Revenue growth of 26.3% YoY to $1.2B in Q3 2026 has not scaled to the bottom line, with operating income of $19.3M (1.6% margin) a fraction of the $143.1M (12.3%) delivered at comparable revenue in Q2 2024, while SG&A rose to $69.5M from $57.7M, suggesting structural pricing weakness.
Liberty Energy Inc. (LBRT) annual income statement — 11-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 |
|---|
| Sales/Revenue | 4.44B | 4.01B | 4.32B | 4.75B | 4.15B | 2.47B | 965.79M | 1.99B | 2.16B | 1.49B | 374.77M | 455.4M |
| Revenue Growth % | 13.65% | -7.16% | -9.11% | 14.43% | 67.93% | 155.83% | -51.48% | -7.65% | 44.65% | 297.54% | -17.71% | - |
| Cost of Goods Sold | 3.76B | 3.55B | 3.71B | 3.77B | 3.47B | 2.51B | 1.04B | 1.79B | 1.75B | 1.23B | 396.09M | 429.78M |
| COGS % of Revenue | - | 88.57% | 85.87% | 79.42% | 83.68% | 101.7% | 107.48% | 89.76% | 81.38% | 82.46% | 105.69% | 94.37% |
| Gross Profit | 686.87M | 457.92M | 609.61M | 977.04M | 677.16M | -41.9M | -72.28M | 203.79M | 401.27M | 261.37M | -21.32M | 25.63M |
| Gross Margin % | 15.45% | 11.43% | 14.13% | 20.58% | 16.32% | -1.7% | -7.48% | 10.24% | 18.62% | 17.54% | -5.69% | 5.63% |
| Gross Profit Growth % | - | -24.88% | -37.61% | 44.28% | 1716.1% | 42.03% | -135.47% | -49.21% | 53.52% | 1326.07% | -183.18% | - |
| Operating Expenses | 631.2M | 376.63M | 225.47M | 219.32M | 163.03M | 120.66M | 71.9M | 93.09M | 88.95M | 80.09M | 35.79M | 28.77M |
| OpEx % of Revenue | - | 9.4% | 5.23% | 4.62% | 3.93% | 4.88% | 7.44% | 4.68% | 4.13% | 5.38% | 9.55% | 6.32% |
| Selling, General & Admin | 261.22M | 247.44M | 225.47M | 219.32M | 163.03M | 120.66M | 71.9M | 93.09M | 88.95M | 80.09M | 35.79M | 28.77M |
| SG&A % of Revenue | - | 6.18% | 5.23% | 4.62% | 3.93% | 4.88% | 7.44% | 4.68% | 4.13% | 5.38% | 9.55% | 6.32% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 129.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 55.67M | 81.28M | 384.13M | 757.72M | 514.13M | -162.56M | -144.18M | 110.7M | 312.32M | 181.28M | -57.11M | -3.14M |
| Operating Margin % | 1.25% | 2.03% | 8.9% | 15.96% | 12.39% | -6.58% | -14.93% | 5.56% | 14.49% | 12.17% | -15.24% | -0.69% |
| Operating Income Growth % | - | -78.84% | -49.3% | 47.38% | 416.28% | -12.75% | -230.24% | -64.56% | 72.28% | 417.45% | -1720.43% | - |
| EBITDA | 517.89M | 581.62M | 889.18M | 1.18B | 837.16M | 100.2M | 35.91M | 276.08M | 437.43M | 262.76M | -15.74M | 33.3M |
| EBITDA Margin % | 11.65% | 14.52% | 20.61% | 24.84% | 20.18% | 4.06% | 3.72% | 13.87% | 20.3% | 17.64% | -4.2% | 7.31% |
| EBITDA Growth % | -11.79% | -34.59% | -24.6% | 40.86% | 735.48% | 179.05% | -86.99% | -36.89% | 66.48% | 1768.83% | -147.28% | - |
| D&A (Non-Cash Add-back) | 462.22M | 500.33M | 505.05M | 421.51M | 323.03M | 262.76M | 180.08M | 165.38M | 125.11M | 81.47M | 41.36M | 36.44M |
| EBIT | 35.51M | 235.5M | 435.96M | 764.38M | 422.22M | -162.19M | -176.76M | 106.4M | 306.94M | 181.19M | -54.43M | -3.56M |
| Net Interest Income | -26.68M | -40.31M | -32.21M | -27.51M | -22.71M | -15.6M | -14.51M | -14.68M | -17.14M | -12.64M | -6.13M | -5.5M |
| Interest Income | 0 | 0 | 478K | 1.99M | 0 | 0 | 263K | 2.8M | 0 | 0 | 0 | 0 |
