LandBridge's trailing twelve-month revenue growth of 81.1% is supported by gross margins averaging 90.95%, but the volatility in operating margins, ranging from 57.2% to 70.4%, suggests inconsistent SG&A leverage and the influence of non-recurring items.
LandBridge Company LLC (LB) annual income statement — 4-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Dec'24 | Dec'23 | Dec'22 |
|---|
| Sales/Revenue | 225.45M | 199.09M | 109.95M | 72.86M | 51.78M |
| Revenue Growth % | 44.09% | 81.07% | 50.9% | 40.73% | - |
| Cost of Goods Sold | 17.13M | 18.01M | 10.99M | 12.21M | 10.56M |
| COGS % of Revenue | - | 9.05% | 9.99% | 16.75% | 20.4% |
| Gross Profit | 208.33M | 181.08M | 98.97M | 60.66M | 41.22M |
| Gross Margin % | 92.4% | 90.95% | 90.01% | 83.25% | 79.6% |
| Gross Profit Growth % | - | 82.97% | 63.15% | 47.17% | - |
| Operating Expenses | 64.14M | 62.45M | 115.48M | -9.35M | 44.45M |
| OpEx % of Revenue | - | 31.37% | 105.02% | -12.83% | 85.85% |
| Selling, General & Admin | 58.76M | 62.45M | 112.3M | -12.09M | 41.8M |
| SG&A % of Revenue | - | 31.37% | 102.14% | -16.59% | 80.73% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | 3.17M | 2.74M | 2.65M |
| Operating Income | 144.18M | 118.5M | -16.51M | 70.01M | -3.23M |
| Operating Margin % | 63.95% | 59.52% | -15.02% | 96.08% | -6.24% |
| Operating Income Growth % | - | 817.75% | -123.58% | 2266.12% | - |
| EBITDA | 159.3M | 129.97M | -7.71M | 78.61M | 3.49M |
| EBITDA Margin % | 70.66% | 65.28% | -7.01% | 107.88% | 6.74% |
| EBITDA Growth % | 88.66% | 1785.73% | -109.81% | 2153.7% | - |
| D&A (Non-Cash Add-back) | 15.12M | 11.47M | 8.8M | 8.6M | 6.72M |
| EBIT | 133.94M | 114.17M | -16.27M | 70.56M | -3.09M |
| Net Interest Income | -35.55M | -32.71M | -23.34M | -7.02M | -3.11M |
| Interest Income | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 35.55M | 32.71M | 23.34M | 7.02M | 3.11M |
| Other Income/Expense | -45.79M | -37.03M | -23.09M | -6.47M | -2.96M |
| Pretax Income | 98.39M | 81.47M | -39.6M | 63.54M | -6.2M |
| Pretax Margin % | 43.64% | 40.92% | -36.02% | 87.21% | -11.97% |
| Income Tax | 11.01M | 9.07M | 1.88M | 370K | 164K |
| Effective Tax Rate % | 11.19% | 11.13% | -4.73% | 0.58% | -2.65% |
| Net Income | 46.32M | 30.13M | 5.11M | 63.17M | -6.36M |
| Net Margin % | 20.54% | 15.13% | 4.65% | 86.7% | -12.29% |
| Net Income Growth % | 145.71% | 489.59% | -91.91% | 1093.11% | - |
| Net Income (Continuing) | 87.38M | 72.4M | -41.48M | 63.17M | -6.36M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 476.27M | 453.68M | 172.05M | 0 | 0 |
| EPS (Diluted) | 1.66 | 1.08 | 0.07 | 4.36 | -0.44 |
| EPS Growth % | 405.14% | 1397.92% | -98.35% | 1090.91% | - |
| EPS (Basic) | - | 1.18 | 0.29 | 4.36 | -0.44 |
| Diluted Shares Outstanding | 27.84M | 27.84M | 73.37M | 14.5M | 14.5M |
| Basic Shares Outstanding | 27.84M | 27.84M | 17.81M | 14.5M | 14.5M |
| Dividend Payout Ratio | - | 211.47% | 3488.14% | 166.47% | - |
Quick answers to the most common questions about buying LB stock.
For fiscal year 2025, LandBridge Company LLC (LB) reported total revenue of $199.1M. This represents a 284.5% increase compared to $51.8M in 2022.
LandBridge Company LLC (LB) is profitable, generating $30.1M in net income for the fiscal year ending 2025 with a net profit margin of 15.1%.
LandBridge Company LLC (LB) reported an operating income of $118.5M, resulting in an operating profit margin of 59.5%. This margin reflects the operational efficiency of the business before interest and taxes.
