82M | 371.85M | 389.88M | 374.18M |
| Basic Shares Outstanding | 593.44M | 478.33M | 470.84M | 459.64M | 455.35M | 416.94M | 405.21M | 401.37M | 404.58M | 388.38M | 383.49M | 382.61M | 379.19M | 376.82M | 371.85M | 389.88M | 374.18M |
| Dividend Payout Ratio | - | - | - | 0.08% | 0.29% | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying KOS stock.
For fiscal year 2025, Kosmos Energy Ltd. (KOS) reported total revenue of $1.30B. This represents a 25303.1% increase compared to $5.1M in 2010.
Kosmos Energy Ltd. (KOS) reported a net loss of $699.8M for the fiscal year ending 2025.
Kosmos Energy Ltd. (KOS) reported an operating income of $-270.9M, resulting in an operating profit margin of -20.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Kosmos Energy Ltd. (KOS) generated $-191.4M in gross profit for the year, representing a gross profit margin of -14.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Extreme leverage and negative margins
Metrics are mathematically derived from official filings.
Lumpy Revenue Recovery Amidst Volatility
Revenue surged 54.7% year-over-year in Q2 2026 to $607.3M, per the latest quarterly report, but the trailing twelve months show a decelerating trend with negative growth in prior quarters.
The Q2 2026 revenue spike appears driven by a combination of higher oil prices and favorable cargo liftings, but the preceding quarters show a volatile pattern with declines in 2025. The 54.7% growth rate is a sharp rebound from the -25.2% contraction in Q4 2025, suggesting that revenue is highly sensitive to commodity prices and lifting schedules. Investors should monitor whether this growth is sustainable or a one-off lift, especially given the company's reliance on a few key assets.
Gross Margin Whiplash Signals Impairments
Gross margin swung from -51.0% in Q4 2025 to 70.5% in Q2 2026, as reported in financial statements, indicating significant non-cash impairments or derivative losses in the interim.
The extreme volatility in gross margin, from deeply negative to strongly positive, suggests that reported COGS include substantial non-cash charges such as impairments or unrealized derivative losses. The Q2 2026 margin of 70.5% appears unsustainably high relative to the historical average, and the negative margins in Q4 2025 and Q2 2025 likely reflect write-downs. This pattern implies that underlying operational margins are more stable but masked by accounting anomalies, warranting a closer look at cash-based metrics.
Operating Leverage Masked by One-Offs
Operating income swung from -$169.5M in Q4 2025 to $272.7M in Q2 2026, per the income statement, but SG&A remained relatively flat, suggesting high operating leverage when revenues recover.
The dramatic swing in operating income, despite relatively stable SG&A (ranging from $17.9M to $67.8M), indicates that the company has a high fixed-cost base typical of deepwater E&P. The Q2 2026 operating margin of 44.9% is exceptional and likely benefits from the revenue surge, but the negative operating margins in prior quarters highlight the risk of operating leverage working in reverse. The presence of large non-cash items in COGS complicates the assessment of true operating leverage, so investors should focus on cash operating costs.
EPS Beat Clouded by Non-Cash Items
Q2 2026 EPS of $0.31 beat estimates by a wide margin, but the TTM net income remains deeply negative, as per the data, suggesting the beat may be driven by one-off gains.
The Q2 2026 net income of $184.8M contrasts sharply with the cumulative losses in the prior four quarters, indicating that the earnings quality is questionable. The negative net margins in 2025 and Q1 2026, coupled with the extreme leverage (D/E of 5.80), suggest that the reported EPS may not reflect sustainable operational performance. Stock-based compensation of $8.1M in Q2 2026 is relatively modest, but the overall earnings volatility points to the need for normalization.
COGS Volatility Dominates Cost Structure
COGS ranged from $147.7M to $449.0M over the past year, as reported, with the Q4 2025 spike likely reflecting impairments, while SG&A remained stable, indicating cost discipline in overhead.
The primary cost driver is COGS, which exhibits extreme volatility due to non-cash charges, while SG&A has been relatively controlled, averaging around $25M per quarter. The Q4 2025 COGS of $449.0M is nearly triple the Q3 2025 level, suggesting a major write-down. This pattern implies that management has limited control over reported COGS, but overhead efficiency appears stable. Investors should monitor the cash cost per barrel, which is not directly visible in this data.
Leverage and Margin Sustainability Concerns
Despite the Q2 2026 beat, the TTM gross margin is negative at -14.75% and debt-to-equity stands at 5.80, per the latest balance sheet, raising doubts about the sustainability of the recovery.
Short-sellers would likely highlight the disconnect between the strong quarterly EPS and the deeply negative TTM margins, which suggest that the earnings beat may be a temporary artifact of favorable pricing or one-off items. The extreme leverage, with D/E at 5.80 and ROE at -80.9%, indicates that the company is highly vulnerable to commodity price declines. If oil prices weaken, the company may face covenant pressures or be forced into dilutive equity raises, which could further erode shareholder value.