| Interest Expense | 26.68M | 40.31M | 32.69M | 29.49M | 22.71M | 15.6M | 14.77M | 17.48M | 17.14M | 12.64M | 6.13M | 5.5M |
| Other Income/Expense | -3.93M | 113.91M | 19.14M | -22.83M | -114.62M | -15.23M | -47.35M | -21.78M | -22.9M | -12.78M | -3.45M | -5.92M |
| Pretax Income | 51.74M | 195.19M | 403.27M | 734.89M | 399.51M | -177.79M | -191.53M | 88.92M | 289.42M | 168.5M | -60.56M | -9.06M |
| Pretax Margin % | 1.16% | 4.87% | 9.35% | 15.48% | 9.63% | -7.2% | -19.83% | 4.47% | 13.43% | 11.31% | -16.16% | -1.99% |
| Income Tax | 11.44M | 47.32M | 87.26M | 178.48M | -793K | 9.22M | -30.86M | 14.05M | 40.38M | 0 | 0 | 0 |
| Effective Tax Rate % | 22.1% | 24.24% | 21.64% | 24.29% | -0.2% | -5.18% | 16.11% | 15.8% | 13.95% | 0% | 0% | 0% |
| Net Income | 40.31M | 147.87M | 316.01M | 556.32M | 399.6M | -179.24M | -115.58M | 39M | 126.35M | 0 | 0 | -9.06M |
| Net Margin % | 0.91% | 3.69% | 7.32% | 11.72% | 9.63% | -7.25% | -11.97% | 1.96% | 5.86% | - | - | -1.99% |
| Net Income Growth % | -78.34% | -53.21% | -43.2% | 39.22% | 322.94% | -55.08% | -396.34% | -69.13% | - | - | 100% | - |
| Net Income (Continuing) | 40.31M | 147.87M | 316.01M | 556.41M | 400.3M | -187M | -160.67M | 74.86M | 249.03M | 168.5M | -60.56M | -9.06M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 2.29M | 17.2M | 159.41M | 226.66M | 307.75M | 0 | 0 | 0 |
| EPS (Diluted) | 0.25 | 0.89 | 1.87 | 3.15 | 2.11 | -1.03 | -1.36 | 0.71 | 1.07 | 3.00 | -0.51 | -0.08 |
| EPS Growth % | -78.35% | -52.41% | -40.63% | 49.29% | 304.85% | 24.26% | -291.55% | -33.64% | -64.33% | 688.24% | -564.93% | - |
| EPS (Basic) | - | 0.91 | 1.91 | 3.24 | 2.17 | -1.03 | -1.36 | 1.03 | 1.85 | 3.00 | -0.51 | -0.13 |
| Diluted Shares Outstanding | 163.19M | 166.03M | 169.4M | 176.36M | 189.35M | 174.02M | 85.24M | 105.26M | 117.84M | 68.98M | 56.09M | 118.2M |
| Basic Shares Outstanding | 163.19M | 161.97M | 165.03M | 171.84M | 184.33M | 174.02M | 85.24M | 72.33M | 68.15M | 68.98M | 56.09M | 67.79M |
| Dividend Payout Ratio | - | 36.84% | 15.29% | 6.77% | 2.29% | - | - | 37.88% | 5.47% | - | - | - |
Quick answers to the most common questions about buying LBRT stock.
For fiscal year 2025, Liberty Energy Inc. (LBRT) reported total revenue of $4.01B. This represents a 779.7% increase compared to $455.4M in 2015.
Liberty Energy Inc. (LBRT) is profitable, generating $147.9M in net income for the fiscal year ending 2025 with a net profit margin of 3.7%.
Liberty Energy Inc. (LBRT) reported an operating income of $81.3M, resulting in an operating profit margin of 2.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Liberty Energy Inc. (LBRT) generated $457.9M in gross profit for the year, representing a gross profit margin of 11.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Structural margin compression despite revenue recovery
Metrics are mathematically derived from official filings.
Revenue Recovery Driven by Volume, Not Pricing
Revenue re-accelerated to $1.2B in Q3 2026, up 26.3% YoY per company financial statements, following seven consecutive quarters of contraction, suggesting the recovery is volume-driven rather than pricing-led and may lack durability absent sustained improvement in US land completion activity and E&P capital budgets.