LandBridge Company LLC (LB) generated $181.1M in gross profit for the year, representing a gross profit margin of 91.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Delaware Basin geographic concentration
Metrics are mathematically derived from official filings.
Growth Resumes Amid Lumpy Quarter Pattern
LandBridge's 81.1% TTM revenue growth, as reported in the financial statements, masks significant quarterly volatility, with the latest quarter's 40.6% YoY growth decelerating from prior quarters' triple-digit expansion.
The acceleration from negative growth in late 2024 to over 80% TTM growth indicates a successful 'harvest' phase of its assembled asset base. However, the swing from 131.2% growth in 2025Q1 to 40.6% in 2026Q2 suggests the revenue stream is inherently lumpy, likely tied to episodic surface easement payments rather than a smooth, predictable royalty stream. This pattern implies the growth trajectory will remain volatile quarter-to-quarter, even as the multi-year trend is strongly upward.
Operational Excellence Amid Margin Churn
Based on reported figures, LandBridge's gross margin averaged 90.95% over the last four quarters, signaling near-perfect pass-through of costs, but the operating margin's volatility (57.2% to 70.4%) suggests inconsistent SG&A leverage or non-recurring items.
The consistently exceptional gross margin is the hallmark of its royalty and surface-use model, requiring minimal operational capital. The primary margin pressure comes from SG&A, which as a percentage of revenue swung from 30.8% in 2025Q3 to 22.1% in 2025Q4 before settling around 30% again. This indicates that management's overhead discipline is a critical variable for profitability, as fixed corporate costs can materially dilute the excellent gross profit flow-through in quarters with lower revenue.
Operating Leverage Manifesting, But Tentatively
The company's operating income grew 65.9% year-over-year in 2026Q2, outpacing revenue growth of 40.6%, suggesting that as reported, some operating leverage is emerging as SG&A as a percentage of revenue declines.
The path to operating leverage is visible: SG&A as a percentage of revenue fell from 47.1% in 2024Q3 to 23.8% in 2026Q2. However, the absolute dollar level of SG&A has been erratic, spiking to $73.8M in 2024Q2 before normalizing. The recent trend implies that LandBridge's high-fixed-cost structure is beginning to benefit from revenue scale, but investors should monitor whether SG&A will creep back up with future growth, potentially due to acquisition integration or increased public company compliance costs.
Net Margin Compression Warrants Scrutiny
Despite a 59.5% operating margin, the company's net margin stood at just 15.1% in 2026Q1, implying that non-operating items—potentially significant interest, tax, or one-time charges—are consuming a substantial portion of operating profit.
The persistent and wide gap between operating and net margins is a key earnings quality flag. For instance, in 2026Q1, operating income was $29.2M but net income was $17.9M, a 39% reduction. Given the reported 0% debt-to-equity ratio, this cannot be interest expense, suggesting it may stem from a complex tax structure or material non-cash items below the operating line. Without clear disclosure, this creates uncertainty around the true cash earnings power and the sustainability of the EPS trajectory.
SG&A Volatility as the Primary Cost Risk
The single most material cost line item is SG&A, which represents nearly all of the company's operating expenses, and its erratic trajectory—peaking at $73.8M in 2024Q2—demonstrates inconsistent expense control.
With zero R&D and minimal COGS, LandBridge's cost structure is essentially its corporate overhead. The extreme volatility in SG&A suggests it may include lumpy, non-recurring charges tied to formation, acquisition, or public listing costs, as seen in the massive 2024Q2 charge. The more normalized quarterly run-rate appears to be in the $14M-$16M range, which is sustainable at current revenue levels. The key operational test for management will be proving they can control this base as the company scales, preventing it from becoming a permanent drag on the industry-leading gross margins.
Sustainability of 81% Growth in a Cyclical Basin
The 81.1% TTM revenue growth, as reported in recent filings, may be a unsustainable high-water mark, particularly if driven by one-time surface easement payments that could normalize as the Delaware Basin infrastructure build-out matures.
A key bear case is that the exceptional growth rate is a function of a specific, lumpy capital cycle rather than a durable trend. If the largest surface agreements have already been captured, future revenue growth must rely more heavily on commodity-linked royalties and water sales, which are more sensitive to rig counts and operator spending. Furthermore, the 4.3% ROE suggests that despite high margins, the business may be capital-intensive or that recent asset contributions have bloated the equity base, potentially limiting future return expansion. Investors should scrutinize the cash flow statement for evidence of how much earnings growth is translating into free cash flow.