Revenue contracted 7.2% YoY in 2026Q2, marking the fifth consecutive quarter of decline, while gross margin swung to 17.5% from 5.8% in 2025Q3, reflecting volatile pricing and weak operating leverage (operating margin 1.1%).
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 | 4.2B | 4.01B | 4.32B | 4.75B | 4.15B | 2.47B | 965.79M | 1.99B | 2.16B | 1.49B | 374.77M | 455.4M |
| Revenue Growth % | 2.29% | -7.16% | -9.11% | 14.43% | 67.93% | 155.83% | -51.48% | -7.65% | 44.65% | 297.54% | -17.71% | - |
| Cost of Goods Sold | 3.66B | 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 | 540.42M | 457.92M | 609.61M | 977.04M | 677.16M | -41.9M | -72.28M | 203.79M | 401.27M | 261.37M | -21.32M | 25.63M |
| Gross Margin % | 12.88% | 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 | 507.68M | 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 | 250.03M | 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 | 2M | 129.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 32.73M | 81.28M | 384.13M | 757.72M | 514.13M | -162.56M | -144.18M | 110.7M | 312.32M | 181.28M | -57.11M | -3.14M |
| Operating Margin % | 0.78% | 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 | 504.23M | 581.62M | 889.18M | 1.18B | 837.16M | 100.2M | 35.91M | 276.08M | 437.43M | 262.76M | -15.74M | 33.3M |
| EBITDA Margin % | 12.02% | 14.52% | 20.61% | 24.84% | 20.18% | 4.06% | 3.72% | 13.87% | 20.3% | 17.64% | -4.2% | 7.31% |
| EBITDA Growth % | -28.73% | -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) | 471.5M | 500.33M | 505.05M | 421.51M | 323.03M | 262.76M | 180.08M | 165.38M | 125.11M | 81.47M | 41.36M | 36.44M |
| EBIT | 145.03M | 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 | -31.69M | -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 | 31.69M | 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 | 123.53M | 113.91M | 19.14M | -22.83M | -114.62M | -15.23M | -47.35M | -21.78M | -22.9M | -12.78M | -3.45M | -5.92M |
| Pretax Income | 156.26M | 195.19M | 403.27M | 734.89M | 399.51M | -177.79M | -191.53M | 88.92M | 289.42M | 168.5M | -60.56M | -9.06M |
| Pretax Margin % | 3.72% | 4.87% | 9.35% | 15.48% | 9.63% | -7.2% | -19.83% | 4.47% | 13.43% | 11.31% | -16.16% | -1.99% |
| Income Tax | 33.84M | 47.32M | 87.26M | 178.48M | -793K | 9.22M | -30.86M | 14.05M | 40.38M | 0 | 0 | 0 |
| Effective Tax Rate % | 21.65% | 24.24% | 21.64% | 24.29% | -0.2% | -5.18% | 16.11% | 15.8% | 13.95% | 0% | 0% | 0% |
| Net Income | 122.42M | 147.87M | 316.01M | 556.32M | 399.6M | -179.24M | -115.58M | 39M | 126.35M | 0 | 0 | -9.06M |
| Net Margin % | 2.92% | 3.69% | 7.32% | 11.72% | 9.63% | -7.25% | -11.97% | 1.96% | 5.86% | - | - | -1.99% |
| Net Income Growth % | -43.54% | -53.21% | -43.2% | 39.22% | 322.94% | -55.08% | -396.34% | -69.13% | - | - | 100% | - |
| Net Income (Continuing) | 122.42M | 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) | 0.73 | 0.89 | 1.87 | 3.15 | 2.11 | -1.03 | -1.36 | 0.71 | 1.07 | 3.00 | -0.51 | -0.08 |
| EPS Growth % | -42.88% | -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 | 167.66M | 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 | 163.02M | 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% | - | - | - |
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
Revenue decline and thin margins
Metrics are mathematically derived from official filings.
