Revenue growth has turned volatile with a 16.8% contraction in 2025Q3, while gross margins have sharply declined from 20.6% in 2025Q4 to 6.2% in 2026Q1.
| Sales/Revenue | 4.05B | 4.01B | 4.32B | 4.75B | 4.15B | 2.47B | 965.79M | 1.99B | 2.16B | 1.49B | 374.77M | 455.4M |
| Revenue Growth % | -4.02% | -7.16% | -9.11% | 14.43% | 67.93% | 155.83% | -51.48% | -7.65% | 44.65% | 297.54% | -17.71% | - |
| Cost of Goods Sold | 3.62B | 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 | 433.12M | 457.92M | 609.61M | 977.04M | 677.16M | -41.9M | -72.28M | 203.79M | 401.27M | 261.37M | -21.32M | 25.63M |
| Gross Margin % | 10.69% | 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 | 370.4M | 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 | 241.2M | 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 | 1000K | 129.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 62.72M | 81.28M | 384.13M | 757.72M | 514.13M | -162.56M | -144.18M | 110.7M | 312.32M | 181.28M | -57.11M | -3.14M |
| Operating Margin % | 1.55% | 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 | 549.37M | 581.62M | 889.18M | 1.18B | 837.16M | 100.2M | 35.91M | 276.08M | 437.43M | 262.76M | -15.74M | 33.3M |
| EBITDA Margin % | 13.57% | 14.52% | 20.61% | 24.84% | 20.18% | 4.06% | 3.72% | 13.87% | 20.3% | 17.64% | -4.2% | 7.31% |
| EBITDA Growth % | -31.48% | -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) | 486.65M | 500.33M | 505.05M | 421.51M | 323.03M | 262.76M | 180.08M | 165.38M | 125.11M | 81.47M | 41.36M | 36.44M |
| EBIT | 201.8M | 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 | -38.49M | -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 | 38.49M | 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 | 136.41M | 113.91M | 19.14M | -22.83M | -114.62M | -15.23M | -47.35M | -21.78M | -22.9M | -12.78M | -3.45M | -5.92M |
| Pretax Income | 199.14M | 195.19M | 403.27M | 734.89M | 399.51M | -177.79M | -191.53M | 88.92M | 289.42M | 168.5M | -60.56M | -9.06M |
| Pretax Margin % | 4.92% | 4.87% | 9.35% | 15.48% | 9.63% | -7.2% | -19.83% | 4.47% | 13.43% | 11.31% | -16.16% | -1.99% |
| Income Tax | 48.82M | 47.32M | 87.26M | 178.48M | -793K | 9.22M | -30.86M | 14.05M | 40.38M | 0 | 0 | 0 |
| Effective Tax Rate % | 24.51% | 24.24% | 21.64% | 24.29% | -0.2% | -5.18% | 16.11% | 15.8% | 13.95% | 0% | 0% | 0% |
| Net Income | 150.32M | 147.87M | 316.01M | 556.32M | 399.6M | -179.24M | -115.58M | 39M | 126.35M | 0 | 0 | -9.06M |
| Net Margin % | 3.71% | 3.69% | 7.32% | 11.72% | 9.63% | -7.25% | -11.97% | 1.96% | 5.86% | - | - | -1.99% |
| Net Income Growth % | -40.87% | -53.21% | -43.2% | 39.22% | 322.94% | -55.08% | -396.34% | -69.13% | - | - | 100% | - |
| Net Income (Continuing) | 150.32M | 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) | 0.90 | 0.89 | 1.87 | 3.15 | 2.11 | -1.03 | -1.36 | 0.71 | 1.07 | 3.00 | -0.51 | -0.08 |
| EPS Growth % | -39.57% | -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 | -0.89 | -0.13 |
| Diluted Shares Outstanding | 166.25M | 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 | 162.05M | 161.97M | 165.03M | 171.84M | 184.33M | 174.02M | 85.24M | 72.33M | 68.15M | 68.98M | 67.79M | 67.79M |
| Dividend Payout Ratio | - | 36.84% | 15.29% | 6.77% | 2.29% | - | - | 37.88% | 5.47% | - | - | - |
Cyclical demand and margin compression
As reported in recent financial filings, Liberty Energy's revenue growth has exhibited significant volatility, shifting from a 4.5% increase in 2026Q1 to a contraction of 16.8% in 2025Q3, reflecting the inherent sensitivity of North American completion services to fluctuating E&P capital expenditure cycles and regional basin activity.
The recent return to positive revenue growth in 2026Q1 suggests a potential stabilization in demand, yet the preceding multi-quarter decline highlights the company's vulnerability to regional activity shifts. Investors should monitor whether this growth is sustainable or merely a temporary rebound from the trough observed in late 2025.
Based on the company's reported income statements, gross margins have experienced a sharp contraction from 20.6% in 2025Q4 to 6.2% in 2026Q1, indicating that Liberty Energy is struggling to maintain pricing power amidst a highly competitive and cost-sensitive hydraulic fracturing service environment in the US.
The significant drop in gross margin suggests that the company is unable to fully pass through inflationary pressures or that competitive pricing dynamics are forcing lower service rates. This trend warrants further investigation into whether the shift toward electric fleets is providing the anticipated cost-efficiency benefits or if mobilization costs are currently outweighing operational gains.
According to historical data, Liberty Energy's operating income has failed to scale with revenue, as evidenced by the collapse of operating margins from 12.3% in 2024Q2 to a mere 0.4% in 2026Q1, demonstrating that fixed costs and operational overhead remain heavy burdens during periods of revenue volatility.
The inability to maintain operating leverage suggests that the company's cost structure is heavily weighted toward fixed assets that require consistent utilization to remain profitable. The current operating margin appears to be near a break-even point, which leaves little room for error should market conditions deteriorate further.
As disclosed in recent quarterly reports, the emergence of stock-based compensation expenses, which reached $8.0 million in 2026Q1 after being zero for several prior quarters, suggests a shift in compensation strategy that may dilute earnings quality and impact the reported net income available to common shareholders.
The introduction of these non-cash expenses complicates the assessment of core operational profitability and may mask the true underlying earnings power of the business. Analysts should scrutinize whether this shift in compensation structure is intended to align management incentives or if it represents a recurring cost that will continue to weigh on future EPS performance.
Based on the provided financial figures, the sharp decline in operating income from $143.1 million in 2024Q2 to $3.8 million in 2026Q1 raises significant questions regarding the durability of Liberty Energy's business model in a lower-activity environment, potentially signaling that the company's competitive moat is being tested.
While management emphasizes technological differentiation, the income statement suggests that the company remains highly susceptible to the same cyclical pressures as its peers. Investors should consider whether the current valuation adequately reflects the risk of prolonged margin compression if the transition to electric fleets fails to yield the expected structural cost advantages.
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.