The trajectory from 2024Q4 ($943.6M, -12.2% YoY) through 2026Q3 ($1.2B, +26.3% YoY) represents a clear inflection point, but the quality of that recovery is questionable. Gross margins during the recovery quarters have been no better than during the 2024 downturn (16.8% in Q3 2026 vs. 17.3% in Q2 2024), implying the top-line growth is coming from fleet utilization gains—filling white space at prevailing day rates—rather than from pricing power. Investors should watch whether the sequential revenue uptick from $1.0B in Q1 2026 to $1.2B in Q2 and Q3 reflects a durable uptick in completions or a one-time pull-forward driven by DUC inventory drawdown.
Gross Margin Volatility Signals Structural Fragility
Gross margin has oscillated between 5.8% and 20.6% across ten quarters without directional conviction, reflecting LBRT's inability to reliably pass through input cost volatility; Q3 2026 gross margin of 16.8% remains below the 20.6% level of Q4 2025, per reported figures, despite materially higher quarterly revenue.
The extreme quarterly swings—from 20.6% in Q4 2025 down to 6.2% in Q1 2026 then back to 17.5% in Q2 2026—suggest the gross margin is highly sensitive to the timing of contract repricing relative to input cost movements, particularly proppant and labor. This pattern is inconsistent with the vertical integration thesis that sand self-sufficiency should provide margin insulation; if captive mining were truly dampening input cost swings, the margin variability should be structurally lower. Compared to peers like RES (14.3%) and WTTR (14.0%), LBRT's recent 16.8% is competitive, but the historical inconsistency raises the question of whether any given quarter's margin is sustainable or simply a favorable snapshot within a wider distribution.
Top-Line Recovery Fails to Scale Operating Income
At comparable $1.2B revenue, Q3 2026 operating income of $19.3M (1.6% margin) represents a fraction of the $143.1M (12.3%) achieved in Q2 2024, while SG&A has grown to $69.5M from $57.7M, indicating the top-line recovery has not translated into commensurate operating income expansion, as reported.
The operating leverage story is deeply asymmetric. Revenue in Q3 2026 is approximately flat with Q2 2024 in dollar terms, yet operating income has collapsed by over 85%, from $143.1M to $19.3M. SG&A inflation of roughly 20% ($57.7M to $69.5M) explains some of the deterioration, but the larger driver appears to be COGS absorbing a far higher share of revenue ($995M vs. $959M at similar revenue), suggesting either higher fleet reactivation/mobilization costs or less favorable contract terms. If management cannot decouple SG&A growth from revenue or stabilize COGS as a percentage of sales, the operating leverage thesis behind the electric fleet transition will remain aspirational rather than realized.
Non-Operating Charges Mask Underlying Earnings
Q3 2026 net loss of $39.1M despite $19.3M in operating income implies substantial non-operating charges warranting scrutiny, while quarterly SBC of $10.0M and the consistently reported $0 R&D line raise questions about how much of reported EPS reflects underlying operational performance versus non-recurring items.
The divergence between operating income and net income in the most recent quarter is stark: a $19.3M operating profit converts to a $39.1M net loss, a $58.4M swing that suggests non-operating items—potentially impairments, derivative losses, or tax charges—are materially depressing reported results. The pattern of SBC appearing intermittently ($0 in several quarters, then $8-18M in others) creates uneven EPS comparability; investors should normalize for SBC on a trailing basis rather than rely on any single quarter. The absence of any reported R&D expense across all ten quarters is notable for a company whose competitive moat rests on electric fleet technology and data analytics, and may indicate that engineering costs are embedded in COGS or SG&A rather than disclosed separately, limiting visibility into true technology investment.
Margin Erosion Suggests Structural Pricing Weakness
The bear case centers on operating margin collapse from 12.3% in Q2 2024 to 1.6% in Q3 2026 despite revenue recovery to $1.2B, suggesting LBRT may be sustaining volumes through aggressive pricing concessions rather than structural efficiency gains, leaving it vulnerable to further compression if completion activity softens, per reported figures.
A short-seller would argue that the Q3 2026 revenue acceleration of 26.3% is being bought with price, not earned through differentiation. If the digiFrac electric fleet and sand integration were genuinely creating pricing power, gross margins should be trending toward the 20%+ level sustained in Q4 2025, not settling at 16.8%. The peer set reinforces this concern: RES is growing revenue at 15% with 3.5% operating margins and 4.8% ROIC, while LBRT's 2.03% operating margin appears comparable despite a more advanced technology platform. Combined with the Q3 2026 net loss and a thin cash position of $27.5M relative to roughly $4B in trailing revenue, the margin compression may be more structural than cyclical, and investors should monitor whether Q4 2026 gross margins hold above 15% as a key test of the bull thesis.