Revenue Contraction Persists
LBRT's revenue fell 7.2% year-over-year in 2026Q2, marking the fifth consecutive quarter of negative growth, though the sequential uptick suggests stabilization.
The -7.2% YoY decline in 2026Q2 follows a pattern of deceleration from -2.9% in 2024Q2 to -16.8% in 2025Q3. While the sequential increase from $1.0B in 2026Q1 to $1.2B in 2026Q2 hints at a potential trough, the persistent negative YoY growth indicates a challenging demand environment for US land completion services. The revenue trajectory appears to be bottoming, but a sustained recovery is not yet evident.
Gross Margin Volatility Signals Pricing Pressure
Gross margin swung from 5.8% in 2025Q3 to 17.5% in 2026Q2, reflecting extreme volatility and pricing power that appears weak relative to peers.
The wide fluctuation in gross margin—ranging from 5.8% to 20.6% over the past year—suggests an inability to consistently pass through costs, likely due to intense competition and pricing pressure. LBRT's 17.5% gross margin in 2026Q2 is above the peer average (ProPetro 9.9%, ProFrac 3.7%, RPC 14.3%), but the volatility indicates that margin stability is elusive. This may reflect the high variable cost structure and the impact of fleet utilization swings.
Operating Leverage Remains Elusive
Operating income swung from a loss of $3.6M in 2025Q3 to a gain of $12.7M in 2026Q2, but the operating margin of 1.1% shows limited scalability.
Despite a 14% sequential revenue increase in 2026Q2, operating income only rose from $3.8M to $12.7M, implying that fixed costs are absorbing much of the incremental revenue. The operating margin of 1.1% is far below the 12.3% achieved in 2024Q2, indicating that the company is not yet benefiting from operating leverage as volumes recover. This suggests that cost discipline is critical, but the current cost structure may be too heavy for the revenue base.
Earnings Quality Clouded by Tax and Non-Operating Items
Net income of $43.1M in 2026Q2 exceeded operating income by $30.4M, implying significant non-operating gains or tax benefits that inflate reported EPS.
The gap between operating income ($12.7M) and net income ($43.1M) in 2026Q2 is substantial, suggesting that items such as tax credits, interest income, or one-time gains are boosting the bottom line. This raises questions about the sustainability of EPS, as the core operations are barely profitable. Investors should scrutinize the components of other income and tax rates to assess the quality of earnings.
COGS Dominates Cost Structure
COGS averaged 88% of revenue over the last four quarters, leaving little room for margin expansion; SG&A remained stable at around $60M per quarter.
The cost structure is heavily weighted toward COGS, which includes proppant, chemicals, and labor, and has been running at 82-94% of revenue. This high variable cost base means that any revenue decline directly pressures gross margins. SG&A has been relatively flat at $58-67M per quarter, indicating disciplined overhead management, but the sheer size of COGS limits the impact of SG&A efficiency on overall profitability.
2024Q2 Marks Peak Profitability
2024Q2 was the inflection point, with operating margin peaking at 12.3% and net income at $108.4M, followed by a sharp decline to near break-even.
The 2024Q2 quarter represented the high-water mark for LBRT's recent profitability, with revenue of $1.2B and operating income of $143.1M. Since then, revenue has declined by 7% and operating income has collapsed by over 90%, reflecting a severe downturn in completion activity. This inflection highlights the cyclicality of the business and the speed at which profitability can erode when market conditions weaken.
What Could Invalidate the Base Case
The Q2 2026 EPS beat may be misleading, as net income relies on non-operating items and revenue remains negative YoY, suggesting underlying weakness.
Short-sellers could argue that the reported EPS of $0.26 in 2026Q2 is not sustainable because it is supported by a $30.4M gap between operating and net income, likely from tax benefits or one-time gains. Additionally, the persistent -7.2% YoY revenue decline and thin operating margins indicate that the company is not generating sufficient core profitability. If non-operating items normalize, EPS could revert to levels more consistent with the 1.1% operating margin, exposing the stock to downside risk.